The world of business is facing increasing competition due to the rising numbers of new entrants who share existing customers with present firms. It is therefore necessary that, firms that are currently in the market should constantly improve in response to the changing market and customer needs.
This competition is also observed in the banking industry due to the emerging technologies and innovations like mobile phone and internet banking. These are the major threats in the industry and to get by, well formulated plans have to be put in place by existing banks1.
Firstly, the bank should improve its public relations and customer service to be able to maintain existing clients. This can be accomplished by the provision of suitable and timely customer care solutions; in addition to that, necessary efforts should be taken to reach out to unwilling clients. The customer care departments should be highly efficient in service delivery to ensure customer satisfaction and loyalty. This builds a unique form of link between the bank and the clients thus the firm is able to create a strong customer loyalty2.
Secondly, in order for the firm to maintain the existing clientele, the bank should be more active. For example, it should adjust the available bank loans and accounts, by adding more benefits on the holders like increasing interest rates on savings and bank deposits. Besides, launching a promotion based on every day deposits of cash in personal accounts, will keep the existing customers through the offer of attractive prizes and free samples.
Additional products should be supplied to the market to raise extra capital, while those shares bought by the old clients should be sold to them at a discount to promote loyalty3.
The bank should make sure that it carries out a complete over howl of its inside and outside environment to sustain its position in the industry. The over howl should involve Internal transformation and use of benchmarking as well as the involvement of independent system auditors to implement modifications.
They perform an audit of the bank’s internal control system, and grade the firm in accordance to industrial standards like the ISO 900. These evaluations aid the firm in identifying its position in the industry in comparison to other similar firms. Furthermore, to exploit its strengths in the market promotes retaining the existing customers through providing unique products like mortgages with convenient repayment plans4.
The customer needs should be the priority of management during planning and resources allocation. The management should also take up professional advice to improve service delivery to the clients and hire new professionals where necessary.
Moreover, they may use risk managers who will advice the management during projects of any impending risks and how to manage and avoid them. The bank should put in place a plan to ensure specific needs of main customers are met, by offering them multy city cheques to facilitate service accessibility from anywhere.
It can be better if the firm will consider the alternative of doing what other banks in the industry are doing. Nearly all the services provided in the banking industry are identical in nature.
Consequently, the bank should consider giving its clients somewhat customized services but analogous to those offered by the competitor banks to avoid losing clients and being out dated for lacking modern services. The firm should put in place guidelines for giving appreciation to older clients like the use of bonus and giving loyal customers redeemable points. Through a continuous and consistent effort, the bank will be able to develop and establish a strong customer allegiance5.
To avoid the loss of customers, the bank has to consider an immediate solution of offering customers their requests as a special case only to distinguished clientele. Nonetheless, the company should carry out pertinent research activity on the possibility of providing similar services through other means that are less costly.
These services may be used instead of the cheques for example embracing of mobile phone and internet banking; here, the bank amalgamates with mobile phone service providers’ corporations to provide customers with banking services through their handsets.
In order to build a competitive advantage the firm may consider using the direct opinion of the clients themselves. An establishment of a consistent and proactive research group may be able to ensure that the firm has consistent and up to date market needs.
Understanding the perspective of the client on his choices and the reasons for the choices may be an avenue for the development of new products. This can help in keeping the customer from seeking the services of the other service providers. It also improves customer devotion through consistent appropriate and honest communication with agents of the company.
Through consistent audits and evaluations done on the system of the company, the level of efficiency may be determined as well as the ability of the bank to achieve set goals. Other departments of the company are scrutinized to establish their proficiency in goals achievement. Excellent strategies facilitate smooth operations beside the competent service delivery to the client; all these benefits aid in client contentment and loyalty.
Bibliography
DiJulius, John. Secret Service: Hidden Systems That Deliver Unforgettable Customer Service. California: New Harbinger Publications, 2003.
Faulkner, William. Satisfying your Customers. New York: Vintage Books, 2002.
Gitomer, Jeffrey. Customer Satisfaction is Worthless, Customer Loyalty is Priceless. Chicago: William & Sons publishers, 2005.
Heyken, Shep. The Cult of the Customer: Create an Amazing Customer Experience That Turns Satisfied Customers Into Customer Evangelists. New York: Waveland press Inc, 2009.
Hunsaker, Lynn. Innovating Superior Customer Experience. Sandi ego: Williamson publications, 2009.
Lowenstein, Michael. Customer Retention: An Integrated Process for Keeping Your Best Customers. New York: Penguin publishers, 2003.
Moore, Geoffrey. Living on the Fault Line: Managing for Shareholder Value. Illinois: Johnston Publishers, 2000.
Pearson, Bryan. The Loyalty Leap: Turning Customer Information into Customer Intimacy. San Francisco: Brooks publishers, 2012.
Reichheld, Frederick. The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value. Oxford: oxford publishers, 2000.
Seybold, Patricia. The Customer Revolution. New York: McGraw Hill/Irwin, 2001.
Weinstein, Art. Superior Customer Value: Strategies for Winning and Retaining Customers. Lincoln: Universal publishers, 2012.
Footnotes
1 William, Faulkner. Satisfying your Customers. (New York: Vintage Books, 2002.)
2 Jeffrey, Gitomer. Customer Satisfaction is Worthless, Customer Loyalty is Priceless. (Chicago: William & Sons publishers, 2005.)
3 Ibid
4 Ibid 45
5 Jill, Griffin. Customer Loyalty: How to Earn It, How to Keep It. (New York: Cambridge University Press, 2005.)