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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION

METHOD OF BUSINESS RESEARCH REPORT

HAMDARD UNIVERSITY CITY CAMPUS (HIMS)
GROUP MEMBERS: MANAWAR ALI KHAN (MEN 2200770) SAIF-ULLAH BEHAB (562021) MUHAMMAD ASHRAF KHAN (MEN-2200606) AMIR ALI ZULFIQUAR (0203)

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Table of Contents Acknowledgement Academic Honor Executive Summary 1. Introduction    2. Back Ground Problem Statement Questions to be Addressed 2 2 3 4 4 4 4 5 6 Why Standard Chartered Bank Limited, Pakistan What is Service Quality Objectives of Service Quality Internal Service Measures Total Quality Management Sigma Six Questionnaires filled by Mystery Shoppers Questionnaires to be filled by Customers 6 6 6 7 8 8 9 16 i ii iii

Research Methodology  Information Gathering • Personal Interviews • Questionnaires to be filled by Customers • Personal Visits and Observations A Brief Review      

3.

4.

Findings  

5. 7. 6.

Conclusion Bibliography Appendices 33 34

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Acknowledgement Any piece of work, however small, is not possible without the Almighty. We extend our gratitude to our teacher Mr. AKHTAR AHSAN who teaches us the true meaning of research and without whom, the research would not have been possible. This research, from its topic to the tools and text used in it, is due his assistance and guidance. The research and the writing of this report were supported by the Staff and the Customers of Standard Chartered Bank, who have been very cooperative and supportive in providing information about how things move around in the service quality department and how the department has been helpful in imparting product knowledge and customer satisfaction. Last but not least, profound gratitude to our parent and the institution that has provided its students with a forum to present their views and findings with complete freedom

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Academic Honor Code We take full responsibility for the contents of this assignment. To the best of our knowledge, any ideas, words, sentences, paragraphs or parts of another person’s writing are fully documented. We have researched and written the contents with the utmost integrity and honesty, and we are able to answer any questions arising from the contents provided here in.

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Executive Summary

The objective of the research is to provide a brief review on the emerging concept of the Service Quality and key factors that are practiced in the service excellence area of the banking industry. The implementation of Internal Service Measures in Standard Chartered Bank Pakistan and the role of Service Assurance in maintaining outstanding customer will also be studied and taken as a subject. We as a researcher will review not only the Particular department of the Bank but also the responses from the frontline staff and customers. This will help us and the reader in understanding how (if it does) the quality of service affects the customer loyalty towards the Bank. The two branches under review are:  Al Rahim Branch at I I Chundrigar Branch  Hyderi Branch at North Nazimabad  These branches have been taken into consideration due to their prime commercial location and strong customer base. Most of the information provided in the report is based on interviews with the bank staff which led to a better knowledge of how service standards are maintained and monitored. The branch visits (mystery shopping) brought forward facts of how the customers are dealt with at the branch. Here the Research can deduce results based on personal experience. The visits have been very successful and instruments in reaching conclusion on the part of customer perspectives.

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Introduction Since Service Quality Assurance is a new concept in the Banking and Financial Service industry, collection of data based on Literature Review is one of the biggest constraints in the research. Most of the review done on the research has been through the web. The study provides an over view of the implementation of Internal Service Measures in Standard Chartered Bank Pakistan and the role of Service Assurance in maintaining outstanding customer services.  Back Ground:-

The banking institutions, being homogenous and offering by and large the similar products, have to attach great importance to the quality of their services in order not only to be competitive but also to distinguish themselves from each other. With such extreme competition in the market and more or less the same banking products offering nearly the same rates, the banks are left with only service excellence to attract more customers. This is also one big reason that the customers today expect more than good returns on deposits and/ or less markup on credit. They want prompt, courteous, efficient service and that too with trust and security. This market competition and high level of customer expectation has also given way to certain service standards that include the banks’ internal service measures as well as standards set and being monitored by the external strategic systems like the International Organization for Standardization (ISO), Total Quality Management (TQM), etc as well as monitoring being done by State Bank of Pakistan. In conducting the research about the Quality Assurance viz. a viz. customer satisfaction, we as a researcher would familiarize ourselves with the historical background of the organization, focusing on the policies and actual practices followed by Standard Chartered Bank. The two branches that have been taken into study are the Al Rahim Branch due to its high customer Volume and frequency on transactions and Hyderi Branch due to its prime location in the Main Hyderi Market.  Problem Statement:-

In the emerging banking scenario and competitiveness in the market it has become very important for banks to provide good services that would result in better customer satisfaction level and customer loyalty. A strong customer base is the back bone for any business. HAMDARD INSTITUTE OF MANAGEMENT SCIENCES 7

SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Questions to be Addressed:-

Based on the familiarization review, the researcher provides in specific terms, the challenges being faced by the organization in the area of Quality Assurance. In the course of research, efforts have been made to seek answers to the following questions: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Does the bank’s Vision and Mission statement include the concept of Quality Assurance? Whether the bank has established a full fledged department for quality assurance? Is the Quality Assurance Department exercising the three main components of TQM, i.e., Just in Time (JIT), Total Quality Control (TQC), and Total Employee Involvement (TEI)? If so, has the senior management been fully familiarized with concepts, implementation strategies, and imperatives of TQM? What Internal Service Measures are being taken to ensure Service Excellence? How these practices and customer satisfaction is monitored by the Quality Assurance Department? Has the Service Quality Monitoring helped improve the standard of services being provided to customers? Do these practices actually reflect on the banks image? Do the Service Quality Measures actually result in customer satisfaction? Does customer satisfaction guarantee customer loyalty for the bank or its products?

Research Methodology:The research has been conducted on the basis of primary and secondary data and information gathered through field work. The methodology adopted in carrying out the research consists of personal interviews as well as questionnaires filled by both the banking staff and selected customers. The questionnaire will help determine the satisfaction level of customers visiting the branch and also how much quality of service matters to them. Questionnaires designed to be filled by staff also help in understanding the emerging concept of Service Excellence and also to find out what measures are being taken ensure that customers are being served with quality .Visits to branches determine the quality of service being maintained by the Service Assurance, the practices by the front line staff and the response of the customers.  Information Gathering:-

The two branches of SCB are under review.

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Personal Interviews  Manager CCC  Regional Head Branch Banking  SQM  Branch Managers of Each Branch 1 from Each Branch 2 From Each Branch 1-2 From Each Branch 2 from Each Branch 10 at CCC

    

Operations Managers CROs and CRMs Personal Bankers CSOs Online Bankers 

Questionnaires to be filled by Selected Customers:  To be selected from a list of Prime Customers & Customers who Visit Branches Frequently for Transactions. Customers who frequently use online (CCC) services for transactions and payments.

Personal Visits and Observations:  Branch Visits/Mystery Shopping…(Minimum 1 to Each Branch) Visits To CCC

Constraints:The research requires a detailed study and analysis of SCB’s internal service assurance policies, their implementation and practices by the staff. Since there are confidentiality issues and the bank staff is reluctant to share company details, it will be difficult to gauge to what extents the Internal Service measures have been implemented, are being practiced and also monitored internally.   Confidentiality Issues Reluctance of Bank Staff to share company details.

Why Standard Chartered Bank Chosen for Research:The first question that arises in the mind of the reader is that Why Standard Chartered Bank (SCB) has been chosen as the subject for research.

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Standard Chartered Bank has a history of over 150 years in banking with an extensive global network of over 1,400 branches in over 50 countries. It employs 60,000 people representing over 90 nationalities worldwide. Standard Chartered Bank (Pakistan) Ltd. calls itself ‘a locally embedded International Bank’ and also claims to be the largest International Bank in Pakistan. SCB has been operating in Pakistan for the last 143 years since 1863. SCB Pakistan Ltd. has a network of 115 branches across 22 cities in Pakistan (As of January 01, 2007). What Is Service Quality:As you enter Quality Assurance Department at SCB Pakistan you cannot miss these words written on the workstations and that’s how they define Service Quality. “Do the right thing, right the first time, every time.” Quality is managing and working day to day emphasizing; • • • Customer satisfaction and loyalty. Employee Involvement. Continuous process improvement.

Objectives of Service Quality Management Group (SQM):The objectives of the SQM are to:• Set and monitor internal service standards and measurements. • Articulate the customers’ point of view i.e. “Voice of the Customer” through external service measures. • Review and rationalize all operation processes. • Recognise and reward people through service award programs. • Set ‘accountability’ standards that include: o Customers’ satisfaction and loyalty. o Continuous improvement. o Awareness through recognition and reward. • Initiate and drive service related training. Internal Service Measures:-

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Internal Service Measures are basically the Service Standards and Measurements that are set by a Bank (SCB in this case) which are followed by the front desk staff and is continuously monitored by the Quality Assurance Team. • Telephone Timeliness:

The telephone must be picked up within three bells. The customer on the other end should not be kept waiting. • Telephone Effectiveness:

The customer’s queries should be addressed/ issues should be resolved instantaneously. The customer should not be put on hold for too long and the customer should be provided with full information that he seeks and that too with courtesy and efficiency. • Teller Wait Time:

The customers at branch should be greeted by the interacting staff and his transactions should be done without delay. • PO/DD Issuance:

The pay orders and demand drafts transactions are monitored for the time the customer has to wait for his transaction to take place. • Thank You Letters:

After account opening, the customers are to be sent a letter as a token of gratitude for initiating business with the bank and also to assure quality business in future. • Cheque Book Replacement:

The chequebooks requested by the existing customer should be ready within the time set/ standardized by the Quality Assurance Department. • ATM Availability:

The ATM service is provided so as to facilitate the customers and also to provide the round the clock access to their money. Availability of ATMs at all times is there’s very important. • Complaint Acknowledgment & Resolution:

The comments and feedback of the customers should be immediately acknowledged and the complaints should be promptly resolved. HAMDARD INSTITUTE OF MANAGEMENT SCIENCES 11

SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Total Quality Management:TQM or Total Quality Management is composed of three basic functions. • Total means that everyone in the organization is involved in the final product/ service to the customer. • Quality means keeping customer focus for every process, service and product developed • Management recognizes that TQM will not happen by accident. It is a process that has to be managed It has been defined by International Organization for Standards as:-

"TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at longterm success through customer satisfaction, and benefits to all members of the organization and to society." Total Quality Management:The TQM has three main components, namely:• • • Just in Time (JIT), Total Quality Control (TQC), Total Employee Involvement (TEI).

Just in Time (JIT) exposes the cause of problems whereas Total Quality Control (TQC) helps provide a solution to these problems. Since the employees do all improvements, they need to be involved in the process of change. Total Employee Involvement (TEI) helps elicits this involvement. JIT uses techniques similar to Lean, and TQC uses tools and techniques similar to Six Sigma tools. Sigma Six:Sigma Six is a measure of quality that strives for near perfection. It is a methodology driven by understanding customer needs, and the disciplined use of data & facts, and analysis of present practices to improve and reinvent organizational processes.

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Findings

Questionnaire I To Be Filled By The Mystery Shopper/ Researcher Based on Observations/ Branch Visits (8 Visits in each Branch)

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Section 1- Customer Services- Branch Visit

Al- Rahim Branch
When you e ntered the branch, w ere you gre eted/ acknow ledged by any staff?

Haidery Branch
W hen you entered the branch, were you greeted/ acknowledged by any staff?

0%

13%

0%

38% Yes No 62% N/A Yes N o N /A

87%

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Were you attended for information/ service?

W ere you attended for information/ service?

1 3%

0%

1% 3

0 %

Yes No N/A

Ys e N o N /A

87%

8% 7

Was the staff courteous and helpful in providing information?

Was the staff courteous and helpful in providing inform ation? 0%

0% 25%

38%
Yes No N/A

Yes No N/A 62%

75%

Did the staff provide correct information?

Did the staff provide correct inform ation?

13%
1 3%

Yes
Yes 49% 38% No N/A

25% 62%

No N/A

Section 2- Customer Services-Telephone

Al- Rahim Branch

Haidery Branch

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Telephone Tim eliness(Response w ithin 3 rings ) 0% 0%

Te lephone Timeliness(Response w ithin 3 rings)

13% 0% Yes No N/A

Yes No 87% N/A

100%

Proper call handling by the operator

Proper call handling by the operator
1 3%

0%
1 3%

38%

Yes No N/A
74%

Yes No 62% N/A

Did the employee who attended: a) Introduce self
0% 0% Yes No N/ A 1 00%

Did the employee who attended: a) Introduce self
13% 0%
Yes No N/A

87%

b) Was courteous and w illing to help

b) Was courteous and w illing to he lp

25%

0% Yes No 75% N/A

25%

0% Yes No 75% N/A

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

c) Give satisfactory inform ation

c) Give satisfactory inform ation

0% Yes 50% 50% No N/A

25%

0% Yes No N/A 75%

Section 3- Cash Counter Services

Al- Rahim Branch
Did the cash counter staff ack now ledge you?

Haidery Branch
Did the cash counter staff ack now ledge you?

25% 0% 75%

Yes No N/A 75%

25% 0%

Yes No N/A

Did you have to w ait for not more than 10 minutes for your turn at the cas h counter? 13% 13% Yes No N/A 74%

Did you have to w ait for not more than 10 minutes for your turn at the cas h counter? 25% Yes 0% 75% No N/A

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Was the transaction proces sed w ithin 10 minutes? 25% Yes 0% No N/A 75%

Was the transaction proces sed w ithin 10 minutes? 25% Yes 0% No N/A 75%

Section 4- Shopper's Observation

Al- Rahim Branch
Acceptable level of cross talk/ nois e volum e 0% Yes 50% 50% No N/A

Haidery Branch
Acceptable level of cross talk/ noise volume 0% Yes No 75% N/A

25%

Professional environm ent

Professional environme nt

0% 38% 62% Yes No N/A

13% 0% Yes No N/A 87%

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Product Material in the vestibule

Product Mate rial in the vestibule

13% 0% Yes No N/A 87%

0% Yes No N/A 100%

Sm ooth functionality of ATM

Smooth functionality of ATM

13% 13% Yes No 74% N/A 74%

13% 13% Yes No N/A

Air condition/ vestibule condition

Air condition/ vestibule condition

13% 0% Yes No N/A 87%

13% 0% Yes No N/A 87%

Product Material in the vestibule

Product Mate rial in the vestibule

25%

0% Yes No 75% N/A

25%

0% Yes No 75% N/A

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Adequate s eating arrangem ent for customers 25% Yes No 13% 62% N/A

Adequate seating arrangem ent for cus tom e rs 0% 25% Yes No N/A 75%

Findings

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Questionnaire II To Be Filled By The Customers (30 From Each Branch)

Section 2- SCB Customer Base:Al- Rahim Branch

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Section 2 a Are you an SCB Customer because of: Convenience 8% 4% 16% Accessibility Reliability 20% 16% Customer Service Reputation 4% 32% Asset/ Reserves Other Reason (Please specify)

Hyderi Branch

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Section 2 a Are you an SCB Customer because of: Convenience 0% 16% 8% 28% Reliability Customer Service 8% 36% 4% Reputation Asset/ Reserves Other Reason (Please specify) Accessibility

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

2 b) On a scale of 1 to 10, rank the following banks in terms of Services (10 is Excellent and 1 is Bad):The results have been determined by taking out a round of figure of the average ranking provided through questionnaires. Al- Rahim Branch
On a scale of 1 to 10, rank the following banks in terms of Services (10 is Excellent and 1 is Bad):-

Standard Chartered Bank Citi Bank 10% 0% 12% 13% 12% HBL 15% 13% UBL 12% Bank Alfalah Ltd Others (Please Specify) 13% HSBC Askari Commercial Bank Abn Amro Bank

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK Hyderi Branch

On a scale of 1 to 10, rank the following banks in terms of Services (10 is Excellent and 1 is Bad):-

Standard Chartered Bank Citi Bank 13% 10% 0% 14% HSBC Askari Commercial Bank Abn Amro Bank HBL UBL Bank Alfalah Ltd Others (Please Specify)

13%

13% 12%

12% 13%

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Section 3 a- Customer Services- Personal Banker

Al- Rahim Branch
How do you find the branch environm ent?

Haidery Branch
How do you find the branch environment?

8%

0%

8% 0% 20% 32% Excellent Good Average Below Average N/A 40%

1 2% Excellent 44% Good Average Below Average N/A 36%

Were you attended for inform ation/ service?

Were you attended for inform ation/ s ervice?

8% 0% 16%

20%

16% Excellent Good Average Below Average N/A 24% 8%

0% Excellent Good 52% Average Below Average N/A

56%

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

How w ill you grade your Pe rsonal bank er in term s of: a) Inform ation 0% Excellent 40% Good Average Below Average 24% N/A

How w ill you grade your Pe rsonal banker in term s of: a) Information 0% Excellent 36% 20% Good Average Below Average N/A

20%

16%

16%

28%

How w ill you grade your Personal bank er in term s of: b) Courtesy

How w ill you grade your Pe rsonal banker in term s of: b) Courtes y

0% 20% 36% Excellent Good Average Below Average N/A 24% 20%

12%

0% Excellent Good 44% Average Below Average N/A

24%

20%

How w ill you grade your Personal banker in terms of: c) Updation of upcoming Sche m es and Prom otion 0% 20% 36% Excellent Good Average Below Average 24% N/A

How w ill you grade your Pers onal banke r in te rms of: c) Updation of upcom ing Schem es and Prom otion 12% 0% Excellent Good 20% 44% Average Below Average N/A

20%

24%

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

How is your PB he lpful in address ing/ s olving your product relate d queries?

How is your PB helpful in addressing/ solving your product related queries?
7%

7% 13% 33%
33%

1 3%

Excellent Good Average Below Average
20%

Excellent Good Average Below Average N/A
27%

20%

N/A

27%

Section 3 b- Customer Services- Customer Relationship Officer/ Manager

Al- Rahim Branch
i How do you find the front desk se rvices w he n you visit the branch?

Haidery Branch
i How do you find the front des k services w hen you visit the branch?

16%

0%

Excellent Good 48% Average Below Average N/A

8%0% 12% 44%

Excellent Good Average Below Average N/A

20%

36%

16%

What is the quality of service provided at the customer facilitation desk?

What is the quality of service provided at the customer facilitation desk?

8% 0% 12% 40%

Excellent Good Average Below Average

11% 0% 7% 49% 33%

Excellent Good Average Below Average N/A

40%

N/A

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

How is the quality of service provided at the cash counter?

How is the quality of se rvice provided at the cash counter? Excellent 36% Good Average Below Average N/A

16% 0% 20% 12% 52%

Excellent Good Average Below Average N/A

16% 0% 4% 44%

How do you find the w illingness of the staff to help/ facilitate the custom er?

How do you find the willingness of the staff to help/ facilitate the customer?

20%

0% 32% Excellent Good Average

20%

0% 28%

Excellent Good Average Below Average N/A

16% 36%

24% 24%

Below Average N/A

Section 4- Customer Services At Branch:-

Al- Rahim Branch
When you visit the branch; a) Are you greeted/ acknow ledged by any staff?

Haidery Branch
When you visit the branch; a) Are you greeted/ acknow ledged by any s taff?

0% 8% 20% 72%

Mostly Yes Sometimes Never N/A

12%

8%0%

Mostly Yes Sometimes Never 80% N/A

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

When you visit the branch; b) Are you attended for inform ation/ s ervice?

When you visit the branch; b) Are you atte nded for information/ service?

8% 16% Mostly Yes Sometimes 16% 60% Never N/A

16% 12% 20% 52%

Mostly Yes Sometimes Never N/A

Is the staff courteous and helpful in providing inform ation?

Is the s taff courteous and helpful in providing inform ation?

16%

0% Mostly Yes 48% Sometimes Never N/A

20%

0% Mostly Yes 44% Sometimes Never N/A

36%

36%

Does the staff provide correct inform ation?

Does the staff provide correct information?

4% 0% 8% 0% 44% 48% Mostly Yes Sometimes Never N/A 60% 36%

Mostly Yes Sometimes Never N/A

Section 5- Customer Services-Telephone

Al- Rahim Branch

Haidery Branch

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Telephone Timeliness(Response w ithin 3 rings) 4% 16% 0% Mostly Yes Sometimes Never 80% N/A

Tele phone Tim eliness(Res pons e w ithin 3 rings) 8% 0% 16% 76% Mostly Yes Sometimes Never N/A

Proper call handling by the operator

Proper call handling by the operator

12% Mostly Yes 20% Sometimes 52% Never N/A

8% 0% 16%

Mostly Yes Sometimes Never 76% N/A

16%

Does the e mployee w ho attends the call; a) Introduce self 8% 12% 8% 72% Mostly Yes Sometimes Never N/A

Does the em ployee w ho attends the call; a) Introduce self

12% 16%

8%

Mostly Yes Sometimes 64% Never N/A

Does the employee w ho attends the call; b) Is courte ous and w illing to help

Does the e mployee w ho attends the call; b) Is courteous and w illing to help 8% Mostly Yes 52% 28% Sometimes Never N/A

24%

0% Mostly Yes Sometimes Never N/A

12%

16%

60%

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Does the em ploye e w ho attends the call; c) Give satisfactory information

Does the e mployee w ho attends the call; c) Give satisfactory information

8% 28% 44%

Mostly Yes Sometimes Never N/A 28%

8% 36%

Mostly Yes Sometimes Never N/A

20%

28%

Section 6- Cash Counter Services:-

Al- Rahim Branch
i Does the cash counter s taff acknow ledge you?

Haidery Branch
i Does the cash counter staff acknow ledge you?

12% 4% 16% 68%

Mostly Yes Sometimes Never N/A

12% 4% 24% 60%

Mostly Yes Sometimes Never N/A

Do you have to w ait for not more than 10 m inute s for your turn at the cas h counter? 12% 16% 52% 20% Mostly Yes Sometimes Never N/A

Do you have to w ait for not m ore than 10 m inutes for your turn at the cash counter? 12% 12% 16% 60% Mostly Yes Sometimes Never N/A

Is the transaction processe d w ithin ten m inutes?

Is the trans action process ed w ithin ten m inute s? Mostly Yes 40% Sometimes Never 44% N/A

11% 14%

11%

Mostly Yes Sometimes Never

12% 4%

64%

N/A

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Section 7- Customer’s Observation:-

Al- Rahim Branch
Acceptable leve l of cross talk/ noise volum e 8%0% 24% 68%

Haidery Branch
Acceptable level of cross talk/ noise volume
1 6% 0% M ostly Y es Som etim es 24% 60% Never N/A

Mostly Yes Sometimes Never N/A

Professional environm ent

Professional environment

0% 48%

Mostly Yes 52% Sometimes Never N/A

16% 0%

Mostly Yes Sometimes Never N/A

24%

60%

Product Material in the vestibule

Product Mate rial in the vestibule

8% 0% 16%

Mostly Yes Sometimes Never 76% N/A

12% 0% 20% 68%

Mostly Yes Sometimes Never N/A

Sm ooth functionality of ATM

Smooth functionality of ATM

12% 0% 28%

Mostly Yes Sometimes 60% Never N/A

4% 0% 28% 68%

Mostly Yes Sometimes Never N/A

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Air condition/ vestibule condition

Air condition/ vestibule condition

20%

0% 36%

Mostly Yes Sometimes Never

8% 0% 48% 44%

Mostly Yes Sometimes Never N/A

44%

N/A

Product Material in the vestibule

Product Material in the vestibule

8% 0% 16%

Mostly Yes Sometimes Never 76% N/A

16% 0% 24% 60%

Mostly Yes Sometimes Never N/A

Adequate seating arrangem ent for custom ers 0% 20% Mostly Yes 52% 28% Sometimes Never N/A

Ade quate seating arrangem ent for cus tome rs 0% 16% Mostly Yes Sometimes 24% 60% Never N/A

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Conclusion • Does the bank’s Vision and Mission statement include the concept of Quality Assurance? The Vision and Mission Statement of the Bank gives high priority to Customer Satisfaction. Standard Chartered Bank Ltd Pakistan’s Vision Statement To strengthen SCB’s Service, Culture, Competitiveness and Infrastructure by closely working with Our Co-leagues and focusing on Customer Satisfaction and process improvement in order to achieve a fundamental business objective of “ growing, deepening and retaining customer relationship” Standard Chartered Bank Ltd Pakistan’s Mission Statement To be the premier bank, responsive to the needs of our target market customers, recognized for superior service quality and innovative products, thereby delivering value to our stakeholders. Standard Chartered Bank Ltd Pakistan’s Core Values Customer Focus Integrity Meritocracy Innovation Teamwork Humility Vision of the Service Quality Department To be a premier bank focused on our customers, recognized for superior services, innovative products and high returns to all our stakeholders. During the interviews it was observed that all staff members were fully aware of the vision and mission statement and its importance in retaining good customer profile. • Whether the bank has established a full fledged department for quality assurance? After acquiring Union Bank Ltd in 2006, Standard Chartered Bank adopted the service quality measures that were previously very successfully being followed by Union Bank and the same department is now in function after integration of CRM in all branches across Pakistan. All Internal Service Measures are being monitored by this department. HAMDARD INSTITUTE OF MANAGEMENT SCIENCES 35

SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Also, this department is active in imparting knowledge to Frontline staff for better quality of services. • Is the Quality Assurance Department exercising the three main components of TQM, i.e., Just in Time (JIT), Total Quality Control (TQC), and Total Employee Involvement (TEI)? The internal service measures as discussed before include the factor of timely service delivery in the form of Telephone Timeliness. These Internal Service Measures are being strictly monitored by the Quality Assurance Department. Outsourced Mystery Shopping is done four times a month, customer transaction times are monitored through integrated systems and branch visits are made by Zonal/Area Service Manager. The branches are graded monthly on the basis of these results. Service Quality Learning Curve (SQLC) as presented in a Service Orientation Program held in the Bank has the following three phases:     Commitment & Development Employee Involvement Maturity Maintenance of Standards

  

In this program, the staff is required to: Progress from one phase to the other in a steady manner. Take no shortcuts Ensure that the right things are done at the right time. • If so, has the senior management been fully familiarized with concepts, implementation strategies, and imperatives of TQM?

Monthly Service Meetings are held at branches to ensure that all staff members, from the Branch Manager to the Front Desk Staff, is aware of the importance of satisfied customer base and each member of the team is instrumental in maintaining quality services. • What Internal Service Measures are being taken to ensure Service Excellence?

Internal Service Measures are basically the Service Standards and Measurements that are set by a Bank (SCB in this case) which are followed by the front desk staff and is continuously monitored by the Quality Assurance Team. o Telephone Timeliness o Telephone Effectiveness o Teller Wait Time o PO/DD Issuance o Thank You Letters HAMDARD INSTITUTE OF MANAGEMENT SCIENCES 36

SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

o Cheque Book Replacement: o ATM Availability: o Complaint Acknowledgment & Resolution: • Has the Service Quality Monitoring helped improve the standard of services being provided to customers? After a review of the branch results based on internal service monitoring by the service quality assurance department it is safe to say that there has been a great improvement in the staff’s product knowledge and the frontline staff has now become service champions in the branches. • Do these practices actually reflect on the banks image? Most of the customers (32% in Al Rahim and 36% in Hyderi branch) in the bank have ranked the bank high in its Image due to good quality of service. Hence the quality of service reflects better image. • Do the Service Quality Measures actually result in customer satisfaction? Based on the questionnaires filed by the customers, the results reflect high customer satisfaction in both Hyderi and Al Rahim Branch. There is however need for improvement in timeliness and waiting space in the Al Rahim Branch as it is a prime branch with the biggest customer portfolio and too many transactions taking place in a day. • Does customer satisfaction guarantee customer loyalty for the bank or its products? 8 and 9out of 25 customers in the Al Rahim and Chundrigar branch respectively say that they have stayed with the bank due to its quality of service, which goes on the show the weightage of Customer Satisfaction as an element in retaining customers. Bibliography:        http://finance.isixsigma.com/library/content/c040127a.asp
www.sbp.org

http://en.wikipedia.org/wiki/Total_Quality_Management http://www.isixsigma.com/me/tqm/ http://www.standardchartered.com/pk/home/aboutus.html http://finance.isixsigma.com/library/content/c040127a.asp http://en.wikipedia.org/wiki/standardchartered http://www.sagepub.com/textbooksProdDesc.nav?prodId=Book10950 37

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

 

Product Brochures of SCB Schedule of Bank Charges, January 2007- June 30, 2007

Appendix- Questionnaires

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Questionnaire I- To Be Filled By The Mystery Shopper Name (Optional): Branch Visited: Section 1- Customer Services- Branch Visit Date of Visit Yes No

i. ii. iii iv .

When you entered the branch, were you greeted/ acknowledged by any staff? Were you attended for information/ service? Was the staff courteous and helpful in providing information? Did the staff provide correct information?

Section 2- Customer Services-Telephone i. ii. iii. Telephone Timeliness(Response within 3 rings) Proper call handling by the operator Did the employee who attended the call: a) Introduce self b) Was courteous and willing to help c) Give satisfactory information Section 3- Cash Counter Services i. ii. iii Did the cash counter staff acknowledge you? Did you have to wait for not more than 10 minutes for your turn at the cash counter? Was the transaction processed within 10 minutes?

Section 4- Shopper's Observation i. ii iii iv v vi Acceptable level of cross talk/ noise volume Professional environment Smooth functionality of ATM Air condition/ vestibule condition Product Material in the vestibule Adequate seating arrangement for customers

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

Questionnaire II- To Be Filled By The Customer Dear Standard Chartered Customer, Your cooperation is needed to understand the Quality of Service being provided to you by SCB Pakistan for a report as a partial requirement in the MBA Program at Szabist Karachi. Kindly take out five minutes of your time to fill this simple questionnaire. Section 1: General Information:Name (Optional): Gender (Optional): Account Title Branch Name Account Number (Optional) Type of Customer Relationship: Account Holder/ Fixed Deposit Section 2- SCB Customer Base 2 a) Are you an SCB Customer because of: Convenience Accessibility Reliability Customer Service Reputation Asset/ Reserves Other Reason (Please specify) 2 b) On a scale of 1 to 10, rank the following banks in terms of Services (10 is Excellent and 1 is Bad):Bank Names Standard Chartered Bank Citi Bank HSBC Askari Commercial Bank Abn Amro Bank Ranking Credit Card Facility Loan/ Advance Facility Others: ____________ ______ Qualification (Optional):

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK HBL UBL Bank Alfalah Ltd Others (Please Specify)

Excellent Section 3 a- Customer Services- Personal Banker i. ii. iii How do you find the branch environment? How will you rate the service provided by your Personal Banker? How updated does your PB keep you on new deals and events? a) Information b) Courtesy d) Updation of upcoming Schemes and Promotions How is your PB helpful in addressing/ solving your product related queries? Section 3 b- Customer Services- Customer Relationship Officer/ Manager How do you find the front desk services when you visit the branch? What is the quality of service provided at the customer facilitation desk? Section 3 c- Customer Services- Cash Counter i ii How is the quality of service provided at the cash counter? How do you find the willingness of the staff to help/ facilitate the customer?

Good

Average

Below Average

iv.

i. ii.

Mostly Yes Section 4- Customer Services At Branch When you visit the branch; Are you greeted/ acknowledged by any staff? Are you attended for information/ service?

Sometimes

Never

N/A

i. ii.

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SERVICE QUALITY TRANSLATING INTO CUSTOMER SATISFACTION IN STANDARD CHARTERED BANK

iii iv .

Is the staff courteous and helpful in providing information? Does the staff provide correct information? Section 5- Customer Services-Telephone

i. ii. iii.

Telephone Timeliness(Response within 3 rings) Proper call handling by the operator Does the employee who attends the call; a) Introduce self b) Is courteous and willing to help c) Give satisfactory information Mostly Yes Section 6- Cash Counter Services Sometimes Never N/A

i. ii. iii

Does the cash counter staff acknowledge you? Do you have to wait for not more than 10 minutes for your turn at the cash counter? Is the transaction processed within ten minutes?

Section 7- Customer’s Observation i. ii iii iv v vi Acceptable level of cross talk/ noise volume Professional environment Smooth functionality of ATM Air condition/ vestibule condition Product Material in the vestibule Adequate seating arrangement for customers

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