This research studied the impact of improved customer service on bank performance. The design adopted was the cross -sectional survey design with questionnaire as the primary instrument for the data collection while academic journals served as secondary sources materials. The broad aim was to assess the impact of improved customer service experience on bank performance. The sample size of the study was 217 respondents from Jaiz bank plc, Abuja. The tool used to analysis the data was the percentage while Pearson product moment correlation was used to test the stated hypothesis. the findings of the study showed a significant positive relationship between customer service, quality and timely service delivery, customer loyalty and customer retention. The study recommended that one of the ways to enhance customer relation, attraction and retention is by making it through development of sound quality service policy on customer-employee participation and good ethical practices.
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.2 Statement of the Problem
1.3 Aim and objective of Study
1.4 Relevant Research Questions
1.5 Relevant Research hypotheses
1.7 Scope of the Study
1.8 Definition of Terms
CHAPTER TWO: LITERATURE REVIEW
2.2 Theoretical Framework of the study
2.3 Empirical Review of Previous works in the area of study
2.3.1 Customer/Customer Service
2.3.2 Improved Customer Service
2.3.3 Customer Service Strategy in the banking Sector
2.3.4 Quality Customer Service and Organizational Growth
2.3.5 Improved Customer Service and Customers Behavioural Response
2.3. 6 Synergy between Improved Customer Service and Organizational Growth in
2.3.7 Improved Customer Service and Customer Satisfaction
2.3.8 Trust and Customer Loyalty
2.3.9 Customer Satisfaction and Customer Loyalty
2.3.10 Brand Loyalty, Customer Satisfaction and Effective Customer Service.
2.4 Measure of Effective Customer Service
2.5 Summary of Literature Review
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 ` Preamble
3.2 Research Design
3.3 Population of the Study
3.4 Sample and Sampling Techniques
3.5 Data Collection instrument
3.6 Method of Data Analysis
3.7 Limitation of the study
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.2 Presentation and Analysis of Respondents Characteristics
4.3 Respondents and Analysis According to Research Questions
4.3 Test of Hypotheses
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
- Background to the Study
The development of any nation’s economy depends to a large extent on the strength of its banking sector and the outcome of the manufacturing sector to produce need satisfying products (goods and services) to meet the demand and the need of the population. An effective and efficient banking sectors is essential not only for the production of efficient intermediation but for the protection of the depositors, encouragement of the healthy competition, maintenance of confidence, and stability of system and protection against systematic risk and collapse (Adewoyin, 2006). Retaining customers and attracting them has constituted of the toughest and most challenging activities of financial institutions in most developing countries like Nigeria (Banabo and Koroye,2011). Among the numerous problem faced by financial institutions are issues of customer retention strategies in a highly competitive banking industry, hence the consistent strategies on different forms of sales promotion to attract depositors as well as incur huge cost in training and retraining personnel for more efficient service delivery.
Investigations and studies have shown that banks are the best organizations in Nigeria that train their staff for effective customer relations. (Akpankpa, 2009, Yishau, 2008; Neakama, 2003; CBN .2004). This is a result of the competitiveness of the industry and the struggle for survival of banks especially in the face of the post consolidation challenges. It is this need for greater level of competition, organizational survival, safety of depositors funds etc, that Central Bank of Nigeria embarked on the consolidation exercise in other for the financial system in the country to be more efficient and effective, face global challenges, threats, and opportunities, contribute to economic development of the nation, enable banks to be more liquid with =N=25Billion as minimum capital base, enable banks to become more stronger players in national economic development with longer life span and higher returns, as well as facing the challenges of the deregulation of the financial sector, globalization of operators, technological innovations, and prudential requirement that conform to international standards (Andabai, Eke and Omesi:2010, Soludo, 2004; Odufu, 2005; Kama,2006; Kolo,2007; Udoma, 2004; Ajayi, 2005)
According to Wounters (2001), Customer service is considered to be a vital concept with the potential to bridge the gap between the ever-expanding customer demands for flexibility and, at the same time, the need to reduce production and distribution costs. By bridging this gap, a sustainable competitive advantage can be achieved. This suggests the customer service is viewed as a competitive strategy instrument.
Kalu (2008), states that customer services are those activities that occur at the interface between the customer and the corporation which enhance or facilitate the sale and use of the corporation’s products and services. It includes all of the things that a manufacturer does for a customer in moving a product from the end of production to the consumption (Wounters, 2001). Customers’ perceptions of service quality result from a comparison of their before-service expectations with their actual service experience. The service will be considered excellent, if perceptions exceed expectations; it will be regarded as good or adequate, if it only equals the expectations; the service will be classed as bad, poor or deficient, if it does not meet any of the above (Naik et al, 2010). According to Uppal (2009), banks are looking for more and more interaction with customers to build customer relationship.
Shankar (2004) report that customer focusing is not viewed as just a business strategy but should become a corporate mission. Once quality service is extended to a customer, a loyal customer will work as an agent to the bank and facilitate growth of business (Bhaskar, 2004). Customer relationship management is the vital factor to improve the performance of banks (Sugnadhi, 2003). Therefore, the customer orientation builds long term relationships resulting in customer satisfaction and cash flows to the bank (Swarup, 2004). A good customer relation in banks should have three basic rules: courtesy, accuracy and speed (Ganesh and Varghese, 2003). In view of the importance of customer service delivery to the performance, growth and survival of a bank, this study critically looks at the need for improved customer service experience in the banking industry in Nigeria with emphasis on Jaiz bank plc.
- Statement of the Problem
Despite the laudable objectives of the consolidation exercise, the post-consolidation effects and challenges are still glaring to all stakeholders in the Nigerian banking industry. These challenges, includes the issue of unqualified and inadequately trained manpower, ineffective staff motivation, lack of computerization of the banking operation, autonomy of the central bank Nigeria, cashless economy policy central bank Nigeria, diversification of operations, political instability, ineffective internal control, poor relationship among regulating authorities, and above all teeming number of dissatisfied, customers. Banks and other financial institutions must embrace and develop adequate, effective, and efficient customer service strategies that make the customer feel as “KING”. That is why customer satisfaction has become a paramount factor in marketing as more organizations are trying to retain the customer for their business survival.
Nigerian banks have fallen short of the expectations of their customers in recent times. Customers have experienced challenges ranging from delay in payment stock out, non-availability of staff at service points, unprofessional conduct or rudeness by the bank staff, poor standard of records keeping (improper information) and failed promises among others. Therefore, the need for improved customer service experience in the Nigerian banking industry is the problem of this research want to solve.
- Aim and Objectives of this Study
The aim of this study is to assess the effect of improved customer service experience on the bank performance in Nigeria with focus on Jaiz bank while specific objectives includes the following:
- To examine the contribution of effective customer service experience to customer loyalty in Jaiz Bank
- To ascertain whether effective customer service experience is significant to increase bank’s profitability.
- To examine banks’ technological advancement and its effect on customer service delivery in the banking industry in Nigeria.
- Relevant Research Questions
- What is the relationship between effective customer service experience delivery and customer loyalty to Jaiz Bank?
- To what extent does effective customer service experience increase bank’s profitability in Jaiz bank
- How does technological advancement enhance customer service experience delivery in Jaiz bank?
- Relevant Research Hypotheses
The hypotheses are in the null form as depicted below:
H0: There is no significant relationship between effective customer service experience and customer loyalty
H0: Effective customer service experience has no significant contribution on bank’s profitability.
- Significance of the study
Findings from this study shall be of immense usage/relevance to the customer service experience department of Jaiz Bank Plc as it shall serve to improve the standard of the bank’s customer service experience delivery. The result shall also be useful to other banks in the Nigerian banking sector as it shall sensitize them of the importance of an improved customer service experience. Researchers undertaking studies in related area of the study shall also find the study useful as a research material. The study also represents the researcher’s personal contribution to literature in the research domain and the frontier of scientific knowledge in general.
- Scope and Limitation of the Study
The scope of the study covers all employee of Jaiz Bank., main branch, 73, Ralph Shodeinde Street Central Business District. P.M.B. 31 Garki Abuja, Nigeria.
In the course of this study these factors are perceived as challenges were be faced by the research: Funding of the study, in view of the huge materials required by the study shall posed challenge, seeming uncooperative attitude of employees of Jaiz Bank Plc was also a challenge in the study, time factor was also a challenge in the study since the researcher doubles up the study with full time employment.
- Definition of terms
For the purpose of this study, the following terms shall be used as follows:
- Customer: A customer is defined as person or group of persons who buys things, especially one who buys from a particular shop
- Bank: A bank as a financial institution where various kind of financial services are rendered.
- Customer service experience: This has been defined as connection of activities performed in keeping customer happy.
- Effective: This may be defined as a state capable of causing a desired result, Effective customers’ service experience is thus a state of service capable of causing desired result such as achieving the set objectives of the bank.
- Management: This can be defined as the body in an organization responsible for planning, organizing, directing.