Online banking in India: An approach to establish CRM

Technology is fast altering the business servicescape. Its role in improving customer service levels is being used strategically and increasingly by service organizations. The service attributes and quality can be enhanced by deployment of technology. The Internet has facilitated convenience in customer interactions and transactions with the banks. Online banking is currently emerging as a new approach in India for providing improved accessibility and expediency to customers. Most banks have their own websites for improving the customer interface and offering online services. The article studies the applicability of online banking in India and its role in fostering relationships with customers and giving them more value. The research was conducted on customers familiar with online banking in India, and their perceptions about online banking were studied. The findings reveal that customers are using the services but are skeptical about the financial transactions and service quality dimensions.     

Satisfaction drivers for Internet service technology among stock brokerage customers in Thailand

Many financial services firms are offering the Internet as a self-service technology (SST), for online stock trading, in an effort to increase effciency and give customers greater access. It is important to understand how this technology will influence customer satisfaction. This paper reports results of exploratory research to identify sources of customer satisfaction and dissatisfaction with the service encounter in Thai stockbrokerage firms. Results show that customers and service providers determine sources of customer dis/satisfaction differently, depending on whether the service encounter is technology-based or interpersonal. Different customer profiles give rise to segmentation in response to the use of Internet technology in this industry.     

The four faces of mass customization

Virtually all executives today recognize the need to provide outstanding service to customers. Focusing on the customer, however, is both an imperative and a potential curse. In their desire to become customer driven, many companies have resorted to inventing new programs and procedures to meet every customer's request. But as customers and their needs grow increasingly diverse, such an approach has become a surefire way to add unnecessary cost and complexity to operations. Companies around the world have embraced mass customization in an attempt to avoid those pitfalls. Readily available information technology and flexible work processes permit them to customize goods or services for individual customers in high volumes at low cost. But many managers have discovered that mass customization itself can produce unnecessary cost and complexity. They are realizing that they did not examine thoroughly enough what kind of customization their customers would value before they plunged ahead. That is understandable. Until now, no framework has existed to help managers determine the type of customization they should pursue. James Gilmore and Joseph Pine provide managers with just such a framework. They have identified four distinct approaches to customization. When designing or redesigning a product, process, or business unit, managers should examine each approach for possible insights into how to serve their customers best. In some cases, a single approach will dominate the design. More often, however, managers will need a mix of some or all of the four approaches to serve their own particular set of customers.     

The quality improvement customers didn't want

Is investing in new technology always the right choice for a company and its customers? Allan Moulter, the CEO of Quality Care, isn't sure he wants to invest in the computerized reception system that consultant Jack Zadow has outlined for him. But in this HBR case study, the argument Zadow makes is impossible to ignore. Quality Care's rivals have invested in similar systems or are planning to do so. The new system promises to take care of routine busywork, freeing staff up for other interactions with patients. It seems as if the competition hasn't even cut staff and is counting on increased customer retention to pay for the investment. And yet, Quality Care's surveys of its own customers show that they prefer the human touch when checking in. How would customers feel if the first ?person? they met when they came in the door turned out to be a machine? Moulter prides himself on his responsiveness to customers. And with 86% of Quality Care's customers either satisfied or completely satisfied, aren't things fine as they are? Has Moulter considered all the facets of his predicament? How will Quality Care's staff be affected by a decision one way or another? What about the costs of upgrading the system? Can Quality Care maintain its standing without going high-tech? Would customers rebel when confronted with the proposed reception area or would they appreciate the increased efficiency? Six experts weigh the costs and benefits of technology in a service industry.     

Marketing is everything

Technology is creating customer choice, and choice is altering the marketplace. Gone are the days of the marketer as salesperson. Gone as well is marketing that tries to trick the customer into buying whatever the company makes. There is a new paradigm for marketing, a model that depends on the marketer's knowledge, experience, and ability to integrate the customer and the company. Six principles are at the heart of the new marketing. The first, "Marketing is everything and everything is marketing," suggests that marketing is like quality. It is not a function but an all-pervasive way of doing business. The second, "The goal of marketing is to own the market, not just to sell the product," is a remedy for companies that adopt a limiting "market-share mentality." When you own a market, you lead the market. The third principle says that "marketing evolves as technology evolves." Programmable technology means that companies can promise customers "any thing, any way, any time." Now marketing is evolving to deliver on that promise. The fourth principle, "Marketing moves from monologue to dialogue," argues that advertising is obsolete. Talking at customers is no longer useful. The new marketing requires a feedback loop--a dialogue between company and customer. The fifth principle says that "marketing a product is marketing a service is marketing a product." The line between the categories is fast eroding: the best manufacturing companies provide great service, the best service companies think of themselves as offering high-quality products. The sixth principle, "Technology markets technology," points out the inevitable marriage of marketing and technology and predicts the emergence of marketing workstations, a marketing counterpart to engineers' CAD/CAM systems.     

Customer value analysis in financial services

This study investigates what creates value for customers and how providers can improve value for their customers. A comprehensive analytical model with a four-step approach is presented and applied in the field of financial services. In a first step, the main customer value drivers are identified and five value dimensions are derived, based on qualitative interviews with customers. These results are then compared to value assumptions made by customer-contact employees, and gaps between customer and employee perceptions are analysed. Based on these identified gaps, a multitude of implications for managing company customer value at the normative, strategic, and operational level of management are derived, and finally implications of findings for service marketing practice and research are discussed.     

The effect of heterogeneous risk on the early adoption of Internet banking technologies

Financial service providers have increasingly offered customers new remote access to such services, with Internet banking being the latest example. While Internet banking has been available for years, the early adoption by customers of this technology was disappointing to most. This paper examines the demand for remote access to banking accounts by consumers and finds that when the technology is new, the traditional risk return models including variables allowing for heterogeneous risk add power in modeling the adoption decision. Perceived risks in Internet banking are seen to be responsible for some of the hesitation to adopt. Ironically, older consumers are found to be less likely to adopt Internet banking regardless of their risk tolerances. However, younger consumers are found to be early adopters only when they have relatively high levels of risk tolerance.     

The service-driven service company

For more than 40 years, service companies like McDonald's prospered with organizations designed according to the principles of traditional mass-production manufacturing. Today that model is obsolete. It inevitably degrades the quality of service a company can provide by setting in motion a cycle of failure that produces dissatisfied customers, unhappy employees, high turnover among both--and so lower profits and lower productivity overall. The cycle starts with human resource policies that minimize the contributions frontline workers can make: jobs are designed to be idiot-proof. Technology is used largely for monitoring and control. Pay is poor. Training is minimal. Performance expectations are abysmally low. Today companies like Taco Bell, Dayton Hudson, and ServiceMaster are reversing the cycle of failure by putting workers with customer contact first and designing the business system around them. As a result, they are developing a model that replaces the logic of industrialization with a new service-driven logic. This logic: Values investments in people as much as investments in technology--and sometimes more. Uses technology to support the efforts of workers on the front lines, not just to monitor or replace them. Makes recruitment and training crucial for everyone. Links compensation to performance for employees at every level. To justify these investments, the new logic draws on innovative data such as the incremental profits of loyal customers and the total costs of lost employees. Its benefits are becoming clear in higher profits and higher pay--results that competitors bound to the old industrial model will not be able to match.     

Internet banking in the UK: Why are there not more customers?

Despite the increase in the number of internet users recorded by various agencies, the level of increase of internet usage for banking purposes has not increased at the same rate. One reason for this is continuing consumer fear about security which, despite the media coverage and the technical and verbal reassurances provided by the banks, still preys heavily on consumers' minds. Trying to resolve security fears is perceived to be part of the overall service to customers provided by the internet banking service providers. However, customers are continuing to demand increased levels of service quality. The research described in this paper attempted to identify whether or not specific problem areas exist for UK banks in achieving satisfactory performance on key attributes of service quality, particularly security, as perceived by a sample of UK internet banking customers. Using trade-off analysis to interview 56 internet banking customers, five key service quality attributes were identified and ranked. Cluster analysis was then adopted and revealed two groups of respondents. One group was most concerned about security-related issues while the other group was more interested in the convenience, speed and timeliness of the service. Overall, the internet banks were rated as being good on the five attributes except for the attribute ‘product variety/diverse features’. The question that arises from the findings is whether or not good performance by the internet banks on the service quality decision criteria is sufficient in a highly competitive internet environment, not only to attract new customers, but also to retain existing ones.     

Targeting customers based on economic worth

A common objective for many financial service companies today is to focus on their best customers and to align their investment in customers based on the economic worth of the customers. Yet, as simple and practical as this seems, many companies have not been able to implement the tools and processes that will allow them to do this effectively. One tool that helps identify the economic worth of customers is ‘grading’. Grading is a powerful tool that helps companies manage customer relationships based on economic worth. While there are several grading methodologies and many variations within these methodologies, the best approach is one that is tailored to a company's specific situation and one that is capable of being implemented. By using grading in combination with other tools and processes, financial service firms can target their customers more economically, reduce customer defection and increase revenue.     

Customers' perceived value for private and state-controlled Hellenic banks

Under conditions of increasing competition banks try to improve their customers' level of satisfaction in order to create strong preferences and hence increase their customers' loyalty. This paper is based on data drawn from 1,470 questionnaires completed by customers of both private and state-controlled banks in various areas of Attica. It looks at the bank customers' satisfaction but focuses mainly on their perceived value from the banking services received. A first analysis of the data collected shows that state-controlled bank customers are older, with lower education and lower income. Additionally, state-controlled banks show lower proportions of very pleased customers and high proportions of displeased customers. A principal component analysis performed on the data related to perceived value has defined three main factors: professional service, marketing efficiency and effective communication, which have then been used as the basis for comparing the customers' perceived value between the two types of bank. The main findings of this analysis show that state-controlled bank customers enjoy a higher perceived value in the case of marketing efficiency (mainly due to the wider network and the favourable pricing policy) whereas private bank customers enjoy a higher perceived value in the case of professional service and effective communication.     

Beyond products: services-based strategy

Services technologies are changing the way companies in every industry--manufacturers and service providers alike--compete. Vertical integration, physical facilities, even a seemingly superior product can no longer assure a competitive edge. Instead, sustainable advantage is more and more likely to come from developing superior capabilities in a few core service skills--and out-sourcing as much of the rest as possible. Within companies, technology is increasing the leverage of service activities: today, more value added comes from design innovations, product image, or other attributes that services create than from the production process. New technologies also let independent enterprises provide world-class services at lower costs than customers could achieve if they performed the activities themselves. These changes have far-reaching implications for how managers structure their organizations and define strategic focus. Companies like Apple, Honda, and Merck show that a less integrated but more focused organization is key to competitive success. They build their strategies around a few highly developed capabilities. And they outsource as many of the other activities in their value chain as possible. To help managers develop an activity-focused strategy, the authors offer a new way to approach competitive analyses, guidelines for determining which activities to outsource and which to retain, and an overview of the risks and rewards of strategic outsourcing. Throughout, they draw on the findings of their three-year study of the major impacts technology has had in the service sector.     

银行网点服务中存在的问题与设立会员制网点的可行性分析

高端客户是商业银行经营竞争争夺的重点，在以提高银行网点营销能力和服务能力为目的的网点转型过程中，如何通过网点建设吸引并服务好高端客户，是各大商业银行都在积极思考的问题。目前，银行网点功能大同小异，不能对高端客户与大众客户进行有效隔离，较大程度上影响了银行向高端客户提供差别化服务的效果。本文通过列举当前银行网点对高端客户服务的不足，分析其形成原因与银行选址偏好之间的关系，提出避开闹市，集中专业人员，建立面向高端客户的会员制银行网点的设想,为银行网点转型提供新的思路。     

Turn customer input into innovation

It's difficult to find a company these days that doesn't strive to be customer-driven. Too bad, then, that most companies go about the process of listening to customers all wrong--so wrong, in fact, that they undermine innovation and, ultimately, the bottom line. What usually happens is this: Companies ask their customers what they want. Customers offer solutions in the form of products or services. Companies then deliver these tangibles, and customers just don't buy. The reason is simple--customers aren't expert or informed enough to come up with solutions. That's what your R&D team is for. Rather, customers should be asked only for outcomes--what they want a new product or service to do for them. The form the solutions take should be up to you, and you alone. Using Cordis Corporation as an example, this article describes, in fine detail, a series of effective steps for capturing, analyzing, and utilizing customer input. First come indepth interviews, in which a moderator works with customers to deconstruct a process or activity in order to unearth "desired outcomes." Addressing participants' comments one at a time, the moderator rephrases them to be both unambiguous and measurable. Once the interviews are complete, researchers then compile a comprehensive list of outcomes that participants rank in order of importance and degree to which they are satisfied by existing products. Finally, using a simple mathematical formula called the "opportunity calculation," researchers can learn the relative attractiveness of key opportunity areas. These data can be used to uncover opportunities for product development, to properly segment markets, and to conduct competitive analysis.     

Bank image in the UAE: Comparing Islamic and conventional banks

This study investigates how bank customers in the UAE view Islamic banks versus conventional banks and whether this image affects customer loyalties or selection of a bank. We distributed a questionnaire to a convenient sample of UAE bank customers that focused on five areas: bank image, bank products, service quality, cultural aspects and religious factors, in addition to demographic attributes of the sample. The main findings of this study are: first, most UAE bank customers prefer banking with Islamic banks, although they are not satisfied with the quality of products and services; second, customers generally have a positive image of whatever bank they dealt with; third, the regression analysis results indicate that the most important factor in choosing a bank was bank products followed by service quality and then religious factors; fourth, there is a significant difference between how customers perceive UAE Islamic banks versus conventional banks; fifth, there is a significant difference in how customers perceive UAE Islamic banks based on their gender, education and duration of the relationship; and finally, there is a significant difference in how customers perceive UAE conventional banks based on their gender.     

Strategy and the Internet

Many of the pioneers of Internet business, both dot-coms and established companies, have competed in ways that violate nearly every precept of good strategy. Rather than focus on profits, they have chased customers indiscriminately through discounting, channel incentives, and advertising. Rather than concentrate on delivering value that earns an attractive price from customers, they have pursued indirect revenues such as advertising and click-through fees. Rather than make trade-offs, they have rushed to offer every conceivable product or service. It did not have to be this way--and it does not have to be in the future. When it comes to reinforcing a distinctive strategy, Michael Porter argues, the Internet provides a better technological platform than previous generations of IT. Gaining competitive advantage does not require a radically new approach to business; it requires building on the proven principles of effective strategy. Porter argues that, contrary to recent thought, the Internet is not disruptive to most existing industries and established companies. It rarely nullifies important sources of competitive advantage in an industry; it often makes them even more valuable. And as all companies embrace Internet technology, the Internet itself will be neutralized as a source of advantage. Robust competitive advantages will arise instead from traditional strengths such as unique products, proprietary content, and distinctive physical activities. Internet technology may be able to fortify those advantages, but it is unlikely to supplant them. Porter debunks such Internet myths as first-mover advantage, the power of virtual companies, and the multiplying rewards of network effects. He disentangles the distorted signals from the marketplace, explains why the Internet complements rather than cannibalizes existing ways of doing business, and outlines strategic imperatives for dot-coms and traditional companies.     

Breaking the trade-off between efficiency and service

For manufacturers, customers are the open wallets at the end of the supply chain. But for most service businesses, they are key inputs to the production process. Customers introduce tremendous variability to that process, but they also complain about any lack of consistency and don't care about the company's profit agenda. Managing customer-introduced variability, the author argues, is a central challenge for service companies. The first step is to diagnose which type of variability is causing mischief: Customers may arrive at different times, request different kinds of service, possess different capabilities, make varying degrees of effort, and have different personal preferences. Should companies accommodate variability or reduce it? Accommodation often involves asking employees to compensate for the variations among customers--a potentially costly solution. Reduction often means offering a limited menu of options, which may drive customers away. Some companies have learned to deal with customer-introduced variability without damaging either their operating environments or customers' service experiences. Starbucks, for example, handles capability variability among its customers by teaching them the correct ordering protocol. Dell deals with arrival and request variability in its high-end server business by outsourcing customer service while staying in close touch with customers to discuss their needs and assess their experiences with third-party providers. The effective management of variability often requires a company to influence customers' behavior. Managers attempting that kind of intervention can follow a three-step process: diagnosing the behavioral problem, designing an operating role for customers that creates new value for both parties, and testing and refining approaches for influencing behavior.     

How you slice it: smarter segmentation for your sales force

Three years ago, 70-year-old Hill-Rom Incorporated was in a position familiar to many mature businesses: The company was strong but needed to be stronger. It was a top producer of hospital beds and specialty mattresses, its core product lines. It also had competitive complementary lines of stretchers, furniture, and architectural equipment. It had an extensive customer base, a respected sales force, and solid profit margins. But by the time Ernest Waaser took over as chief executive in early 2001, revenue growth had been slowing, and competition was on the rise. To secure Hill-Rom's place in the market, Waaser decided to focus first on the sales organization--partly because the cost of sales had risen gradually over the past five years and partly because acquisitions and other initiatives had made the sales organization more complex. The CEO took several steps to restructure the sales force. First, the company changed its customer segments to better reflect customers' demands and financial status, ultimately targeting two main groups: key and prime customers. It then changed the overall structure of the sales organization so it could tailor its approach to these two segments; key customers received more specialized service than prime customers. Finally, Hill-Rom adjusted the sales force after the company took an in-depth look at historical data on products and services and sales completed. Reasons for staffing changes were carefully communicated to the sales force. Because of Hill-Rom's initiatives, the cost of sales is down, short-term revenue growth is up, the outlook for long-term revenue growth looks bright, sales and profit margins are up, and customer satisfaction has increased. Best practice, indeed.     

Loyalty-based management

Despite a flurry of activities aimed at serving customers better, few companies have systematically revamped their operations with customer loyalty in mind. Instead, most have adopted improvement programs ad hoc, and paybacks haven't materialized. Building a highly loyal customer base must be integral to a company's basic business strategy. Loyalty leaders like MBNA credit cards are successful because they have designed their entire business systems around customer loyalty--a self-reinforcing system in which the company delivers superior value consistently and reinvents cash flows to find and keep high-quality customers and employees. The economic benefits of high customer loyalty are measurable. When a company consistently delivers superior value and wins customer loyalty, market share and revenues go up, and the cost of acquiring new customers goes down. The better economics mean the company can pay workers better, which sets off a whole chain of events. Increased pay boosts employee moral and commitment; as employees stay longer, their productivity goes up and training costs fall; employees' overall job satisfaction, combined with their experience, helps them serve customers better; and customers are then more inclined to stay loyal to the company. Finally, as the best customers and employees become part of the loyalty-based system, competitors are left to survive with less desirable customers and less talented employees. To compete on loyalty, a company must understand the relationships between customer retention and the other parts of the business--and be able to quantify the linkages between loyalty and profits. It involves rethinking and aligning four important aspects of the business: customers, product/service offering, employees, and measurement systems.     

Atributos de calidad del servicio de la telefonía móvil para clientes mexicanos y su impacto en la satisfacción y en la lealtad hacia la marca

The objective of this study is to identify relevant attributes of service quality in mobile phones for Mexican customers and to establish their impact on customer satisfaction and brand loyalty. It is being assumed that the attributes of service quality are an antecedent of satisfaction and loyalty. The study is divided in two phases. In a first qualitative phase, thirteen attributes were detected using in-depth interviews. In a second quantitative phase, these attributes were empirically contrasted with variables of satisfaction and loyalty. It was found that only six attributes are statistically related to the variables of these constructs, with two of them being the most relevant: price per minute and empathy perceived by customers from company’s employees.