Scandinavian banks have the best customer servicelevel
SIA Service Quality Development made a research to discover the best banks in customer service satisfaction.
Research was hold in Latvia in December, 2009 and January, 2010 according to special scenario and evaluation questionnaire. Scenario and evaluation questionnaire was made with cooperation of experts in customer service of banks. 132 tests were made and 17 banks were evaluated in the research.
Customer service questionnaire consisted of five sections:
- Branch. Location of branch and its facilities.
- Meeting bank’s client. Mystery shoppers evaluate their first impression of consultants (greeting, consultants’ appearance, politeness, etc.)
- Selling skills. Consultants were expected to lead the conversation and offer suitable solution according to customers’ needs.
- Persuasion skills. Finance industry has been criticised in mass media recently and therefore clients are not fully confident in banks. Consultant should persuade clients that it is safe to make a deposit in their bank using several arguments like financial ratios, Financial and Capital Market Commission fulfilled obligations, Deposit Guarantee Fund and etc.
- Parting. Consultant was expected to say not only ordinary parting words but also positive wishes.
Few banks have lost some points in the first sections of questionnaire. In one case mystery shopper couldn’t found the branch despite that precise address was given. Bank got advice to put some guide signs or change location of the branch. Some banks had insufficient lightning. Mystery shopper’s comment – In the branch was dark and gloomy. Increase in lightening would make branch more attractive. Industry average ratio in branch evaluation is 93%.
Analyzing the second section (Meeting bank’s client) were found situations where bank’s consultant didn’t greet his client (5%), only 61% of consultants were dressed businesslike, 58% of consultants had badge or placard. Surprisingly, in 12% cases consultants’ were impolite. It might be explained with increase of debtors and each incoming client is viewed as debtor. Mystery shopper’s comment – During the whole conversation with consultant I had feeling that I am debtor of this bank. Of course owing to such attitude, I will not make a deposit in this bank.
According to our research if bank even offer best products and conditions, bank’s management can’t be sure that his employees will give the necessary information to clients. 30% employees don’t recognize client’s needs before offering the product or service. It is impossible to offer suitable product that could satisfy client’s needs if consultant don’t know it. Only 67% consultants know deposit conditions, telling something more than is written on the web page and booklet. 30% consultants were and didn’t take interest in client. Interestingly that 18% consultants couldn’t answer on client’s question about offered product or failed to give answers on questions about bank. Mystery shopper’s comment – Consultant didn’t lead the conversation, because consultant was not interested in my visit and needs.
The most problematic section was the fourth one, persuasion skills. Only 33% consultants mentioned one of financial ratios of FCMC fulfilled obligations. 72% didn’t mention anything about Deposit Guarantee Fund that guarantee client’s deposit for 50000 EUR in each bank. 47% consultants mentioned nothing and even couldn’t answer question, why it is better to invest in your bank. Mystery shopper’ comment – Consultant said that it wasn’t profitable to invest in their bank compared to the others. Average industry ratiofor this section is 37%.
Parting. 93% clients said goodbye or other parting word bet only 33% consultants wished something positive. Mystery shopper’s comment – I said to consultant, good luck, bet consultant didn’t even answer. How can it be in one of the the biggest European banks? Average ratio for fifth section is 63%.
In the end of the questionnaire we put question about their desire to invest in the bank they just visited. Only 52% mystery shoppers would like to do so. In most cases they would to invest in bank with qualified specialists and good customer service, but deposit
According to the research the best customer service are in AS „SEB” bankā (85,9%), AS „Danske Bank” Latvijas filiālē (85,5%) un AS „Swedbank” (84,8%), and average result in the industry is 71.6%. If it is considered that result less 70% is unsatisfactory level and result more than 90% is excellent, we can conclude that 12 banks offer satisfactory level of customer service.
Research discovered some interesting facts:
72% consultants didn’t mention Deposit Guarantee Fund to persuade client that it is safe to invest in bank;
67% consultants couldn’t mention any financial ratio of the bank;
33% consultants couldn’t tell about deposit options in their bank;
30% were not able to lead the conversation;
It is interesting to get to know expert’s opinion, therefore we asked several questions to head of communicationsof AS “SEB” bank Agnese Strazda.
Does customer service quality influence sales ratios?
Customer service quality is the main point in all services sector. Customer quality influences both current clients’ willingness to cooperate and if brand and its offered services will be advised others. Indeed sales result is affected by knowledge level of offered products. High level not always guarantee high customer service and therefore it is company management challenge – ensure that both important factors are developed in way that client gets good service and also gets necessary information and knowledge.
Is it necessarily to pay attention to customer service quality in the period of crisis and to invest resources in controlling and developing of it?
Many SEB bank researches shows that in period when employees’ workload decrease because of reduced demand, more time is spent to current clients service. During economic recession it is even more important, because now people look for good quality at lower price or additional value for the same price. Talking about controlling, there are different methods, how it can be controlled – some of these methods don’t need considerable costs. It is clear that big enterprise spends more costs to control all service staff and at the same time quality controlling fatly shows clients’ satisfaction of enterprise activity. Indeed satisfied client is good cooperation partner; as a result we are speaking about mutual cooperation benefits.
How do you control customer service in your bank?
SEB bank diligently worked on customer service quality development in whole previous year. It is clear that each economic cycle brings new demands and nuances in customer service, but nowadays several main methods are defined how we make measurements and after we analyze them. Traditionally we make measurements once a month and we have one complex research once a year. Additionally we use mystery shopping research that helps to control quality. In our view mystery shopping goal is to develop service.
SIA „SQD” representative Romans Tjurins sums up that client might not use the bank because of employees’ impoliteness and incompetence even though this bank could offer best deposit conditions. If client is satisfied with customer service, deposit interest isn’t main decisive factor. Some banks that offer small deposit interests compared to others successfully attract clients. This fact is proved by one of mystery shoppers’ comments – I certainly will not invest money in this bank and will not even make any transaction. In this situation bank didn’t attract deposit and also lost potential client. It is well-known fact that person give information about positive experience about to 2-3 people, but about negative feeling – to 8-10 people. By this it is meant that this bank worsened their brand for 8-10 people because of bad customer service.
Each representative of bank could get more detailed information about research. Please phone to SIA „SQD” information phone 22138955 or write to .
Excellent service – way to future