Customer Delight in

BANKS.

Mohit Narwal (62), Davis Lazarus (09), Seethal (43)

The truth about
customers
Ten times more expensive to acquire a
new customer than to keep a current
customer
- Bain & Company Research
Customers are lost primarily due to
indifference (66%) versus dissatisfaction
(14%) - WSJ
Customer Delight?
 Delighted customers are those where
you anticipate their needs, provide
solutions to them before they ask and
where you are observing to see if new
and/or additional expectations are about
ready to be required.
Actually
Customer expectations are typically
not very high

Your job is to surprise them

Customer Delight is doing what they
haven’t even imagined

What will cause them to say WOW!

You know what you can do - they don’t

Benefits of creating a
customer
 Increases the customer loyalty.
 It causes new customers to come.
 It distinguishes you from the rest.
 It allows you to sell your product or
service for more money then competition.
 It allows you to make more return on your
investment.
 It allows you to reward your employees.
Why Should We Be
Concerned?
In the average business, for each
customer who complains there are 26
who feel the same way and don’t speak
up.

The customers who feel poorly served

will tell between 8 and 16 people about
their negative experience.
- Technical Assistance Research, Inc.
Satisfaction v/s
delight
 When satisfaction scores exceed the upper threshold of a
customer’s zone of tolerance does a service experience have a
lasting impact by creating customer delight.
 Customer delight is conceptualized as an emotional response,
which results from surprising and positive levels of performance.
 What is really important to intentions and future behavior is not
satisfaction itself but the emotional response to the experience.
 Although meeting expectations can satisfy, it is the emotional
response to a surprise—whether delight or outrage—that has a
real impact on customer loyalty.
 Cross-sectional consumer behavior research found that the
cluster of consumers reporting the highest levels of surprise and
joy were more satisfied than others.
Customer delight in service
sector
Contd.
“We want to go beyond
satisfying customers, we want
to delight
Satisfaction them”
When a Bank knows, understands and meets
customer wants, expectations and needs
 Delight – or the ‘Wow!’ factor
When a Bank goes beyond customer needs
and exceeds expectations
In a hi-tech world, customers keep
raising the bar on expectations, making
delight a rare emotion.
Over the last 10 years,
technology has created
immense
 delight
Buying a train ticket from an ATM machine
 Internet Banking – full control to the
customer
 Paying a utility bill over the phone
 Cash and cheque deposit machines –
instant credit with a receipt
 Anywhere banking – access your account
from any ATM across the world
…So now you can see how technology is
continually raising the bar on customer
expectations
So, is customer delight an
impossible objective for
 Not really, but it does require a high level of
understanding of our customers
Technology by itself no longer excites customers.
It is how we use technology that will become
critical
Service and Brand are the key differentiators – so
what is the role of technology in creating this
difference?
○ Technology to staff to produce delight
○ Technology at the point of self-service delivery
Segment customers – this is critical because it is
unlikely that the Bank will be able to delight all
categories of customers in exactly the same way
Only focused investment in
technology will produce
Customer Delight
 Example – Mortgage unit of leading Bank
Seeing large attrition – surveys showed call
centre service to be an issue
Invested in a state-of-the-art call centre solution
and also increased the number of people at the
call centre
Customer satisfaction surveys jumped but
attrition continued
Delight for these customers came from
competitors who pro-actively offered them a lower
re-finance rate
Possible requirement was a profiling system that
more accurately modeled risk of existing
customers to reduce their rate before attrition
Technology to staff to
produce delight
 Interestingly, it is often the junior most staff
in an organisation who can produce
customer delight
 Same customer information at all points –
collect customer information at all touch
points – you can never have enough
customer information!
 Customer offers can be more targeted
 Financial attitude surveys to indicate financial personalities
somewhat akin to Meyers-Briggs personality profiles.
 Help a bank determine product need and focus offers more
effectively. Wells Fargo is one early adopter.
Some Recent Examples of
Technology enabling staff to
produce
 Auto Creditdelight
Enhancement
Mini score-card at the call centre front-end
 Premier cash advance
The ability to give a Rs. 2.5 Lakh cash advance to
a customer when he/she is overseas.
 Instant PIN at the Branch or at the call
centre
Immediate access to the account instead of
waiting 5 days for a PIN to arrive
 Ability to link a credit card to a Savings
account
Technology at the point of self
service delivery
 Mix of notes from the ATM
 Speech Recognition at the call centre
 Alerts on credit card usage
 Banks will have to continually evolve
alternate delivery channels so as to
produce customer delight
Individual Solutions at the Call Centre
Internet account aggregation across different
banks
Satisfaction Continuum
 Dissatisfied customer – is an angry
customer. He may not express it to the Bank
(mostly not) but will tell friends. Competition
will soon find out
 Satisfied customer – is an indifferent
customer. He will not talk about his
experience to anyone unless surveyed
 Delighted customer – is a happy customer.
He will express his delight to the Bank and
his friends. Apart from high loyalty, he will be
the Bank’s most credible sales person
Customer Delight Vs
Loyalty
 Many companies pursuing quality consider
customer satisfaction to be their objective.
 Customer satisfaction is not an effective
quality goal.
 Satisfied customers don't necessarily
develop brand loyalty just because they got
what they asked for or paid for.
 Customer loyalty can only be assured by
continuously delighting and surprising
customers.
The table below illustrates the four levels of


customer service:

Examples of Customer
Delight:
 Releasing a loan before the scheduled date, e.g. 50%
shorter processing time.

 Greeting the customer and thanking him after and

every transaction with the bank-- withdrawal, deposit,
inquiry, loan or card application, etc.

 Finacle inclusion solution arms banks with a two

way messaging infrastructure to alert field agents and
bank staff through SMS. This is supplemented by a
secure mailbox. The solution also has extensive
offline transaction processing capabilities, supported
by a robust synchronization engine.
Banks should offer personally optimal


banking solutions, rather than one-size-fits-

all products to forge long-term relationships
and customer satisfaction.


Hand-carrying the cheque (loan proceeds)

to the client's (borrower's)office without his
requesting such services.


Apologizing to the client after having him



wait longer than usual or after causing him

any kind of inconvenience or discomfort.
 The bank’s best sales
 The objective people
of Total Quality Management
(TQM) is to create and retain customers who
would not only buy but also endorse your
products and services.

 Customers are the best salespeople because

they are users of your products.

 Their desire to endorse them to their friends

comes from the sincere delight and surprise.

 The best quality strategy is to develop life-long

customers by continuously delighting and
surprising them ahead of the competition.
 Customer’s voice-icici
 The mobile alerts given to debit and credit card
holders is a wonderful innovation. Any time you
loose your card or any successful attempt is
made you will be alerted. This helps us to
communicate with ICICI Bank and get the
transactions stopped on the card. An excellent
customer service initiative.

 I would like to thank the entire team in Customer

Service for the excellent service provided to me.
My complaint was promptly attended and
redressed. A member of the customer service
team from India even called me in Bahrain and
informed me of the action taken on my
complaint. I am very much impressed about the
attention paid by ICICI bank to the complaint of a
minor account holder like me.
South Indian bank
 I appreciate the employee of SIB for solving all
my demat queries in a fantastic manner and I
also appreciate her efforts and service. She
understood all my Queries and gave a good
resolution. And she was very professional. I
appreciate the way she explained me everything.
She was very good.

 I was very impressed with the service provided

by Ms.Smitha of your office. She was very
prompt, responsive and eager to help kind of
person. She understood my problem carefully,
listened to my tantrums & frustrations and still
answered with smile. Talking to her was
delighting. My best wishes to this young
dynamic & helpful lady.
Thank you