A Case Study on E*TRADE Financial Corporation Overview

HEADQUATERS- 135 East 57th Street, New York, NY 10022, United States. Phone: 646-521-4300 Fax: 212-826-2803 Web Site: http://www.etrade.com The Company was founded in 1992, which deals in providing brokerage services for many US stock exchange markets, option markets, future markets, mutual funds markets, currency trading and bonds trading. It also provides researches and reports related to these markets; and advisory and asset management services to retail clients.

Problems Faced By The Company

1. 2.

The company has two main issues Customer Satisfaction Meeting Customer Expectation The customers were facing problem with the banking service provided by the company.

Why

Some customers had a very high standard of expectation that neither the company nor the market competitors could provide with the recent available technology used. Many customers especially the older ones, have difficulties in using some of the advanced services and incurred losses during trading. Some customers were concerned about the brokerage services price, and they were considering the another brokerage firms that provided same services with lower prices.

Steps Taken By The Company

Redesign the company's services to be convenient to as much customers. Design a big promotional advertising campaign, and to be lunched through business related TV channels and financial web sites. Training the employees to the new services and on customer relationship marketing. Give the authority, the tools and empower the employee for optimum customer service satisfaction.

Cont......

Educate the customers on the services in an easy and convenient way sp that they know what to do. Taking part in seminars and events about financial services. This will have good impact on the companys image and brand loyalty. A well organized and highly skilled team should be formed to direct this action plan step by step, evaluating its effectiveness and updating it to meet new changes in the industry.

Service

A Service is an act or performance one party can offer to another that is definitely intangible and does not result in ownership of anything. Its production may or may not be tied to the physical product.

Service levels

Service is an intangible offering with little or no transfer of physical products to the customer. Service is one part of product-service mix being offered to customers The main offering is the product but the supplier also provides some services.

Principles of marketing apply to services

Services impact customers more directly than products do. Marketing of services has to be more deliberate. Positioning must be razor sharp. Promotion more challenging due to intangible nature of services. Same service can be delivered in various ways.

Difference Between Service & Product marketing

Four Factors That Distinguish Services Marketing

Intangibility Service

cant be owned Inseparability Perishability

Examples of Service Industries

Health Care Professional Services Financial Services Hospitality Travel Others Some other examples of service industries can be hair styling, pest control, plumbing, lawn maintenance, counselling services, health club etc.

Meeting customer expectations

It is very important to understand and meet the customer expectations Consumers of services value not only the outcome of the service encounter but also the experience of taking part in it. Reliability:- Service provider should be able to deliver the promised service each time the customer decides to avail of it.

Credibility:Can customers company's and its staff?

trust

the

service

Security:- Can the services be used without risk?

Responsiveness:- How quickly do service staff respond to customer problems and requests?
Behavior of employees:- Do services staff act in a friendly and polite manner? Communication:- Is the service described clearly and accurately.

Three types of marketing in service industries

Internal marketing External marketing Interactive marketing

Internal marketing
Marketing conducted by a service firm to train and effectively motivate its customer contact employees and all the supporting service people to work as a team to provide customer satisfaction.

External marketing

Traditional marketing incorporating the 7Ps Price Product/service Place Promotion People Processes Physical evidence of the services marketing mix.

Interactive marketing

Marketing that recognises that the perceived service quality depends heavily on the buyer-seller interaction. Emphasis on relationship marketing.

The services marketing mix

Service Pure services are tangible Higher perceived risk in decision making process. Provide service trials where ever possible. Promotion Intangible elements of services may be difficult to communicate

Word of mouth is critical to success Persuade satisfied customers to inform others of their satisfaction. Encourage potential customers to encourage current customers.

Price An indicator of perceived quality. Important in matching demand and supply.

Place Distribution channels for services are more direct New technologies permit service companies to provide services without customers coming to their facility. People Service quality is inseparable from quality of services providers

Employees of service organizations have to be adept in multiple roles. Examine the role played by customers in service environment. Seek to eliminate harmful interactions.

Physical evidence The environment in which the service is delivered. Includes any tangible goods that facilitate the performance and communication of the service. Process Procedures, mechanisms and flow of activities by which a service is delivered to customers.

Process and its visibility are both important for customers Process should be employed only when it is required to provide a service and not because customers have come to expect it.

SERVICE QUALITY Mgmt

Managing service quality

Gap between consumer expectation and management perception:

Management does not always correctly perceive what customers want. Hospital administration may think patients want better food, but patients may be more concerned with nurse responsiveness.

Gap between specification:

management

perception

and

service-quality

Management might correctly perceive customers wants but not set a performance standard. Hospital administrative my tell the nurses to give fast service without specifying it in minutes

Gap between service-quality specifications and service delivery: Personnel might be poorly trained , or incapable of or unwilling to meet the standard; or they may be held to conflicting standards, such as taking time to listen to customers an serving them fast.

Gap between survive delivery and external communications: Consumer expectations are affected by statements made by company representatives and ads. If a hospital brochure shows a beautiful room, but the patient arrives and finds the room to be cheap and tacky looking, external communications have distorted the customer's expectations.

Gap between perceived service and expected service: This gap occurs when the consumer misperceives the service quality. The physician may keep visiting the patient to show care, but the patient may interpret this as an indication that something really wrong.

Campus Overview
Ahmedabad Kolkata Mumbai

907/A Uvarshad, Gandhinagar Highway, Ahmedabad 382422.

Infinity Benchmark, 10th Floor, Plot G1, Block EP & GP, Sector V, Salt-Lake, Kolkata 700091.

Goldline Business Centre Linkway Estate, Next to Chincholi Fire Brigade, Malad (West), Mumbai 400 064.

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