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Providing quality in services and Product is essential for every organization. It is measures performance of company against perceived exception of users. This report make analysis on impact of poor quality services on customer's loyalty and techniques which are used by entity for measuring consumers loyalty. This report also make analysis on different types of initiatives that introduced by banks to fulfill their customers needs. At last, this report make critically evaluation the role of management and employees for implementing supporting service excellence within a service based industry.
Every organization which is conduct ting its business operations have only one aim is to gain maximum customer satisfaction. All the services and products which are developed by the company to make more customers in business so entity can ensure long term growth. By providing effective customers services the firm try to gain more customer loyalty (Allred and Addams, 2013). Buyers loyalty is highly effected by their services which they are getting. If company is not providing adequate services then they are not able to maintain their customers for long term.
Impact of poor service quality
- If the banks, are not generating enough quality services then their reputation may be damaged. Today customers are give quick review on online venture if they gain bad experiences with the organization. Through this the reputation of bank can be damaged and company may loos their customers. Apart from this writing negative review on social media can also leads to other customers not making any deal with firm.
- Quality increases profitability of banks. If customers, of the company are satisfied then it helps to firm to generating more profits (Kern, 2014). Satisfied customers brings more business in organization and also helps to company generating productivity in their work. It also leads to customers for making loyalty with banks and ensure long term business relations with their customers.
Techniques for measuring customers loyalty
There are different types of techniques which can be used by banks to measure the loyalty of customers.
Net promoter index
It is the index which is used describes consumer's intentions to recommend to friends or colleagues a company or product. Promoter is loyal buyers who recommend the brand, passively are satisfied consumers (Mols, 2013). With the development of social media and online ventures, the experiences of clients with a bank, or product can propagate much faster. With the help of this index the bank invite customers to assess the relationships with institution after concluding a deal. This evaluation take place either by telephone or via e mail. If customers recommend, banks services to other people, friends or family, it means they are satisfied with institution's services. On international level, NPS is regraded as the indicator of growth and profits for bank, through which banks can adopt new products or services. It also helps to bank increases awareness and transparency along with communication.
Customer feedback system :- It can be used for assessing the response given by consumers and it will aid for evaluating the response that has been given by buyers. People who comes in banks for taking services should be given with feedback form and it will aid for taking valuable suggestions and comments from the consumers for making improvements in existing services that are provided by banks (Xu, Benbasat and Cenfetelli, 2013).
Comment cards :- This method can also be used by banks so that views of customers towards the services provided by banks could be identified and it will support for assessing and evaluating the weak performing areas of the business. Testimonials from the clients can be collected and it will help for taking feedback from the consumers about the services that are being provided to them. It is critical that comment cards should be readily available for the consumers and it will make them give their views regarding the services that have been offered by the organization.
There are some service quality initiatives that are needs to be considered while rendering superior quality services to consumers. It requires a strategic approach to carry out the procedure for rendering services to consumers. Along with this it is vital to analyze the needs and preferences of consumers. It will aid for accomplishing goals and objectives of business in successful manner. There are some specific dimensions of service quality that are needs to be considered while giving services to consumers (Moulaert, 2013).
Customer satisfaction is one significant dimension that are needs to be considered while giving services to users. Banks deals in financial sector and it is required that strategic approaches should be used by banks so that better and effective services should be offered to business clients. Major world wide banks are facing crisis and heavy losses as a result of poor and illegal practices that are performed in the organization. All theses practice have given impact on the customer confidence and it has become mandatory for banks to adopt aggressive marketing practices so that existing customers can be retained and it will support for gaining success and long term growth for the enterprise (Mustak, Jaakkola and Halinen, 2013).
There are many service quality initiatives that could be introduced by banks for resolving the issues that are being faced by the banks. It is imperative that customer's perceived needs should be fully met so that better and effective services should be offered and competitive advantage can be gained by the business. Digital technical platforms can be introduced so that all the operational activities can be performed in effective manner. Along with this it is required that all the staff members should be capable enough for making use of making use of advanced and innovative technology in effective manner (King, Racherla and Bush, 2014). Training program can be organized in the company so that staff members can be provided with better approaches so that they provide better services to the people living in the organization. Moreover, mobile apps can be launched do that consumers can be made aware about the different schemes that have been launched in the organization.
In addition to that new and attractive schemes can be launched so that consumers can be provided with the services that have been provided to the consumers. However, there are many barriers are faced in introducing the effective services that have been provided by the banks. Lack of proper communication is one most important factor that gives major impact on the service quality initiatives that are taken by banks. It is assertive that flow of communication should be maintained so that proper data and information can be transferred and staff members can be made aware about the different practices that are followed in the organization (Heinonen, Strandvik and Voima, 2013). Other than this it is also required that support should be given by all the stakeholders of the business and it will aid for implementing service quality initiatives in better way.
It is also required that proper funds should be allocated so that all the required initiatives can be implemented in successful manner. Feedback can be taken from the consumers so that it will aid for identifying areas where improvements needs to be done. It can be concludes that there are some factors that gives impact on the implementation of service quality measures in the organization. Along with this it is required that top management and staff members of the bank should render their positive support so that service quality initiatives can be implemented successfully.
It is also imperative that data and information for making strategies and action plans can be implemented in effective way (Kern, 2014). Customer care executives can be made more trained and skilled so that they provide better and effective services to the people that are living in the organization. More focus can be given for employee empowerment and it will help for motivating the staff members and enhancing their morale for accomplishing the goals and objectives in effective way. Management of bank can develop rewards and incentives schemes so that staff members can be encouraged for performing well in their job roles. Internal promotions can also be given to the staff members so that positive competitive spirit can be developed among them for completing the required objectives in effective way.
Role of management and employees in implementing excellence service quality
The main aim of providing quality services within organization is to gain more customer satisfaction. Service quality is an ideal concept which developed around world. This concept is based on several scientific principles and accurate statistical measurement of quality. For implementation quality services in very important. Management and employees play equal role of implementing quality services withing entity. With the help of them the firm can execute their polices (Filieri, and McLeay, 2014). Thomas cook is UK based company which is providing services in the travel and tourism sector. Following are role of management and employees in supporting services quality.
Role of management & Employees
In order to implementing customers excellence the management need to great amount of planning and research. The management of Thomas cook need to provide training to their subordinates before implementing quality services in their business. Role of management is to describe each role in company and assign duties in the company (.Soteriou and Stavrinides, 2013). Management of the company is responsible to implementing services that helps to raise their customers satisfaction level. The Role of management in company is to analyses individual performances and according to them provide training so they can make effective interaction with customers. Apart, from this management is responsible to select individual which helps who can work as line manager within organization. The main aim of line manager is to evaluate performances of individual. With the helps of this approach the company can evaluate individual performances and assign them work so they can provide quality in their services (Mok, Sparks and Kadampully, 2013).
For implementing quality services the management call employees and address the benefits and importance of quality services to their employees so they get aware regrading services. With the helps of effective management them the company can easily monitor activities of their workers and also management is responsible for assign resources in the organization so the quality services can delivery to customers. However, for this management of Thomas cook need to conduct a lot research and it is time consuming process.
The role of employees in Thomas cook implementing of services quality service is that they have maintained effective interaction with their customers (Xu, Benbasat and Cenfetelli, 2013). In business environment customers interaction is done by the employees so the workers have make to make effective interaction with their customers it helps to organization to delivering quality excellence. With the helps of employees effective interaction with customers the organization try to gain their loyalty. In order to implementing supporting services excellence the Thomas cook employees to need to develop effective communication. With the help of effective communication they can understand their problems and solve their problems. It is the responsibilities of worker to understand the problems of their customers and identify their solution (Mols, 2013). Another role of employees in implementing supporting services quality is to coordinated among the team. With the help of coordination and team work they can easily implement changes.
In services based organization it is important to delivering quality services in their business. For this the organization take many initiatives which helps to them for making continuous improvement in their services (Kern, 2014). Thee are many initiatives which are taken by company to implementing quality services within entity. For continuous improvement there are different techniques are available for the organization. Following are initiatives which are taken by the Thomas cook for continuous improvement.
For making continuous improvement it is required to involvement of employees in organization. The management of company can use lean program. This programs helps to them for improving their services (Allred, and Addams, 2013). This programs the company is trying to develop such practices which helps to them for delivering quality services to their customers. Senior leaders need to actively participate in the activities and engage with employees at all levels of the organization.
Employees suggestion program
Another methods which is used by company is create employees suggestion programs. With the help of these programs the Thomas cook can identify problems which are faced by their employees and also receive valuable suggestion from their workers (Akter, D’Ambra and Ray, 2013). It helps to organization to improving their service and also helps to them for making changes in their management. After, receiving these suggestions firm conducting meeting with their employees and make communication with them and also involved them in implementing those suggestions.
It is the best step which is taken by the company. In this organization ask suggestion from their customers. By receiving suggestion firm their customers the company can make implementation top those changes within origination (Mok, Sparks and Kadampully, 2013). It helps to them for improving their current services and implementation of future strategies. It also helps to the company to make effective interaction with their customer so long term basis. Client feed back also helps to Thomas cook to make effective changes in organization and develop their services as per the requirements of their clients so they ensure long term growth.
Give performances based incentives
Financial incentive is the best methods to motivate to employees. With the helps of these methods the company is improve performances of their workers performance and make motivates to them for giving better work (Soteriou and Stavrinides, 2013). In this method the company is trying to develop such practices which helps to them for improving performances of workers. If Thomas cook individual are self motivated then give better work and improves their services.
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Management needs to consciously provide positive feedback as well, so the workforce feels they are recognized for good performance as well. In hospitality industry it is important to retain their employees for long term purposes. In this the organization have to give appreciation to individuals to the can give better work (Filieri and McLeay, 2014). Apart, from this entity take negative feedback carefully. The Thomas cook not an individual is peers in from for everyone but the whole team represents negative feedback. It helps to individuals to improve their performance.
Summing up the present report it can be concluded that it is vital that service quality initiatives can be implemented in effective manner in banks. It will aid for making improvements in existing performance of the organization and it will support for gaining competitive advantage for the business. Along with this there are some factors such as lack of communication, lack of proper information and lack of availability of funds in the organization. Service quality initiatives that have been taken by the organization can be fulfilled by support given by top management of the organization. All the efforts will support for making positive improvements in the performance of the business.
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