Professional Documents
Culture Documents
MARKETING
A PROJECT ON
BANKING SECTOR
Banks are the most significant players in the Indian financial market.
They are the biggest purveyors of credit, and they also attract most of the
savings from the population. Dominated by public sector, the banking
industry has so far acted as an efficient partner in the growth and the
development of the country. Driven by the socialist ideologies and the
welfare state concept, public sector banks have long been the supporters
of agriculture and other priority sectors. They act as crucial channels of
the government in its efforts to ensure equitable economic development.
The Indian banking has come from a long way from being a sleepy
business institution to a highly proactive and dynamic entity. This
transformation has been largely brought about by the large dose of
liberalization and economic reforms that allowed banks to explore new
business opportunities rather than generating revenues from
conventional streams (i.e. borrowing and lending). The banking in India
is highly fragmented with 30 banking units contributing to almost 50% of
deposits and 60% of advances. Indian nationalized banks (banks owned
by the government) continue to be the major lenders in the economy
due to their sheer size and penetrative networks which assures them
high deposit mobilization. The Indian banking can be broadly
categorized into nationalized, private banks and specialized banking
institutions.
The private banks with their focused business and service portfolio
have a reputation of being niche players in the industry. A strategy that
has allowed these banks to concentrate on few reliable high net worth
companies and individuals rather than cater to the mass market. These
well-chalked out integrates strategy plans have allowed most of these
banks to deliver superlative levels of personalized services. With the
Reserve Bank of India allowing these banks to operate 70% of their
businesses in urban areas, this statutory requirement has translated into
lower deposit mobilization costs and higher margins relative to public
sector banks.
PEST ANALYSIS
TECHNOLOGICAL ENVIROMENT
Today banks are also using SMS and Internet as major tool of
promotions and giving great utility to its customers. For example SMS
functions through simple text messages sent from your mobile. The
messages are then recognized by the bank to provide you with the
required information.
ECONOMICAL ENVIROMENT
Every year RBI declares its 6 monthly policy and accordingly the
various measures and rates are implemented which has an impact on the
banking sector. Also the Union budget affects the banking sector to boost
the economy by giving certain concessions or facilities. If in the Budget
savings are encouraged, then more deposits will be attracted towards the
banks and in turn they can lend more money to the agricultural sector and
industrial sector, therefore, booming the economy. If the FDI limits are
relaxed, then more FDI are brought in India through banking channels.
SOCIAL ENVIROMENT
1. PRODUCT MIX
2. PRICE MIX
3. PLACE
4. PROMOTION
5. PEOPLE
6. PROCESS
7. PHYSICAL EVIDENCE
PRODUCT MIX
UTI Bank's Savings Account is just the right product for everyone, salaried,
employees or businessmen, high net worth individuals and NRI's. The
unmatched package of UTI Bank Savings Bank account given below brings
the benefits of better, efficient and hassle free banking.
• ATM Network
A Savings Bank Account with UTI Bank entitles you to a free ATM card,
which enables you to access your account anytime and at any ATM centre
across the country. You can withdraw and deposit money and cheques
with your ATM card. Unlike most other ATMs, a UTI Bank ATM allows you
to withdraw up to Rs. 20,000 a day. In addition, cash can be withdrawn
from any of the ATMs against your MasterCard (domestic/international).
• 7-Day Banking
At select branches spread over the country, you can bank on all the 7
days of the week (except for public holidays), over extended working
hours.
• Telebanking
• iConnect-Internet Banking
This is the concept of "the Bank on your desk-top". You can look-up the
status of your account, query and undertake a range of financial
transactions, simply by clicking the mouse. Now don't you think you have
a great opportunity to see yourself laughing your way to the bank?
Offering
UTI Bank has joined hands with Citibank, to give rise to a new kind of card
power - unique and unmatched benefits and international utility at the
most competitive rates. The UTI Bank Citibank International Silver Card,
the MasterCard and 'Unique' Card offers quite a few benefits.
Rewards
Dial-A-Draft
One can use your UTI Bank Citibank Card to pay for your personal
expenses at places where credit cards are not accepted yet. Like paying
for investments, telephone and electricity bills, school fees and much
more. Just call CitiPhone and the draft you need will be delivered to you!
You can call CitiPhone and ask for a Credit Limit Increase in the event that
you have to make a large purchase on your card urgently. It's especially
handy for paying off vehicle repairs, telephone bills and electricity bills.
And for anniversaries, weddings, birthdays, or business trips or when a
holiday goes beyond budget
24-Hour ATMs
One can withdraw emergency cash up to 60% of your credit limit from 24-
Hour ATMs in Ahmedabad, Bangalore, Calcutta, Chennai, Delhi,
Hyderabad, Mumbai and Pune. While traveling overseas you can draw
cash from MasterCard ATMs spread across the globe. The same is
applicable for any Citibank branch. Also the cash you withdraw is insured
against theft for a period of 12 hours after withdrawal. A never before
facility is brought to you with the UTI Bank Citibank Card at a transaction
fee of 2.5% or Rs.50 whichever is higher. All cash advances also carry a
service charge from the date of the transaction. The cash withdrawal limit
for the first year is Rs. 5,000.
Photo card
Do you often need to remit funds to other cities using facilities such as
Drafts/Telegraphic Transfers, etc.? Here's a benefit you would most
appreciate. A 25% rebate on standard commission is offered on personal
remittances at UTI Bank branches.
Overdraft facility
UTI Bank Citibank credit card provides you with an overdraft facility to the
extent of 75% of the value of your holdings of Demat Shares and Units!
Moreover, you get a waiver of 0.5% on interest rate chargeable under the
scheme. All you need to avail yourself of these benefits is a Demat A/c
with UTI Bank.
Free ATM Card
The UTI Bank Citibank Credit Card offers you a free ATM Card, which can
be used at over 250 UTI Bank ATM centers all over India. All you have to
do is open a saving bank/current Account with UTI Bank.
Other features
UTI Bank Citibank Card has the widest possible reach - welcomed by
1,10,000 Merchant Partners across India and Nepal and yet another 160
lakh Merchant Establishments worldwide. The card can be used both for
major occasions, and also for everyday purchases like groceries,
cosmetics, and petrol and auto accessories. It can also be used to buy
high-value items like consumer durables (refrigerators, washing machines,
microwave ovens, etc.). And even paying customs duty and hospital bills
becomes convenient with the Card.
PRODUCT WIDTH AND DEPTH
Width
Width of the product mix is the number of product lines a company
is offering. The product width could be a narrow one or a wide one
depending from bank to bank. A wide mix encourages more sales since
the banks are able to diversify and provide more to their customers and
they also appeal to a larger target market.
Depth
Depth of the product mix is the number of product items in each
product line. Banks with more schemes and services have more depths
than those offering only a few.
Here is table giving an example of Width and Depth in the Product Mix:
Similarly, different banks plan out their product portfolios and based
on that, the depth and width of their product mix can be determined.
PRODUCT LEVELS
Core Benefit:
It is the main or core reason why the customer will buy the service
of the bank. More like the basic purpose or necessity.
Basic Product:
The core benefit is converted into a basic product. That is the
service can used by the customer in order to fulfill his/her needs.
Expected Product:
It refers to the set of attributes and conditions expected by the
customers when they purchase the service.
Augmented Product:
It is the additional feature that the banks provide which exceeds the
customer’s expectations.
Potential Product:
Innovations and product differential is the bases of a Potential
Product. If the banks alter its services according to the requirements of
the individual customers it reaches this level.
PRICE MIX
The price mix in the banking sector is nothing but the interest rates
charged by the different banks. In today’s competitive scenario where
customer is the king, the banks have to charge them interest at a rate in
accordance with the RBI directives. Banks also compete in terms of annual
fees for services like credit cards, DMAT etc. Another important aspect of
the bank’s pricing policy today is the interest charged on the Home Loans
and Car Loans. With India’s economy progressing, there are more and
more buyers seeking these loans but at a very competitive interest rate.
This example evinces some of the charges that the customer has to
pay for the services provided by the bank.
Thus, inspite of the constraints in the pricing policy due to the RBI
directives there are mainly three types of pricing methods adopted by
banks. They are:
Value pricing:
Mark up pricing:
This is a pricing technique wherein the cost of the service is
determined and a small margin is added to it and then the final price is
offered to the customers. This type of pricing is the not very popular since
in the banking sector it is not very easy to arrive at the cost of the service.
Thus most banks use a combination of mark – up pricing and going rate
pricing.
PLACE MIX
Place mix is the location analysis for banks branches. There are
number a factors affecting the determination of the location of the branch
of bank. It is very necessary a bank to situated at a location where most of
its target population is located.
2. Population Characteristics:
The demography of a place is a very important factor. This includes:
The income level of the population
The average age
The average male female population
The caste, religion, culture and customs
The average spending and saving habit of the people.
These factors are very important for a bank as the help them decide
the kind of business the branch will get.
3. Commercial Structure:
The commercial structure refers to the level of commerce i.e.
business activities taking place at a particular location. The higher the
level of business activities taking place in a particular location the more
preferable it is for setting up a bank branch.
4. Industrial Structure:
This is nothing but a combination of the trade area analysis and the
commercial structure. However the industrial structure focuses more on
the kind of industries operating in a particular location. For example, an
area like SEEPZ is marked with a lot of electronic manufacturing units.
Thus the industrial stricture determines the kind of financial transactions
that could take place in a particular location.
5. Banking Structure:
The Banking structure refers to the existence of other banks in the
area. Whether there is already an efficient network of other bank
branches operating at that particular area. Thus the overall infrastructure
needed for the working of a bank.
9. Drawing Time:
Drawing time refers to the time period during which a customer can
draw money from the banks. It should be convenient to the customer and
somewhat flexible to accommodate the customer’s needs. No bank has
more than a certain amount with them and in case a customer wants to
withdraw an amount more than that available with the bank, the bank
needs to draw that amount from other banks. Hence, a location must be
such that it facilitates minimum drawing time.
10. Visibility:
The location of a branch should be such that it is visible and easily
noticed by the customers as well other people.
10. Access:
The bank branch should be very easily accessible to the customers.
If this is not the case, the customer might switch to some other bank,
which is more convenient to him and very easily accessible. The location
should be such that it is very convenient for the customer to reach.
Promotion Mix
1. Internet Banking
2. Mobile Banking
This can be better explained with the example of ICICI bank.
SMS services
SMS functions through simple text messages sent from your cellular
phone. These messages are recognized by ICICI bank to provide you with
the required information.
For example, when you enter ‘IBAL’ your cellular phone screen will
display the current balance in your primary account. Thus with the help of
SMS a wide range of query based transactions can be performed without
even making a call.
Personal Selling:
Sales Promotion:
Telemarketing:
Internet:
Thus, these were the numerous ways in which a bank can promote
its services and create more awareness amongst the people.
People
People are the employees that are the service providers. In a
banking sector, the service provider plays a very important and
determinant role in rendering the customers a satisfactory and a good
service. It is extremely essential that the service provider understand
what his customers expect from him. In the banking sector, the customer
needs to be guided in a lot of matters, which is possible only with the help
of the service provider.
Process Mix
The process mix constitutes the overall procedure involved in using
the services offered by the bank. It is very necessary that the process is
very customer friendly. In other words a process should be such that the
customer is easily able to understand and easy to follow. Today if
particular banks formalities are long and the procedure very complicated
the overall process fails and the customer may not be inclined towards
using that banks services.
Let’s take for example the process for application for a car loan.
Now this mainly involves 3 things.
The smaller and simpler the procedure, the better the process, and the
customer will be more satisfied.
PHYSICAL EVIDENCE
Physical evidence is the overall layout of the place i.e. how the
entire bank has been designed. Physical evidence refers to all those
factors that help make the process much easier and smoother. For
example, in case of a bank, the physical evidence would be the placement
of the customer service executive’s desk, or the location of the place for
depositing cheques. It is very necessary that the place be designed in
such a manner so as to ensure maximum convenience to the customer
and cause no confusion to him.
Thus, these are the 7 P’s of services. Each of them plays a very
important and a pivotal role in determining the quality of the service
provided to the customer.
BLUEPRINTING
A service blueprint is a picture or a map that accurately portrays the
service system so that different people involved in providing it can
understand and deal with it objectively regardless of their roles or their
individual points of view. Blueprints are particularly useful at the
designing and redesigning stages of service development. A service
blueprint visually displays the service by simultaneously depicting the
process of service delivery, the points of customer contact, the roles of
customers and employees, and the visible elements of the service. It
provides a way to break the service down into its logical components and
to depict the steps or tasks in the process, the means by which the tasks
are executed and the evidence of the service as the customer experiences
it.
Standard Beginning
7. The customer’s deposit has three component inputs: the cash, the
deposit slip (the bank’s voucher), and the passbook (the customer’s
receipt). These three inputs have different processes performed on them,
and are stored in different places at the end of the process, so they need
to be identified by distinct symbols. Note that the passbook and deposit
slip use the “Document” symbol, while the “Input” symbol is used to
represent the cash. For the sake of clarity, insert the document name into
the centre of the symbol. From this point forward assume that these
documents flow with the arrows (transportation symbols) until otherwise
indicated. At this point in the process, you have only two inputs: the
passbook and the cash. Place these next to each other, with one arrow to
the right, indicating that they flow together.
8. Your option for this step is to use either the “Process” or “Manual
Operation” symbol. Because the customer must hand-write the document
(rather than it being computer-generated, for example), the better option
is to select the “Manual Operation” symbol.
9. At this point, the cashier processes the deposit. The first step is to
ensure that the customer has submitted a valid deposit slip containing all
required information (which is listed in the process description). Since this
activity serves as a control point as well as a process point—the process
cannot continue if the amount is not recorded, for example—you can
select either a process or an inspection symbol to represent the action.
Because this step is an important control for the further processing of the
deposit, the better option is to select the Inspection symbol.
10. There is not sufficient space left on the sheet to post the next step,
even though there is space below the existing line of symbols. Since
arrows move from left to right and top to bottom, you cannot, by
convention, draw a big arrow from the right side of the paper across to the
left margin in order to continue the flow in the space remaining on the
paper. This means you continue on another sheet of paper. Select the “On
Map” connector symbol from the list. This symbol is used twice: first
where you discontinue, or break, the process, and second, where you
resume it. (If you have two breaks on a map, you will have four On Map
symbols.) To let the reader know which connectors go together (form a
pair), insert a letter or number, assigned sequentially, in each symbol. The
first pair, for example, might be labeled “A,” while the second pair would
be labeled “B.” The reader knows which one of the pair represents the
break in the flow, because there are no more symbols below or to the
right of the connector symbol. The reader knows which one of the pair
represents the resumption of the flow, because symbols will appear below
or to the right of the connector symbol.
11. In this step, the cashier counted the cash and found it to be either
correct or incorrect. This results in two possible courses of action that
must be shown in the process. Use the decision symbol. Insert a word or
two inside the symbol to reflect what condition is being decided; in this
case, you are answering the question: “Amount correct?” The question
has to be phrased so that it can be answered either “Yes” or “No.” Both
courses of action are mapped. The decision symbol, therefore, has two
arrows attached to it, one representing the “Yes” course of action, and the
other, the “No” course of action.
a. NO: This course of action represents a
rework loop. The customer has to either
make the correction to the deposit slip
and initial the change, or make
up/receive the difference in the amount
of cash deposited so that it will equal the
amount shown on the deposit slip. After
the correction process, the arrow points
back to the decision diamond because
the cashier now decides again whether
the actual cash counted agrees with the
amount reflected on the deposit slip. If it
does, then the process resumes the flow
from the “Yes” arrow leaving the
decision diamond.
12. Up to this point, the three inputs—the passbook, deposit slip, and
cash—have been flowing together. It is now time to separate their flow
and to show storage of the cash. The deposit slip and the passbook will
continue to flow together; redraw and label the document symbols for
each of these inputs next to each other, followed by one arrow. (To
emphasize that these documents flow together, you can overlap the
documents as shown in the sample.) Redraw and label the cash symbol,
followed by an arrow. Use the Storage symbol, and place it after the arrow
leading from the Cash symbol to show that the cash has been dropped
from the flow. If it adds clarity and not clutter, you can label the storage
symbol (in this case, “Till”). Note that the act of the cashier placing the
money in the till does not need a process box; it is sufficiently clear to
show through the use of the cash symbol, arrows, and storage symbol
that the cash is going into the till. This illustrates how the use of symbols
can eliminate unnecessary and redundant process boxes.
16. In the second tier, record the description for each step. This task
serves a dual purpose, because it forces you to proofread your symbols to
make sure that you have complied with the requirements described in the
“Proofread Map” section above. You will also be able to see for yourself
whether your process map makes sense. Alternatively, you can complete
these descriptions as you draw your symbols; you may find, however, that
keeping up with the text while also posting symbols on your map is
cumbersome.
17. Lastly, since you have used a second page, carry forward the
Process Map title and number the map pages in the upper right hand
corner.
Cashier Process of Savings Deposit-B1 (Ref-1)
Customer
Deposit
Passbook Slip
(Ref-4)
(Ref-2)
Cash
(Ref-3) A
(Ref-1)
A
Amount (Ref-6)
?
No
Y
es
Passbook
Passbook
Deposit
Slip
(Ref-7)
Cash Deposit
Slip
Customer
(Ref-8)
T
il Spindle
(Ref-5) l
No: Customer corrects Yes: Cashier Cashier Cashier posts deposit to Cashier Cashier passes
and initials correction on posts transaction places cash customer’s passbook, thanks passbook to
deposit slip or adjusts to bank’s books in till. calculates and posts new customer, customer; thanks
amount of cash tendered. of account. balance, initials passbook placing the customer;
balance, then passes deposit slip customer leaves
passbook and deposit slip. on spindle for banking hall.
end of day
balancing.
Process Mapping Symbols
This symbol is used to indicate both the
Start/End beginning and the end of your program.
Is the
incident N Y N N Y
critical
Partici- Customer Customer, Customer, Custo- Custo-
pants Cashier Cashier mer, mer,
Cashier Cashier
Visible Furnishings, Appearance, Behaviour, Simplicity of process
Evidence of staff of staff
THE 4 I’s OF BANK MARKETING
There are four distinctive characteristics of service, which create
challenges and opportunities. They are commonly known as the four I’s
namely:
1. Intangibility
2. Inconsistency
3. Inseparability
4. Inventory.
1.) Intangibility
It is that characteristics of a service indicating that it has no
physical attributes that a person may feel, hear, taste before they buy
it.
For example, a person who is new to a bank and wants to open up
an account in the bank cannot feel or taste it and ascertain whether
the bank is good or bad before opening an account. He has to
experience it, feel how the service is, how humbly do people or the
staff members behave with him, is his money invested or put in a safe
account or not. It is only then he would come to know about the
services. This could be done only from the ‘trust’ that he would have
built up, as these things cannot be inspected before the use.
Therefore, most banks now a days, indulge in “tangibilizing the
intangibles” i.e. they provide tangible clues to the prospective
customers like the different awards that they have received for their
superior services, their annual records, etc. this helps the customers in
selecting the banks more easily.
2.) Inconsistency
3.) Inseparability
(i) Co- production: In this case both the service provider and the customer
work together to produce services. When a customer wants to
withdraw cash from the banking premises, then both the customer and
the service provider needs to be present.
(iii) Self Service production: In this case, the customer uses the equipments
of the service providers and self serves it. Eg. ATM.
4.) Inventory
Reliability
Assurance
Tangibility
Empathy
Responsiveness
RELIABILITY
RESPONSIVENESS ASSURANCE
EMPATHY TANGIBILITY
RELIABILITY
It is defined as the ability to perform the promised service
dependably and accurately. In its broadest sense, reliability means
that the company delivers on its promises–promises about delivery,
service provision, problem resolution, and pricing. It is also known as
the “No Excuses” service delivery.
TANGIBLITY
EMPATHY
Empathy is defined as the caring, individualized attention the firm
provides its customers. The essence of empathy is conveying, through
personalized or customized service, the customers are unique and
unique special.
RESPONSIVENESS
Responsiveness is the willingness to help the customer and
provide him with immediate and fast service.
The Indian Overseas Bank is prompt at providing its customers
with the information and services that they seek. It is extremely
prompt when it comes to resolving the complaints of the customers.
The customers, in their feedback form, mentioned this as one of the
most important factor that has prompted them to continue with this
bank.
ECONOMIC SYSTEM
SERVICE MULTIPLE
SEGMENT SEGMENTS
HOUSEHOLD SEGMENT
Housewives
Sub- Segment
Gender Segment
Working Ladies
PROFESSION SEGMENT
Technocrats
Bureaucrats
Corporate
Executives
Intellects Profession Segment
Public/ Private Formal/Informal
White - Collar
Employees
Blue – Collar
Employees
The technocrats, bureaucrats, corporate executives, intellects,
white-collar and blue collar employees have different needs and
requirements and therefore the banking organizations should know
their expectations.
INSTITUTIONAL SECTOR
Charitable Trusts
Individual
Originations
Chamber of
Institutional Segment Commerce
Sub- Segment Trade and
Commerce
Health/Education
Sports Org
Philanthropic
Organizations
Complaint Handling-HDFC Bank
The bank's 'moments of truth' surveys too are modeled after the
airline industry's satisfaction surveys. These are given to customers
just before they exit a branch after a transaction.
Phase I
Phase II
Within a month the customer got a letter from the bank saying
that her account has been activated. So the next day she went to her
nearest branch to deposit a cheque. As she entered inside, it was over
crowded with people in each and every corner; most of them were the
employees themselves. In most of the branches that she had visited in
last 5 months, she had got the feeling that the branches were over
employed.
Phase III
After going through all this she decided to use their Phone
banking facilities, and it’s did not turn out any better than Central
Railway Inquiry. Every hour you find some different people to answer
your query, and most of the time you are put on HOLD.
Phase IV
They used to claim that their trump card was the ATM. To some
extent it was ok but what the customer noticed is that most of the
ATMs are located in a very isolated place and its down during evening
time.
The Finale
Here is something that made the customer to finally say
GOODBYE to ABC. Initially they told her that their share trading service
is free, so she did most of her trading through ABC direct. The service
was not of much help. Just a week from then, she got a mail asking her
to pay for using share-trading service. Again she got in touch with the
concerned person and informed them about the mail and also that she
was no more interested in continuing her account in ABC. Then they
informed her that this mail is not for current year it’s the advance
payment for the coming year. In the end she had to pay them for the
service, which she never utilized. She stopped using ABC Bank and
asked all her colleagues never to have an account with the bank after
her experience.
RATER
Reliability: The lady assured the customer that the representative would
visit her the next day. Instead he took a week to turn up. Also instead
of apologizing to the customer, he gave the excuse that he was busy
with other clients and so he could not attend to him. In a service
industry the customer is the king and you should make each customer
feel special. As can be seen, the attitude of the employees in the bank
is indifferent. In fact, the customer concludes his review by saying that
the employee’s attitude towards the customer depends on their mood.
This shows tremendous inconsistency in service delivery.
Assurance: Here the staff has failed to live up to its promise. Instead of
coming in a day as promised, the representative came after a week.
He didn’t even apologize for his mistake. As a result the customer was
inconvenienced. The customer was angry that the bank made false
promise just to woo customers. Also she was told that the share
trading service was free. Afterwards she was made to pay for the
service, which she had hardly used.
Tangible: The tangible cues here will be the facilities that they provide,
like the phone banking and the ATM. The customer here describes the
ATM service as okay. She says that it works only sometimes. She
compares their phone banking facility to the central railway enquiry,
where every hour different people come to answer his query and most
of the time he was put on hold.
Empathy: From the case, it seems that they are not understanding
towards the customer grievances. All the branches this customer has
gone to have been very crowded. There was no effort on the part of
the employee’s to help this customer. Also in the case of their phone
banking, they make the customer wait for long periods of time without
answering their query.
Responsiveness: In the case of this customer, the bank and its staff were
not able to respond quickly. When the particular representative was
not able to reach the next day, the bank should have sent another
representative in his place. Also they should not have charged this
customer for using the share trading service, especially since it was a
mistake on their part.
Service Recovery
Outcome fairness: In this case the customer decided to use the share
trading service as she was told it was free. She did not find the service
of much help. In the end she had to pay for a service, which she hardly
used. The bank should not have charged the customer for this service
especially since it was a mistake on their part.
Fish-Bone
DELAY IN
SERVICE
OTHERS MATERIAL SUPPORTING INFORMATION
Equipment: - Phone banking system of ABC Bank was really bad. Every
hour there was a new person on the phone and most of the time the
customer had to wait as the phone was kept on hold. The customer
had some difficulty using the ATM machines, as they were located on
isolated places, which was very inconvenient for the customer to
access. Secondly, during the evening time they were not working. The
customer had been told about that the share trading facility was free
but later on they charged for the next year’s trading in advance. So,
there was certainly a failure in equipments.
Material: The material aspect of HDFC bank would be its ATM and
Phone Banking services that are described by the customer as a “total
flop” and a waste of time. This shows a complete material failure, as
the services are not up to the extent of the customer’s perception and
expectations.
Front line staff: The customer has rated employee’s attitude towards
him as ‘depends upon the mood’. In a service industry this is not
acceptable, whatever might be the mood his attitude towards the
customers should be good. The front line staff’s job is to make the
work easier for the customer and not to complicate further which is not
the case in this particular case study.
Supporting Activities: The supporting staff in this case would include the
front desk receptionist who fails to act in haste and inform the same to
the concerned representative. Also, the customer is not informed
about the different service charges, which the back office should have
notified by sending some mails or notifications
Procedure: In the second phase the customer went to the bank to
deposit cheque, she found out that the place was very crowded and
there were no proper signboards for the counters to guide her.
Company Profile
CASE STUDY-II
This bank grew leaps and bounds ever since the IPO in 1998 as
well as the NYSE listing in 2000. The numbers of customers were huge
and the merger with Bank of Madura added to the woes of the service.
As there is a saying “Quality is inversely proportional to Quantity”,
ICICI bank yielded to this very true philosophy. The customer sent a
letter to their NRI center regarding a change of address for his NRI
account. This took considerable amount of time since ICICI misplaced
the letter twice and he head o mail the letter again. This frustrated and
infuriated the customer. Then, they sent a courier to the customer but
at the wrong address. They sent one to the wrong address, and other
one to the right address but with the wrong password for the bank
account.
If doing an address change should take such a long time and if your processes
are so sterner and baseless with a mediocre customer-care follow-up, I definitely need to
reconsider my options. I had opened an account in ICICI though I had quite a few
options for an NRI account, in hope of having an excellent customer service.
I’ll have to rethink if my decision was correct. I have received similar complaints from
my friends as well stating that the ’’Quality of ICICI has gone down with Quantity’’, I
would definitely like to talk to some manager for NRI Services, for the same
matter. Revert to me, if you still have any queries.
Mr. XYZ
The Reply
All things considered, the ICICI bank is far ahead of many of the
nationalized banks. As an NRI customer and a person used to excellent
banking for quite sometime, I feel that this bank has some mediocre
facilities and service. I will be reevaluating the opinion at a later point. I
am just having an account after many unpleasant services and
incidents.
R: Reliability
The Case Study shows that the bank was extremely reliable and
trustworthy initially. But after the surge and swelling of customers,
inefficiency has crept in r to the bank. The bank is unreliable only on
the basis of the service that it provides, but when the question of
financial reliability arises the bank seems to be in very sound and
secure.
A: Assurance
The customer Mr. XYZ was rest assured about the fact that the
bank was very professional in its approach. But after the bank
conducted the mistakes of sending the password at the wrong address
and then sending the wrong password at the right address made sure
that the bank lost the dignity of being a financial institution that
provides assurance. This had a deep impact on the customer.
T: Tangibility
As we can see when the customer Mr. XYZ wanted to change the
address for his NRI account he had to send 3 mails to the bank out of
which 2 of them were lost by the company, later on the first
confirmation was sent at the wrong address and the second
confirmation was sent at the right address with the wrong password.
The whole process took around 2 months, which is a very long time to
take by any standards.
E: Empathy
The bank was very co-operative and sympathetic towards
customers before the phase of their IPO, the best example of this
would be that the company also called its NRI customers overseas for
certain transactions this showed that the bank was indeed very good
towards its customers, but after the IPO, the bank just lost all loyalty it
earned, it took the bank almost 2 months to change the address and
when the customer Mr. XYZ wrote a mail to the bank for its mediocre
service provided the bank in reply blamed the customer for its mistake.
Thus, ICICI Bank performs miserably on this count too and thus loses
the customer.
R: Responsiveness
The company lost this quality after the IPO. The company took
almost 2 months to change the address and only after sending 3 mails
was the job done, the bank management was also very unresponsive
in apologizing to its customers.
BIBLIOGRAPHY
SERVICES MARKETING– M.K.RAMPAL & S.L.GUPTA
SERVICES MARKETING–VALARIE.A.ZEITHAML & MARY JO BITNER
SERVICES MARKETING–CHRISTOPHER LOVELOCK
MARKETING MANAGEMENT–PHILIP KOTLER
BUSINESS TODAY (JULY 31’ 2005)
ANALYST (MARCH 2003)
www.icici.com
www.hdfc.com
www.indianoverseasbank.com
THE TIMES OF INDIA
BUSINESSWORLD