Analysis of Customer Loyalty and Satisfaction in UK Credit Service Sector: A Case Study of OCBC Bank

This case study analysis focuses on the impact of customer loyalty and satisfaction on the business performance of OCBC Bank in the UK credit service sector. It identifies the issues faced by the bank due to low customer satisfaction and loyalty and proposes solutions to improve them. The analysis also highlights the approaches used by the bank to enhance customer satisfaction and loyalty.

Case Study Analysis

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
CHAPTER 1: Introduction to the case study...................................................................................4
Statement of the problem........................................................................................................4
Research aims and objectives.................................................................................................4
Structure of the report.............................................................................................................4
CHAPTER 2: Case brief: Description of the situation....................................................................6
To study the concept of customer loyalty and customer satisfaction in context of UK credit
service sector..........................................................................................................................6
To examine the impact of high customer satisfaction and loyalty for improved performance of
OCBC bank............................................................................................................................6
To determine the issues faced by OCBC bank due to low customer satisfaction and loyalty in
the business organisation........................................................................................................6
To identify the approaches used by OCBC Bank for improving customer satisfaction and
loyalty.....................................................................................................................................7
Research methodology.....................................................................................................................8
Chapter 4: Analysis and Findings....................................................................................................9
Chapter 5: Proposed solution to problem.......................................................................................12
Recommendation..................................................................................................................12
Limitation in the research.....................................................................................................12
Scope for further research....................................................................................................13
Chapter 3- Problem Statement and plan of analysis.....................................................................15
References......................................................................................................................................16

EXECUTIVE SUMMARY
The OCBC Bank, which is well recognised for offering its customers a variety of advantages and
services, will serve as the basis for the current study. It is clear that the bank is having a number
of problems offering credit card services. The objectives will be the primary focus of the current
research.

CHAPTER 1: Introduction to the case study
Statement of the problem
The primary issue identified in the current study is related to customer dissatisfaction since
businesses occasionally fail to give a degree of satisfaction. Due to the company's reputation for
producing high-quality goods and services, it is forced to deal with a number of difficulties that
might negatively affect overall profitability rates, damage brand reputations, create competitive
advantage, and many other things (Balci, Caliskan and Yuen, 2019). In relation to the OCBC
Bank, their main problem is tied to ensuring that clients are satisfied with their credit card
services. Along with that, the rejection of waivers is also seen to be a component that raises
customer discontent levels in the market. Such discontent may force clients to use credit card
services from rival businesses in the market, which will negatively affect the business's
performance as a whole (Prentice, Dominique Lopes, and Wang, 2020).
Research aims and objectives
Research aim
To investigate the impact of customer loyalty and satisfaction in enhancing the business
performance within the UK credit service sector. A study on OCBC Bank
Research objectives
 To study the concept of customer loyalty and customer satisfaction in context of UK
credit service sector
 To examine the impact of high customer satisfaction and loyalty for improved
performance of OCBC bank
 To determine the issues faced by OCBC bank due to low customer satisfaction and
loyalty in the business organisation
 To identify the approaches used by OCBC Bank for improving customer satisfaction and
loyalty
Structure of the report
Chapter 1: Introduction of the case study
For a better comprehension of the study, this chapter will primarily highlight the problem
statement along with the research aim and objectives.
Chapter 2: Case-brief: Description of the situation

To help with a better knowledge of the topic, this chapter will assist in outlining the material that
is pertinent to it.
Chapter3: Problem statement and plan of action
This chapter will assist in clarifying the specifics of the research technique and objectives (Slack,
and Singh, 2020).
Chapter 4: Analysis and Findings
This chapter will primarily provide a more thorough treatment of all relevant details.
Chapter 5: Proposed solution to problem
This chapter will offer some suggestions for resolving the issues. Additionally, the chapter will
discuss the research's scope and limitations.

CHAPTER 2: Case brief: Description of the situation
OCBC Bank is one of the well-known and well-known banks that is located in Singapore. It is
having some difficulties giving its customers the best services. The bank must perform better in
order to address the problems (Bauer and et.al., 2020). According to the information, there are
several methods for gaining a significant competitive advantage. By offering upper credit card
services, that will help in gratifying and keeping more clients. Along with it, there are other rival
businesses in the market that offer services like free credit cards, automatic fee waivers, no
annual fees, and lifetime charge waivers that cause customers to switch to other banks.
Additionally, increasing client attraction is necessary for the market to grow more successfully
(Cai and Chi, 2018). Because of this, the bank is aiming to use a variety of initiatives, including
rewards, cashback, and many others. Another objective is to offer cardholders promotions and
different offers when they utilise any kind of service. The OCBC bank also places a strong
emphasis on delighting its clients so that they can effectively handle the marketing goals. Along
with it, the bank offers Titanium Rewards cards to specific customers who select a high card
variance, among other things.

Chapter 3- Problem Statement and plan of analysis
This chapter of research project will highlight about the literature review which is said to be the
comprehensive summary. The summary will be used to describe, enumerate, summarise,
objectively evaluate as well as clarify the previous researches.
To study the concept of customer loyalty and customer satisfaction in context of UK credit
service sector
According to the view of Carmo, Marques and Dias, (2022), knowing how ready a
consumer is to interact with and make repeat purchases from a firm as opposed to one of their
competitors can reveal the existence of a customer loyalty programme. Customers are more
likely to spend more money on each transaction and return for more if an organisation offers a
nice and memorable experience for them. Customer satisfaction refers to a measurement that
shows how satisfied customers are with a company's goods, services, and capabilities. By
demonstrating how well their goods and services are received by customers, it represents the
health of the business. Customers' satisfaction can be increased by companies understanding
their needs, listening to their comments, setting reasonable expectations, paying attention to their
competition, being consistent in their communication with customers, and other factors.
To examine the impact of high customer satisfaction and loyalty for improved performance of
OCBC bank
In the perspective of Cheng and et.al., (2018), Better levels of customer satisfaction led to higher
levels of customer loyalty, which translate into higher levels of earnings, according to past study.
Customer loyalty and satisfaction have a beneficial impact on an organization's value and
profitability in the credit service industry. When clients are extremely delighted with a brand and
become devoted supporters, the business can concentrate on improving operations to better serve
customers and keep them engaged with the brand over the long term. Repeat business from
happy consumers forces businesses to perform better in order to meet their demands promptly
and keep them as customers. Profitability rises as customer happiness and loyalty go up. When a
firm becomes more profitable, it gives its staff useful incentives, which boosts corporate
performance.

To determine the issues faced by OCBC bank due to low customer satisfaction and loyalty in the
business organisation
As stated by e Sá, and Cunha, (2019), For the business to grow its sales and profitability, client
contentment and loyalty are crucial. But an organisation faces several difficulties when there is
low client satisfaction and loyalty. Loss of existing and future sales was an organization's first
obstacle. When customers are dissatisfied with a particular brand, they stop making repeat
purchases, which lowers revenue and results in a significant loss. Reputational damage is a
problem that an organisation has because of low client satisfaction and loyalty. When unhappy
customers complain to their friends or post on social media about the business, the reputation of
the business suffers and there is a significant financial loss. Due to this, the company had a tough
time using its brand to draw in and keep both new and existing clients. Low client loyalty and
satisfaction also provide challenges for the business in terms of surviving in a cutthroat industry.
It's because every business in the market is concentrating on employing techniques that will
make customers happy with their brand.
To identify the approaches used by OCBC Bank for improving customer satisfaction and loyalty
As stated by Famiyeh, Kwarteng, and Asante-Darko, (2018), The organisation can use a variety
of tactics to increase client loyalty and satisfaction in order to maximise profits. Offering
discounts to clients on their purchases is a company's initial tactic. Customers are more drawn to
a business and more likely to recommend it to their friends when they learn that it offers similar
products at discounts. Offering prizes to consumers is another tactic a business can use to
increase customer happiness and loyalty. Everyone is influenced by rewards, whether they are
given to customers or employees. Customers are more satisfied and devoted to a brand when
they receive benefits from the business. It causes the company's sales and profits to rise.
Research methodology
The procedures and methods that will be used to locate and evaluate the data related to the issue
are collectively referred to as the research methodology.
Research philosophy
The interpretivism research philosophy was chosen by the researcher for the current investigation
because it is appropriate for the research. It is common practise to gather qualitative data,
especially in natural settings (Hamouda, 2019).

Research approach
With the intention of performing scientific study, the inductive research approach will be quite
helpful in the current research. As it relates to the group of novel theories that have emerged
from the facts.
Research strategy
The case study approach is chosen for the research plan. It aids in producing a thorough,
multifaceted grasp of complicated, real-world challenges.
Research choice
For the current study, the researcher chose qualitative research since it aids in gathering and
analysing in-depth data pertaining to the research issue. It offers flexibility and subjectivity in the
research process.
Time Horizon
The current study makes use of a cross-sectional time horizon since it enables researchers to look
at several variables connected to the research issue at once and finish the study quickly.
Data collection
The researcher used secondary data gathering in the context of the current study since it provided
better cleansed and organised data.
Data Analysis
Thematic data analysis is the method used in the current study since it allows the researcher to
derive novel ideas and insights from the data.
Chapter 4: Analysis and Findings
Theme 1: Concept of customer loyalty and customer satisfaction in context of UK credit
service sector
From the analysis stated above, it is clear that customer loyalty and satisfaction are crucial
indicators of how satisfied customers are with a company's goods and services (Ji and Prentice.,
2021). Within the UK credit service industry, customer happiness is regarded as one of the most
crucial markers of client loyalty and purchase intentions. In order to acquire a high degree of
satisfaction from their customers, it is critical for the company organisation to properly grasp
their goals and needs. Customer loyalty, however, is equally crucial to a business because it
encourages recurring purchases of a certain good or service from customers. Higher profitability
and growth are the result of having more devoted clients in the cutthroat business environment.

Good customer service and corporate discounts or special offers on particular products are what
draw customers in the most. Offering consumers appropriate discounts and offers for using credit
cards is essential for the credit service sector to maintain a competitive edge in the business
market.
Theme 2: Impact of high customer satisfaction and loyalty for improved performance of
OCBC bank
From the information provided above, it can be concluded that OCBC Bank performs better
when its customers are more satisfied and loyal. Since they stay with the company for a longer
amount of time, satisfied clients are more beneficial for the company. When customers believe
they are receiving the best experience possible when using a product, they are more drawn to the
company's goods and services. Customers in the Singapore market can use credit cards from
OCBC Banks to assist them manage their spending appropriately (Lim and Parker, 2020).
Customers that are pleased and devoted to a brand are more likely to make repeat purchases,
improve brand loyalty, and spread favourable word of mouth in the marketplace. When
consumers are happy with the services provided by bank personnel, they are more likely to invest
in and use more of that bank's services, which boosts profitability and growth in the cutthroat
market. Higher customer satisfaction levels increase their loyalty by fostering a favourable and
favourable perception of the financial services. The most successful strategy banks use to
achieve high reliability and validity in the commercial sector is dealing with the demands and
needs of the clients.
Theme 3: Issues faced by OCBC bank due to low customer satisfaction and loyalty in the
business organisation
According to the study stated above, the company has a number of difficulties as a result of its
low customer satisfaction and loyalty, which lowers its overall performance and productivity in
the market. Because they do not find the services and products as productive and highly happy in
the market, low customer retention is a difficulty for the business (Mohamed Safuan and et.al.,
2021). Customers' dissatisfaction with the services provided by the company in the cutthroat
market is another problem for the bank. Customers become unhappy and switch to other
businesses in search of better services when a company organisation does not offer them better
services. Customers become irritated and frustrated when they have to wait a long time for their
concerns with a particular product or service to be resolved. As a result, it becomes more

difficult to keep and draw in new and existing clients who will use the OCBC bank's services and
products over the long term. Low client loyalty and satisfaction make it difficult for businesses to
survive in today's fiercely competitive marketplace.
Theme 4: The approaches used by OCBC Bank for improving customer satisfaction and
loyalty
From the analysis stated above, it has been determined that OCBC Bank can employ a variety of
tactics to win over consumers and foster their devotion to the bank's services (Nasir, Adil, and
Dhamija2021). Customers who choose a specific company to manage their daily costs
effectively are satisfied as a result of the innovative and alluring discounts and offers on the
credit card services. Customers' morale and loyalty are both boosted by rewarding them with
reward points for purchases made with a certain credit card, which is another successful
marketing tactic. Giving cashback offers is another premium service that a bank can offer to its
high-value clients when they pay their credit card bills (Zkan and colleagues, 2019). The bank
can also implement miles for consumers, allowing cardholders to transfer their miles to a
frequent flyer programme to defray the cost of airline tickets. For instance, the OCBC Voyage
card, which assists in offering clients with beneficial perks at the time of flight booking for
travel-related purposes

References
Books and Journal
Balci, G., Caliskan, A. and Yuen, K.F., 2019. Relational bonding strategies, customer
satisfaction, and loyalty in the container shipping market. International Journal of Physical
Distribution & Logistics Management.
Bauer, J.C., Linzmajer, M., Nagengast, L., Rudolph, T. and D'Cruz, E., 2020. Gamifying the
digital shopping experience: games without monetary participation incentives increase customer
satisfaction and loyalty. Journal of Service Management.
Cai, R. and Chi, C.G.Q., 2018. The impacts of complaint efforts on customer satisfaction and
loyalty. The Service Industries Journal, 38(15-16), pp.1095-1115.
Carmo, I.S.D., Marques, S. and Dias, Á., 2022. The Influence of Experiential Marketing on
Customer Satisfaction and Loyalty. Journal of Promotion Management, pp.1-25.
Cheng, B.L., Gan, C.C., Imrie, B.C. and Mansori, S., 2018. Service recovery, customer
satisfaction and customer loyalty: evidence from Malaysia’s hotel industry. International Journal
of Quality and Service Sciences.
e Sá, P.M. and Cunha, P., 2019. Drivers of customer satisfaction and loyalty in swimming
pools. The TQM Journal.
Famiyeh, S., Kwarteng, A. and Asante-Darko, D., 2018. Service quality, customer satisfaction
and loyalty in automobile maintenance services: Evidence from a developing country. Journal of
Quality in Maintenance Engineering.
Hamouda, M., 2019. Omni-channel banking integration quality and perceived value as drivers of
consumers’ satisfaction and loyalty. Journal of Enterprise Information Management.
Ji, C. and Prentice, C., 2021. Linking transaction-specific satisfaction and customer loyalty–the
case of casino resorts. Journal of Retailing and Consumer Services, 58, p.102319.
Lim, P. and Parker, A., 2020. Case Study: OCBC Bank Singapore. In Mentoring Millennials in
an Asian Context. Emerald Publishing Limited.
Mohamed Safuan, M.H., Mohd Zamzam, N.N., Nasmy, M.N., Gablaan, Z. and Najla, H.N.,
2021. Principles of Entrepreneurship (ENT530): Business Model Canvas: Hanz Corporation.
Nasir, M., Adil, M. and Dhamija, A., 2021. The synergetic effect of after sales service, customer
satisfaction, loyalty and repurchase intention on word of mouth. International Journal of Quality
and Service Sciences.
Özkan, P., Süer, S., Keser, İ.K. and Kocakoç, İ.D., 2019. The effect of service quality and
customer satisfaction on customer loyalty: The mediation of perceived value of services,
corporate image, and corporate reputation. International Journal of Bank Marketing.
Prentice, C., Dominique Lopes, S. and Wang, X., 2020. The impact of artificial intelligence and
employee service quality on customer satisfaction and loyalty. Journal of Hospitality Marketing
& Management, 29(7), pp.739-756.
Slack, N.J. and Singh, G., 2020. The effect of service quality on customer satisfaction and
loyalty and the mediating role of customer satisfaction: Supermarkets in Fiji. The TQM Journal.

Chapter 5: Proposed solution to problem
Recommendation
From the above study of research, it has been concluded that for every organisation or
business loyalty and higher satisfaction is one of the most important part. It is also helps to
surviving the long term market. OCBC bank faced many issues and problems due to some
ineffective credit card services. The issue of ineffective credit card services of bank there are
many customers who faced many problems and difficulties to manage it. Customer's loyalty and
trust affected by the issue towards banks and banks leads low sales. There are some strategies
and solution that should be adopted by the OCBC bank in order to improve the credit card
services in better and effective manner for increasing the customer's loyalty and satisfaction.
There are some recommendation that is recommended to the OCBC bank to improve their
services of credit card as well as customer's loyalty and satisfaction which are given below-
Stop Nickel and Diming: it is the one of the best way to improve the credit card services
that is helps to improve the customer's loyalty and satisfaction. OCBC bank should stop nickel
and diming. The services and statements of credit card of customers should always be specify to
the payable amount at the second decimal place. As decimal amount is known as the big issue or
problems for the customers because they does not miss out or pay decimal amount and paying it
at the normal point then they are able to pay as the late payment fees also with some interest
charges. So OCBC bank should avoid these decimal amount point in order to while providing the
services of credit card to the customers.
Reiterate Deferred Payment: it is also the way to improve the credit card services that
should be adopted by the OCBC bank that is reiterate deferred payment. There are many average
holders that knows that they have some 35 to 45 days to complete the pay off a credit card
purchase and there is no any extra charges. As it is not similar to the debit card services because
the customers are not able to take their money from their bank account in a day. So OCBC bank
should converted their debit card users into credit card users which is helps the customers to pay
off their credit amount easily from the bank.
Limitation in the research
The above research data is collected from the secondary data which is based on the
previous research because there is low validity and reliability of research as comparison to

primary research. There is another limitation of this research that company faced lack of analyse
the other challenges.
Scope for further research
The scope of the current research is high because there are some issues which is
identified in the research is concerned as the present time issues. The research also helps to
improve the customer satisfaction and loyalty which is the advantage for the companies to
increase their profitability and sales. This research also helps to improve the services of credit
card for the customers that is helping the banking companies to easily avail the services
effectively.

Chapter 3- Problem Statement and plan of analysis
Under this chapter it comprises of the portion of literature review and it will outline the
comprehensive summary of the research related topic. There are different books, scholarly
articles and other sources will be used which will be relevant to the detailed area of research.
This review will explain and summarise the information linked with the chosen topic.

References
Books and Journals