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Mohit Narwal (62), Davis Lazarus (09), Seethal (43)
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
The truth about customers
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.
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
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
“We want to go beyond satisfying customers, we want to delight them” Satisfaction
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 CustomerMortgage unit of leading Bank Delight Example –
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 delight Auto Credit 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
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
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-fitsall 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.
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.
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