r1_realrevolutionTeaching note by Vikas Mittal

Banking is an essential service. According to a 2015 FDIC national survey, 68% of U.S. households use banking services. According to a Gallup report, worldwide, access to banking services has expanded—62% of the world’s adult population had an account, which was up from 51% in 2011.

bankingTo provide high-quality service, banks rely on measuring overall customer satisfaction. Frequently, measuring overall satisfaction may not be enough. Banks need a comprehensive customer-satisfaction measurement system to inform strategy and execution. This teaching note provides a satisfaction-based framework to show how such a measurement system can be developed and implemented.

What are the teaching objectives of this note?

This note accomplishes the following teaching objectives:

  • Introduces the concept of customer satisfaction to students
  • Summarizes evidence about the outcomes—financial and non-financial—of customer satisfaction in the banking industry
  • Outlines the benefits of using a satisfaction-based approach to strategically manage customers
  • Provides a theory-based model for measuring and understanding customer satisfaction
  • The note helps the reader to answer four strategic questions
    • What strategic areas have the highest importance weight in overall customer satisfaction?
    • How can banks identify and manage specific areas for improving overall customer satisfaction?
    • What are the benefits of improving overall customer satisfaction? How can they be measured and managed by a bank?

Download

  • Students should individually download the teaching note (free) using the following SSRN link:

http://dx.doi.org/10.2139/ssrn.2783075

What classes can benefit from the teaching note?

  • The note may be used for:
    • MBA
    • Marketing Research/ Marketing Analytics Master’s Program
    • Elective courses in undergraduate business programs
  • The note may be used for the following courses:
    • Marketing Research
    • Customer Analytics
    • Marketing of Financial Services
    • Services Marketing
    • Customer Satisfaction Management
    • Consumer Behavior
    • Brand Management
    • Consumer Behavior

Ideas for class discussion and assignments

The following issues may be raised for discussion:

  • Why should a bank measure overall customer satisfaction?
  • How can a bank use a customer satisfaction-map to prioritize key strategic areas?
    1. Understand the interplay of importance and performance
  • For a bank, what would be the benefit of increasing overall customer satisfaction by 1-unit?
    1. Financial benefit
    2. Non-financial benefit
  • How can a bank use overall customer satisfaction to organically grow its customer base?
  • What are your opinions on the interplay of customer satisfaction and employee satisfaction? How much should service organizations emphasize employee satisfaction?

vikiVikas Mittal, Professor at the Jones Graduate School of Business, Rice University.

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