Internal Marketing; Ensuring Service Quality in the Banking Industry


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A bank is considered a customer-oriented financial service providing organization. In the banking industry, customer satisfaction is considered the essence of the success of any organization. According to general and prime concern foremost task of a bank is collecting deposits from the surplus unit and investing it to the deficit unit. According to this concept, the two most fundamental works of the bank are; firstly; collect the deposit from the surplus unit and secondly; invests in the deficit unit. Both of the parts are highly co-related to the employees of that particular institution, even according to the definition of service, it can’t be separated from the service provider i.e. employee of that bank while providing it to the customer. Quality service how much dependable on satisfied employees can be depicted through some findings of the scholars. 

According to Cronin, J. J., Brady, M. K. and Hult, G. T. “Service quality has a strong correlation with customer satisfaction, financial performance, manufacturing costs, customer retention, customer loyalty, and the success of a marketing strategy.”

 “Naeem, H., and Saif, I.” in the year of 2009 in their research on “Service Quality and its impact on Customer Satisfaction: An empirical evidence from the Pakistani banking sector” recommended that “A bank can differentiate itself from competitors by providing high-quality customer service”. “Spathis, C., Petridou, E. and Glaveli, N.” in the year of 2004 in their research on “Managing service quality in banks: customers gender effects” found that “Organizations operating in service industries should consider service quality a key strategic issue for business success”.

It can be concluded that if the organization wants to differentiate themselves from the competitors as well as to reach the sustainable business success they should ensure service quality; giving most priority.

But it should be bear in mind that service quality is mainly surrounded/ensured by some controller. These are:
1.             The provider (who is generating and providing the service; employee)
2.             Product (what are going to be offered)
3.             Environment (where the service is generating and providing)
4.             Receiver (who is receiving the service; customer)

In a service industry like the bank, business success mainly depends on two factors (The Provider; who ensure service quality and the product; what are going to be offered and how they are designed compared to competitors) among the four. Most of the customers are earnestly do banking where they get the highest rate for their deposit and lowest rate at the time of borrowing. Even sometimes it doesn’t matter about the environmental presence. They always want to get the best financial benefits in terms of the market scenario.

In this regard 2nd and 3rd one designed by the company’s internal factor, 4th one is external elements which will be controlled by the integration of the rest three elements. But the 1st one is very much important in terms of generating and providing quality service to the targeted customer. I would rather concentrate on ensuring service quality in terms of internal marketing for the service provider i.e. employee. Philip T. Kotler and Gary Armstrong in their Principles of Marketing (15th Edition) book portray that “Internal marketing is orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction”. Prior to that Mr. Kotler in his Marketing Management Millenium Edition (Tenth Edition) book mentioned that “Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. In fact, internal marketing must precede external marketing. It makes no sense to promise excellent service before the company’s staff is ready to provide it”. A research conducted by Mr. Duncan and Mr. Elliott in the year of 2004 on “Efficiency, customer service and financial performance among Australian financial institutions” which had been published in The International Journal of Bank Marketing. This indicates that “companies with an excellent customer service record reported a 72% increase in profit per employee, compared to similar organizations that have demonstrated poor customer service; it is also five times costlier to attract new customers than to retain existing customers”.

In this regard, it is crystal clear to predict that if your customer-contact employees and supporting service people do their duty; providing excellence to the customer, in a perfect way, their chair should be very much comfortable not in terms of physical appearance but the calmness of their black box. When an employee is spontaneous and firm promises to his duty, the service may be delivered successfully. So, what are the stimuli’s that can ensure the perfection of customer-contact employees or hinder the same? It may be described on the basis of the following aspects along with others.

1.             Remuneration: it is considered the most prioritized stimuli not only for this particular industry but also for others as prima facie of considering the internal satisfaction of the employees. Mainly all of our having a job is expected to get a smart salary to spend our life with the family members. Every employee wants to live a comfortable life while maintaining their social dignity. The pay structure in this way is the first barrier. In addition, there is no point of express for being the only earner in the family. He always walks the way of thinking of the opportunity cost. On the one hand, he has to think about how to spend his life within the boundaries of the income, while on the other, his contemporary position in society. If it always swirls around in his head that how he will manage his next sun, can’t be a sound mind at the time of offering services to the customer. But it is also true that the necessity of money cannot be restricted to anyone's limit. As it can be given, the need will increase. In this case, an employee is basically considering two things, One- How to live well? Two- How much do the same or less qualified contemporaries get?

2.             Undue Pressure: At present, banking has become like a bus service in Dhaka city. Ruthless competition of the bus driver of the same company on the same route as the owner's direction. In a small market, competition lies in who can take as many passengers as before. Where traffic laws are not adhered to, no proper licenses, qualifications, and skills. Even licenses will be given in a non-exclusive way. The only trust will be an influential brother upon the head. If you can't digest it or fail. To avoid legal complications, reappear and behave as usual by changing appearance. As it is - in the case of SUPROVAT bus; after an accident, it impersonates to VICTOR CLASSIC. Similarly, in various irregularities, the Farmers Bank Limited became Padma Bank Limited.

3.             Deposit/Recovery Target: This is one of the most common phenomena in this industry. If you want to make yourself a performed banker you have to fulfill assigned target upon you within a particular time. Otherwise, you are not entitled to get the reward or to accelerate your future. Because investors invest their hard-earned money in establishing a bank, they will never want to provide rewards to employees everywhere. Therefore, such a criterion may remain. However, it will never be able to go under pressure. If the goals are not fulfilled then being discharged from employment, not paying yearly increments, depriving them of salary adjustment with inflation, not being promoted, creating psychological stress and frequent shifting problems have become a daily occurrence in the workplace. Which plagues an employee on a regular basis. As a result, becoming fully concentrated in work becomes quite impossible. But it should be bear in mind that the performance of service mainly depends on its features which are going to be offered and on the service quality simultaneously. Nowadays the banking industry has become like a private hospital. Where the quality of service is expected to crowd the patients rather the broker is bringing the patient through discount.

4.             Personal Life:  In some cases, it can be seen that various problems in personal life can hinder an employee to engage in professional work with a sound mind. Although it is never acceptable to have personal problems in professional life. But it is true that many family life conflicts are also created for the opposite. Which does not allow an employee to succeed in his or her professional life? As a result, quality services are threatened later. An employee's quality of service depends largely on how happy he is in family life. After engaging in professional work from 9.00 am to 10.00 pm it is unknown what the personal life of a banker is. And it is also predicted that their children, who are deprived of affection today, will not hesitate to send them to old age. Walter Elias Disney, the greatest American entrepreneur and pioneer of the American animation industry said that “A man should never neglect his family for business”.

One of the two components of a growth strategy to this day is skilled personnel and modern technology. But it seems, the time has come to get out of this idea. Along with modern technology, employees’ mental calmness and inner gratification should be prioritized. Because a skilled worker can never devote himself unless he is mentally satisfied. A human potential thought leader, international bestselling author, and social entrepreneur Bryant McGill once told that “Your calm mind is the ultimate weapon against your challenges”.

Written By
Rupon Goswami

Senior Executive Officer
Modhumoti Bank Limited
e-mail: rupon_juni@yahoo.com

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