Good customer service is vital to the survival of any business in any industry. Despite this, companies in Jamaica have little appreciation of how important this is. My focus will be on the banking industry in Jamaica, with emphasis on customer service at the National Commercial Bank.
Customer service in banking is one of the most important ways to keep customers coming back. It includes responding to customers’ questions and complaints in a thorough and timely manner and interacting with customers through face-to-face meetings, telephone, mail, fax, and email. Most if not all bank employees are involved in some aspect of customer service.
Because of increased competition, banks are required to become more and more customer-focused, according to Washburn Financial Services. It is more costly to acquire new customers than it is to retain existing customers. Maintaining customers requires customer service staff in banks to provide service that is quick, error-free and convenient (Dansereau, 2017).
In this project, I will explore the customer-oriented industry of banking. Banks in Jamaica need to understand that if the customer isn’t satisfied with the services it is receiving from the bank, then it is highly unlikely that it would trust it with his hard earned money (Iccile Financial Services, n.d.).
Practicum Topic
Improving poor customer service delivery at the National Commercial Bank in Jamaica through more effective staff training, better streamlining of service delivery and more efficient handling of customer complaints
Practicum Form
The Research project form is best suited for this project because there is already a fair amount of existing literature that addresses the issue of poor customer service in Jamaica, As such, obtaining firsthand experience for the sake of this project (such as through an internship) would not be necessary. Further, I have had first-hand experience with the issue in the past, and will likely have similar skills in the future.
Proposed Location of the Practicum
Type of institution: Bank
Size: Jamaica’s largest financial services provider with 40.8% market share by assets of the commercial banking sector (as at September 2013) – based on information on its LinkedIn profile
Full-time: 2,282 / Part-time: 289 / Contract: 33
Services offered: Chequing and savings accounts, credit card facilities, personal and commercial loans, insurance, and wealth management; supported by online banking, along with telephone banking
Community serves: NCB has a network of 36 locations and over 170 ABMs island wide
The focus of the Practicum & Rationale/Justification
There is much improvement that needs to take place as it relates to customer service in Jamaica – particularly in the banks where a better level of service is usually expected. I am passionate enough about the issue to want to investigate it further. This, as I have personally experienced this poor level of customer service and was quickly able to identify areas that they could improve in. I am interested in finding ways in which the issue can be better addressed, so that bank customers feel less frustrated and more catered to when seeking banking services.
Practicum Objectives
u To determine the level of customer satisfaction among NCB customers as it relates to customer service
u To establish the relationship between service quality and customers’ satisfaction
u To recommend strategies enhance customer satisfaction basing on the study findings
u Elaborate on methods and provide detailed approaches to improving customer service – procedures include more effective staff training, better streamlining of service delivery and more efficient handling of customer complaints
Literature Review
Poor customer service in Jamaica is a long-standing, widespread issue that is present across many sectors, both public and private – the banks, of course, being no exception.
According to a survey by TD Bank in the United States, 60% of consumers who are happy with their bank say they have low- or no financial stress and more than half are optimistic about their financial future. Moreover, consumers who define themselves as happy with their bank spend 72 minutes less (7.3 hours vs. 8.5 hours) each week worrying about their financial situation compared to those who say they are not happy with their bank (Pilcher, 2013).
“All banks are not the same when it comes to the service they provide. Research shows those who feel valued by their bank are more likely to be happy with their financial state,” said Ryan Bailey, EVP/Head of Deposit Products at TD Bank.
For The National Commercial Bank in Jamaica, the issue is severe and very frustrating for their customers. It is an issue that desperately needs to be addressed, but that the bank seems incapable of adequately resolving no matter how much the issue is brought to light.
As outlined in an article entitled The Customer Service Hall of Shame, the customer service issues involve: ‘No or slow (we are talking days to return a phone call) follow-up from customer service (CS) agent when problem is identified, interminably long wait on the telephone for an agent to come to assist you. This can include the period from gestation to the birth of a human being — at least that's what it feels like to me; CS representative is asking you questions doggedly from a script. If you do not answer exactly as they require, 'dwag nyam you suppa.' They become confused and disoriented and might require deep therapy; No resolution to your problem over the phone. You have to attend their offices; and rude and obnoxious 'service' from an agent’ (Grinam-Nicholson, 2012)
In a letter to the editor of the Jamaica Gleaner entitled At Wits’ End with NCB, a customer of the bank complained about the horrific customer service that he was greeted with he sought assistance about an issue that he was having when trying to change his password (Holness, 2017)
Further evidence of customers being displeased with the customer service offered by the bank, can be found in a simple search of ‘NCB Jamaica’ on Twitter – a platform which is popularly used when persons want to share their personal experiences, whether good or bad.
Areas that the National Commercial Bank can improve in:
Better training staff so that they are more polite and courteous when dealing with customers, also to be considerate of customers’ time by moving with a sense of urgency
Streamlining service delivery – a lot of times customer service reps seem unsure of the process, they always have an air of inexperience about them
Handling customer complaints – customers’ complaints are often handled with little to no urgency
Proposed Methodology
This project will be completed in the form of a Research Project. I intend to utilize questionnaires, conduct internet research on second-hand experiences, and by holding interviews.
Questionnaires will be used to find out what proportion of customers are displeased with the customer service at the bank. This method is utilized because of its ability to identify patterns, as well as its ease and success of use.
Researching second-hand experiences will be done through interviews and internet research using social media channels such as Facebook and Twitter
Interviews (Phone and in person), will also be used where necessary. This will be done with customers of the bank and even staff members (to find out what the bank is currently doing by way of customer service training, and how complaints are addressed).
Expected Learning
Upon completion of this project, I hope to have a more in-depth understanding of customer service problems that the National Commercial Bank customers face – and would have investigated the methods that can be used to address these issues.
I expect to have also developed my people skills, by having learned more about the importance of interpersonal skills in the customer service environment, and how persons can go about communicating more effectively (both in writing, such as through emails, and in person).
Findings of the study
The customer service at NCB was ranked amongst the poorest in Jamaica, by a majority of the sample population. 25% of the customers complained of NBC's long queues, and standard system interrupts about ATM services. Also, a further 20% added that if given the option of a better bank with adequate and efficient banking facilities, they would transfer immediately. The customer service of NCB is anything but wanting from the findings of this study. A staggering 40% of the sample size of this study gave below 5 points, out of 10, while ranking the bank’s customer service. Some of the matters they cited as irritating and detrimental to their stay in the bank were;
(I) The bank’s online system is frequently unavailable, efforts to communicate with the customer service executives of the bank usually take long, and customers’ needs are never responded to.
(II) The customer service systems of NCB bank are not linked to other services or departments of the bank, hence even upon contacting them, clients’ needs are not sorted as they are transferred to other departments.
(III) Most of the customer service executives of NCB bank seem to lack any form of training about customer service. They thus lack the courtesy and communication acumen necessary to serve customers efficiently.
(IV) The bank overall seems to pay little attention to the customer service section of the bank. Hence there seem to be no plans to either train or develop a dedicated customer service center.
The first concern on customer service executives taking too long to process customer issues or even merely respond seems to be a factor of both insufficient staff and untrained staff. As per (King, 2010) customer service representatives should take as little time as possible answering to a customer’s questions but at the same time, not leave the customer hanging or in dire need of some communication or clarification. This rule ensures that a customer care representative serves many clients within a given span of time both adequately and efficiently.
Second, the divide between the customer service section of NCB bank and other departments shows a deeper problem within the bank’s operations and operations procedure. The compartmentalization of information within the bank seems not to be done well as customer service executives frequently transfer clients from their desk to other departments of the bank, due to lack of information. For instance, customers that complained of not being able to access their online platform and called NBC's customer care are frequently transferred to the IT department, which may or may not offer solutions. Further damaging the reputation of NCB, the said I.T. department does not function 24 hours, but from 7 AM to 7 PM. Thus any customer wishing to gain access to any support beyond this timeline must wait for the next day. In an economy that is aiming to grow to a 24-hour economy, the NCB is not ready for this reality. Not only are the customer support services insufficient, but its workforce seems to be entirely unequipped to meet the challenges that come with a large consumer base and 24-hour banking.
In addition to the above findings, it was established that do not only online communications with customer service officials fail but also do face-to-face interactions with the representatives of the different branches. The NCB seems to be running at the pace of a post office and not a banking institution. From feedback gained from different customers, the staff of NCB Bank, in general, seem to be highly unreliable about customer service and offering a quality banking experience. This is gauged by their presentation, seemingly little knowhow of how the bank’s systems function and even their role as customer care representatives. This shows that the bank’s recruitment strategies are not apt, thereby recruiting personnel that isn’t qualified for the said task. This has led to the NCB being termed the most bureaucratic and unfriendly customer organization one can find in Jamaica. The poor ratings were given to the bank thus present a need for drastic business re-engineering and process improvement, with a prime focus on the customer care section of the bank’s services.
Financial institutions in Jamaica, majorly banks, make huge profits in a country where most peoples’ earnings barely permit them to meet minimum living standards, if not less. In short, Jamaicans do not love banks as there is the notion that the banks prey on them/extort them for the little they have. NCB is not helping this notion as its quarterly profits seem to be rising whereas the delivery of service, specifically customer service is seriously wanting. Based on a survey done by IC www.Insider.com, the NCB’s Financials first quarter results to December last year reveal and show that the bank has much effort to put into pacifying its customers. This “aggravation” with the bank largely stems from the reality that a visit to NCB bank’s branches on a typical day is likened to a journey into frustration for many of its customers. This holds true as per the poll, even at a time when electronic banking is on the rise in neighboring countries and worldwide. NCB’s customers feel; neglected, extorted and de-humanized by its customer care and other related services. This, according to Insider, has largely contributed to the bank’s slow but certain “departure” rate. As per (Brink, 2010) departure rate is the pace at which customers leave a financial organization in favor of another. Other authors call it the turnover rate. The majority of NCB’s earnings come from government institutions and business enterprises; their consumer base is thinning rather than increasing.
The customer service representatives of NCB bank seem to operate slowly and thus, transactions that take. Again, as per the survey, BNS Spanish
is said to notch ahead of NCB bank with regards to customer service. Furthermore, customers that are using NCB as their bank of choice seem to have influenced those that are not to stay out of the bank and opt for others. This, the NCB should take very seriously as word of mouth marketing being done by their customers is detrimental to the life of the bank. The interaction between customers of NCB and its potential customers is a cause of concern for the future of the bank. With the noticeable departure rate and slow uptake rate the bank, it is slowly becoming likely that NCB will majorly be an institutional bank, catering to the needs of commercial and governmental bodies and not individual persons. The management of NCB has to look into their customer care services seriously.
Recommendations
First, compartmentalization of information should be done, so that customer care representatives have limited but useful information about every customer. This goes a long way to solve problems at the customer service level, leaving the rest of the departments to aid in the said effort or streamline procedure when needed. This approach reduces both movement of customers and the processes involved when solving a client’s issue. Compartmentalization ensures that everyone in the organization is precise to only the information required for them to do their job or thoroughly. For instance, details of a customer’s status should be availed to the customer care representatives. This enables them to know whether a customer is active or not; such information is preceding information when one wants to solve any issue.
Second, the Information Technology section of the bank should be decentralized. This, hand-in-hand with compartmentalization, ensures that all the staff in the bank, particularly the customer care executives, can manage or have the rights to solve some technical issues at their level. This significantly reduces the communication a customer needs to make to get a problem addressed. Additionally, it reduces the amount of time on a single call/customer. Thus, one customer service representative can serve more clients (King, 2010).
The third is introducing a ticket system at the customer service section of the bank and using it to gauge commissions or other incentives that can be earned by the customer care reps. This ensures they are motivated to serve more clients within a day.
Also is the establishment of a rating system for the customer care representatives. This allows the clients to rate the quality of service they have received from a customer care representative. This can also be tied to the incentives that the customer care representatives receive and further, can be used as a method to appraise the performance of the said subset of employees (Brink, 2004). These changes, coupled with others, can go a great deal to improve the customer care services of NCB bank and give it a competitive advantage over its rivals.
SURVEY 1.0 RESULT
COMPLAINT
PERCENTAGE
Poor Customer Service
50%
Long Queues
25%
Consider Transferring
20%
Other Services
5%
SURVEY 2.0 OVERALL RATING OF THE BANK
NO. OF SAMPLED CUSTOMERS
PERCENTAGE
POINTS AWARDED
40
40%
<5 (below 5)
30
30%
<3 (below 3)
30
30%
<2 (below 2)
Conclusion
As stated in an article in the Jamaica Gleaner entitled Complaints from Customers are Gifts to Customers, there are two essential things that every small business should master — delivering excellent customer service and managing customer complaints (Page, 2013). In fact, for Jamaica notably, one of the most effective ways for small businesses and start-ups to create a competitive advantage is to offer excellent customer service consistently.
This is because excellent customer service is not the standard to which we are accustomed, so companies that offer it provide a refreshing change that their customers will embrace, appreciate and talk about to others.
Naturally, when a customer is satisfied with the customer service and other services that a banker offers, he/she will opt to stick with the brand and is likely not to relocate to another bank. This in itself is a big plus point for NCB as customer retention is far cheaper than customer acquisition. Also, quality customer service improves the reference rate of a business (King, 2010). Once customers experience excellent service, they talk to other people in their social circles about the same. Hence the market, in this case, NCB Bank, gets free marketing agents. The bank can thus get more customers without spending anything.
Quality service not only improves customer confidence in an organization, but it also increases the morale of employees. This is through the affirmations of customers and further awards received for exemplary service. This boosts employee morale and their confidence in their ability to deliver on a day-to-day basis. Furthermore, the incentives gained indirectly as a result of exemplary customer service adds to the morale-boosting of employees (King, 2010).
Lastly, with quality customer service, the whole business becomes a unified/holistic marketing organ. This is through the subtle marketing achieved through quality customer care and other services at the NCB. This goes a long way to reduce the original marketing budget indirectly.
My focus in this project will be to highlight the challenges faced in the area of customer service in Jamaica, particularly in the banking sector and the National Commercial Bank, and to explore what needs to be done to address it adequately.
References
Adele. B., & Annekie, B. (2004). Customer Relationship Management and Customer Service. Juta and Company Ltd. South Africa.
Brett, K. (2010). Bank 2.0: How Customer Behavior and Technology Will Change the Future of Financial Institutions. Marshall Cavendish International. Thailand.
Dansereau, V. (2017, July). WHAT IS CUSTOMER SERVICE IN BANKING? Retrieved from Career Trend: https://careertrend.com/about-6718861-customer-service-banking-.html
Griffin, D. (n.d.). Types of Business Risk. Extracted from Small Business Chronicles: http://smallbusiness.chron.com/types-business-risk-99.html
Grinam-Nicholson, Y. (2012, July 11). The customer service hall of shame. Extracted from Jamaica Observer: http://www.jamaicaobserver.com/business/The-customer-service-hall-of-shame_11929252
Holness, S. (2017, July 25). At Wits' End with NCB. Recovered from Jamaica Gleaner: http://jamaica-gleaner.com/article/letters/20170725/wits-end-ncb
Icicle Financial Services. (n.d.). Welcome to Importance of Customer Services in Banking. Retrieved from Icicle Financial Services: http://www.iccile.co.uk/Importance-of-Customer-Services-in-Banking
Inter-American Development Bank. (2004). Revitalizing the Jamaican Economy: Policies for Sustained Growth. Inter-American Development Bank-USA.
Page, Y. (2013, July). Complaints From Customers Are Gifts To Companies. Retrieved from Jamaica Gleaner: http://jamaica-gleaner.com/gleaner/20130714/business/business5.html
Pilcher, J. (2013, March). Good Customer Service Makes Banking Consumers Feel Financially Confident. Retrieved from The Financial Brand: https://thefinancialbrand.com/28174/td-bank-customer-service-survey/
