Banking Service Quality and Customer Loyalty †MyAssignmenthelp.com

Question: Discuss about the Banking Service Quality and Customer Loyalty. Answer: Introduction Australian banks highly value their communities in which they have established themselves. They are very much committed towards attracting with their stakeholders. Stakeholders can be the banks customers, employees, suppliers, community partners and the wider community or their surroundings. In Australia, most banks are found providing free discounts as well as exceptions to senior citizens, students and individuals with disabilities. There are other facilities also that guides their customers by offering them financial education, literacy and additional programs and activities. National Australia Bank (NAB) is among the boss who supplies banking services to the businesses in Australia (Shamsuddin and Xiang 2012). It however, has expertise who is specialist in the agribusiness, health, government, education and lastly community banking. NAB group in United Kingdom, New Zealand, Asia and United States of America accompanies all the fields. The one and only vision of this company is to become the most admirable bank in Australia and New Zealand. National Australia was founded in 1858 and named National Bank of Australasia. Currently, they are having 35000 employees who are helping banking of 10million along with wealth management customers who are spread across 10 worldwide authorizations (Wilson 2012). In 1864, they were successful in opening their first office internationally in London due to their colonial links. As they develop themselves, they started opening more offices internationally. Presently, more than 500 employees across Asia are serving around 20,000 people, business and institutional customers. NAB also follows CRM practices so that they can have better understanding of their customers for a advancing in better enhancement of the products, segmentation, proper targeting, managing campaigns and sustaining the long-term profit and mutually benefited relationship with their customers. Current state analysis of the company The strengths of CRM is that it helps in managing the customer data and helps the staff to get more effective in handling their customers, it manages the developing database and centralizes all the data. It further helps building long-term relationship with customers. On the other hand, the weaknesses are the difficulty that is faced in the changeover from the manual to automatic process and the possibility of the software of CRM being hacked (Vasiliu 2013). To protect the CRM data from the hackers basic security processes needed to be carefully practiced, update the antivirus systems so that it can block or detect the logged signatures. Big data analytics should be used so that there is network security visibility and recognition to deaf the rivals (Desai and Kulkarni 2013). For National Australia Bank the administrative activities that are hampering their productivity is business realignment that is National bank which is a traditional bank must choose to shift into nontraditional businesses like payment processing, specialty financing. Another problem is Channel optimization. It is to evaluate the different ways in which customers interact with the banks so that a cost effective combination is created to the banks customer base (Bowe, Briguglio and Dean 2014). The opportunities are the application technology in the core activities of the bank, the one commbank initiative helps in customer relationships for sustained development and lastly, expanding the activities in Asia and other evolving markets can also guide the bank for long lasting growth. The threats are on the other hand, investor confidence in the foreign economy that is if the economic outlook is weak, it can make the growth stagnant and risk due to modifications in foreign currencies (Wongsansukcharoen, Trimetsoontorn and Fongsuwan 2015). CRM program/project objective The objectives of the CRM program of NAB include increasing customer loyalty. This means that in the present days situation it has become very important to properly handle the customers and retain them. This is not only cost effective but also profitable retaining an old customer than getting a new customer (Harorimana 2012). Bank can lose their customers in two ways that is by either voluntary attrition or involuntary attrition. Customers have various relationships with a particular bank and thus, they built up an expectation to get the same treatment across the various business lines. NAB enhanced their customers loyalty by putting emphasis in certain areas like customer feedbacks, their needs, pricing based on the relationship, staff motivation and rewards management (Kaur and Kiran 2015). CRM along with HR (human resources) of the banks allows the bank to evaluate their customers behaviors and values. The main project objectives to execute CRM in the business strategy of NAB are to untangle marketing and sales related processes, to make the call centers more systematic, to impart better services to their customers, to find new customers, enhance the customer revenue, and lastly, effectively cross sell their products. However, customer life cycles should be fully supported by CRM processes and they have few basic steps which are- alluring existing customers as well as new customers, obtaining new customers, serving them and finally preserving them. However, to run the process engine of CRM project few data should be collected beforehand like responses to the campaigns, dates of fulfillment and shipping, data of sales and purchase and demographic, information of accounts and web registration, service and support records and lastly, web sales data (Nambiar, Joseph and Raman Nair 2015). CRM Solutions and its advantages CRM software solutions in an important tool for any bank for managing its business as customer management are an essential factor that can bring huge modification to a bank. However, Saga CRM can be used as a solution that can help the bank to get appropriately with the requirements of the customers and increase the retention of the customers (Laudon and Laudon 2016). This solution has the following features to reach the goals of customer management- Customer retainer- to keep customers satisfied and loyal, thus taking a step ahead in the competitive banking sector in Australia. Information database- this software can add up to the quickness while supplying the deduced data processes, delivering auto responders and bestowing a top-notch customer management. Privilege management- this is completely hassling free and helps in managing and recording all the data and thus, helps to manage your customers better. Financing service management- not only helps to work quicker but also track the mails/SMSs for the customers for the deadlines and overdue that is coming up. One for all- this is just one solution to all the troubles by the customers. The vendor providing the software is Microsoft. The Microsoft dynamics CRM is distinctive in the increasingly crowded software of CRM in the market. However, it gives the customers more options in hosting delivery by assisting numerous public clouds for SaaS delivery (Wolenik 2013). The reason behind selecting this type of CRM software is its advantages, which are strengthening better services to the customer, encourages origination of new customers, enhancing customers revenue, assisting the sales teams so that they can close their deals quicker and increases customers loyalty. Implementing Microsoft dynamics CRM demands several applications of software and those components that can together work to produce a system that is effective. Maximum of the system however, requires for a organized Microsoft CRM environment are very much similar to the on-premise distribution of Microsoft dynamics CRM. Before installing the Microsoft dynamics CRM, the guides should be referred so that the system requirements are verified and met. Therefore, the essential software components must also be accessible. Microsoft Dynamics CRM server requires both hardware and software requirement along with Microsoft Dynamics CRM email router, which is a differentiated email routing service that directs CRM-based email, messages to and from the organizations of Microsoft dynamics also requires both hardware and software. Lastly, there is a need for Microsoft SQL Server that only needs Hardware Server (Chiang, Goes and Stohr 2012). Silos structure CRM becomes a silo that is catching information so that they cannot interchange with any other application like the customer services, analysis and forecasting systems. Thus, to integrate the database so that a 360 degree view of the customer is achieves the focus must be on the following point- Concentrate on the customer information Automates marketing interactions Supply the bank with business intelligence Encourage communication Follow the sales opportunities Scrutinize data Permit receptive customer service Organizations can use various tools that can enhance this 360-degree view that may involve social media listening tools, predictive analytics tools, customer-relationship management suites and lastly marketing automation software. Apart from all these, the focus must also be on data quality and data clearing practices that is also helpful in gaining an appropriate picture of the customers. For a successful CRM plan, implication training the employees is very much important because of the following reasons- It enhances the adoption rate- proper training will help the employees to increase the rate of adoption for the CRM within the employees by assisting them feel more pleasant using the implemented CRM solution. It improves the employees knowledge about the features of the newly implemented CRM- training always gives the employees a clear idea of the usefulness of the new solution in spite of the employees being tech savvy. Guides the staffs to combine the CRM into the everyday routine- the main goal of any organization would be to implement the CRM practices to every employees daily routine and policies so a proper training will help employees to do that. If training is provided properly then various questions will be raised- training for a new practice will definitely raise questions, and if employees will not get the chance to ask questions then they may bypass important aspects of the CRM or may even to use it properly. Discover different problems- the more employees are exploring the CRM and thinking about its practices that how in a better and simpler way they can implement it in their everyday routine, the more they will come up with problems. This will also help in displaying the big picture- only right training can help the employees to visualize the picture clearly and help them improve their adoption rates and widen their employee knowledge and skill of the CRM (Elnaga and Imran 2013). Establish a timeline The length of the planning process ranges from 20 days to one month. This will include the training of the following products- Microsoft dynamics GP Microsoft dynamics NAV Microsoft dynamics AX Microsoft dynamics CRM Tableau Prophix Training will be of new implementation and new user training. The first training that is the new implementation training is deeply focusing on the project methodology. Thus, the training is transferred through a project so that there is no confusion among the employees. Then the employees are observed and if needed follow up training are provided to confirm the success rate among the staff members. Then following this is the new user training where those employees can be trained where they are going to use the software for the very first time. This training will guide the employees with the necessary information that are needed for navigating the product. The training methods that are to be applied can be on-site training or training the trainer. Train the trainer method focus on any one employee in the organization who will be the expert in handling the software. Then he may train others in how they can also use the knowledge in a practical manner. However, training will help in ado pting the new CRM practice easily, it makes CRM to be more than just a tool and thus raise productivity and lastly, it becomes a part of the employees increasing their satisfaction (Talet 2012). Establish a Budget Budgeting the CRM is the practice, which is most productive to ensure the theta the investment can supply a positive financial return, or not. Moreover, it is a easy practice to cut out the costs or avoiding any kind of unnecessary spending of money on any external resources that can lead to the failure in the implementation as the needs of the business are not fitting with the system that is underfunded. Costs that are intricate in the implementation of the options of mitigation are called implementation costs (Krasnikov, Jayachandran and Kumar 2013). However, these costs are associated with the important changes in the institution, informational requirements, the size of the market, chances for gain in technology and learning along with economic incentives that might be needed that includes the grants, subsidies and taxes. This cost is the amount that is spends for implementing the initial system (Ryals 2013). Microsoft dynamics for sale costs, customer service, field costs and project service automation may cost around $95/user/month. However, for any sales user if they want to access to the customer service operations then they it will cost additional $10 per user each month. Apart from these, the full cross functional read/ write may access to any existing user type may cost around $115 per month by each user. Annual costs are mainly the ongoing costs that are related with the preservation and support of the CRM system (Awasthi and Sangle 2013). However, typical middle market CRM solution implementation can costs from $1000 to $4000 per user. Moreover, Microsoft dynamics CRM that is the professional one will cost around $65 per user in a monthly basis, the basic one will cost $30 per person every month and essential will cost $15 per month by each user (Kurawa and Garba 2014). References Awasthi, P. and S. Sangle, P., 2013. The importance of value and context for mobile CRM services in banking. Business Process Management Journal, 19(6), pp.864-891. Bowe, M., Briguglio, L. and Dean, J.W. eds., 2014. Banking and finance in islands and small states. Routledge. Chiang, R.H., Goes, P. and Stohr, E.A., 2012. Business intelligence and analytics education, and program development: A unique opportunity for the information systems discipline. ACM Transactions on Management Information Systems (TMIS), 3(3), p.12. Desai, D.B. and Kulkarni, R.V., 2013. A Review: Application of data mining tools in CRM for selected banks. IJCSIT Vol. 4 (2), pp.199-201. Elnaga, A. and Imran, A., 2013. The effect of training on employee performance. European Journal of Business and Management, 5(4), pp.137-147. Harorimana, D., 2012. Impact of CRM Systems on Organizational Performance: A case study of ANZ Bank. Kaur, N. and Kiran, R., 2015. E-banking service quality and customer loyalty: Changing dynamics of public, private and foreign bank consumers in India. Global Business and Management Research, 7(1), p.74. Krasnikov, A., Jayachandran, S. and Kumar, V., 2013, May. The impact of customer relationship management implementation on cost and profit efficiencies: evidence from the US commercial banking industry. American Marketing Association. Kurawa, J.M. and Garba, S., 2014. An evaluation of the effect of credit risk management (CRM) on the profitability of Nigerian banks. Journal of Modern Accounting and Auditing, 10(1), p.104. Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India. Nambiar, B.K., Joseph, A.I. and Raman Nair, V., 2015. Adoption of CRM Initiatives: Reshaping the Customer Centric Model with Special Reference to Banks in Kerala. International Journal of Management and Social Science Research Review, 1(12), pp.15-25. Ryals, L., 2013, May. Making customer relationship management work: the measurement and profitable management of customer relationships. American Marketing Association. Shamsuddin, A. and Xiang, D., 2012. Does bank efficiency matter? Market value relevance of bank efficiency in Australia. Applied Economics, 44(27), pp.3563-3572. Talet, A.N., 2012, February. KM process and CRM to manage customer knowledge relationship management. In International Conference on Economics, Business and Marketing Management (Vol. 29). Vasiliu, D.M., 2013. Approach to Customer Relationship Management (CRM)-the new key sales success. The USV Annals of Economics and Public Administration, 12(1 (15)), pp.144-153. Wilson, J.S.G., 2012. Banking policy and structure: A comparative analysis (Vol. 34). Routledge. Wolenik, M., 2014. Microsoft Dynamics CRM 2013 Unleashed. Sams Publishing. Wongsansukcharoen, J., Trimetsoontorn, J. and Fongsuwan, W., 2015. Social CRM, RMO and business strategies affecting banking performance effectiveness in B2B context. Journal of Business Industrial Marketing, 30(6), pp.742-760.