Customer Satisfaction and the Banking Industry Essay

Customer Satisfaction and the Banking Industry - Essay Example Other important reports include those by P Carrol and F Reichheld, titled The Fallacy of Customer Retention, as well as the paper by M S Krishnan et al, titled Customer Satisfaction for Financial Services: The Role of Products, Services and Information Technology. These papers have important notes on not just acquiring customers but also retaining them - which is where customer satisfaction comes into play. This paper is based on the case study of ICICI Bank in India. Therefore, the information found on its website was used as well. In this case it is important to note that most of the texts used are journal articles are this is a very topical theme and it requires special classification which most books are not able to offer. With a variety of other papers that revolve around the theme of customer satisfaction and banking services, it is imperative to mention that there is still a lot of scope for research in terms of finding niche markets and catering to customers from these areas with a focus on need specific programs. Customer Satisfaction - Conception and Implications Customer satisfaction may be defined as that sphere within an organisation's operational area where the transmission of information and services with a focus on time and quality takes place. Customer satisfaction is an important tool with which it is easy to harness the potential of expanding one's customer base manifold. In the banking sector, this theory has special importance owing to growing competition and the fact that it is a service based industry where there is maximum human interface. The tools for measuring customer satisfaction include surveys as well as applying statistical analysis like the customer satisfaction index to which essentially... Customer satisfaction may be defined as that sphere within an organisation’s operational area where the transmission of information and services with a focus on time and quality takes place. Customer satisfaction is an important tool with which it is easy to harness the potential of expanding one’s customer base manifold. In the banking sector, this theory has special importance owing to growing competition and the fact that it is a service based industry where there is maximum human interface. The tools for measuring customer satisfaction include surveys as well as applying statistical analysis like the customer satisfaction index to which essentially measures market share and profitability. This will help provide an empirical base for any hypothesis on the basis of which models and programs may be formulated. Factors influencing customer satisfaction in Retail Banking in UK, author Anita Chakrabarty has pointed out how the last two decades have been seeing an increase in competitiveness in the retail banking sector in UK. This has a strong connection with the various activities that have been triggered in the banking industry all over the world. ICIC is a bank that has taken this conception one step forward by applying it in the context of the loyalty business model. Thus, one will find that the banks are now in a race towards consolidation of their positions and mergers. In this regard, they have realized that the primary focus of their activities must be on the optimum satisfaction of the customers.