Oops! It appears that you have disabled your Javascript. In order for you to see this page as it is meant to appear, we ask that you please re-enable your Javascript!

The Impact of Enhanced Customer Service on the Growth and Profitability of Banks

The Impact of Enhanced Customer Service on the Growth and Profitability of Banks (A Case Study Of Union Bank Of Nigeria Plc)

According to Wagner (2004; pp-45), Customer Service is about satisfying your Customers’ expectations and reducing the stress options for doing business with you.

To order the Complete Project Material, Pay thr Sum of N3,000 to:

BANK NAME: FIRST BANK PLC

ACCOUNT NAME:  CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

Then send the Project Topic, Your Email Address and Full Name to 07033378184.

 

An example is, if you walk into supermarket and you are greeted by friendly, Courteous and knowledge staffs that are only all too happy to lend a helping hand and make your shopping experience as painless as possible, are you likely to go back to that store for further purchase? Probably. If you are happy with the customer service you received you are more likely to get others to know how much you enjoyed shopping at this particular store.

2.1  DEFINITION OF CUSTOMER SERVICE

Before really delving into the research study, there is need to look at some of the definition of customer service. The topic has two words, “customer” and “service”. The definition of the two words would be looked into separately.

Who is a customer?

The Oxford Learners Dictionary defines a customer as one

who buys or uses a bank.

The chambers English Dictionary defines a customer as one accustomed to or frequent to a certain place of business; a buyer. To further break the meaning down, the Thesaurus defines customer as buyer, purchaser, patron, purchasing agent, representative, consumer, and end – user.

There is need to also know who is a bank customer, but before that, a bank is basically a business organization that accepts money and collects cheques for its customers, honors their cheques and keeps current accounts, exchanges in foreign exchange business for its customer

There is no specific legal or statutory definition of a bank customer, while we have some who opens accounts with the bank, there are others who visit bank everyday for other reasons and motives. While some people come to bank to cash their personal cheque issued in their favor by third parties, others to deposit cash or cheques into their accounts or to make enquires of one sort or the other.

The bank as a service industry is in contract with various people in its day-to-day operations and since individuals in their approach and sense of reasoning, there is the need to understand human behavior as this would assist in tackling difficult situations when they arise in dealing with customers.

Banking service cut across various segments of people namely; individuals (both literates and illiterates), cooperate organizations and government establishments that are usually represented by their agents in order to appreciate the effort of the customers in posting resources together it derive revenue, there is need to give brief analysis of these types of customers

TYPES OF CUSTOMERS INDIVIDUALS

This category of people operates personal accounts and consists of salary earners, petty traders, students, craftsmen solicitors, company directors etc. Generally speaking they maintain smaller accounts when compared to companies but these accounts on the aggregate form a large revenue source for the bank. Their deposits can be invested profitably. Naturally, they would feel disappointed if they were treated with disregard, therefore, unless they are given best attention and prompt service their patronage cannot be guaranteed.

 CORPORATE ORGANIZATIONS

These are business organizations incorporated under the Company Act of 1968 amended by the Company and Allied Matter Decree of 1990. They trade in goods and services and their primary aim is to make profit. They open accounts with banks in their business names and have representatives or agents transacting business on their behalf. The mode of operation of their accounts involves a wider scope as distinct from individuals.

GOVERNMENT

Some organs of the government open the accounts with banks and majority of their transactions sometimes call for urgent attention, since they could be decision taken by government, and any lapse on the part of the bank could result in adverse effect on it. No bank would want to be identifies with failure. The result for non -performance is obvious, hence the need for good customer services.

2.2    DEFINITIONS OF SERVICE

      WHAT IS SERVICE?

The concept of service comes from business literature. There are so many definitions of service, However just a few would be stated in this study.

According to Ranaswany (1996; pp.78) service is “the business transactions that takes place between a donor (service provider) and a receiver (customer) in Border to produce an outcome that satisfies the customer”

Other definitions are as follows;

Service is the act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product

  • Service refers to giving expert advice to a person on a
    particular issue(s)
  • According to Gronroos (1990) “Service is an activity or series of activities of more or less intangible nature that normally, but not necessarily take place in interactions between the customer and service provider, which are provided as solution’s to a customer’s  problems”

 1.3  SERVICES RENDERED BY A BANK

In the banking industry, various services and facilities are made available to different customers for some charges. While service can only be rendered to all and sundry, facilities can only be enjoyed by customers who qualify for them e.g. loans and overdrafts, this is so because there are certain financial risks associated with the facilities e.g. inability to repay the money advanced according to stipulated conditions

THESE SERVICES / FACILITIES INCLUDE:

  • Handling of cash
  • Keeping of accounts
  • Collection of cheques
  • Slain ding order /transfer of funds
  • Foreign business
  • Safe keeping of other valuables
  • Business advisory services
  • Lending
  • On – line cashing facility
  • Automatic Teller Machine (ATM) service etc.
    Union Bank of Nigeria offers the above services.

Union bank of Nigeria Plc engages in trusteeship

service and in order to effectively improve customer service in this area, it incorporates a subsidiary in the name of Union Trustees to manage the bank’s scheme in trust for the benefit of its retirees. To seek and manage – similar scheme for organization for some fees, other subsidiaries of the bank are Union Assurance which offers insurance service to customers; stationery department which offers printing services; Management Information System (MIS), Union Registrars Ltd to offer stock broking services to customer and Union Property Ltd to manage the bank’s properties and for customer as well.

In the performance of these services, it is expected that they rendered promptly, courteously, and efficiently, so as ensure increased patronage and more business opportunities, all Gerard forwards more revenue and increased profitability.

 

2.4 WHAT IS ENHANCED CUTOMER SERVICE?

It is pertinent to look at the meaning of enhanced customer service in an ordinary sense, involves both a customer and the service required to meet that particular customer’s expectation and providing them with how stress option for doing business with you.

In order to provide a low stress option, it-means a bank would have to go a step further to ensure, customers get the best, that is, much more above how they were being attended to serviced

  • According to Oxford Advanced Learners Dictionary Enhancement implies increasing or making to look better the qualities of a particular thing or service. It therefore follows that enhanced customers service is to increase the qualities of service being provided by a bank or an organization. In addition, enhanced customer service is creating the best way to become more efficient at focusing on customers.
  • According to Robinson (2001) a bank can enhance its service in the area of cash handling to eliminate manual system of bill (cash) counting by it tellers. The bank could introduce teller currency dispensing system which allows tellers to focus more attention and time on customers. The teller currency dispensing system reduces stress due to accurate balancing, increasing the amount of time tellers can really interact with their customers and provide real ability to focus on achieving

Union Bank of Nigeria plc in its bid to enhance its esteemed customers, by providing them with efficient and customer – driven banking services  has continuously reviewed its practices, systems and processes to align and update them. Some of the developments include;

 

– Information and Communication Technology (ICT). The impact of this development include enhances organizational productivity and the efficiency of service delivery. ICT- driven service delivery is the norm in achieving a high degree of efficiency and customer satisfaction. The shift at the competitive level has made Union Bank to invest massively over the years in ICT infrastructure, culminating in on-line, real time connection of its branches.

READ  The Marketing of Banking Services

The Bank has also increased the authority of individual managers and Area managers which will in no small way add to the efficiency and speed that have been afforded by its wide network of on – line, real – time banking the efficiency and speed that have been afforded by its wide network of on – line, real – time banking.

2.5  CUSTOMER EXPECTATIONS FROM A BANK

There are so many banks available today inspite of this fact, customers have certain expectation which stand as factors that affect their patronage of a bank. These are itemized thus:

  • Sound knowledge of the job.
  • Customer recognition
  • Personal attention
  • Promptness and efficiency
  • Up-to-date banking information
  • Security
  • Conducive environment
  • Fair charges
  • Confidentiality etc.

 

In spite of these expectations, it is unfortunate to discover that there are gross cases of poor customer service. Customers are either shunted from department to department or delayed indefinitely on the counter or worse still, simply told that such service do not exist in the bank whereas they do exist, thereby resulting in less patronage, less revenue, growth and profitability in the banking industry. A look would be taken on the causes and efforts of poor customer service.

Causes of Poor Customer Service:

  • Insufficient training
  • Inability to communicate effectively to customer and the use of technical terms to confuse customers
  • Frustration
  • Poor planning against peak periods.
  • Lack of adequate knowledge about the bank’s service
  • Insufficient or faulty materials equipment
  • Inability to share the feelings of others,
  • Absence of up – to – date Information Technology ( IT )

 

Effects of Poor Customer Service

  • Poor corporate image / bad publicity
  • Loss of customers / patronage
  • Cold reception to customers
  • Low revenue / profit
  • Long queens / long waiting hours
  • Rising tempers / tension resulting in quarrels and arguments between customers and staff

–   Staff retrenchment

–   Rowdiness and large crowds.

 

2.6 EMPIRICAL STUDY

CUSTOMER PERCEPTION OF SERVICE

Gihoshroy (1997:ppl 29) defines customer service as “the perception of a customer of the service he gets from the bank”. He further explained that the human perception changes from individual to individual and within an individual from time to time. This change is perception of a customer of the service he gets makes the job of satisfying him at all points more challenging. Thus customer service remains a dynamic concept. Thus customer service is a philosophy which believes in the ultimate satisfaction of a customer’s wants.

Customer Dissatisfaction

There is needed to look at the factors that dissatisfy a customer. And these factors are highlighted as:

  • Delay in putting through transactions
  • Delay in correspondence
  • Absence of elementary discipline rules and procedures
    • Undue emphasis   of  staff  on   observance   of  rules     and procedures
  • General attitude of cool and unconcerned apathy for the

 

These acts get reflected in diverse activities such as:

  • Delay in encashment of cheques or issuances
  • Lengthy and complicated documentation.
  • In adequate job knowledge lending to proponing or avoiding decision
  • Casualties, indifference and / or discourtesy at counter or in
  • Unrealistic or irrelevant questions in dealing with credits,
  • Completion of passbooks, collection of bills and cheques

–   Submission of statement of an account.

Remedy for customer dissatisfaction.

After knowing the causes of dissatisfaction, what then   is the remedy?

The study group also highlighted four independent factors that effect quality of customer service satisfaction as follows.

 

  • Public expectations have increased considerably. The customer demands more information and expects answers in terms of “Yes” or “No” and not “may be” and is inquisitive to know “why it is so”
  • Service is considerably influenced by the quality and job knowledge of bank personnel. Frequently, the entire orientation of the deal with papers than with people and tendency to “play safe” is often revealed.

Employee motivation is of course a factory of paramount important on customer services. The staff is very widely scattered at thousands of locations. The “sense of belonging” tends to dilute, most of the work is repetitive and monotonous. Therefore it seems to be natural that motivation for customer service has not been of particular high order.

Systems and procedures are tools of delivery of customer satisfying service. Generally systems and procedures are developed essentially for maintenance of books of accounts and records for safe guarding banks interest. These are not seen as aids for promotion of client satisfaction.

 

CUSTOMER ASSESSMENT OF SERVICE QUALITY

According to Lewis and Bromes (1983: pp100), service quality is “a measure of how well the service level delivered

matches customer expectation.  Thus delivered  quality service means conforming to customers expectation on a consistent basis

Parasuraman, Zeithaml, and Berry (1985) formulated service quality models that highlight the main requirements for delivering high service quality. The model however identified five gaps that cause unsuccessful delivery

  • Gap between   consumer   expectation   and   management perception: management does not always correctly perceive what customers wants
  • Gap between management perception and service – quality
    specification: management     might     correctly     perceive customers’ wants but not set a performance standard
  • Gap between   service   quality   specification   and   service delivery: Personal might be poorly trained or incapable or unwilling to meet the standard or they may be held to conflicting  standards,   such  as  taking  time  to   listen  to customers and serving them fast.
  • Gap between service delivery and external communication:
    Statements made by company representative and adverts
    affect customers expectations
  • Gap between perceived service and expected service: This
    gap occurs when the consumer misperceives the service

The Same Researchers Found Five Determinants Of Service Quality, These Are Presented In Order Of Importance:

  • Reliability: The ability to  perform  the promised  service
    dependably and accurately
  • Responsiveness: The willingness to help customer and to
    provide prompt service
  • Assurance: The knowledge and courtesy of employee and
    their ability to convey trust and confidence
  • Tangible: The appearance of physical facilities equipment,

personnel and communication materials.

According to Tax and Brown (1998: pp65), every compliant is a gift if handled well. The researchers found that companies that encourage disappointed customers to complain and also empower employees to remedy the situation on the spot, achieve higher revenue and greater profits than companies that do not have a systematic approach for addressing service failures. Tax and Brown found that the companies that are effective at resolving complaints;

  • Develop hiring criteria and training programs that take into account employee’s service recovery role.
  • Develop guidelines for  service  recovery  that  focus  on achieving fairness and customers satisfaction
  • Remove barriers that make  it difficult for customers to complain, while developing effective responses, which may include empowering employees to provide compensation for the failure.

 

2.7.1  ESTABLISHING CUSTOMER SERVICE AS A COMPETITIVE ADVANTAGE

 The writer of these journals – Exametric Business strategy (2005), looked at the role of customer service in the banking environment and stated that in today’s competitive banking environment customer service is one of the last distinguishing elements that banks can exploit to establish a competitive advantage

Furthermore, since most banks offer comparable products and services, they continually search for a competitive advantage that will attract new customers and help retain existing ones. Therefore, banks must develop creative program and initiatives to maintain superior customer service levels while remaining profitable. Superior customer service and increased customer retention is vital to any bank’s successful business strategy.

Consequently, implementing practices that help increase customer retention and customer service are critical to sustaining profitability and competitive advantages in the bank.

For an organization to experience desired growth and profitability through enhanced customer service, some strategies had been proffered. Whitely and Hessan (1996) they revealed the compelling secret of how today’s successful companies are archiving explosive growth. The writer defined   five  proven   strategies  that  an organization can use to grow even under the most adverse business conditions. It showed how managers and firms can really make a difference in the market place. These are:

  • Laser — Beam focus
  • Hardwiring the voice of the customer
  • Lasting customer enthusiasm and
  • Contact leadership

 

The first action plan LASER – BEAM FOCUS; the researchers discovered that virtually everyone of the successful companies sought and found a precise understanding of how it could create a customer – centered competitive advantage by providing services that are unmatched to the customers, Rather than going after every potential source of revenue just to make profit, these companies discarded assets that did not add value for customers, cleaned houses of bureaucratic policies and procedures and precisely targeted the customer groups they believed they could serve best.

The second strategy – HARDWIRING THE VOICE OF THE CUSTOMER: According to Richard Whiteley and ensures they hear the voice of its customers loudly and clearly. Whereas we discover most companies amass an over – load of information from any customer – employing all the latest techniques and then never use it. Rather, a customer – centered company precise information from customers and then actually use he data to shape their own approaches and set their polices. It is obvious that the business has shifted from looking up to looking across, from vertical to horizontal. In today’s environment, companies that want to be world class, in how they provided products and service for customer must be adaptive and responsive. This is Impossible to achieve without superior collaboration both within and between business units.

READ  Unemployment Problems in Nigeria – Factors that Affect It

The Third Strategy, UNIVERSAL COLLABORATION:

Is a situation whereby growing companies use teams well and going further to create environment in which people always collaborate smoothly on behalf of customers whether they are acting as part of the team or not.

Where a company has imbibed the universal collaboration, it then strives to TURN CUSTOMER SATISFACTION INTO LASTING ENTHUSUIASM: Under this fourth plan, the writers explained that most companies today find that it is virtually impossible to create any kind of sustainable competitive advantage based on product alone. The upshot has been a commitment by many companies to be outstanding in interactions with customers. Doing this successfully, going from mere customers satisfaction to outright customer enthusiasm requires more than just finding out what the competition is doing and doing it better. It requires that companies creates breakthrough in how they interact with customers and design a way of interacting that makes an indelible impression on customers one that so utterly distinguished them from others that it becomes a brand in itself

Even where these four action plans are in place, it would not suffice without the leaders of an organization putting in personal contact to ensure the customer in a world class way this is where the fifth plan comes in place.

 

CONTACT LEADERSHIP: The writers explained this last strategy as moving from facilitative leadership to contact leadership. The leaders of a customer — centered company were found all over their organization from the executive suite to the front lines. No matter where they were, it was clear that these leaders had a different way of behaving than the old model of a facilitative leader who sits back give orders, directions and then “empowered” every one to do the work.

Sanderson (2005) in his article Delivering “Cut Above” customer service wrote on how to enhance customer service which he named “Cut Above” customer service. He looked at the traditional meaning of customer service such as being nice to customers, but explained should be much more than this. His focus in the Article is HOW an organization can give “Cut Above” customer service which otherwise is, going beyond the ordinary sense of providing customer service, but enhanced customer service. He gave a few tips on how to give this “Cut Above” customer service.

–   The customer is Always Right: Customers are lifeblood to  a business  and  without  them  there  is  no  business.

Employees should take closer look to how they conduct themselves in relation to treating customers like they deserved to be treated. He explained that the company -should do what they have to do, when to do it, and how long it has to be done to make – customers know that they are right as long as employees know that customers are the reason they are in business. He advises that some – humane / personal touch should be introduced by service providers which will go along way towards better customer service — a warm and friendly smile from a bank staff to an irate, difficult and possibly obnoxious customer can sway him “back to Light”. This leads to his second tip.

  • Turning Complaint into a Challenge. The writer Explained that when it is noticed that a customer for whatever reason is not satisfied with the service or product they have received, hospitality should be used to deal with it. Hospitality is of paramount importance not only in keeping loyal customers loyal, but also – turning a potential lostcustomer into a sustained customer.
  • Always Be Upfront and Honest. The writers explained that honesty is the best policy as the firm’s reputation will be firmly established. If a bank gives its customers honesty and integrity every time, the bank will grow by reputation. The more customers can trust that the company will be forthright and honest with  them,  the  more they  will   continue  to patronize the company.

 Take The Time And Make The Effort: The writer explained that a little time and effort into giving good customer service would be invaluable to any business. He stated that customer service is “given” but genuine hospitality is “felt”. Service providers should make customers feel like they are important to the company and that their business is undoubtedly and without question valued.

On the final note, the writer asserted that if these ideas are put into motion, the employees buy into the ideas, and they take time and make efforts to give “Cut Above” customer service, there will be increase in not only more loyal customers, but referred customer as well, which will translate to growth and profitability. Business by reputation is a valuable asset, but it takes some work / effort such as “Cut Above” or enhanced customer service.

 2.8   CUSTOMER CARE

From the recent case study conducted by Financial Institutions Training centre (2005), on customer care, a study of Nigerian Banks, the researcher stated that companies that excel in customer care share a patter of attributes. Customer care is another way of providing enhanced service which is above the normal traditional customer service. A bank / company that cares for its customer strives to do those things that excite their customers. The degree to which an organization wins and maintains the loyalty of its customers is a function of the emotional value that is added to the seller/ buyer relationship. To deliver an effective customer service an organization needs to put in place a system that recognizes the customers as king. It is argued that when there is no personalized touch or emotional value in the seller / buyer interface, there is hardly a lasting relationship which of course would lead to loss of patronage and the attendant low profit. Companies that have been consistently successful in terms of gaining and retaining competitive advantage are those that are ready to go the extra mile in pleasing. their customers. Consequently, their customers prefer to patronize them in order to gain the benefit not only of the products, but also of the total emotional experience that comes with the transaction. These organizations have come to the realization that the cold application of event the most sophisticated business logic would not be sufficient to win customers’ loyalty. They appreciate that competitive advantage is better secured when a customer

emotional attachment to a brand is reinforced by an emotional attachment to the people who sell and deliver the products.

Competitors may find it relatively easy to copy products and prices, it is virtually impossible to replicate the unique experience which a combination of talents, skills, commitment of people created for the customer from one organization to the other. Hence, where product quality and prices are the same across companies a major reason why people would prefer one company to the others is the existence of good customer service. It is now widely recognized that for a business to survive and thrive, it must satisfy customer beyond, their expectations. Increasingly, this is being achieved through the design, development and institution of dynamic customer care systems and program customer’s delight one of the cardinal criteria for any organization to achieve its objective is a major goal of customer care. Customer care / enhanced customer service has an implicit advantage of converting a customer to a client, establishing and sustaining a competitive advantage and ultimately   increasing  the   revenue   and   profitability   of the organization Perera and Brew (2002) highlighted  the three main challenges facing banks.

According to them for banks to maintain profitability in the face of growing customer demand, they must:

  • Identify groups of customers with similar wants and needs
    (who are seeking a similar experience from the provider)
    through effective segmentation.
  • Create economic value propositions to meet the needs of
    these segment and
  • Identify and develop the necessary capacities to successfully
  • translate these value propositions into a “tangible” yet economic experience that meets customers’ demands for increasing multi – channel access and complex tailored
READ  The Effectiveness of Information Technology on Banking Services Delivery

As banks overcome these challenges, the next line of action is to build a customer centric business environment that induces positive customer experience is a major step towards successfully winning, retaining and growing profitable customers in particular and achieving the primary objectives of financial institutions in general.

To effectively provide enhanced customer service and successfully fulfill consumers’ needs and expectation, each bank should recognize: “the need to be understood, the need to be valued, the need to feel welcome, the need to feel comfortable, as well as have a clear understanding of how its customer perceives its products / services, and what standard the customer expects. Coboury Public Library (2004).

As ( Gatiss 1996: pp30 -32 ) has stated: Service providers must resolve the differences in perception between:

–   What the business thinks the customer needs and what the customer wants.

  • The product or service the business thinks it provides and
    what the customer thinks he actually receives.
  • The way the business thinks the customer wants to be treated.

It is now widely recognized that for business to survive and thrive, it must satisfy customers beyond their expectations. Increasingly, this is being achieved through the design development and institution of a dynamic customer care system / program, in order words, enhanced customer service. Customer care is the act of delivering the level of product or service that customers expect anytime, any place and through an appropriate and convenient delivery system. It is about satisfying customers better than the company’s peers, and in the process becoming a

hero to customers.

 

2.9  DEVELOPING SERVICE STRATEGY

In the book Total Customer Service, The Ultimate Weapon, Davidow and Uttal (1989: pp 47 – 85) stated that the first and most important step towards outstanding service and creating impact on customers, is developing a service strategy Strategy,   the   writers   explained   the   stage   and   defines   the constraints for all the other step.

The  writers   stressed   that  developing   a   strategy   is fundamental   to  winning   the   customer  service   war.   Bank companies that have clear, well focused service strategies are better able to produce effective and efficient service.

Segment:   The   writers   explained   that segmentation   for customer service focuses on customers’  expectation more than their needs. Several customer service segments may exist within one market segment and one customer service segment     can     cut     across     several     market     segments. Segmentation suggest where to substitute low touch for high touch service how to apply service capacity across segments and  how to get customers  involve as co – producers of services.

Find out what customers expect: Concentrate on the most important customers and highlight the differences between the company’s notions of great service and the customers’. When doing research on customers, the company should start with opening ended questions and focus groups and sack ways of preserving qualitative truth instead of generating thousands of highly accurate but largely misleading numbers.

Set Customers’ Expectations; The third and last step in crating a world beating service strategy is to find ways of influencing customer expectations. When expectations exceed perceived levels of service, customers are dissatisfied, but when service exceeds expectations, customers are pleasantly surprised and highly satisfied.

In order to foster these three steps of strategy there must be some in the helm of affairs, to ensure that these strategies are executed as desired. No company can triumph in customer service unless its leaders drive the process and drive it hard. The researchers explained that leaders of companies that shine and excel in customer service adhere to three principles:

–   Foster a service – oriented culture

  • Make customer service everybody’s business
  • Declare war on bureaucracy.

In consonance with the demands of the modern marketing concepts which considers the consumer as the ‘king’ whose oders must be taken organizations perceive customer satisfaction as the prerequisite for continued existence and survival.

As noted by Alimad, Wasay and Malik (20120), with the emergency of globalization, competition for companies has readied a higher level as companies are exposed to companies not only with in their own countries, but also around the world. Organizations are investing heavily in acquisition of advanced technologies, developing new processes and introducing new products to serve their customers organizations have set up new departments and hired consultants to develop strategies for competing effectively in the global market. Everyday we come a cross new promotion schemes operated by companies to stay ahead of competition. At the same time many organization focus on their employees to gain a competitive edge, as technology, processes and organizational structure can be copied, but the value that competent and dedicated employees can bring to companies cannot be easily taken away. These facts make employee motivation one of important determinants of customer satisfaction in corporation with the above assertion, Harter, summit and Hayes(2002) posit that  employee satisfaction has positive influence on customer satisfaction in the service industry. As established by chen (2011), many organizations seem to be indifferent about the level of employee motivation in their conduct of customer satisfaction surveys.

This action is at variance with the result of various studies which maintain that employees are internal customers and their satisfaction contributes to the overall satisfaction of customers and organizational performance.

In the service sector, excellent service quality is the care of customer satisfaction, whereas motivated employees are essential for improving the quality of service (chen. 2011).

According to simoom and De Varo (2006), in vestment in developing motivated employees is an expense for the firm which will benefit the organization in the long run, as it improves employee efficiency and quality of service. Gittel Weiss (2007)establish that employee motivation has a significant impact on the quality of service rendered by them, as well as the level of satisfaction of customers Simon and De Varo (2006) argue that successful firms have been noted for their ability rto motivate their employees attitude by attracting them towards various advantages. Using a simple chart

Ahmad, Washy and Mali (2012) trace the influence of motivation and few other factors on customer satisfaction. Thus

Fig.1 Employee motivation and customer satification.

Adapted from Ahmad, Wasay and Malik (2012) Interdisciplinary Journal of contemporary Research in Business.

It is pertinent that employers appreciate the essence of sound interaction with customers. In total support of this view

Barry & Parasuraman (1991)assert that the quality of interaction can be improved by recruiting employee who hold the essence of quality service to a high esteem, since the degree of friendliness, credibility trust worthiness and competence is likely to reflect in customer perception of service quality.

Zeithmal (2009) on the other hand, found that the most frequent mistakes made by firms is the attempt of combining motivational strategies with the development process.

Verma (2008) however argue that customers are move delighted when a firm under-promises and over-delivers than when it over promises and under-delivers.

Training and quality service

Customer service training entails teaching employees the knowledge, skills and competencies required to enhance customer satisfaction. To ensure growth and profitability therefore, it is the sole responsibility of management to training and development that staff gain the required knowledge and skills to ensure that they undertake their daily obligations satisfactorily.

Nepwanga (2011) establishes that good corporation among employees enhance customer satisfaction. According to valaries et al 1996, an organizations develop and invest in the right employees through having instant training as a positive move towards maintaining a work force that is customer-oriented and focused on delivering quality service. They developed a set of human resource strategies for employee development as shown below

To purchase complete Project Material, Pay the sum of N3, 000 to our bank accounts below:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 0044056891

OR

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After paying the sum of N3, 000 into any of our bank accounts, send the below details to our Phone: 07033378184

  1. Your Depositors Name
  2. Teller Number
  3. Amount Paid
  4. Project Topic
  5. Your Email Address

Send the above details to: 07033378184 or on/before 24hours of payment. We will send your complete project materials to your email 30 Mins after payment.

Articlesng.com will only provide papers as a reference for your research. The papers ordered and produced should be used as a guide or framework for your own paper. It is the aim of Articlesng.com to only provide guidance by which the paper should be pursued. We are neither encouraging any form of plagiarism nor are we advocating the use of the papers produced herein for cheating.


Speak Your Mind

*

Click To Call Us