- 20 Marks
Question
Give and explain four reasons why it is important to meet or exceed the service quality expectations of targeted customers?
Answer
- From my experience in customer service at GCB Bank, meeting service expectations is vital for retention and compliance in Ghana’s post-cleanup era, per BoG’s Corporate Governance Directive. It integrates with marketing to balance profit and satisfaction. Four reasons:
- Enhances Customer Loyalty and Retention: Satisfied customers return and refer others, reducing churn. In Ghana, post-DDEP, banks like Ecobank retained clients through prompt query resolutions, boosting deposits. Explanation: Loyalty lowers acquisition costs, aligning with relationship approaches for long-term profitability.
- Improves Competitive Advantage: Exceeding expectations differentiates in saturated markets. Example: Stanbic’s quick loan approvals via digital channels outpaced competitors, per Payment Systems Act. Explanation: Builds positive image, increasing market share and resilience against fintechs.
- Increases Profitability Through Cross-Selling: Happy customers are open to additional products. In practice, Access Bank’s superior service led to upselling insurance post-2019. Explanation: Matches need to products, maximizing resources per marketing mix principles.
- Mitigates Risks and Ensures Compliance: Meeting expectations avoids complaints and regulatory issues under Act 930. Example: Poor service contributed to UT Bank’s collapse; good service supports BoG’s security and confidentiality standards. Explanation: Fosters ethical practices, enhancing reputation and operational stability.
- Tags: Banking Benefits, Customer Expectations, importance, Service Quality
- Level: Level 2
- Uploader: Salamat Hamid