Does customer satisfaction survey matter in rural banking?
According to the Banks and Specialised Deposit Taking Institutions Act 2015, rural banks are specialised deposit-taking institutions engaged primarily in deposit-taking business within a defined catchment area. Deposit-taking business means that ????RCBs???? take money on deposit and make loans or other advances of money.
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Customers are one of the key stakeholders of RCBs. This is so because RCBs cannot undertake their deposit-taking business without customers. RCBs depend on customers’ deposit as their main source of funding. Customers deposit helps RCBs to make investments and loans, thereby generating income. Customers are, therefore, the main reason for the existence of RCBs.
Employees of RCBs should appreciate the fact that they are in employment because of customers. If customers decide not to transact business with their banks, they will lose their job.
Benefits of customer satisfaction
RCBs should, therefore, place premium on customer satisfaction. This means that customer satisfaction should be their top priority. It is worthwhile for RCBs to provide customer satisfaction due to the following benefits: First, it will result in customer loyalty. Second, customer satisfaction will influence positive word-of-mouth advertising. Third, it will insulate RCBs from competitive pressures. Fourth, it will lead to growth in deposit
According to Michael Scott, a marketing expert, RCBs should ensure that they maximise customer positive experience and minimise customer negative experience. Once this is done, he said, RCBs’ customers will feel satisfied. He further noted that customers visit banking halls for the following reasons; to make deposits, to make withdrawals, to make loan repayments, to access loans and to make enquiries. He went on to say that when existing and potential customers walk into the banking hall to transact the above-mentioned businesses with RCBs, staff who interact with them should maximise positive experience, thereby ensuring customer satisfaction and delight.
Gauging customer satisfaction
So far, the article has touched on customers as key stakeholders in rural banking and the importance of customer satisfaction. Now, the question arises, how can RCBs gauge whether customers are satisfied or not?
This question is relevant because the Technical Assistance Research Programme (TARP) has revealed that the average business does not hear from 96 per cent of its unhappy customers. The TARP research demonstrates that customers do not actively complain to service firms themselves. Instead, they voice their dissatisfaction with their feet by defecting to competitors and with their mouths by telling others about their mistreatment.
According to the TARP research, an average customer with a problem tells nine or 10 people. (source; Services marketing by Professor K. Douglas Hoffman). In view of the fact that most dissatisfied customers do not complain directly to a service firm such as RCBs, it is, therefore, relevant to undertake a customer satisfaction survey. Some RCBs have huge dormant account holders, and among the reasons is customer dissatisfaction. Many a time, bank customers who are dissatisfied may not close their accounts but stop operating them, thereby making the accounts dormant.
I will, therefore, advise management of RCBs to undertake customer satisfaction surveys every six months or once a year. If you are a manager or employee of RCBs reading this article, ask yourself this question, when was the last time my bank carried out a customer satisfaction survey to unravel the level of customer satisfaction?
If the answer is no, then it is advisable to undertake a customer satisfaction survey now. Customer satisfaction survey will provide the following benefits;
First, it will provide a formal means for customer feedback to RCBs which may identify existing and potential problems.
Second, a customer satisfaction survey will convey a message to customers that the bank cares about their wellbeing and values customers’ input concerning its operations.
Third, it can help to develop a customer service training programme.
Fourth, data collected from a customer satisfaction survey might be used by RCBs for employee performance review and compensation decisions.
Finally, it helps in carrying an internal analysis which involves identifying the strengths and weaknesses of RCBs service delivery process.
Conclusion
Thus far, the article has considered the relevance of customer satisfaction survey in rural banking. I will, therefore, urge management of RCBs to carry out this important research at least once a year.
In fact, it will be wrong for RCBs to wait and expect direct voluntary feedback from customers to measure customer satisfaction. This is so because research has revealed that an average firm does not hear from 96 per cent of its unhappy or dissatisfied customers.
Therefore, management of RCBs will lose many customers and deposits while waiting for the other four per cent to speak their minds.
I will also recommend to RCBs to use both qualitative and quantitative techniques in their customer satisfaction surveys. More importantly, they can use the likert scale method. Proven Trusted Solutions has expertise in conducting customer satisfaction survey. Hence, RCBs and other financial institutions should avail themselves of their services.
The Author is the CEO of Proven Trusted Solutions, an employee training and development and marketing research firm.
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