CASE STUDY

TANGIBLES
Mid 1990s 2003

One employee for a group of customers Servicescape

Physical Evidence: Dull images for employees

A customer allotted to a group of bankers Round tables, computer visible, no longer a dais, play place, caf outlet, specially designed meeting rooms, change in interiors. Friendly images of employees.

INTANGIBLES
Mid 1990s 2003

Training provided to employees A long procedure before process could be com

Training provided to employees The procedure is highly reduced for better services.

SERVICES 7 PS

EXPANDED MARKETING MIX FOR SERVICES

PRODUCT PLACE PROMOTION PRICE

Physical good No Difference features Quality level Accessories

Word of Mouth Premium target Half of what others do Not much Differentiation

Kaffe Bar At Bank

EXPANDED MARKETING MIX FOR SERVICES

PEOPLE PHYSICAL EVIDENCE
Facility design Equipment IT and coffee machines

PROCESS

Employees Customers

Flow of activities Number of steps

Communicating culture and values

Employee training Business Cards

Level of customer involvement

Surprise audits and checks

Other tangibles

COMPETITIVE POSITIONING
OUT OF THE BOX SERVICE

Cutting Edge

Value Added

Service Culture that differentiates

OUT OF THE BOX SERVICE

Physical evidence: Developing a niche market and targeting the right set of customers. A customer assigned to a group of bankers. Friendly pictures of employees.

CUTTING EDGE

Technology Similar

Delivery Significant Difference a) Tools developed Customer Needs Identify b) Tools + People Cutting Edge

VALUE ADDED
People: Being nice to customers Making time for customers Caring about customers. Focused at niche market Training in team building and customer service. Empowerment to employees. Incentives

SERVICE DIFFERENTIATES
Process: Traditional product selling to customer solution approach. Delivery of financial products changed. Employee centric Empowering employee for decision making Training Commitment Incentives

Providers

Interactive marketing Delivering the promise

Customers

Internal marketing Enabling the promise

External marketing Making the promise

Company (Management)

Reliability Responsiveness Assurance Empathy Tangibles Product Quality Customer Satisfaction Customer Loyalty Service Quality Situational Factors

Price

Personal Factors

SERVICE QUALITY

Responsiveness

According to the Companies core values published for the three major stake holders, Reliability comes under value (1) Common Sense >> With both feet placed firmly on the ground, we think before we act<< Consider common sense our best guide Apply common sense when solving problems and meeting daily challenges Allow common sense to override awkward customs and routines Take action whenever we encounter examples of bureaucratic and routines Observe existing rules and regulations Accept that control measures are necessary to a certain degree Generate satisfactory short and long term financial results by pursuing sound business practices Apply common sense whenever we incur group expenses

SERVICE QUALITY

Assurance

According to the Companies core values published for the three major stake holders, Reliability comes under value (2) Open and Honest >> We are open and honest in both word and action<< Keep each other up-to-date on relevant matters, and do not misuse information obtained in the course of our work Restrict the degree of openness only by business considerations or by considerations for other stakeholders Respect agreements entered into and do not betray the banks confidence Strive towards making important decisions concerning individual employees on the basis of constructive dialogue Communicate openly about the mistakes we make and the problems we encounter Accept that mistakes are made, that they are corrected, and that focus is then on learning from the process Listen openly to new ideas and constructive criticism

SERVICE QUALITY

Empathy

According to the Companies core values published for the three major stake holders, Reliability comes under value (4) Genuine Interest and Equal Respect >> We demonstrate insight and respect for other people<< Recognize that no two people are alike Seek lasting relations with shareholders, customers, and employees Offer qualified advice matching the financial needs and requirements of each customer Have job security based on mutual obligations and that we pay attention to individual and personal needs Allow the highest possible degree of personal influence on assignments, working hours, and place of work

SERVICE QUALITY

Reliability

According to the Companies core values published for the three major stake holders, Reliability comes under value (5) Be efficient and persevering >> We work consistently and with determination to reach our goals<< Use JB 2005 (the banks core values) as a guide in our daily work Are not blown off course because of external circumstances Adopt an organization which promotes efficiency Consider security important Are convinced that efficiency increases with the level of personal responsibility Allow employees to assume personal responsibility for day-to-day decisions even when the basis for decision making may not be 100% perfect Acquire the level of skills required through personal and professional development Act on the basis of competence rather than organizational charge Support our decisions by well-founded arguments, working hours, and place of work

SERVICE QUALITY

Tangibles

Accounts Teams Branch Design Details

Reliability Responsiveness Assurance Empathy Tangibles Product Quality Customer Satisfaction Customer Loyalty Service Quality Situational Factors

Price

Personal Factors

Product Quality

New IT systems helped employees take customers through processes to determine their needs and find appropriate solutions E..g : Determining the style of investment products based on risk aversion, time frame and return goals customized for a particular client 98% of the loans processed at regional office itself Smaller loans provided almost instantly Larger loans approval time reduced from 3 weeks to 10 days

Price

As delivering this type of service was expensive, the bank charged a slight premium Targeted to customers who were less likely to represent a credit risk Expectations regarding price and terms were more often included in the application

TANGIBLES
Account Teams 1. Caring about customers as individuals Branch Design 1. Customer interaction with bankers 2. Caf: Customer feels welcome 3. Round tables: Equality 4. Screen visible: Openness 5. Home like meeting rooms 6. Better photographs: Old family like

FRAMEWORK FOR ENVIRONMENT- USER RELATIONSHIP

PHYSICAL ENVIRONMENTAL DIMENSIONS HOLISTIC ENVIRONMENT INTERNAL RESPONSES
Cognitive Emotional Physiological Employee Responses Perceived Servicescape Customer Responses Individual Behaviors Cognitive Emotional Source: Adapted from Mary Jo Bitner, Servicescapes.
Social Interactions between and among customer and employees

BEHAVIOR

Individual Behaviors

Ambient Conditions Space/Function Signs, Symbols, and Artifacts

Physiological

INTANGIBLES
Empowering the branches 1. 3m to 15m to 30m 2. Below 90m to Above 90m 3. Improved customer experience 4. Quality of information and hence quality of loans improved 5. Acceptable to customer as well as bank 6. Improved branch credit skills, no incentive to make poor loans and robust internal auditing function

INTANGIBLES
Empowerment throughout the Bank 1. When in doubt, ask 2. Working hours and vacation 3. Spend what you need to spend 4. Telling what is expected and checking behavior

CUSTOMER-FOCUSED ORGANIZATIONAL CHART

Customers

Frontline Employee

Frontline Employee

Frontline Employee

Frontline Employee

Supervisor

Frontline Employee

Frontline Employee

Frontline Employee

Frontline Employee

Supervisor

Manager

INTANGIBLES
Selection 1. Social Abilities 2. Service Mindedness 3. Compatibility with Jyske Values 4. Openness 5. Genuine interest in other people Incentives 1. Stock Incentive 2. One time incentive 3. Raise incentive

HUMAN RESOURCE STRATEGIES FOR CLOSING GAP 3

Hire for Service Competencies and Service Inclination

Hire the Right People

Customeroriented Service Delivery
Develop People to Deliver Service Quality
Empower Employees

Treat Employees as Customers

Retain the Best People

Provide Needed Support Systems

Provide Supportive Technology and Equipment

INTANGIBLES
Support Systems 1. RAROC 2. Employee Satisfaction 3. Customer Satisfaction Communication 1. Strategic Meetings: Communicating Change 2. Video tape illustrating Jyske Differences

THANK YOU