The banking landscape in Ghana is increasingly becoming competitive due to rivalry among existing players,
threat of new entrants, bargaining power of bank customers, availability of substitutes such as mobile money, insurance among others.
Customers have also become sophisticated and demanding, expecting high service quality.
Recently, some bank customers have been withdrawing their deposits from their banks because of
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In view of the competition in the banking industry, switching cost has become low.
This implies that bank customers can easily switch from one bank to another because they are exposed to various choices.
For ???RCB’s???? to be successful in this financial space, it is crucial to
Strategies to improve service quality
To improve service quality,
Employees sometimes face situations in rendering service to customers which is beyond the boundaries of existing policies. Through empowerment, staff are given the discretion to make decisions to further assist their customers.
This will result in improved service quality. There is also the need to give some staff a limit to operate in order to enhance
For example, giving branch managers a limit when it comes to granting facility without referring to the head office.
Besides empowerment, management should adopt open door policy so that customer contact personnel can easily approach them to get the necessary inputs which might aid them to render quality service to customers.
Service such as banking is characterised by inseparability and variability. Hence, the need to recruit people who have the right attitude, passion, commitment and competency which will enhance the service quality being rendered to the customer.
It is worth mentioning that not everybody is well suited for
In view of the high unemployment rate in Ghana, there is the tendency for some board members and key management staff to use their influence to ensure that their relations are employed.
Even though it is not wrong, the person should be qualified and have the passion to serve customers so as to improve service quality to delight customers.
Provision of regular training
To improve service quality in rural banking, the importance of regular training cannot be overemphasized.
The ???RCB’s??? staff might need training in the areas of product
knowledge, customer service skills, telephone etiquette, the importance of customers, and customer relationship management among others.
When customers are given inaccurate information because of lack of adequate knowledge about product, pricing and other related issues, it will translate into poor service quality thereby affecting customer satisfaction.
Hence, the need to provide RCB staff especially customer contact staff training to have adequate product knowledge.
Some managers are sometimes reluctant to allow their staff to attend customer service training
Let me point out the fact that, customer service training is meant to modify staff negative
Such training is not one-off (a day affair) but continuous.
There is a saying that people need to be reminded more than they need to be instructed and hence C.E.O’s/General Managers should allow staff to participate in customer service training.
After training, staff should be held accountable for poor customer service.
According to the service-profit chain model, there is a strong relationship between employee satisfaction, customer satisfaction, customer loyalty and profitability. This implies that when employees are happy through motivation, they will be inspired to provide the best of service to customers.
Do you think
Staff who excel in rendering excellent customer service/high service quality should be rewarded to motivate them to do more.
Let me point out the fact that,
It can take the form of verbal appreciation which is intrinsic motivation. RCB offer banking services which are characterised by inseparability.
This means that the services cannot be separated from the staff who are providers.
The inseparability of service usually leads to an encounter between RCBs staff and customers.
When the staff are motivated, there would be
This will no doubt influence the customer’s perception of the service quality.
Indeed, improving service quality in RCBs will be difficult if employees are treated poorly.
Reducing communication gap
Communication gap occurs when a rural bank promise to offer XY which triggers customers’ expectations but unable to deliver to meet their expectations.
To improve service quality RCBs should not
Rather, they should promise what they can deliver and go the extra mile to delight customers by exceeding their expectations.
It is worth mentioning that, when promises made to customers through marketing communications such as advertising and personal selling are not fulfilled, customers might perceive RCBs to be unreliable which can impact negatively on the brand.
Measuring service quality
According to marketing
Hence, RCBs should track the level of their service quality through feedback by using techniques such as customer satisfaction survey, mystery shopping, net promoter scores among others.
This will help to improve service quality.
Establishing service quality standard
Banking as a service is characterised by heterogeneity. This means
This is due to certain factors such as mood swings of employees providing the service and personality differences among others.
However, RCBs should set basic service standard to improve service quality.
Here are examples; Turnaround time of making deposits and withdrawals at the banking hall should not exceed fifteen minutes, Tellers should greet customers and also give them a warm smile during their interaction.
Management should monitor to ensure that service standards are delivered by the staff.
In order to minimise
Management of RCBs should examine their operations with a view to identifying service quality gaps and put forth
Among the gaps are; Communication gap, Knowledge gap, service delivery gap and customer gap.
The Author is the Head of Proven Trusted Solutions, an employee training and development and marketing research firm.