Background of the Bank
The bank that is under discussion is a multinational Bank with a good reputation around the country. People rate it as stable courtesy to the rating it has domestically from local rating companies and from Standard and Poor (S&P) and Moody’s as well. This Bank has approximately two thousand branches around the territory of the host country spreading in from remote areas to metropolitan cities. All in all, the Bank has a stable future ahead with the trust of the customers intact.
The bank offers basic products like consumer financing, which involves credit card facility, car financing, home financing and personal loans etcetera. While on the other hand, financing to corporations is provided as well. It has debt to equity ratio of 40/60 respectively displaying a stable status. Since the country’s banking industry is in its peak periods therefore the regulations on all the Banks have been tightened in order to remove all the weak and instable Banks from the picture. Hence, indicating that in the given scenario only a strong Bank can survive.
The Bank’s mission statement is to provide its customer with the best possible service and making sure that an individual leaves with a content set of mind after indulging into a transaction. In order to achieve the given objective, the Bank has made every effort to accomplish it, which includes recruitment of able and worthy staff, implementation of service with the best interest of customers and proactive thought process behind every action.
The vision statement of the Bank is to see itself as one of the leading Banks of the country in the next three to five years, which is not a very high target to achieve since its already on the way of being one. Along with that, the ulterior motive is to establish trust among the customer so that they feel comfortable while dealing with the Bank.
Background of the Branch
The branch that needs to be considered is the one that is situated in one of the metropolitan cities of the country. It already has approximately one hundred branches in the city and this particular branch is situated along with many branches of other banks in the area.
The area that this branch is situated in is a pretty populated place with well-to-do residents. The branch is not a very old one and is just a few months old, although is well established and have up-to-date interior décor. Due to its young existence, this branch has a limited customer base and therefore a limited reach and in return a limited hold on the customers.
This branch, like the other branches of the Bank has the best personnel to serve the customer with quality service at hand and all the procedures and policies are present to provide service to attain a satisfied customer. Due to high requirement of the banking industry in the country, this branch would also have to live up-to the high standards in order to assure its existence in the country.
Similar to the motive of the Bank, this branch also has the objective of attaining and maintaining all the valuable and potential customers through provision of quality service and satisfactory transactions, leaving no margin for the customers to be dissatisfied.
In order to achieve the given motive it has developed certain benchmarks and deadlines in order to be organized in achieving its goals and objectives of short-term as well as long-term. Much cannot be said about the success of the objective and the means to achieve it since; a very short span of time has passed from the time of its existence. Although with the way they have the set-up and the entire planning for the branch, it clearly depicts that the entire plan of action is well established and needs to be only implemented to be as successful as the rest of the bank developing an exclusive customer base.
Evaluation of the Branch
As per the details regarding the background of the branch and the bank, there seems no apparent problem with the Bank currently or in the near future but there is a dilemma that the bank is facing that has caused limitation in its reach to its customers. This is a very important issue, which is often forgotten to be addressed by the decision makers of a Bank, that is, marketing. Since Bank is all to do with finance related features therefore often the marketing part is ignored and not given much importance to, forgetting that marketing is what makes the customer base of a Bank and is therefore essentially important.
This bank faces a major dilemma when it comes to marketing as it is located in such a crowded place and people are not aware of its existence. The other branches of the bank that are situated with it are old enough to have a developed customer base of that particular area. Therefore in order to attain customers for itself it would have to snatch the competition’s customer with better offers or lowering charges or offering higher rate of returns.
Although the good will of the Bank itself is enough to attract individuals but people are not aware about the presence of this branch especially in that area. Due to the unawareness they have their accounts or indulge in transactions with other Banks that fulfill their criterions.
At the moment, this bank has everything to offer but the only thing that is lacking is that people don’t know about it. This is a major drawback that this particular branch faces and can result to be extremely unhealthy as far as the profits of the banks are concerned. Due to this deficiency, it might even not even be able to develop a customer base of satisfied customers, which can even go to the extent of the threat to this Branch’s existence.
Hence, the only issue that this branch needs to address is the fact that people are still unaware of its existence making all its effort to be the best sum up to nothing.
Marketing Dilemma and its Repercussions
If I was the manager of that particular branch and was faced with the dilemma of lack of marketing, then this is something I would not take lightly. As after the preparation of the provision of the service, the first step that needs to be taken is to make people aware and if there is a problem regarding the initial step, the later that follows cannot be implemented accordingly.
Say for instance, if people are not aware in the first place about the Bank’s existence then how would they avail the service and be content with it, which is the mission of the existence of the Bank. Hence, in order to be successful at the end, there needs to be a proper coordination among all the steps that need to be taken and any miscalculation might lead to a turbulent state.
This marketing would have an adverse effect on various factors of the Bank’s service with the negative impact on profitability on the top of the list. When people wouldn’t know about it, they wouldn’t avail the service and in return would have no chance to be satisfied with it.
Secondly, due to the unawareness, the Bank would not do well and the staff would unnecessarily blame itself. This would affect the performance of the staff as well and would in return bring down the efficiency of the Bank for which it is known all around the country and the worldwide.
Hence, the lack of marketing would not only affect the profitability in one way, that is, thorough customers but also through the demoralization of the staff, which would bring down the overall efficiency and in return effect the profitability.
Therefore, in order to succeed and be as successful as the rest of the bank, this branch particularly needs to address the marketing dilemma that it currently faces or else it would have to make a contingency plan in case of the closedown of this branch.
The marketing issue has an impact on the overall business of the Bank, effecting on the service as well as the sales aspect of Banking. Therefore a slight lack of effort might result to be disastrous for all the business functions of the Bank. Hence, in order to make the entire Bank work, one needs to take care of this issue very delicately keeping in view its fragile nature and adverse side effects.
In order to make sure that the marketing issues are dealt accordingly, the manager needs to assure that people in that area are aware of the Bank existence. In fact there should have been some awareness campaign like advertisements or banner before the start-up of the branch but now that it has already been made, efforts are to be made hereon.
Fore mostly the Bank needs to make full use of its good will and name in the market and develop its customer base on the basis of the image formed. The reputation of the bank would help it develop its exclusive customer base and this branch would develop an identity of its own apart from the rest of the bank as well.
Since the initial efforts take some time to display its colors, the staff needs to be handled properly and this entire burden is laid upon the leader. The leader needs to make sure that even during the recession period, the staff or the employees should not in anyway feel demoralized or else the hope of getting better would get dimmer eventually.
As both, the customer base and the employee efficiency are interrelated and therefore need to be worked hand-in-hand in order to achieve a successful result at the end of the period. In order to make the process hasty and implement the procedures more rapidly, a set-up of the marketing department for the bank would be of a lot of use. The marketing department can make procedures and follow on their success and devise the steps that need to be taken further on to continue the process of awareness.
Anticipated Result of Recommendations
The marketing campaign with a banner or advertisement would be of much help since it would if not motivate people to deal with the bank would at least make people aware of its existence. At the back of peoples mind they would know that they have the option of this bank when choosing banks in their area. As in every product and service, for a bank, marketing plays an extremely important role as well.
On the other hand, the effort to keep the employee morale high would keep the personnel motivated to work hard and give their best irrespective of the market status of the Bank. Hence, the adverse repercussion of marketing would be reversed back by this gesture.
The marketing of this particular branch taking the help of its good reputation in the market would provide it an edge and would bring into use its established image with much effort. Marketing requires bringing into use the competitive edge an organization has over other organizations of the same league.
Hence, the recommended efforts would do nothing but good to the organization and would give this particular branch an edge as compared to the other banks present in that area. If the bank continues without any effort, it might end up hurting its overall image and eventually end up as losers to competition.
The recommendation of the marketing department setup would help measure the marketing efforts and the extent to which they are ending up to be profitable for the branch and hence the overall organization. All the recommendations are of some use and their implementation would be highly beneficial for the improvement of the bank.
Evaluation of the Phone Banking Service
The bank has a wide reach and a strong hold on the customers of the host country with the motive of having the widest amount of satisfied or content customers with the provision of high quality service and premium products with reasonable charges and good rate of returns.
Therefore, in order to assure excellence in quality and satisfaction of customers, one need to make sure that their problems are addressed properly. In order to listen to their issues, the Bank has a call center in every country it is present in, which is trained to address the problem of individuals. But there is a slight issue when the phone banking of the host country is considered. Due to the large amount of customer base and wide reach in the country, it needs to have a lot of personnel that can handle the queries.
Currently their department of phone banking is functional but here the personnel are less than needed and are not properly trained as in other parts of the world. As the bank strives for excellence in service in order to have no complains and queries from its customer therefore it needs to take into account this issue very seriously. If customer’s problems regarding any product or service and their queries about its functioning is not resolved accordingly in a proper manner, they might have long lasting dissatisfaction with the organization and once that is developed, it is hard to reverse it back.
Most of the dissatisfied customers take no time in switching to other service or organization. Mostly the complains regarding the phone banking as per a survey indicates that people feel that their problems are not taken seriously and their customer representative does not have proper solution or answer to problems regarding the bank’s service. This indicates the lack of knowledge on the part of the call center employee and the lack of training on the part of the organization.
Repercussion of the Unsatisfactory Service
Every organization should empathize with its customers in order to understand what they want and require in order being content. While on the other hand, this is a widely known fact that customer’s loyalty can help upto some extent, but no customer would tolerate inappropriate service provision for long especially when there is competition in the market.
Therefore, even if the Bank has other services ready and excellence in them, it becomes of no use when a bank cannot address the customer’s problems and the consumers are left answerless. Hence, the repercussions of unsatisfactory service are highly detrimental for the entire organization. An unsatisfactory address to the customer’s issue means losing out on the objective of the organization’s existence and in return failing to achieve the mission of the organization.
An unsatisfactory service would give the competition the margin to make use of this drawback and ensure that they develop this drawback of the organization as their strength and offer it as a competitive edge. In a business environment, one person’s loss is another’s gain and therefore the lack of attention to this area of service would result to be a competitions competitive edge.
The extent of its seriousness can be displayed by the fact that customers are the one who make or break the organization and their dissatisfaction is a major threat to the organization. Hence, if majority of the customer of the bank believe that they are not being addressed, as they need then masses of customers may shift to the competition and therefore affect the profitability and existence of the bank drastically.
There is no good effect of lack of efficiency in phone banking service and only adverse effect follows. Therefore it is better for the organization to address this issue as soon as possible.
This issue of lack of efficiency in phone banking service and unsatisfactory response to customer dilemmas is very essential for the bank’s success. This bank should particularly address this problem within the shortest time possible as it has the mission of having content customers and this lack in efficiency has a lot of potential to produce unsatisfied customers.
In order to mend this issue, the Bank needs to hire more people that are appropriate to address the issues at hand. This would fulfill the deficiency of dearth in the amount of personnel. The bank should also make sure that the hired personnel are not given their designated seats and posts before they are properly trained and taught as to how to address different potential problems that any customer could possibly have.
The experienced employees or hired training personnel should have month long training session to make the customer representatives ideal to handle any problem that comes their way and handle those problems even more gracefully of whose solution they are not sure of.
Along with that, the most experienced should be appointed as the head of the department who provides guideline to those who have issues regarding any customer query. Similarly, the employees should be promoted according to their efficiency and experience giving them an incentive to work harder and better.
All these recommendations are the potential solution to the issue at hand. Any delay in their implementation would expose the organization more and more to risk and danger regarding their reputation and customer satisfaction. This issue of provision of inappropriate service is more important to this organization than any other among the competitors as it has its mission of having satisfied customers. They believe that customers are the purpose of their existence, therefore they need to look in to it or else their purpose remains unfulfilled.
Anticipated Results of Recommendations
The first and the most important recommendation of hiring more employees for this particular department is a necessity rather than a recommendation, as it needs to have enough people that can address the issues at hand. The idea of having different shifts is to make sure that the time the employees have is utilized effectively by them. Since phone banking is a 24/7 service therefore one person cannot sit for the entire day, hence 4-6 hours shifts with morning, day and night shifts would lessen the burden. This would also encourage students with good vocational skills and time availability to apply since it requires no qualification whatsoever.
The promotion of employees would be an incentive to be the head of the department and work better for them to be in charge, as every person wants to move on than stay where they are. While the training part remains the most vital of all recommendations as without training it is impossible for the employees to work efficiently and as per the requirement of the organization.
These recommendations would yield a better phone banking service for the organization and in return producing more satisfied and content customers removing the possibility of a switch to other competition due to this particular reason.
The bank has to abide by the mission statement it has created for itself, which is to produce and retain content customers and in order to achieve that it has to make sure that all its services are par excellence whether it is for a single branch or the entire organization.