Analysis of the Credit Agricole Bank - Case Study Example

Credit Agricole – a multi-channel mutual bank Analyse the problems Pauline and Louis encountered. Product element Pauline and Louis wanted to buy a house of their own. Pauline, after being a loyal customer to Crédit Agricole bank for over 10 years, knew that she could get a mortgage at a fair rate. Crédit Agricole bank has been a bank that has been offering credit services to its consumers for a number of years, and Pauline had confidence that she would get a fair deal if she went to them. Pauline had hoped that the mortgage could be availed to her as soon as possible to as to purchase the house which she had eyes. Place and time Pauline knew that in going to Crédit Agricole bank, she would receive a good service like she has for the past 10 years. She had developed trust in the bank through her long time financial advisor. In going back to ask for the mortgage, Pauline was a little bit disappointed when she found that her financial advisor had moved 3 months ago. Even though she accepted that reality, she still went forth to seek services of the bank without comparing to other banks. Price and user costs Pauline and Louis were disappointed with the initial interest rate offered to them by Bernard, which was 5.5 interest rate plus insurance. The two had hoped to bargain an insurance rate less than 5.5% based on having a long customer loyalty history. This was not the case as the prices were reached by simulation software and any cut not allowed. Promotion and education Pauline was shocked to get a phone call after cutting a deal with Bernard of paying the mortgage at 5.5% interest rate plus insurance, though she was realized the same bank had an ongoing promotion of 4.8 % which had been reserved to outbound call-center campaign. Pauline was disappointed when Bernard pretended not to know such a service existed, though later called her and gave her the mortgage at 4.8% interest rate. People Pauline found that service delivery by the people in the bank to be slow. Before getting an appointment to Bernard, it took her 2 attempt to get a chance. The call center advisor was slow in responding to crucial questions and making arrangements. In addition, Bernard was not available at some point to see Pauline, though she was at his office. Bernard took days to reply to Pauline’s requests and messages. The financial advisors, Bernard appeared not to have coordinated with well will the call center advisors since they had different information about what Pauline should get for her mortgage. Process The service which Pauline received was not upto standard like the way she had expected. The process of getting the mortgage took a very long time, and it had a lot of uncertainties and conflicting figures from the bank’s personnel. In addition, getting to meet Bernard took some days, something which is supposed to be instant. In addition, Bernard, the financial advisor, gave Pauline and Louis a bad deal, instead of the promotional one for 4.8%. Physical evidence Based on Pauline’s story, she is not provided any physical evidence for the process involved. It was just calls after calls to do this and that, of which eventually she was informed she was going to be given an interest rate of 4.8% including insurance. 2. How would you solve these dysfunctions? Product element The Crédit Agricole bank should come up with a way in which they give out their mortgages based on individual customers. In the case of Pauline, she should have been given a slight reduction in her first deal as opposed to a simulation coming up with a fixed rate for her yet she had been loyal to the bank for over 10 years. According to Varey (2002, p.56) Place and time Pauline should have first researched about her bank and compared the interest rates with other banks. In doing so, she would have discovered some of the promotions conducted and even better rates offered from other banks on mortgages (David 2007, p.93). Price and user costs The issue of price should be adjusted so that it is not fixed but depend on the customer. Fixed prices usually result to dissatisfaction. If Pauline had been offered a price lower than 5.5% in the first rate, she would have been satisfied (Gummerson 2012, p.12). A low interest rate hence needs to be reached upon in order to attract more customers to the bank. Promotion and education The bank should invest on promoting their product. They should introduce message and email alerts to their existing clients in order to be updated on some of the offers which they give in order to keep their clients informed (Harrison 2010, p.90). People Customer care service in the bank should be improved. The call center service and the financial advisor’s office should lias up and convey information as a unit instead of working as separate divisions. A human resource that works in harmony in any given organization is key in the relaying of proper information to its clients. An organized work force creates a sense of a team that knows what they are doing as opposed to a team that is disorganized and uncoordinated (Harrison 2010, p.90). Process The waiting time should also be reduced. In addition, a fast reaction to client needs should be introduced so that clients should be seen on the same day instead of being placed on a waiting list for days. Goyal (2013, p.4) supports the notion that customers hate places with long queues and delayed services as they will always opt to their competitors that offers faster services. Physical evidence The company should introduce statements that can be given to clients after such transactions, including signed agreements to carry home with them as physical evidence of the given transaction (David 2007, p.45). 3. Based on this example, what can you say about customer satisfaction in a multi-channel context? Customer satisfaction when dealing with multichannel-businesses is not always satisfying. Customers usually end up dissatisfied with the services when due to poor coordination and lack of organization in the business. Take for example Pauline’s case, there was lack of coordination between the call center people and Bernard leading to a delay in service delivery to their client Pauline. It took a lot of day before Pauline was granted a mortgage, which she later discovered had been given a higher one as opposed to the promotional one offered by the call center people. One can get really disappointed in getting services which are low from what one expects. Pauline knew that she would get her initial financial advisor, and walk her through the process fast, but in turn, was disappointed to a point where she wanted to quit the bank. According to Szwarc (2008, p.43), a dissatisfied customer is a setback to a business venture and can eventually lead to the loss of the given customer. It is always important to keep your customers satisfied at all cost (MacDougall 2003, p.67). References Allen, R., 2007, Customer Satisfaction: The Customer Experience Through the Customers Eyes. New York: The Leadership Facto. (Allen 2007, p.23) Cochran, C., 2013, Customer Satisfaction: Tools, Techniques, and Formulas for Success. New York: Paton Professional. David, B., 2007, Marketing in the 21st Century: Integrated marketing communication,. New York: Greenwood Publishing Group. Goyal, A., 2013, Innovations in Services Marketing and Management: Strategies for Emerging Economies: Strategies for Emerging Economies. New York: IGI Global. Gummesson, E. (2012). Total Relationship Marketing. New York: Routledge. Harrison, G. (2010). CIM Coursebook: The Marketing Planning Process. New York: Routledge. MacDougall, R. (2003). How to Measure Customer Satisfaction. New York: Gower Publishing, Ltd. Szwarc, P. (2008). Researching Customer Satisfaction & Loyalty: How to Find Out what People Really Think. Washington: Kogan Page Publishers. Varey, R. J. (2002). Marketing Communication: Principles and Practice. New York: Psychology Press. Read More