{"id":4117,"date":"2016-12-29T00:25:23","date_gmt":"2016-12-29T05:25:23","guid":{"rendered":"http:\/\/www.servsig.org\/wordpress\/?p=4117"},"modified":"2023-10-22T04:48:53","modified_gmt":"2023-10-22T08:48:53","slug":"teaching-note-customer-satisfaction-customer-loyalty-financial-performance-in-the-banking-sector","status":"publish","type":"post","link":"https:\/\/www.servsig.org\/wordpress\/2016\/12\/teaching-note-customer-satisfaction-customer-loyalty-financial-performance-in-the-banking-sector\/","title":{"rendered":"Teaching Note: Customer Satisfaction, Customer Loyalty, &#038; Financial Performance in the Banking Sector"},"content":{"rendered":"<p><em><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-4251\" src=\"http:\/\/www.servsig.org\/wordpress\/wp-content\/uploads\/2016\/12\/R1_RealRevolution-1.jpg\" alt=\"r1_realrevolution\" width=\"600\" height=\"400\" srcset=\"https:\/\/www.servsig.org\/wordpress\/wp-content\/uploads\/2016\/12\/R1_RealRevolution-1.jpg 600w, https:\/\/www.servsig.org\/wordpress\/wp-content\/uploads\/2016\/12\/R1_RealRevolution-1-300x200.jpg 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/>Teaching note by&nbsp;Vikas Mittal<br \/>\n<\/em><\/p>\n<p>Banking is an essential service. According to a <a href=\"https:\/\/www.fdic.gov\/householdsurvey\/2015\/2015execsumm.pdf\">2015 FDIC national survey<\/a>, 68% of U.S. households use banking services. According to a Gallup report, <a href=\"http:\/\/www.gallup.com\/poll\/182420\/number-bank-account-owners-worldwide-grows-700-million.aspx\">worldwide<\/a>, access to banking services has expanded\u201462% of the world\u2019s adult population had an account, which was up from 51% in 2011.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-4118\" src=\"http:\/\/www.servsig.org\/wordpress\/wp-content\/uploads\/2016\/12\/banking-300x217.png\" alt=\"banking\" width=\"300\" height=\"217\" srcset=\"https:\/\/www.servsig.org\/wordpress\/wp-content\/uploads\/2016\/12\/banking-300x217.png 300w, https:\/\/www.servsig.org\/wordpress\/wp-content\/uploads\/2016\/12\/banking.png 599w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>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.<\/p>\n<p><strong>What are the teaching objectives of this note?<\/strong><\/p>\n<p>This note accomplishes the following teaching objectives:<\/p>\n<ul>\n<li>Introduces the concept of customer satisfaction to students<\/li>\n<\/ul>\n<ul>\n<li>Summarizes evidence about the outcomes\u2014financial and non-financial\u2014of customer satisfaction in the banking industry<\/li>\n<\/ul>\n<ul>\n<li>Outlines the benefits of using a satisfaction-based approach to strategically manage customers<\/li>\n<\/ul>\n<ul>\n<li>Provides a theory-based model for measuring and understanding customer satisfaction<\/li>\n<\/ul>\n<ul>\n<li>The note helps the reader to answer <strong>four <\/strong>strategic questions\n<ul>\n<li>What strategic areas have the highest importance weight in overall customer satisfaction?<\/li>\n<li>How can banks identify and manage specific areas for improving overall customer satisfaction?<\/li>\n<li>What are the benefits of improving overall customer satisfaction? How can they be measured and managed by a bank?<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Download<\/strong><\/p>\n<ul>\n<li>Students should individually download the teaching note (free) using the following SSRN link:<\/li>\n<\/ul>\n<p><a href=\"http:\/\/dx.doi.org\/10.2139\/ssrn.2783075\">http:\/\/dx.doi.org\/10.2139\/ssrn.2783075<\/a><\/p>\n<p><strong>What classes can benefit from the teaching note?<\/strong><\/p>\n<ul>\n<li>The note may be used for:\n<ul>\n<li>MBA<\/li>\n<li>Marketing Research\/ Marketing Analytics Master\u2019s Program<\/li>\n<li>Elective courses in undergraduate business programs<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li>The note may be used for the following courses:\n<ul>\n<li>Marketing Research<\/li>\n<li>Customer Analytics<\/li>\n<li>Marketing of Financial Services<\/li>\n<li>Services Marketing<\/li>\n<li>Customer Satisfaction Management<\/li>\n<li>Consumer Behavior<\/li>\n<li>Brand Management<\/li>\n<li>Consumer Behavior<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Ideas for class discussion and assignments<\/strong><\/p>\n<p>The following issues may be raised for discussion:<\/p>\n<ul>\n<li>Why should a bank measure overall customer satisfaction?<\/li>\n<li>How can a bank use a customer satisfaction-map to prioritize key strategic areas?\n<ol>\n<li>Understand the interplay of importance and performance<\/li>\n<\/ol>\n<\/li>\n<li>For a bank, what would be the benefit of increasing overall customer satisfaction by 1-unit?\n<ol>\n<li>Financial benefit<\/li>\n<li>Non-financial benefit<\/li>\n<\/ol>\n<\/li>\n<li>How can a bank use overall customer satisfaction to organically grow its customer base?<\/li>\n<li>What are your opinions on the interplay of customer satisfaction and employee satisfaction? How much should service organizations emphasize employee satisfaction?<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.servsig.org\/wordpress\/2017\/02\/teaching-note-patient-satisfaction-strategy-map\/viki\/\" rel=\"attachment wp-att-4110\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4110 alignleft\" src=\"http:\/\/www.servsig.org\/wordpress\/wp-content\/uploads\/2016\/12\/viki.png\" alt=\"viki\" width=\"110\" height=\"125\"\/><\/a><em>Vikas Mittal, Professor at the Jones Graduate School of Business, Rice University.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Teaching note by&nbsp;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\u201462% of the world\u2019s adult population had an account, which was up from 51% in 2011. To provide high-quality service, banks [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4251,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,8,13],"tags":[264,263,265,254,267],"_links":{"self":[{"href":"https:\/\/www.servsig.org\/wordpress\/wp-json\/wp\/v2\/posts\/4117"}],"collection":[{"href":"https:\/\/www.servsig.org\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.servsig.org\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.servsig.org\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.servsig.org\/wordpress\/wp-json\/wp\/v2\/comments?post=4117"}],"version-history":[{"count":8,"href":"https:\/\/www.servsig.org\/wordpress\/wp-json\/wp\/v2\/posts\/4117\/revisions"}],"predecessor-version":[{"id":13216,"href":"https:\/\/www.servsig.org\/wordpress\/wp-json\/wp\/v2\/posts\/4117\/revisions\/13216"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.servsig.org\/wordpress\/wp-json\/wp\/v2\/media\/4251"}],"wp:attachment":[{"href":"https:\/\/www.servsig.org\/wordpress\/wp-json\/wp\/v2\/media?parent=4117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.servsig.org\/wordpress\/wp-json\/wp\/v2\/categories?post=4117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.servsig.org\/wordpress\/wp-json\/wp\/v2\/tags?post=4117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}