CASE STUDY

TANGIBLES

One employee for a group of customers

Servicescape

Physical Evidence: Dull images for employees

A customer allotted to a group of bankers

Round tables, computer visible, no longer a dais, play place, café outlet, specially designed meeting rooms, change in interiors.

Friendly images of employees.

Mid 1990’s 2003

INTANGIBLES

Training provided to employees

A long procedure before process could be com

Training provided to employees

The procedure is highly reduced for better services.

Mid 1990’s 2003

SERVICES 7 PS

EXPANDED MARKETING MIX FOR SERVICES

PRODUCT PLACE PROMOTION PRICE

Physical good features

No Difference

Word of Mouth

Premium target

Quality level Half of what others do

Not much Differentiation

Accessories

Kaffe Bar At Bank

EXPANDED MARKETING MIX FOR SERVICES

PEOPLE PHYSICAL EVIDENCE

PROCESS

Employees

Facility design Flow of activities

Customers Equipment – IT and coffee machines

Number of steps

Communicating culture and values

Level of customer involvement

Employee training Business Cards Surprise audits and checks

Other tangibles

COMPETITIVE POSITIONING

OUT OF THE BOX SERVICE

Value Added

Service Culture that

differentiates

Cutting Edge

OUT OF THE BOX SERVICE

Physical evidence: Developing a niche market and targeting the

right set of customers. A customer assigned to a group of bankers. Friendly pictures of employees.

CUTTING EDGE

Technology – Similar

Delivery – Significant Differencea) Tools developed Customer Needs

Identifyb) Tools + People Cutting Edge

VALUE ADDED

People: Being nice to customers Making time for customers Caring about customers. Focused at niche market Training in team building and customer

service. Empowerment to employees. Incentives

SERVICE DIFFERENTIATES

Process: Traditional product selling to customer solution approach.

Delivery of financial products changed. Employee centric Empowering employee for decision making Training Commitment Incentives

Interactive marketing“Delivering the promise” CustomersProviders

Internal marketing“Enabling the promise”

External marketing“Making the promise”

Company (Management)

Service Quality

Product Quality

Price

Customer Satisfaction

Situational Factors

Personal Factors

Customer Loyalty

Reliability

Responsiveness

Assurance

Empathy

Tangibles

SERVICE QUALITY

Responsiveness

According to the Companies core values published for the three major stake holders, Reliability comes under value (1) – Common Sense >> With both feet placed firmly on the ground, we think before we act<<• Consider common sense our best guide• Apply common sense when solving problems and meeting daily

challenges• Allow common sense to override awkward customs and routines• Take action whenever we encounter examples of bureaucratic and

routines• Observe existing rules and regulations• Accept that control measures are necessary to a certain degree• Generate satisfactory short and long term financial results by pursuing

sound business practices• Apply common sense whenever we incur group expenses

SERVICE QUALITY

Assurance

According to the Companies core values published for the three major stake holders, Reliability comes under value (2) – Open and Honest>> We are open and honest in both word and action<<• Keep each other up-to-date on relevant matters, and do not misuse

information obtained in the course of our work• Restrict the degree of openness only by business considerations or by

considerations for other stakeholders• Respect agreements entered into and do not betray the bank’s confidence• Strive towards making important decisions concerning individual

employees on the basis of constructive dialogue• Communicate openly about the mistakes we make and the problems we

encounter• Accept that mistakes are made, that they are corrected, and that focus is

then on learning from the process• Listen openly to new ideas and constructive criticism

SERVICE QUALITY

Empathy

According to the Companies core values published for the three major stake holders, Reliability comes under value (4) – Genuine Interest and Equal Respect>> We demonstrate insight and respect for other people<<• Recognize that no two people are alike• Seek lasting relations with shareholders, customers, and

employees• Offer qualified advice matching the financial needs and

requirements of each customer• Have job security based on mutual obligations and that we pay

attention to individual and personal needs• Allow the highest possible degree of personal influence on

assignments, working hours, and place of work

SERVICE QUALITY

Reliability

According to the Companies core values published for the three major stake holders, Reliability comes under value (5) – Be efficient and persevering>> We work consistently and with determination to reach our goals<<• Use JB 2005 (the bank’s core values) as a guide in our daily work• Are not blown off course because of external circumstances - • Adopt an organization which promotes efficiency• Consider security important • Are convinced that efficiency increases with the level of personal

responsibility• Allow employees to assume personal responsibility for day-to-day decisions

– even when the basis for decision making may not be 100% perfect• Acquire the level of skills required through personal and professional

development• Act on the basis of competence rather than organizational charge• Support our decisions by well-founded arguments, working hours, and place

of work

SERVICE QUALITY

Tangibles

• Accounts Teams• Branch Design• Details

Service Quality

Product Quality

Price

Customer Satisfaction

Situational Factors

Personal Factors

Customer Loyalty

Reliability

Responsiveness

Assurance

Empathy

Tangibles

Product Quality

• New IT systems helped employees take customers through processes to determine their needs and find appropriate solutions

E..g : Determining the style of investment products based on risk aversion, time frame and return goals customized for a particular client• 98% of the loans

processed at regional office itself

• Smaller loans provided almost instantly

• Larger loans approval time reduced from 3 weeks to 10 days

Price

• As delivering this type of service was expensive, the bank charged a slight premium

• Targeted to customers who were less likely to represent a credit risk

• Expectations regarding price and terms were more often included in the application

TANGIBLES

Account Teams1. Caring about customers as individuals Branch Design2. Customer interaction with bankers3. Café: Customer feels welcome4. Round tables: Equality5. Screen visible: Openness6. Home like meeting rooms7. Better photographs: Old family like

FRAMEWORK FOR ENVIRONMENT- USER RELATIONSHIP

Source: Adapted from Mary Jo Bitner, “Servicescapes.”

PHYSICALENVIRONMENTAL

DIMENSIONS

HOLISTICENVIRONMENT

INTERNALRESPONSES

BEHAVIOR

Ambient Conditions

Space/Function

Signs, Symbols, and Artifacts

PerceivedServicescape

Cognitive

Emotional

Physiological

Cognitive

Emotional

Physiological

Employee Responses

Customer Responses

Individual Behaviors

Social Interactions

between and among

customer and employees

Individual Behaviors

INTANGIBLES

Empowering the branches1. 3m to 15m to 30m2. Below 90m to Above 90m3. Improved customer experience4. Quality of information and hence quality of

loans improved5. Acceptable to customer as well as bank6. Improved branch credit skills, no incentive

to make poor loans and robust internal auditing function

INTANGIBLES

Empowerment throughout the Bank1. When in doubt, ask2. Working hours and vacation3. Spend what you need to spend4. Telling what is expected and checking

behavior

Customers

Frontline Employee

Frontline Employee

Frontline Employee

Supervisor

Supervisor

Frontline Employee

Frontline Employee

Frontline Employee

Frontline Employee

Frontline Employee

Manager

CUSTOMER-FOCUSED ORGANIZATIONAL CHART

INTANGIBLES

Selection 1. Social Abilities2. Service Mindedness3. Compatibility with Jyske Values4. Openness5. Genuine interest in other people Incentives1. Stock Incentive2. One time incentive3. Raise incentive

HUMAN RESOURCE STRATEGIES FOR CLOSING GAP 3

Customer-oriented Service Delivery

Hire theRight People

ProvideNeeded Support

Systems

Retain theBest

People

DevelopPeople to

DeliverServiceQuality

Compete

for

the B

est

People

Hire for Service

Competencies and Service Inclination

Provide Supportive Technology

and Equipment

Tre

at

Em

plo

ye

es

a

s

Cu

sto

me

rs

Em

po

we

r E

mp

loy

ee

s

Be the Preferred

Employer Train for

Technical and

Interactive

Skills

Prom

ote

Team

wor

k

Measure

Internal

Service

Quality

Develop Service-

oriented Internal

Processes

Mea

sure

and

R

ewar

d S

tron

g S

ervi

ce

Pro

vide

rs

Include

Em

ployees in

the

Com

pany’s

Vision

INTANGIBLES

Support Systems1. RAROC2. Employee Satisfaction3. Customer SatisfactionCommunication4. Strategic Meetings: Communicating Change5. Video tape illustrating Jyske Differences

THANK YOU