This lesson explores the key factors that define service quality in banking, providing a framework for measuring and improving the customer experience .

8.1 The Concept of Service Quality
Service quality is the customer’s overall assessment of the service received. In banking, where services are intangible, service quality is critical to differentiation and success . The SERVQUAL model is a widely used framework for measuring service quality .

8.2 The 10 Determinants of Service Quality
These determinants, as identified by CRM and marketing literature, provide a tangible way to measure and improve service :

  1. Reliability: Delivering the promised service dependably and accurately.

  2. Responsiveness: Willingness to help customers and provide prompt service.

  3. Competence: Possession of the required skills and knowledge to perform the service.

  4. Access: Approachability and ease of contact.

  5. Courtesy: Politeness, respect, consideration, and friendliness of contact personnel.

  6. Communication: Keeping customers informed in language they can understand and listening to them.

  7. Credibility: Trustworthiness, believability, and honesty.

  8. Security: Freedom from danger, risk, or doubt.

  9. Understanding/Knowing the Customer: Understanding the customer’s specific needs.

  10. Tangibles: The physical evidence of the service (e.g., bank branch appearance, ATM condition, online portal design).

8.3 Using Service Quality to Enhance CRM
Monitoring and improving service quality is a core element of an effective CRM strategy . By consistently performing well on these determinants, banks can:

  • Build lasting customer trust and loyalty.

  • Reduce customer attrition.

  • Enhance their brand reputation and gain a competitive advantage.

 
 
 
 
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