Improving Customer Service and Customer Loyalty - Case Study Example

Customer service and customer loyalty can be improved through increased Internet options for banking. For instance, the bank can have tellers available 24/7 to answer banking questions, or to aid in the banking process. By operating at the front of the curve in these situations, the industry can be perceived to have the most successful customer service, as other banking operations struggle to catch up to their innovations. Similarly, increased options for online banking can be introduced, such as tracking investments or other aspects that were previously the entity of in-house banking alone.

Another prominent concern is interest rates. As noted earlier, it is recommended that Westpac decrease its interest rates a substantial amount. This way Westpac can still benefit and prepare for future problems whilst still providing Australians with the possibility to successfully loan money. While in large part it’s clear that this is a question of prudent investment, another major concern must be the bank’s interest rate relative to its competition. The major area of concern, in this regard, is that while customers have experienced increased hardship as a direct result of the economic recession, all banks remain under the same financial constraints. While banks face these constraints, this particular bank in question has differentiated itself by charging higher interest rates. As a means of increasing customer loyalty, the bank based its interest rate not on internal profit concerns, but as a relative function of market competition.

The final area of concern is in terms of advanced uses of technology. As considered in terms of customer service concerns, it’s clear that advanced uses of technology are essential for the continued success of the banking industry. In terms of technological change, the bank must implement this on a need-based structure. The bank would determine strategic initiatives not based on simply incorporating new modes of technology, but determining areas of high need. For instance, improving online banking features is a central area of concern. Another important area of implementing new modes of technology would be as a means of measuring competitor interest rates, and statistically developing a means of choosing a comparable rate.

Conclusion

In conclusion, recommendations have been made for the high concern areas of customer service, interest rates, and advanced uses of technology. While specific recommendations have been made for all three areas of concern, one of the major realizations is that these areas are intimately linked. Ultimately, a comprehensive approach is necessary that considers all areas as a function of the next.