Enhancing the Quality of Customer Services

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Currently, Vietnamese market has appeared a great number of banks, not only the local banks but also the foreign banks. That almost all of banks offer similar services drives us to a question that: How to attract customers and how to build a good image in customer’s retention?

Enhancing the quality of customer services is the most effective strategy for banks to build customer’s loyalty. Customers often regard services as an important criteria when choosing a bank among a variety of choices in the market. Therefore, delivering a good quality of customer services is the best way to strengthen a bank’s position in the competitive market

There are two main objectives that this study have addressed, they are general objectives and customer objectives. The scope of this study is Agribank and its East Branch of Hanoi. Additionally, the study follows the combinations of dialectical materialism method, historical materialism method, statistical method, financial analyze method, and inductive method and it includes 3 main parts:

PART A: Introduction

PART B: Development

PART C: Conclusion

PART B: DEVELOPMENT

CHAPTER 1: THEORETICAL BACKGROUND

The chapter has illustrated the concept of commercial bank basing on “Vietnamese Law On Credit Institutions 2010”. Additionally, it has also demonstrated the definition of customer service by citing numerous previous reliable studies and researches. Moreover, this chapter has also given us information about the psychology of customers when choosing commercial banks’ services. In order to strengthen the vial role of customer services, the thesis has also depicted its benefits. Finally, this chapter has focused on investigating and accumulating some findings of other researchers.

- Definition

- The concept of commercial bank

According to the twentieth article in “Vietnamese Law On Credit Institution 2010:

“A bank means a type of credit institution which is entitled to perform the entire banking operations and other relevant business activities. According to the nature and objectives of their operation, banks include commercial banks, development banks, investment banks, policy banks, cooperative banks and other types of banks.”

- The concept of customer services

Customer service (also known as Client Service) is the provision of service to customers before, during, and after a purchase. According to Wikipedia (2007), “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling a product or service has met the customer expectation.”

- The aspects studied by the thesis

- The psychology of customers when choosing commercial banks’ services

- The concept of “Customers”

Customers are individuals that make purchases for products or services. They are the critical factor that determines the product outflows. Therefore, without customers, enterprises will face difficulties in selling their products or services.

- The psychology of customers

- Receiving good quality of products and services

- Receiving the friendliness and caring

- Receiving extra services.

- Paying attention to their voice

- Benefits of customer services

- Maintaining previous customers

- Attracting new customers

- Increasing competitive advantages

- Stabilizing the revenue and promoting the profit

- Other similar studies and their focus

- The study of Armistead and Clark (1991) focused on Customer Services Triangle

The customer is at the center of this triangle as every activity must be seen in its impact on customer satisfaction; understanding how the customer views the organization’s performance rather than accepting internal view.

- The articles of Ann Ward ( 2008 ) focused on Customer Services Ethics

According to Ward (2008), good customer service is all about bringing customers back. And about sending them away happy – happy enough to pass positive feedback about your business along to others, who may then try the product or service you offer for themselves, and on their turn become repeat customers.

CHAPTER 2: THE REALITY OF CUSTOMER SERVICES

This chapter has focused on “The reality of customer services” in Vietnam, Agribank and its East Branch Of Hanoi. Moreover, Agribank East Branch of Hanoi’s shortcomings and its reasons have also discussed in this chapter.

To tackle with these shortcomings, the study has illustrated its reasons with the aim of conducting feasible solutions and recommendations

- In Viet Nam

According to Pega Survey of 1.001 US consumers with a bank account, 2015, it is clear that the most important factors when customers consider about bank’s services quality is whether or not their voice is respected and their requirements are met

However, in Viet Nam, the fact that customer services quality is sometimes undervalued makes banks become uncomfortable places for customers. Many banks in Viet Nam focus on enhancing its quality of products provided such as raising the interest rate and conducting promotions instead of upgrading customer services. This is an extremely ineffective approach to maintain previous customer base and attract the new ones. In the market economy battle, the best way to strengthen bank’s status is building trust among customers by giving them an excellent service before, during and even though after transactions.

- In Agribank and Its East Branch of Hanoi

2.2.1 In Agribank

After conducting a survey by sending out an online questionnaire, I found that Agribank is the bank