Professional Documents
Culture Documents
CUSTOMER SATISFACTION
Table of Contents
Acknowledgement i
Academic Honor ii
1. Introduction
Back Ground 2
Problem Statement 2
Questions to be Addressed 3
2. Research Methodology 4
Information Gathering 4
• Personal Interviews 4
• Questionnaires to be filled by Customers 4
• Personal Visits and Observations 5
3. A Brief Review 6
4. Findings
Questionnaires filled by Mystery Shoppers 9
Questionnaires to be filled by Customers 16
5. Conclusion
7. Bibliography 33
6. Appendices 34
Acknowledgement
Any piece of work, however small, is not possible without the Almighty. We extend our
gratitude to our teacher Mr. AKHTAR AHSAN who teaches us the true meaning of research
and without whom, the research would not have been possible. This research, from its topic to
the tools and text used in it, is due his assistance and guidance.
The research and the writing of this report were supported by the Staff and the Customers of
Standard Chartered Bank, who have been very cooperative and supportive in providing
information about how things move around in the service quality department and how the
department has been helpful in imparting product knowledge and customer satisfaction.
Last but not least, profound gratitude to our parent and the institution that has provided its
students with a forum to present their views and findings with complete freedom
We take full responsibility for the contents of this assignment. To the best of our knowledge, any
ideas, words, sentences, paragraphs or parts of another person’s writing are fully documented.
We have researched and written the contents with the utmost integrity and honesty, and we are
able to answer any questions arising from the contents provided here in.
Executive Summary
The objective of the research is to provide a brief review on the emerging concept of the Service
Quality and key factors that are practiced in the service excellence area of the banking industry.
The implementation of Internal Service Measures in Standard Chartered Bank Pakistan and the
role of Service Assurance in maintaining outstanding customer will also be studied and taken as
a subject. We as a researcher will review not only the Particular department of the Bank but also
the responses from the frontline staff and customers. This will help us and the reader in
understanding how (if it does) the quality of service affects the customer loyalty towards the
Bank.
Most of the information provided in the report is based on interviews with the bank staff which
led to a better knowledge of how service standards are maintained and monitored. The branch
visits (mystery shopping) brought forward facts of how the customers are dealt with at the
branch. Here the Research can deduce results based on personal experience. The visits have been
very successful and instruments in reaching conclusion on the part of customer perspectives.
Introduction
Since Service Quality Assurance is a new concept in the Banking and Financial Service
industry, collection of data based on Literature Review is one of the biggest constraints in the
research. Most of the review done on the research has been through the web. The study
provides an over view of the implementation of Internal Service Measures in Standard
Chartered Bank Pakistan and the role of Service Assurance in maintaining outstanding
customer services.
Back Ground:-
The banking institutions, being homogenous and offering by and large the similar products,
have to attach great importance to the quality of their services in order not only to be
competitive but also to distinguish themselves from each other.
With such extreme competition in the market and more or less the same banking products
offering nearly the same rates, the banks are left with only service excellence to attract more
customers. This is also one big reason that the customers today expect more than good
returns on deposits and/ or less markup on credit.
They want prompt, courteous, efficient service and that too with trust and security. This
market competition and high level of customer expectation has also given way to certain
service standards that include the banks’ internal service measures as well as standards set
and being monitored by the external strategic systems like the International Organization for
Standardization (ISO), Total Quality Management (TQM), etc as well as monitoring being
done by State Bank of Pakistan.
In conducting the research about the Quality Assurance viz. a viz. customer satisfaction, we
as a researcher would familiarize ourselves with the historical background of the
organization, focusing on the policies and actual practices followed by Standard Chartered
Bank.
The two branches that have been taken into study are the Al Rahim Branch due to its high
customer Volume and frequency on transactions and Hyderi Branch due to its prime location
in the Main Hyderi Market.
Problem Statement:-
In the emerging banking scenario and competitiveness in the market it has become very
important for banks to provide good services that would result in better customer satisfaction
level and customer loyalty. A strong customer base is the back bone for any business.
Questions to be Addressed:-
Based on the familiarization review, the researcher provides in specific terms, the challenges
being faced by the organization in the area of Quality Assurance.
In the course of research, efforts have been made to seek answers to the following questions:
1. Does the bank’s Vision and Mission statement include the concept of Quality
Assurance?
2. Whether the bank has established a full fledged department for quality assurance?
3. Is the Quality Assurance Department exercising the three main components of
TQM, i.e., Just in Time (JIT), Total Quality Control (TQC), and Total Employee
Involvement (TEI)?
4. If so, has the senior management been fully familiarized with concepts,
implementation strategies, and imperatives of TQM?
5. What Internal Service Measures are being taken to ensure Service Excellence?
6. How these practices and customer satisfaction is monitored by the Quality
Assurance Department?
7. Has the Service Quality Monitoring helped improve the standard of services being
provided to customers?
8. Do these practices actually reflect on the banks image?
9. Do the Service Quality Measures actually result in customer satisfaction?
10. Does customer satisfaction guarantee customer loyalty for the bank or its
products?
Research Methodology:-
The research has been conducted on the basis of primary and secondary data and information
gathered through field work. The methodology adopted in carrying out the research consists
of personal interviews as well as questionnaires filled by both the banking staff and selected
customers. The questionnaire will help determine the satisfaction level of customers visiting
the branch and also how much quality of service matters to them. Questionnaires designed to
be filled by staff also help in understanding the emerging concept of Service Excellence and
also to find out what measures are being taken ensure that customers are being served with
quality .Visits to branches determine the quality of service being maintained by the Service
Assurance, the practices by the front line staff and the response of the customers.
Information Gathering:-
Personal Interviews
Manager CCC
Regional Head Branch Banking
SQM
Branch Managers of Each Branch
Constraints:-
The research requires a detailed study and analysis of SCB’s internal service assurance
policies, their implementation and practices by the staff. Since there are confidentiality issues
and the bank staff is reluctant to share company details, it will be difficult to gauge to what
extents the Internal Service measures have been implemented, are being practiced and also
monitored internally.
Confidentiality Issues
Reluctance of Bank Staff to share company details.
The first question that arises in the mind of the reader is that Why Standard Chartered Bank
(SCB) has been chosen as the subject for research.
Standard Chartered Bank has a history of over 150 years in banking with an extensive global
network of over 1,400 branches in over 50 countries. It employs 60,000 people representing
over 90 nationalities worldwide.
Standard Chartered Bank (Pakistan) Ltd. calls itself ‘a locally embedded International Bank’
and also claims to be the largest International Bank in Pakistan. SCB has been operating in
Pakistan for the last 143 years since 1863. SCB Pakistan Ltd. has a network of 115 branches
across 22 cities in Pakistan (As of January 01, 2007).
As you enter Quality Assurance Department at SCB Pakistan you cannot miss these words
written on the workstations and that’s how they define Service Quality.
Internal Service Measures are basically the Service Standards and Measurements that are set
by a Bank (SCB in this case) which are followed by the front desk staff and is continuously
monitored by the Quality Assurance Team.
• Telephone Timeliness:
The telephone must be picked up within three bells. The customer on the other end should
not be kept waiting.
• Telephone Effectiveness:
The customer’s queries should be addressed/ issues should be resolved instantaneously. The
customer should not be put on hold for too long and the customer should be provided with
full information that he seeks and that too with courtesy and efficiency.
The customers at branch should be greeted by the interacting staff and his transactions should
be done without delay.
• PO/DD Issuance:
The pay orders and demand drafts transactions are monitored for the time the customer has to
wait for his transaction to take place.
After account opening, the customers are to be sent a letter as a token of gratitude for
initiating business with the bank and also to assure quality business in future.
The chequebooks requested by the existing customer should be ready within the time set/
standardized by the Quality Assurance Department.
• ATM Availability:
The ATM service is provided so as to facilitate the customers and also to provide the round
the clock access to their money. Availability of ATMs at all times is there’s very important.
The comments and feedback of the customers should be immediately acknowledged and the
complaints should be promptly resolved.
• Total means that everyone in the organization is involved in the final product/ service to
the customer.
• Quality means keeping customer focus for every process, service and product developed
• Management recognizes that TQM will not happen by accident. It is a process that has to
be managed
Just in Time (JIT) exposes the cause of problems whereas Total Quality Control (TQC) helps
provide a solution to these problems. Since the employees do all improvements, they need to
be involved in the process of change. Total Employee Involvement (TEI) helps elicits this
involvement. JIT uses techniques similar to Lean, and TQC uses tools and techniques similar
to Six Sigma tools.
Sigma Six:-
Sigma Six is a measure of quality that strives for near perfection. It is a methodology driven
by understanding customer needs, and the disciplined use of data & facts, and analysis of
present practices to improve and reinvent organizational processes.
Findings
Questionnaire I
To Be Filled By The Mystery Shopper/ Researcher
Based on Observations/ Branch Visits
(8 Visits in each Branch)
0% 0%
13%
38%
Yes Yes
No No
N/A N/A
62%
87%
Were you attended for information/ Were you attended for information/
service? service?
0% 0%
13% 13%
Yes Yes
No No
N/A N/A
87% 87%
Was the staff courteous and helpful Was the staff courteous and helpful in
in providing information? providing inform ation?
0%
0%
25%
38% Yes
Yes No
No
N/A
N/A
62%
75%
Did the staff provide correct Did the staff provide correct inform ation?
information?
13%
13%
Yes
Yes
25% No
49% No
N/A 62% N/A
38%
0%
13% 0%
0% Yes
Yes
No No
N/A N/A
87%
100%
Proper call handling by the operator Proper call handling by the operator
13%
0%
13% Yes
38% Yes
No
No
N/A
62% N/A
74%
Did the employee who attended: a) Did the employee who attended: a)
Introduce self Introduce self
0% 13% 0%
0%
Yes
Yes
No
No
N/A
N/ A
100%
87%
0% 0%
25% 25%
Yes Yes
No No
N/A N/A
75% 75%
0% 0%
25%
Yes Yes
50% 50% No No
N/A N/A
75%
25% 25%
Yes Yes
0% No 0% No
N/A N/A
75% 75%
Did you have to w ait for not more than 10 Did you have to w ait for not more than 10
minutes for your turn at the cas h minutes for your turn at the cas h
counter? counter?
13%
25%
13% Yes Yes
No 0% No
N/A N/A
74% 75%
Was the transaction proces sed w ithin 10 Was the transaction proces sed w ithin 10
minutes? minutes?
25% 25%
Yes Yes
0% No 0% No
N/A N/A
75% 75%
0% 0%
25%
Yes Yes
50% 50% No No
N/A N/A
75%
0% 13% 0%
13% 0% 0%
Yes Yes
No No
N/A N/A
87% 100%
13% 13%
13% 0% 13% 0%
Yes Yes
No No
N/A N/A
87% 87%
0% 0%
25% 25%
Yes Yes
No No
N/A N/A
75% 75%
Adequate s eating arrangem ent for Adequate seating arrangem ent for
customers cus tom e rs
0%
25% 25%
Yes Yes
No No
Findings
Questionnaire II
To Be Filled By The Customers
(30 From Each Branch)
Convenience
4%
8% 16% Accessibility
Reliability
20%
16% Customer Service
Reputation
4%
Asset/ Reserves
32%
Other Reason
(Please specify)
Hyderi Branch
Convenience
8%
0% Accessibility
28%
16%
Reliability
Customer Service
Reputation
8%
Asset/ Reserves
4%
36%
Other Reason
(Please specify)
2 b) On a scale of 1 to 10, rank the following banks in terms of Services (10 is Excellent and 1 is Bad):-
The results have been determined by taking out a round of figure of the average ranking provided through
questionnaires.
Al- Rahim Branch
Standard
Chartered Bank
Citi Bank
12% Askari
13% Commercial Bank
Abn Amro Bank
12%
HBL
15%
13% UBL
12%
Bank Alfalah Ltd
Others (Please
Specify)
Hyderi Branch
Standard
Chartered Bank
Citi Bank
Askari
10% Commercial Bank
13%
Abn Amro Bank
13% HBL
12%
UBL
12% 13%
Bank Alfalah Ltd
Others (Please
Specify)
8% 0%
8% 0% 12%
Excellent
32% Excellent Good
44%
20% Good Average
Below Average
Average N/A
Below Average 36%
N/A
40%
Were you attended for inform ation/ Were you attended for inform ation/
service? s ervice?
8% 0% 16%
0%
20%
16% Excellent Excellent
Good 8% Good
Average 52% Average
Below Average Below Average
N/A 24% N/A
56%
How w ill you grade your Pe rsonal bank er in How w ill you grade your Pe rsonal banker in
term s of: a) Inform ation term s of: a) Information
0% 0%
20% 16%
Excellent Excellent
36% Good
40% Good
Average Average
Below Average 20% Below Average
N/A N/A
24%
16% 28%
How w ill you grade your Personal bank er in term s How w ill you grade your Pe rsonal banker
of: b) Courtesy in term s of: b) Courtes y
12% 0%
0%
20% Excellent
Good
Excellent
36% 20% 44% Average
Good
Below Average
Average
N/A
Below Average
N/A
24% 24%
20%
How w ill you grade your Personal banker in How w ill you grade your Pers onal banke r in
terms of: c) Updation of upcoming Sche m es and te rms of: c) Updation of upcom ing Schem es and
Prom otion Prom otion
0% 12% 0%
20%
Excellent Excellent
36%
Good Good
20% 44%
Average Average
Below Average Below Average
N/A N/A
24%
20% 24%
How is your PB he lpful in address ing/ s olving How is your PB helpful in addressing/
your product relate d queries? solving your product related queries?
7%
7% 13%
33%
13% Excellent
Excellent
33% Good
Good
Average
Average
20% Below Average
Below Average
N/A
20% N/A
27%
27%
16% 0% 8%0%
Excellent Excellent
12%
Good Good
44%
48% Average Average
20%
Below Average Below Average
36% N/A
N/A
16%
What is the quality of service provided at the What is the quality of service provided at the
customer facilitation desk? customer facilitation desk?
8% 0% 11% 0% Excellent
Excellent
12% 7%
Good Good
40%
49% Average
Average
Below Average Below Average
33%
40% N/A N/A
How is the quality of service provided at the How is the quality of se rvice provided at the
cash counter? cash counter?
Excellent
16% 0%
16% 0% Excellent Good
4% 36%
Good Average
20% 52% Average Below Average
44%
Below Average N/A
12% N/A
How do you find the w illingness of the How do you find the willingness of the staff to
staff to help/ facilitate the custom er? help/ facilitate the customer?
0% 0%
20% Excellent 20% Excellent
32% 28%
Good Good
Average Average
16%
24% Below Average Below Average
N/A 36% N/A
24%
When you visit the branch; b) Are you When you visit the branch; b) Are you atte nded
attended for inform ation/ s ervice? for information/ service?
Is the staff courteous and helpful in Is the s taff courteous and helpful in
providing inform ation? providing inform ation?
0% 0%
16% 20%
Mostly Yes
Mostly Yes
44% Sometimes
Sometimes
48%
Never
Never
36% N/A
36% N/A
Does the staff provide correct Does the staff provide correct information?
inform ation?
4%
0%
Mostly Yes
8% 0% Mostly Yes 36%
Sometimes
44% Sometimes Never
Never 60%
48% N/A
N/A
Proper call handling by the operator Proper call handling by the operator
12% 8%
0%
Mostly Yes
Mostly Yes 16%
Sometimes
20% Sometimes
52% Never
Never
76% N/A
N/A
16%
Does the e mployee w ho attends the Does the em ployee w ho attends the call; a)
call; a) Introduce self Introduce self
8%
8%
12% Mostly Yes 12% Mostly Yes
Sometimes Sometimes
8%
Never 16% Never
64%
72% N/A N/A
Does the employee w ho attends the call; b) Does the e mployee w ho attends the call; b)
Is courte ous and w illing to help Is courteous and w illing to help
8%
Mostly Yes
0%
24% 12% Sometimes
Mostly Yes
52%
Sometimes Never
28%
Never N/A
60%
16%
N/A
Does the em ploye e w ho attends the call; Does the e mployee w ho attends the
c) Give satisfactory information call; c) Give satisfactory information
8% 8%
Mostly Yes Mostly Yes
Sometimes 36% Sometimes
28% 44% 28%
Never Never
N/A N/A
20% 28%
12% 12%
4% Mostly Yes 4% Mostly Yes
Sometimes Sometimes
16%
Never 24% 60% Never
68% N/A N/A
Do you have to w ait for not more than 10 Do you have to w ait for not m ore
m inute s for your turn at the cas h than 10 m inutes for your turn at the
counter? cash counter?
Mostly Yes
12%
12% 20% Mostly Yes 12% Sometimes
16% Sometimes 60% Never
16%
Never N/A
52% N/A
Is the transaction processe d w ithin Is the trans action process ed w ithin ten
ten m inutes? m inute s?
8%0%
Mostly Yes 16% 0%
24% Sometimes M ostly Y es
Sometimes
Never 24% Never
60%
68%
N/A N/A
0% 16% 0%
Mostly Yes Mostly Yes
Sometimes Sometimes
48% 52%
Never 24% 60% Never
N/A N/A
8%
0% 12%
Mostly Yes 0% Mostly Yes
16%
Sometimes 20% Sometimes
Never Never
68%
76% N/A N/A
12% 4%
0%
0% Mostly Yes Mostly Yes
28%
Sometimes Sometimes
28%
60% Never Never
68%
N/A N/A
20% 0% 8%
0%
Mostly Yes Mostly Yes
36%
Sometimes Sometimes
48%
Never 44% Never
N/A N/A
44%
8%
0% 16%
16% Mostly Yes 0% Mostly Yes
Sometimes Sometimes
Never 24% 60% Never
Adequate seating arrangem ent for Ade quate seating arrangem ent for
custom ers cus tome rs
0% 0%
20% 16%
Conclusion
• Does the bank’s Vision and Mission statement include the concept of Quality
Assurance?
The Vision and Mission Statement of the Bank gives high priority to Customer
Satisfaction.
To be the premier bank, responsive to the needs of our target market customers,
recognized for superior service quality and innovative products, thereby
delivering value to our stakeholders.
Customer Focus
Integrity
Meritocracy
Innovation
Teamwork
Humility
Vision of the Service Quality Department
During the interviews it was observed that all staff members were fully aware of the
vision and mission statement and its importance in retaining good customer profile.
• Whether the bank has established a full fledged department for quality assurance?
After acquiring Union Bank Ltd in 2006, Standard Chartered Bank adopted the service
quality measures that were previously very successfully being followed by Union Bank
and the same department is now in function after integration of CRM in all branches
across Pakistan. All Internal Service Measures are being monitored by this department.
Also, this department is active in imparting knowledge to Frontline staff for better quality
of services.
Outsourced Mystery Shopping is done four times a month, customer transaction times are
monitored through integrated systems and branch visits are made by Zonal/Area Service
Manager. The branches are graded monthly on the basis of these results.
Service Quality Learning Curve (SQLC) as presented in a Service Orientation Program held
in the Bank has the following three phases:
• If so, has the senior management been fully familiarized with concepts,
implementation strategies, and imperatives of TQM?
Monthly Service Meetings are held at branches to ensure that all staff members, from the
Branch Manager to the Front Desk Staff, is aware of the importance of satisfied customer
base and each member of the team is instrumental in maintaining quality services.
• What Internal Service Measures are being taken to ensure Service Excellence?
Internal Service Measures are basically the Service Standards and Measurements that are set
by a Bank (SCB in this case) which are followed by the front desk staff and is continuously
monitored by the Quality Assurance Team.
o Telephone Timeliness
o Telephone Effectiveness
o Teller Wait Time
o PO/DD Issuance
o Thank You Letters
• Has the Service Quality Monitoring helped improve the standard of services being
provided to customers?
After a review of the branch results based on internal service monitoring by the service
quality assurance department it is safe to say that there has been a great improvement in
the staff’s product knowledge and the frontline staff has now become service champions
in the branches.
Most of the customers (32% in Al Rahim and 36% in Hyderi branch) in the bank have
ranked the bank high in its Image due to good quality of service. Hence the quality of
service reflects better image.
Based on the questionnaires filed by the customers, the results reflect high customer
satisfaction in both Hyderi and Al Rahim Branch. There is however need for
improvement in timeliness and waiting space in the Al Rahim Branch as it is a prime
branch with the biggest customer portfolio and too many transactions taking place in a
day.
• Does customer satisfaction guarantee customer loyalty for the bank or its products?
8 and 9out of 25 customers in the Al Rahim and Chundrigar branch respectively say that
they have stayed with the bank due to its quality of service, which goes on the show the
weightage of Customer Satisfaction as an element in retaining customers.
Bibliography:-
http://finance.isixsigma.com/library/content/c040127a.asp
www.sbp.org
http://en.wikipedia.org/wiki/Total_Quality_Management
http://www.isixsigma.com/me/tqm/
http://www.standardchartered.com/pk/home/aboutus.html
http://finance.isixsigma.com/library/content/c040127a.asp
http://en.wikipedia.org/wiki/standardchartered
http://www.sagepub.com/textbooksProdDesc.nav?prodId=Book10950
Appendix- Questionnaires
i. When you entered the branch, were you greeted/ acknowledged by any staff?
ii. Were you attended for information/ service?
iii Was the staff courteous and helpful in providing information?
iv
. Did the staff provide correct information?
Your cooperation is needed to understand the Quality of Service being provided to you by SCB Pakistan for a report
as a partial requirement in the MBA Program at Szabist Karachi. Kindly take out five minutes of your time to fill this
simple questionnaire.
Name (Optional):
Gender (Optional): Qualification (Optional):
Account Title
Branch Name
Account Number (Optional)
2 b) On a scale of 1 to 10, rank the following banks in terms of Services (10 is Excellent and 1 is Bad):-
HBL
UBL
Bank Alfalah Ltd
Others (Please Specify)