Teaching 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.
To 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?
- Students should individually download the teaching note (free) using the following SSRN link:
What classes can benefit from the teaching note?
- The note may be used for:
- 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?
- Understand the interplay of importance and performance
- For a bank, what would be the benefit of increasing overall customer satisfaction by 1-unit?
- Financial benefit
- 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?