Us Bank: Review Of Literature
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Chapter 2: Review of Literature and Benchmarking
Customers love and cherish companies that treat them the way they want to be treated. Sometimes customers will even pay more to get good service. Effective communication and the established relationship with the customers are the essence of customer service. Every interaction with a customer or potential customer is an opportunity for gathering feedback, searching out needs, and implementing changes that can make an organization more customers centric. One key to business success is customer loyalty (Leland and Bailey, 2006). US World Bank (UWB) wants to enhance customer loyalty by offering a new credit card product. This is why the new product is essential for the future growth of UWB.

You can never be truly effective with a client if you do not have a solid understanding of your portfolio and the full capabilities of your company (Markert, 2007). Customer want their problems solved and a bank were their financial needs are meet. One important factor is for UWB to achieve their overall number objective but of equal importance is for UWB get there by exceeding the customers expectations. A good company will sort through a plan for best obtaining a customer’s most critical objectives (Markert, 2007). If a companies do not invest the effort in getting the customer’s objectives down and creating products that contribute to those objectives, then the company has lost (Markert, 2007). Therefore, you have given the customer no decent way of benchmarking your success, no quantitative or qualitative method to prove your value (Markert, 2007). The truly good service professionals are always focused on doing everything possible to bring complete solutions to customers. To offer a total solution package to maintain customer retention is important. The market is very competitive. Finding the right product for customers are often complex. However, the company who brings simplicity and total solutions is always the winner (Markert, 2007)! Meeting the customer expectations and satisfying their needs makes it easier to do business with UWB. The customer who has a memorable experience will be a customer again and again. When UWB delivers the total package everybody wins the customer and the company.

The review of the literature has shown that each interaction between a customer and a company is a critical moment. Dr. Leonard Berry (2004) has found that customers evaluate service quality on five factors. These factors are reliability, assurance, tangibles, empathy, and responsiveness. The reliability is the ability to provide what was promised, dependably and accurately (Berry, 2004). When you fulfill a customer request on time, you show reliability (performance research associates, 2003). The assurance is the knowledge and courtesy you show to customers, and your ability to convey trust, competence, and confidence (Berry, 2004). When you smile and tell a customer, “I can help you with that”-and do-you build assurance (Performance research associates, 2003). The tangibles are the physical facilities and equipment, and your own (and others’) appearance (Berry, 2004). When you take the time to make yourself and your work area presentable, you are paying attention to the tangibles (performance research associates, 2003). The empathy is the degree of caring and individual attention you show customers (Berry, 2004). When you are sensitive to an individual customer’s needs when solving a problem, you show empathy (performance research associates, 2003). The responsiveness is the willingness to help customers promptly (Berry, 2004). When you notice a customer puzzling over a product and offer help and information, you show responsiveness (performance research associates, 2003). All five factors are important to customers. Therefore, companies have to observe, survey, and talk to customers to understand their needs.

Customer satisfaction does impact the likelihood a customers will return (customer loyalty). Although, no universally agreed definition of customer loyalty (Uncles et al., 2003), customer loyalty can be defined as a commitment to continue do business with a company on an on-going basis. According to Uncles et al. (2003), loyalty is something that consumers may exhibit to brands, services, stores, product categories and activities. Many factors affect the link between satisfaction and loyalty (Denove and Power, 2006). Denove and Power (2006) called these factors the “cost of switching.” These factors can include number of competitors, frequency of purchase, availability of information about alternatives, cost of purchase and the use of loyalty programs (Denove and Power, 2006). That is why UWB has to create a credit card product that offers world class rewards. The cost of switching is not so much an economic cost as it is the effort or risk associated with switching to a new brand (Denove and Power, 2003). The availability of competitors is enormous. UWB customers have Bank of America, American Express, Capital One and others soliciting business everyday. To understand fully how important customer satisfaction is to loyalty, UWB must be clear on where it stands in terms of the cost of switching. For example, when you operate a company, pay close attention to customer satisfaction, because when you analyze the customers’ cost of switching against the factors mentioned, it becomes clear that customers can drop a company in a heartbeat with very little effort or risk (Denove and Power 2003). In todays competitive marketplace UWB is aware that their customers are prospected and their loyalty cannot be taken for granted.

Customer focused companies recognize that relationship building and follow on service are critical components for promoting both customer retention and revenue growth (Boe, 2008). According to Boe (2008), once you learn how to identify each of the four primary behavioral styles, you will be able to work more effectively with your customers. Nonverbal communication is important and companies have to learn to listen with their eyes. It might surprise you to know that research indicates over 70% of our communication is perceived nonverbal (Boe, 2008). In addition to smiling and making good eye contact, you should show the palms of your hands, keep your arms unfolded and your legs uncrossed (Boe, 2008). You can develop harmony by “matching and mirroring” your customers body language gestures (Boe, 2008). Matching and mirroring is unconscious mimicry (Boe, 2008).

Customer relationship management (CRM) is a solution that uses technology, to create an exchange with customers so companies have knowledge of their customers needs and wants. CRM helps companies understand and anticipate the needs of customers. CRM

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Essence Of Customer Service And Important Factor. (June 11, 2021). Retrieved from https://www.freeessays.education/essence-of-customer-service-and-important-factor-essay/