Improving Service Quality Levels in the Bank of East Asia - Research Paper Example

The research would include an examination of some important elements of customer relationship management and service quality in a Hong Kong bank. The project would review the impact of these two concepts on customer satisfaction and customer loyalty.

Background

            Service quality is a central element to the success of businesses. This is because quality is often inherent in the nature and structure of the level of satisfaction that customers attain in accessing services (Parker, 2010). This implies that the success and failure of a given company depend on how well they meet service quality requirements and expectations.

            Service quality makes customers satisfied. This provides a strong case for customers to remain loyal to a company and its brands (Sigala, 2008). Customer relationship management is, therefore, a tool for the creation of a strong connection and bond with its customers. This relationship is steeped in service quality and it leads to customer loyalty.

            Service quality has a strong relationship with customer relationship management, service quality, and customer satisfaction. This is depicted in the diagram below.

            According to Sigala (2008), customer relationship management is essential for the survival of businesses. Customer relationship management enables a company to build a long-term link with its customers and convert them to returning clients. Another research states that it costs up to seven times more to attract a new client than to convert an existing customer to a returning customer (Parker, 2010). This means that customer relationship management is important and vital in cutting down costs and at the same time, promoting a firm's operations.

Customer relationship management provides a structured means through which maintains a link with its customer. This helps the company to optimize its relationship with the customers and use the best systems to continue to remain in touch with the customers. Another school of thought presented by O'Reilly and Paper, 2012) is that customer relationship management providers an avenue for the maintenance of a satisfactory quality level.