Customer Service Call Center

Introduction

Service is an intangible spectrum provided by various service organizations. (Singh, p. 12) With more sophisticated customer, requiring greater focus on choice of service and changes in the marketing environment, banks have also been diversifying themselves in terms of their service. Adopting better technology like internet banking, mobile banking services, banks are competing with each other. But adapting these new technologies comes along with different risk like online fraud, system abuse or system failure, problems on online deposit, and industry wide security problem. Therefore, service failure has been a major problem on banks today.

Failure on banking service can create customer frustration and high switch to competitors. This means high cost to an organization on attracting new customers. Various causes on service failure in UK banks will be overlooked along with the public opinion regarding the level of service satisfaction, service failure and their relationship with the bank. Banks like Lloyds and Barclays will be more emphasized since they have been positioned on number one for receiving customer complain on their service failure.

Retaining loyal customer is more profitable than attracting new customers since more than 70% of sale are made by loyal customers. A research concluded that 5% rise in customer retention can boost the profitability by 20 to 100% in totality. Customer relationship management helps to maintain data relating to customers accounts, purchasing behavior that can help to improve the contact with customers and retain these unsatisfied customers. (Srivastav, 2007)

Further study on Customer relationship management will help to understand the importance of CRM on improving the relationship between customer and banks and overcoming with service failure problems.

What is CRM?

In support of this CRM is a business strategy, not a suite of software products. Though vendors (software and service) would have organizations believe that they offer end-to-end CRM solutions, nothing (economies of scale, broad reach, or fancy software) can compensate for strategic inelegance.

It is stated that as customers commence using multiple channels to interact with an organization, it becomes increasingly more difficult and more important to manage the customer relationship seamlessly. This is where Customer Relationship Management technology aids customer relationships at each touch points specifically in the areas where both entities that is the consumer and the organization interact.

Even though CRM, service failure, service recovery is emphasized by many service industries, financial service providers like bank has been facing failure in service delivery. (Stefan 2004) Many uncontrollable factors like crash of ATM card machine in Barclays bank created error in service which created customer worries, customer dissatisfaction and negative word of mouth. There are different customer perceptions with a different attitude some customer may complain on service failure while some may not prefer saying anything and switch to the competitors products. This will be further studied on following chapter. (Zaman, p.45) A research concluded that resolving problems of the customer efficiently and effectively has a powerful impact on the satisfaction and loyalty of the customer via positive word-of -mouth. The definition of service recovery ...