Improving Customer Satisfaction for OCBC Bank's Credit Cards

This case study discusses the issues faced by OCBC bank in the credit card industry of Singapore, particularly poor customer satisfaction. It analyzes the problem statement, proposes solutions, and recommends an action plan to deal with the challenges of the market.

CASE STUDY

Table of Contents
Executive Summary........................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Case Description..........................................................................................................................4
Problem statement........................................................................................................................5
Analysis & findings.....................................................................................................................9
Proposed solution to problem....................................................................................................10
REFERENCES................................................................................................................................1

Executive Summary
The present report has discussed about OCBC bank and the issues it has been facing in the
market area like poor customer satisfaction. The study has aimed in identifying the problems
and providing the organization right solution to deal with the challenges of business. Although
literature review has been done in which various viewpoints of author has been taken so that
appropriate problem statement can be made. Detail discussion regarding issues has been done
and it has been compared that with various models of business. Graphical presentation has also
been done in problem statement which shows what OCBC has been facing in the market area and
what its position compare to its competitors. So from the problem statement details and factors
contributing in challenges will be analysed.
In addition to this, present report discussed problem faced by company related to
customer satisfaction and loyalty as well as it also provide possible solutions for this that can be
followed by company. Also, due to this issue there are more than 30% of customer are not satisfy
with the policy of credit card that is whys it is suggested that company should focus mores on
different type of policy which will attract customer such as collaborations with celebrities on
Instagram etc.

INTRODUCTION
The present case study has been based on OCBC bank which works in making and
providing their customer with credit card services to their customer. Along with this, the rating
of company was 72.1 points on scale of 0-100 and it has trailed behind the Citibank. Although
the performance of the company is very poor and it can be improved through merchant tie up and
employing high skilled workers. Moreover, OBCB bank follow credit Card business model.
Credit card is defining as financial products which offer customer to purchase products and
services. The amount is basically borrowed from the bank and the accumulated bill is sent every
month to the customer. The present study will analyse about the marketing issues faced by
company in order to keep their customer satisfied.
Aim: To analyses ways related to customer satisfaction so that productivity of firm can be
improved.
Objective:
 To identify issues faced by OBCB bank in the competitive market.
 To evaluate ways through which company can keep their customer satisfy and improve
their credit card rating.
 To find out relation between customer satisfaction and performance of company.
 To recommend the best action plan so that bank can deal with challenges of market.
MAIN BODY
Case Description
In the year of 2019 credit card industry of Singapore was facing various changes as there was
rise and fall in used of credit card. There were three local banks such as UOB, DBS and OCBC
bank as well as at international level there was HSBC, American Express, Citibank and
Maybank. There was increase in use of credit card by 18.6% since 2015 however there was
decline in distribution of card in 2019 as there was fall in number of cards issued by UOB,
Citibank and HSBC (de Souza and et.al., 2020). The drop in the card suggested that customers
has cancelled those card which was no longer useful and relevant for them. The competition was
high and dynamic in nature as customer can review the benefits of other available options. So it
is necessary for OCBC bank to make use of merchant tie up over time as well as give their
customer limited promotions like free gifts in order to gain market share. In year 2019 OCBC

bank was third largest issuers by transaction value and company hold 15.9% of the market share
through transaction value. It basically offers cashback, rewards and miles credit cards like cash
flow master card and 365 card. Some of the benefits offered by organization is 6% cashback on
online food delivery, 3% cashback on grocers, transport and online travel (Shokouhyar,
Shokoohyar and Safari, 2020). Each credit card was targeted with particular customer segment
through its unique set of core benefits like titanium rewards card which was aimed at avid
shoppers and the voyage card was used to target more affluent traveller so that customers can be
attracted and purchase at large. It has been found that OCBC bank was underperforming
compare to its competitors as well as have poor loyalty metrics. Because of the
underperformance of bank their productivity level has been declining. One of the major reason
poor customer satisfaction of OCBC bank it operates in saturated Singapore market area where
the cost of acquiring new credit card is relatively costlier.
Problem statement
In the case study of OCBC bank some of the major issue faced by company is poor customer
satisfaction. One of the reason for the decline in the loyalty of consumer is high competition in
the banking industry of Singapore. Due to high competition it is difficult for company to retain
their audience and made them stick with organization.
Figure 1 customer satisfaction graph
Source: Source: Institute of Service Excellence @ SMU, 2022.

From the above graph it can been identified that rating in year of 2018 of OCBC was 71.4
and there was only slight increase in year of 2019 by 1%. This indicates that company was not
focusing on keeping their customer satisfied or finding any strategy to keep them satisfied by
fulling their needs.
Figure 2 Loyalty metrics
Source: Institute of Service Excellence @ SMU, 2022.
From the graph of loyalty metrics, it can be identified that OCBC customer do not want to make
use of their credit again as compare to other competitors. The other international bank tries to
give their customer various benefits like gifts or free purchase if they are consuming their cards
more often. OCBC bank loyalty matrix has been decreasing form day by day and it is one of the
major reason poor production level. DAM and DAM, (2021) has stated that customer is source
of business and its contribution is very necessary so company should focus on keeping them
satisfied. From the graph it can be recommended that likelihood to recommend credit cards is
very poor as compare to other local and international financial institution. The reason for decline
in loyalty is poor brand awareness by OCBC bank and it need to increase the awareness
regarding products and services they are offering. This will help consumer in knowing about the
company and motivate them to purchase products and services. Similar view point of El-Adly,
(2019) has been on customer satisfaction and it stated that in order to increase the loyalty

creating awareness of brand is must and crucial for organization and it also increase turnover rate
of bank.
Figure 3 Performance of customer satisfaction.
Source: Institute of Service Excellence @ SMU, 2022
The above graph represents about the factors which helps in increasing the satisfaction of
customer. In case of OCBC it has been identified that company has good brand reputation and it
is one of the well-known local financial institution of Singapore. It has also been evaluated that
company also provides benefits of cards and help customer in understanding it better ways as
well as it makes them feel more comfortable while using card. This type of factors contributes in
gaining limited positive impact on customer satisfaction which is not very much helpful in
increasing production of company. It can be stated from the graph that for gaining the significant
change in the customer satisfaction OCBC firm has to tie up with merchant and implement
flexible policies regarding waiver of charges.
Rita, Oliveira and Farisa, (2019) has stated that customer satisfaction models allow business to
measure how happy their customers are with products and services as well as way it is impacting
on the overall performance (Kano Customer satisfaction model, 2022). Making use of such
frameworks change can be determine and improvement can have done to upgrade service and

products in order to make their customer happy. Along with this, model of customer satisfaction
takes various factor into account such as quality and values. It is one of the best tool to improve
the brand level and overall production of organization. Through Kano model of customer
satisfaction analysis of OCBC bank loyalty level a satisfaction level of its consumer has been
find out. This model basically identifies the most important features of the products and boost the
level of satisfaction of users and it also show relation between various attributes of services and
products and fulfilment of consumer needs. It has been analysed from the implication of model
that OCBC do not invest in increasing the brand awareness in the market area and this was the
major reason most of the users are not aware about the services and benefits of the credits card
given by bank (Mohammed and Rashid, 2018). Although one of the major reason for poor
customer satisfaction is high competition faced by organization so it is hard to keep user satisfied
with dynamic market area and trends of credit industry. Some innovative ideas like benefits to
customer need to be given who make use of credit card on regular basis such as gift voucher and
free purchase. Also this type of marketing strategy will also contribute in increasing the loyalty
of selected audience and overall production of company can be improved in better ways. Otto,
Szymanski and Varadarajan, (2020) has stated that valuable guidance will be received by
organization which will contribute in developing products more efficiently and effectively.
Excitement attributes need to be expected by the consumer as it will naturally help in ensuring
high satisfaction. Also indifferent attributes will impact on the decision making of the audience
and improve bank ability to sustain in competitive environment. Moreover, form the use of
Porter five force model it can be analysed that OCBC bank has been facing issues related to high
competition and due to that there is poor financial stability as bank need to invest in other
business factors. In addition to this, from porter model it has been identified that OCBC has to
focus on market penetration in other country with existing products and services as it will allow
to reduce the competition and increase performance level. However, one of the best ways to
enhance the stability is to collaborate with international merchant as it will allow to cover global
market area and increase customer range.

Analysis & findings
It has been analyse that in the present case study there are low satisfaction and loyalty
for OCBC Bank's credit cards which has been looking for past 5 years. On the basis of survey it
can be said that due to this issue it is moving forward by analysing of keys customers loyalty
metrics(Pakurár, Popp and Oláh, 2019).
In order to analyse customers satisfaction model it is refers for getting customer
equations by measuring how happy customer are with company's product or services so that it
help for overall performance of business. Also, this is useful model because by company in
order to identify the changes which for upgrade and improve their services and product in order
to view happiness of customer (Otto, Szymanski and Varadarajan, 2020). There are different
factors on which it is depend on such as perceived quality, perceived value and customer
satisfaction for credit card. On the basis of Kano model of customer satisfaction it is necessary
for research by identifying different factors and its features as well as it is boosting level of
satisfaction.
There are different attributes are followed in order to focus on creating products which
are related to need of customer as well as focus on team which are employ potential new product
features and capability for enhancing the customer satisfaction. It is necessary for choosing firm
by focus on criteria which are related to resources and investment that need implementation and
make customer happy (Mohammed and Rashid, 2018). The four category are related to
threshold, performance, excitement and indifferent attributes. In order to analyse the first
attributes it can be said that it is necessary to expect the customer on the basis of must for
services which are credit card satisfactions as per case study. Also,according to this model the
costs of product or services included which impact by poor performance as well as it cause great
dissatisfaction which compromise the quality function deployment. For example, there are
different types of credit card offered by company with different schemes which cause monitoring
productivity and performance(Zouari and Abdelhedi, 2021) .
Performance attributes is one of the another attributes which are related to the merrier and
better for fulfilment leads that causes linear by increasing customer satisfaction and absence of
poor performances by diminishing the customer satisfaction. Then, in this process it helps for
identifying the will power of customer by focus more on performance of product such as
customer can willing to pay more for credit card only when it provides better services to existing

customer. Then, it can be said that excitement attribute cannot expressed by explicitly of
customer in general it is not expected as much as it can delight the result and high satisfaction of
customer (Budur and Poturak, 2021). For the chosen case study this attribute might because
dissatisfaction because it is depend on latent need as well as it is based on building attributes by
gaining competitive advantages which is necessary for attracting large number of customer.
Also, this attribute will help for future as well as finally end up in threshold attribute. For
example, increasing times period of credit card payment.
In addition to this, it can be said that that last attributes is related to indifferent attributes
of products that are not exactly fall into three categories as well as it can be discuss on the basis
of setting the importance to customer by influencing decision-making. In this it is related to the
ideal product which have basic attribute by maximizing the performance that can incorporate by
excitement as well as possible price (El-Adly, 2019).
On basis of above analysis it has been found that this model is manufacturing product or
services that are help for making better product decision. Also, for the present case study it is
necessary to focus on customer loyalty and satisfactions which are related to the degrees of
important by following different dimensions in order to evaluate stage by customers. On the
basis of development it can be said that it refined model by focus more on that kind of tool as
well as it help OCBC bank card to provide best offer to customer so that it increase customer
loyalty. Also, for company it helps for increasing demand on firms as newer product that is more
quickly fill the gap between the conception of idea of final products in order to serve pressure
(DAM and DAM, 2021). This phenomenon cause due to quality control by which defect product
as first place in order tos prevented rather than cancel the policy for selling credit card. This is
beneficial for understanding the attribute for product teams that can be utilize by developing any
product or services. Also, it can prove very beneficial for teams ins order to align for quality of
credit card that is working for tight the deadlines and limited resources (Ahmed, Soomro and
Streimikis, 2021).
Proposed solution to problem
HRM Problem & solution
The HRM problems is related to monitoring productivity and performance that can be
share responsibility of managers also the main challenge is to monitoring performance by
identifying all key areas that is taking necessary action for run things. Then it is necessary to opt

possible solution by using human resource platforms which are help for providing the facility of
engagement tracking and management (Kurdi, Alshurideh and Alnaser, 2020). Then it is
requires for setting gaols of each of individual so that they can more focus on presenting
processes as potential changes to executive team. Hrs department is one of the most important
for bank in order to mange all the possible outcome that can create mission critical tasks. Also,
this is fewer for employees that dedicated for missions critical tasks that multi faced role bring
with unique challenges and problems (Qureshi and Dahri, 2020).
Marketing Problem & solution
One of the most common problem is related to the collaboration which evolve and
experts of different areas of company as well as for chosen bank the marketing strategies not
worked well because it impacted not attracting large number of customers by ensuring the
content assigned (Nunan and Christodoulides, 2018). It is suggested that bank should hire
marketing coordinator so that they manage by focus more on additional staff ,planning is key,
content marketing etc. Further, the aim of organisations is to focus more on different areas which
are necessary for business.
Strategic Marketing Problem & solution
To attracting wrong customers it is reflecting that low engagement which can be evaluate
by focus more on genuinely not interested for product offering such as credit card. That is why
company impact by wasting of efforts, resources, budget and time. That can be constructed
customers profile which is mismatch with marketing. In order to provide the best solution it is
necessary to target this customer which are interested in getting card (Keskar, Pandey and
Patwardhan, 2020).
The Best Fit solution is related to the focus on marketing which is related to collaboration
with celebrities so that it help for core benefits which are helpful for providing different types of
schemes. It has been recommended that company should focus on 365 cards, credit card PLUS,
cashflo master card, frank credit card etc (Shokouhyar, Shokoohyar and Safari, 2020). Then it is
also recommend that rewards should be plan for company in order to focus more on titanium
rewards card, robinsons card and miles 90degree card and voyage card which help for attracting
customer by getting main benefit on dining on online food delivery which help to attract young
audience. Also, it is related to 3% of cashback on groceries which help to attract household
customers as well as fuel saving at esso and 18.1% at caltex. Further, it is recommended that

with the help of frank credit card it is helpful for improving customer loyalty which is necessary
for company as well as there are respondents in order to focus on solving issue by provide them
customer experience (de Souza, Damacena and Seibt, 2020).
In order to focus on rewarding loyal customer by early access program it help company
to focus more on give them benefit to new product which has not officially launched by offering
same services as well as it is related to similar program which depend on using software like
constant contact that has separate email in order to focus ons simply act for making customer
beneficial for building trust and loyalty with audience (Jahan, Ali and Al Asheq, 2020). Also, it
is necessary for ask audience by focus more on informed opinion that could be helpful for
determining new service in order to release policy and procedure which are help for taking the
customer review as well as it is related to the invite customer to special event which help for
increasing interaction with customer as well as it build good image for people talk about business
as well as it is related to cheese event at store for charity event that support local community for
attracting them.
The scope of the strategy is to attract large number of customer and improving customer
loyalty which is very important for business. Also, it is related to focus more on all the aspect by
which it is impacted (Moosa and Kashiramka, 2022).

REFERENCES
Books and journals
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Islam, T. and et.al., 2021. The impact of corporate social responsibility on customer loyalty: The
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Sugiarto, S. 2021. Post hoc test of Indonesia domestic systemically important banks
performance at the ASEAN-5 level. IDEAS: Journal of Management &
Technology. 1(2). pp.34-46.
Szymanski, D. M. and Varadarajan, R., 2020. Customer satisfaction and firm performance:
insights from over a quarter century of empirical research. Journal of the Academy of
Marketing science. 48(3). pp.543-564.
Varadarajan, R., 2018. The operating modes of the qiaopi trade and impact on the qiaopiju: A
case study of the Oversea-Chinese Banking Corporation (OCBC) 1. In The Qiaopi Trade
and Transnational Networks in the Chinese Diaspora (pp. 130-143). Routledge.
Ye, S., Zhu, Y. and Lu, E., 2019. The innovation of retail banks in the cross-border payment
fund transfer system: take OCBC as an example. Modern Economy. 10(05). p.1479.
Online references
Kano Customer satisfaction model, 2022. [Online]. Available through <
https://www.revechat.com/blog/customer-satisfaction-model/>
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