CASE 12 MENTON BANK OVERVIEW A large regional bank seeks to develop a stronger customer orientation and deliver more

services through electronic technology instead of human tellers. Three branches have been selected as test sites for a new customer service program. Tellers, whose job was previously defined in operational terms, are now known as customer service representatives (CSRs) and are expected to engage in limited selling of the banks growing array of services. This move to a selling role has been resisted by one CSR, Karen Mitchell, who is outstanding at the operational aspects of her job. When she applies for the position of head CSR, management must decide how much emphasis to place on selling versus operational skills, since another candidate is outstanding at selling. STUDY QUESTIONS 1. Identify the steps taken by Menton Bank (MB) to develop a stronger customer orientation in its retail branches. 2. How would you compare and contrast the jobs of CAR and CSR? How important is each to (a) bank operations and (b) customer satisfaction? 3. Evaluate the strengths and weaknesses of Karen Mitchell and other candidates for head CSR. 4. What action do you recommend for filling the head CSR position? ANALYSIS 1. What steps has Menton Bank taken to develop a customer orientation in its branches? Students must distinguish between new financial products (not describe specifically in the case) and new or improved delivery systems designed to reach out to customers. Delivery Improvements, Innovations
Remodeling and renovation of new look branches Counters redesigned to provide full/express service Staffing levels varied to match variations in demand for service by customers Customer service information desks located near entrance Touch-screen information terminals installed near entrance, remodeling, and renovation of new

look branches (friendly yet professional)

Introduction of advanced model ATMs with color touch screens, capable of broader array of

transactions in multiple languages

 Number of ATMs in branches has been tripled Access to several ATM networks with numerous convenient locations Automated 24/7 telephone banking Automated telephone banking available 24/7 for some services. Central customer service office can be reached by phone weekdays 8 a.m. to 8 p.m. and

Saturdays 8 a.m. to 2 p.m., possibility of expansion to 24/7

Home banking by Internet provides online access to accounts via banks Web site, newly

redesigned to be the regions most user friendly, testing use of web-enabled services for customers with digital cell phones
Issuing new credit cards with RFID which allows customers to wave cards near special readers

rather than insert them in slot, thus saving time and effort Staff Innovations
New training programs for staff to generate improved product knowledge, selling skills, greater

professionalism
New staff job titles signal changes in approach New job descriptions signify much increased emphasis on high quality service recognizing

customer needs, cross selling, maintaining good customer relations

Use of both carrot and stick approaches to motivate CSRs to engage in consultative selling

(i.e. referrals to CARs)

Plans to close smaller branches, however will not be seen as user friendly by all customers

Compare and Contrast the Jobs of CAR and CSR. [A supplementary question: How Have the Jobs Changed?] can be assigned or raised in class. You may wish to ask students to compare and contrast the old and new job descriptions in the Appendix to the case, pp. 574576. Tellers have always had a marketing role, but it was never explicitly recognized as such. We can examine this in marketing mix terms: Product. Tellers/CSRs are part of the service experience for the customer, but an operational imperative may have made some clerks insensitive to customer needs and concerns. New training programs try to achieve more professional appearance/behavior. In the meantime, the new job title may raise service expectations.

Distribution. The teller was previously the key element in service delivery for retail branches, but now customers have the option of using ATMs/telephone banking (and even home banking in some cases) for a growing array of retail transactions. Customers who use CSRs are more likely to prefer human interactions to machines or require a more complex service that they perceive the ATM as unable to deliver reliably. (Note: CSR performance standards, such as transactions completed per hour, will need to be adjusted downward to reflect the fact that more complex tasks will take longer to complete). Communication. CSRs have received training about new and existing retail bank services, therefore are more knowledgeable about bank services, and better able to offer information and advice. They have also been trained to take the initiative in recognizing sales opportunities and to undertake consultative (referral) selling. Finally, they have been trained to improve their listening and observational skills and to present themselves in a more professional manner. 2. Compare and contrast the jobs of CAR and CSR? How important is each to (a) bank operations and (b) customer satisfaction? Students should be able to draw useful comparisons, not only from information in the text, but also from comparing the job descriptions in the Appendix.
CAR job is oriented to prospects interested in starting a relationship with the bank and existing

customers who have problems to resolve or who need new services. Its very important from a marketing perspective but operationally is limited to ensuring that new accounts are set up properly and that customers know how to use different service delivery options and resolving operational mistakes that have upset customers.
CSR job is oriented toward conducting transactions with existing customers (although they may

get some walk-in business for one-time transactions). CSRs have a boundary-spanning role, (see Chapter 11, p. 313) which requires speedy operations but also good skills in relating to customers. Slow transactions and charmless service will lead to customer dissatisfaction. CARs encounter customers/prospects needing information and assistance on a service that they may be poorly informed about. Some may need help defining what their needs really are and in evaluating alternative solutions. A customer visit with a CAR may last 1020 minutes as alternatives are explored, the customer supplies personal data, and forms are completed.
Generally, customers visiting a CSR know what they want and present a transaction for

execution (an operational task). The proportion needing information or assistance is small compared with CARs. An express transaction may take 30 seconds; a full-service window transaction will tend to take less than five minutes in most instances. Customers may deal with a CSR on a regular basis for years (if the CSR sticks around); with CARs, the customer may pay several visits in a short period of time to arrange a particular service, but may not need to visit the platform staff again for a year or more thereafter. CARs, seated at a desk with a customer also seated, have time to probe for customer needs and to engage in proactive selling. For security reasons, CSRs are separated from customers (who are standing) by a high level counter (and possibly, although the case doesnt say, a grill). Because speedy transactions are necessary to keep the line moving,

they do not have time to spend time on probing or selling unless there is nobody else in line. Their only direct selling is products like travelers checks; all other selling through referral to CARs. CARs can expect to get a lot of prospects from response advertising, direct mail, and referrals by other customers, bank officers, CSRs, etc. Hence, the prospect may already be in a buying or information-seeking mode. CSR customers by contrast will tend be in a transaction mode. The Customer Service Director position is designed to both manage and integrate CAR and CSR work
Finally, the CSR job is more at risk of replacement from automation. Although there will be

some new positions created as telephone banking reps, these may require a different type of skill (less need for ability to move quickly on physical tasks, more need for good voice presentation). Nature of the Job: A coordinating position rather than a managerial one (see pp. 570). Key elements of what the job entails are:
Allocation of work assignments Scheduling of part-time CSRs Consulting on, and where possible, resolving problems at the teller stations Handling large cash deposits and withdrawals by local retailers

Management of CSRs (and CARs) is in the hands of the Customer Service Director, David Reeves. No Extra Marketing Responsibilities attached to the head CSR position (beyond those that the individual would perform when serving customers behind the counter). The head CSR then, needs to be:
Good at human interactions Very knowledgeable about aspects of CSR work competent at helping less experienced CSRs solve problems A good organizer Able to deal with large sums of money for retailers in a trustworthy, professional manner A good role model who commands the respect of other CSRs (but that respect is likely to come

from perceived operational competence and personal empathy, rather than being seen as a super salesperson. However the head CSR still needs to be able to convincingly show how to sell.

 A final point is that the head CSR is a front-line supervisor who acts as a bridge between

management and a key group of customer-contact personnel. In addition to being able to command the respect of fellow workers, management may be looking for an individual whom they can trust to support company policies to set an example in implementing bank strategy. 3. Evaluate the strengths and weaknesses of Karen Mitchell and other candidates for the job of head CSR? Karen Mitchell Strengths
Excellent track record of high performance on operational criteriaconsistently No. 1 in

ratings
Fast and accurate Presents smart and professional appearance Well liked by customers and fellow CSRs Says she loves being able to help customers Has been with bank three and a half years since graduating from junior college Interested in making a career in banking and has previously applied for head teller (CSR)

position
Says she is eager to take on further responsibilities

Weaknesses
Ranks fourth out of seven tellers on new scoring due to poor performance on selling

effectiveness elements (see Case Exhibit 1)

Appears to resist bank policies on selling (a cornerstone of the banks new marketing strategy)

and chooses to define her job the way she thinks it should be rather than the way management does
Desire to help customers is not the same as the desire to sell something to a customer; they

reflect different personality traits Jean Warshawski Strengths

Ranked ahead of Mitchell (second on overall scores) with two years experience at branch

 Very successful on consultative selling (ranks No.1 on selling effectiveness) Excellent on customer relations: cheerful, good memory for faces Excellent at identifying prospects for sales pitches Well organized in her work Quick to help fellow CSRs, especially new hires Older (more mature?), motivated by desire to save for sons college education

Weaknesses
Past evaluations (operationally based) not as good as Mitchells; not as fasttoo chatty

Somewhat untidy (less professional appearance) Room for improvement on accuracy Has often been late for work and reprimanded for this If motivated by money, may conclude she can earn more in a sales position elsewhere

Curtis Richter Strengths

Prior experience as head CSR of a small Menton Bank branch where he supervised three CSRs Seeking more responsibility Excellent evaluations in current head CSR position Move to complete degree suggests ambition Appears personable and intelligent Experienced in CAR work

Weaknesses
Not previously exposed to consultative selling program nor to ATM banking environment Longmeadow is an example of the type of branch the bank probably wants to close Doesnt know current CSRs at Federal Square

 Will appointment of outsider cause resentment among CSRs?

4. What action do you recommend for filling the Head CSR position? There are four basic approaches that can be taken, each with associated alternatives:
Appoint Mitchell as head CSR Rationale: Job requires professionalism, operational skills, and ability to supervise others. Let her play to her skills and not have to do as much selling as before. Perhaps should consider Smith for CAR position if available. Appoint Warshawski as head CSR Rationale: Show that success in selling is rewarded by promotion. Use her as role model and coach to help other CSRs. If Mitchell is really upset about the decision, offer to help her get head CSR job at traditional branch. (But what will happen when that branch adopts the new selling orientation or, worse, is slated for closure?) Appoint Richter as head CSR ( at Federal Square branch)

Rationale: First, however, put him through a training program similar to those experienced by CSRs in the test branches to give him the same skills and frame of reference as the CSRs that he will be supervising. Transfer Richter to the head CSR position at the small Longmeadow branch. (It will probably be low on the list for conversion to the new selling approach, but may even be closed). Take no action on Warshawski or consider offer of CAR position if one opens up.
Recommend to head office that the bank should abolish the Head CSR position Rationale: Divide this jobs responsibilities among several experienced CSRs (who might be given a new title of Senior Customer Service Representative and receive an extra increment in salary). Appoint both Mitchell and Smith to this position, plus perhaps one other existing CSR at Federal Square (Mary Bell would be good if she would accept the promotion). Apart from the head CSR hiring decision, the bank should seek to help CSRs to sell by encouraging customers to ask CSRs about specific bank services. For instance, freestanding signs near the teller windows could remind customers of specific bank services and CSRs could all be issued large lapel buttons reading Ask me about [product]. Buttons and signs could be changed periodically to feature different services.

CLOSING COMMENTS
More and more service organizations are finding that the contact points between service

personnel and customers represent moments of truth in the customers appraisal of the service experience.

 As top management attempt to develop a stronger marketing posture for the organization, they

find that implementation of such a strategy often requires making significant changes at the point of interface between customers and service personnel. Making such changes means adding a marketing component to what has previously been an operations task.
Linking marketing and operational responsibilities may enrich the job but they also complicate

it and add potential for friction. A further problem is that there may be an element of luck to referrals, because such opportunities constitute only a small proportion of all transactions handled by a CSR.
Employees who are good at operations tasks may lack the personal skills needed for dealing

with customers and resist the addition of selling activities to their job definitions.
Successful implementation requires human resource managers to develop appropriate training

programs to give workers the skills they need; changes in evaluation and remuneration will probably be necessary to motivate the desired new behavior.
First-line supervisors and their managers will also find their environments changing, requiring

training and motivational programs at other levels in the organization.

In the long run, redefined jobs will require redefined recruitment criteria. In the short run, the

issue is which employees will respond to retooling and which will have to be reassigned to other areas or even terminated. Menton Bank is a disguised name. Hence, there is no web site to visit. To get a sense of Internet banking, consider a visit to the Web sites of banks known for their use of Internet channels.