Improve customer service quality - The case of Techcombank card service: Luận văn ThS. Kinh doanh và quản lý: 60 34 05

Vietnam national university, HANOI school of business Phạm Thị Hương IMPROVE CUSTOMER SERVICE QUALITY THE CASE OF TECHCOMBANK CARD SERVICE Major: Business Administration Code: 60 34 05 Master of business administration thesis Supervisors: Dr Tran Đoan Kim Hanoi – 2010 TABLE OF CONTENTS ACKNOWLEDGEMENTS i ABSTRACT ii TÓM TẮT iv TABLE OF CONTENTS vi LIST OF TABLES ix LIST OF FIGURES xi INTRODUCTION CHAPTER 1: LITERATURE REVIEW 1.1 Service marketing mix in banks 1.1.1 Service marketing mix 1.1.2 Service marketing mix in banks 1.2 Customer satisfaction 11 1.2.1 Definition 11 1.2.2 What determines customer satisfaction? 12 1.3 Service quality and GAP model 13 CHAPTER 2: TECHCOMBANK CASE STUDY 25 2.1 Status of Techcombank and introduction of its card service 25 2.1.1 Techcombank Personal cards and card services 25 2.1.1.1 Prospects of card in Vietnam market 25 2.1.1.2 The strategy to develop card 27 2.1.1.3 Some successes and ambituous plan of card development 27 2.1.2 Card issuing, using and payment Processes and activities 30 2.2 A review of Techcombank’s previous survey on card service: Customer satisfaction on card services 31 2.2.1 Survey objectives 31 2.2.2 Sizes and methods: 32 2.2.2.1 Attendees and effective zone: 32 vi 2.2.2.2 Investigation methods: 32 2.2.3 Results 34 2.2.3.1 Total samples and feedback percentages 34 2.2.3.2 The specific Results of Customer satisfaction on card services of Techcombank 35 2.3 Focus group and in depth-interview for updated status of customer service quality 41 2.3.1 Focus group 41 2.3.2 In depth-interview 45 CHAPTER 3: FINDINGS 48 3.1 Customer GAP analysis 48 3.2 Provider GAP analysis 52 3.2.1 Failure in Providing in line with the standards and the designed services 55 3.2.1.1 Failure to meet the technological requirements needed for the work 55 3.2.1.2 Failure in providing good consultancy to let the customers see which of their needs are met and what they can request with the service 63 3.2.1.3 Difficulties in quality management and assurance 65 3.2.2 “Barking dogs seldom bite” (Inconsistency) in retail sales activities 68 3.2.3 The training for the customer service staff has not been paid proper attention, resulting in poor quality in providing the consultancy to the customers, and sometimes generating the inconsistency in the customer service among the units 70 CHAPTER 4: RECOMMENDATION 72 4.1 Invest more in technology for card and card management 72 4.2 Improve training process and focus on customer service training for new staff before having them applied 77 4.3 Build an effective mechanism on quality management saparatedly 80 4.4 Establish a specific team to customer care 81 CONCLUSION 83 vii LIST OF REFERENCES 84 APPENDIX 85 APPENDIX 87 APPENDIX 91 viii LIST OF TABLES Table M2: Added elements of marketing mix Table M1: Elements of traditional marketing mix Table 1: Rate of increased investment capital for accompanied products and service 28 Table 2: Total of Card issued by years 29 Table 3: Survey Systematic Sampling with criteria of Debit amount for cities 33 Table 4: Survey feedbacks .34 Table 5: Survey feedback devided by amounts 34 Table 6: Percentage on time using card 35 Table 7: Total feedbacks on normal issuance time 35 Table 8: Total feedbacks on quick issuance time 36 Table 9: Total feedbacks on home-banking regislation 36 Table 10: Total feedbacks on home-banking usage 36 Table 11: Feedbacks on Errors .37 Table 12: Average points for feedbacks on Errors 38 Table 13: Feedback on service staff 38 Table 14: Feedback on service staff 38 Table 15: Important/satisfaction criterion on customers’ point .39 Table 16: Customer satisfaction on service staff 39 Table 17: Satisfaction degree on home-banking service 40 Table 18: Total overall satisfaction on card service 40 Table 19: Customer satisfaction on Enthusiastic bank staff 42 Table 20: Customer satisfaction on home-banking 43 Table 21: Customer feedbacks on errors 43 Table 22: Customer satisfaction on main service criterion .44 ix Table 23: General satisfaction degree on card service 44 Table 24: Customer expectation on Card service 44 Table 25: Customer support for Card in 2009 47 Table 26: Gap on customer satisfaction 51 Table 27: Card issuance productivity calculation for old machine 55 Table 28: Card issuance productivity calculation for current machines 56 Table 29: Quality indicators of North collection 2009 66 Table 30: Quality indicators of North collection 2009 66 Table 31: Comparision on cost serving estimation with high-tech support .74 x LIST OF FIGURES Figure 1.1: Customer gap 14 Figure 1.2: Key factors leading to provider gap 15 Figure 1.3: Key factors leading to provider gap 17 Figure 1.4: Key factors leading to provider gap 18 Figure 1.5: Key factors leading to provider gap 20 Figure 1.6: Gaps model of service quality 22 Figure 2.1: Card issue procedure 30 Figure 2.2: SMS workflow 62 Figure 3.1: Grow model 79 xi INTRODUCTION  Necessity of the thesis Banking operations are becoming increasingly customer dictated The demand for 'banking supermalls' offering one-stop integrated financial services is well on the rise The ability of banks to offer clients access to several markets for different classes of financial instruments has become a valuable competitive edge Excellent customer service can improve the bank's ability to lure affluent prospects, elevate the bank's profitability, lower bank operation costs, and/or create greater customer loyalty Customer requirements and satisfaction are the term many people talking about nowaday The customer's requirements must be translated and quantified into measurable targets This provides an easy way to monitor improvements, and deciding upon the attributes that need to be concentrated on in order to improve customer satisfaction We can recognize where we need to make changes to create improvements and determine if these changes, after implemented, have led to increased customer satisfaction "If you cannot measure it, you cannot improve it." Lord William Thomson Kelvin (1824-1907) With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company  Objective: From my intention to learn about such an interesting thing and to apply what I comprehend into a bank, my study aims:  To review available status of service quality on card service  To comprehend some important aspects which are related to marketing and Customer satisfaction concept  To identify the necessary to improve customer service quality for Techcombank card service  To provide recommendations and solutions for Techcombank to improve customer service quality for Techcombank card service  Scope of work The scope of study is service quality and how to improve service quality The research scope is also for card customer service of TECHCOMBANK  Methodology The study was implemented by result of the previous TECHCOMBANK survey, research second data at home, system analysis and comparison method Because of large customer number, so the study mainly used survey and analysis to solve the issues under business rules and customer behavior theory The study also gather ideas of experts working in customer service and system support for card operation of TECHCOMBANK Expecially, thesis also is the fact experience of years working for TECHCOMBANK up to now Some models and information from some books, e-books, and article were used to make the line for the thesis Processes and procedures issued by TECHCOMBANK and other banks were also good refference for the study Based on the findings, the thesis give out some key conclusions and some guideline solutions which are focused on improving service quality by changing current GAPs in the bank’s operation  Contribution of the thesis The study is of great practical value, providing a comprehensive overview on banking service: Card - which is relatively new in Vietnam This thesis is aimed at showing a full picture of card services at a bank, discussing the shortcomings and weaknesses which the Bank needs to pay due attention and timely address so as to achieve its target: Becoming Number in a fiercely competitive market in Vietnam for the time being The thesis also posed for such a new service like Card, it requires high technology and huge investment in order to operate well and to satisfy the demands of targeted customers CHAPTER 1: LITERATURE REVIEW targeted criteria system as specific as possible so that learners can know exactly which level of skills, behaviors they have to gain, and the most important thing here is to make sure learning and practicing are the same in content and realistic.Whenever new staff pass the requirements, it’s the time Techcombank should have them apply in the work of customer service After a given period, quality measurements should be active to check if any GAP maintains, and then training for higher improvement is always required 4.3 Build an effective mechanism on quality management separately A good quality management mechanism is to work independently with other units and can cover generally multi-sides of work, and it should have standardized measurable criterion system Otherwise, the data supporting should be enough for calculating and measuring In order to supervise customer service quality, especially in Card service, Techcombank should take some actions below: The first is to create a measuring system related customer service criterion, such as service time, level of customer satisfaction about staff consultancy, …, and report system, as specific as possible, about customer service to compare with standard criterion At the moment, receiving customer feedbacks is a significant part in measuring customer services, but to check if the team follow the standard is still not realitic The measuring system should show out the results of what the standard criterion required, and the standard criterion should be set up based on what can be measured, if not, it will be not useful for actual activities, no value for service quality improvement The second is to check customer service quality usually, not fixed and so long as months per time as currently, and based on the results collected Techcombank should take next steps as soon as possible It may be too late after months realizing the problem if Techcombank still uses quality management method as currently The Third is that the criterion to check customer service quality are at least what required in standard criterion system, not depend on what each unit offers 80 The criterion that units offer may be different from standard criterion system, and if Quality Management Department accept it, they may lose direction The Forth is to measure without prejudice and less subjectives how fit, Quality Management Department should use their own data base and reports, not of units providing 4.4 Establish a specific team to customer care Currently, Techcombank has two teams customer care such as Call Center and Relation Management team For Call Center, they receive complainations or requirements from customers and give feedbacks to them So, their work is not proactive to take care customers if customers not contact them, and they not join to find out customers need or feedback on products and services they are using For RM, they are just in charge of providing customer care to VIP or priority customer who have deposit account at least billion VND By limited criteria on VIP.P customers, there are only some deposit customers receiving the care of Techcombank, and even some super-VIP customers whose current accounts often have million USD are not automatically regarded as VIP customers to receive special caring as well as most of other customers The need to set up a special customer care team is really necessary for Techcombank to improve their customer service quality This team will be in charge of taking care customers before and after sales Some main duties this team may include as followings:  Making confirmations on customer’s orders about products and servces  Consulting for customers know more about features, characteristics or policies of products and services that customers may miss or not know  Recornize and satisfy potential needs of customers on other products and services of Techcombank  Inform customers on approval of Techcombank for their order to products and services 81  Advise customers more on how to benefit from products and services and the best way to solve problems if have while using Techcombank products and services  Periodly check if customers satisfy with Techcombank products and services they are using, and inform customers about new products and services so that if they have the demand they can register to use  Inform new incentive programs to customers so that they know and join  Take care customers in their birthday or in some holidays such as TET holiday, public holiday, etc This team will be very good connection between bank and customers, so that the bank can get their feedback on personal selling, staff behavior in providing services for next steps, and also be the very good channel to transfer right informations related to products and services to customers 82 CONCLUSION It is so prospect to develop Card distribution in Vietname market, in which there are many opportunities for banks to explore payment cards Differentiatizing by taking a shortcut, creat conveniences and value added becomes a valuable orientation of Techcombank personal banking strategy Techcombank has very good advantages in high quality human resource, excellent Board of Management and helpful supports of HSBC experts tobe successful with its prospective PFS strategy Combination between product and service diversification and customer service quality improvement, Teccombank shows out the realistic to assert its level in banking service , and alo perform that it’s very closed for Techcombank to become the best service bank in Vietnam With Techcombank perspectives, I am not only the author supporing Techcombank strategies, but alo the member who wants to contribute my thinkings and my strengths for Techcombank development I also believe that Techcombank will soon become the best bank in Vietnam 83 LIST OF REFERENCES Service Marketing – integrating customer focus across the firm – Valarie A Zeithaml, Mary Jo Bitner, Dwayne D Gremler – 4th eddition Principle of service marketing – McGaw – Hill Book company, UK, 1994 Article “Service marketing in banks” on http://www.oppapers.com/ Article “Quản trị khoảng cách chất lượng dịch vụ » on http://luattaichinh.wordpress.com/ Article “GROW – Mơ hình huấn luyện nhân viên hiệu quả” on http://tailieu.vn/ Internal procedures of Techcombank Retail products and services package – Techcombank Quality standard package 2005 – Techcombank Quality standard package 2008 – Techcombank 10 Teller standard package 2009 – Techcombank 11 Techcombank PFS strategy, 2007 12 Website: www.techcombank.com.vn 84 APPENDIX IN-DEPTH INTERVIEW PAPER Attendee: Title: Department: Center: Question 1: Based on survey results of Techcombank and the report on customer focus, I found some main limitation in customer service quality on card service as below: - It takes time to get responses to customers' requests and get card issued - Home-banking service: missed, late SMS sending or not stable - Staff: not enthusiastic enough or their consultancies are different for the same request - “out of service” error happen friquently - Can not transfer money between banks or between current accounts and credit card account by card Are they still main issues now? is there any new issue you/your team found out while working? Question 2: Can you show out some reasons of customer complainations about homebanking service?  Why customers registered but not being served?  Why debit transaction SMS arrives sooner than credit SMS? Question 3: About issues related to credit card, can you please talk about the main findings?  Why customers can not use their cards to transfer money from current accounts to credit account?  It seems that tellers not have supporting software to serve credit card customers? Question 4: Is it the same reason on combination between core-banking of banks when talking about transfering money from Techcombank to others? Question 5: With the issue on responses to customers’ requests on unsuccessful withdrawing transactions, How Techcombank deal with unsuccessful withdrawing transactions?  For on-us card?  For off-us card? o How can the bank realize unsuccessful transactions? o How long does it take to check and balance interbank card payment accounts? 85 Question 6: Issue on personal selling seems belong to morality of sales activities supervice, what are your opinions on that?  What is the reasons?  What Techcombank have done to reduce complaination on sales activities? Question 7: Customers complain on not receiving the same consultancy on the same request at different service teams, such as your team and sales team, or the bank staff seem not care much on their desires/needs What are your thoughts on this situation?  The service procedures are the same or different?  The requirements on training for service team before working?  Techcombank already has the quality standard package, how about the service quality management mechanism? Question 8: On your opinions, what Techcombank should to solve their internal limitation and improve customer service quality? Thank you for your attention and kind support! 86 APPENDIX CÂU HỎI SỬ DỤNG CHO SURVEY NHÓM Anh/chị sử dụng thẻ rồi: Tên Dưới tháng Từ tháng trở lên Trên năm Trên năm Khi sử dụng thẻ TECHCOMBANK anh chị thường hay gặp cố kỹ thuật gì? Tần suất sảy ra?  Các cố thường gặp:  Tần suất sảy ra: - Chưa sảy ra: Tên - Thẻ bị nuốt Không Trả thiếu nhả tiền tiền Ngừng dịch vụ Thẻ không sử dụng Thẻ hết hạn Không Trả thiếu nhả tiền tiền Ngừng dịch vụ Thẻ không sử dụng Thẻ hết hạn Sảy từ đến lần: Tên Thẻ bị nuốt 87 - Sảy từ đến lần: Tên - - Thẻ bị nuốt Sảy từ 7- lần: Tên Thẻ bị nuốt Trên lần: Tên Thẻ bị nuốt Không Trả thiếu nhả tiền tiền Ngừng dịch vụ Thẻ không sử dụng Thẻ hết hạn Không Trả thiếu nhả tiền tiền Ngừng dịch vụ Thẻ không sử dụng Thẻ hết hạn Không Trả thiếu nhả tiền tiền Ngừng dịch vụ Thẻ không sử dụng Thẻ hết hạn Question: - Bạn chia sẻ lý chủ yếu khiến giao dịch thẻ bạn bị lỗi ko? - Sau cố khắc phục? Mức độ hài lòng chung anh/chị chất lượng dịch vụ TECHCOMBANK với số tiêu chí sau? - Điểm xúc/rất khơng hài lịng - Điểm hài lòng - Điểm trung bình  Thời gian phản hồi yêu cầu khách hàng: Tên Điểm 88 Điểm Điểm Điểm Điểm Question: - Trong trường hợp mà Ngân hàng phản hồi chậm, bạn có nhận phản hồi lý họ trả lời chậm cho bạn ko? - Đó thường lý cụ thể gì?  Tốc độ xử lý giao dịch rút tiền ATM: Tên Điểm Điểm Điểm Điểm Điểm Question: Bạn thường thời gian để thực giao dịch Atm giao dịch rút tiền, giao dịch in kê, giao dịch kiểm tra số dư giao dịch chuyển khoản?  Thái độ dịch vụ nhân viên: Tên Điểm Điểm Điểm Điểm Điểm Question: Điều khiến bạn thấy khơng hài lịng thái độ dịch vụ nhân viên Techcombank  Thời gian phát hành thẻ tính từ hồn tất yêu cầu phát hành đến nhận thẻ: Tên Điểm Điểm Điểm Điểm Điểm Question: Ngân hàng có giải thích với bạn họ lại trả thẻ cho bạn chậm so với quy định ngân hàng khác mà bạn biết? Các lỗi kỹ thuật sảy sử dụng thẻ: Tên Điểm Điểm Điểm Điểm Điểm 89 Question: Lý cho tình trạng “out of service” mà bạn gặp gì? Mong muốn anh/chị dịch vụ thẻ TECHCOMBANK? Rất cảm ơn anh/chị tham gia vấn! 90 APPENDIX TECHCOMBANK OVERVIEW Vietnam Technological and Commercial Joint Stock Bank – shorted name is Techcombank – was established on Sep 27th, 1993 with the initial registered capital of 20 billion dong with the aim to become an efficient financial intermediary bridging the savers with the investor in the need of capital for business and economic development in the open door era Current registered capital of Techcombank is nearly 900 billion dong The network of the bank includes 67 branches and sub-branches over the country The milestones on the path of development of Techcombank are: 1993 The Vietnam Technological and Commercial Joint-Stock Bank (Techcombank) was established on 27 Sep 1993 with an initial registered capital of VND 20 billion and the aim to become an efficient financial intermediary, forming a bridge between savers and investors in need of capital for business and economic development in the open door era The head office was at 24 Ly Thuong Kiet, Ha Noi 1995 The registered capital was increased to VND 51.5 billion In the same year, the Ho Chi Minh City branch was established, starting the process of rapid expansion of Techcombank in the main urban areas 1996 Thang Long branch and Nguyen Chi Thanh sub-branch were established in Ha Noi, together with the Thang Loi sub-branch in Ho Chi Minh City The Bank’s registered capital was increased to VND 70 billion 1998 The head office was moved to the Techcombank building at 15 Dao Duy Tu St, Ha Noi Following the establishment of the Da Nang branch in the same year, the branch network covered all three main regions: the North, Central provinces, and the South 91 1999 Techcombank increased its registered capital to VND 80.0 billion and Sub-branch No at Kham Thien St was opened 2000 The Thai Ha sub-branch in Ha Noi was established 2001 The registered capital was increased to VND 102.3 Billion The Bank signed a contract with a leading software supplier, Temenos Holdings NV, to deploy its new banking software GLOBUS into Techcombank’s network, to allow the Bank to meet the growing customer demand 2002 A number of branches were established: Chuong Duong and Hoan Kiem in Ha Noi, Hai Phong branch in Hai Phong City, Thanh Khe in Da Nang and Tan Binh in Ho Chi Minh City, making Techcombank the Joint Stock Bank with the largest branch network in Ha Noi The Bank’s network included the Head Office, branches and subbranches in the largest cities of Vietnam The registered capital was increased to VND 104.4 billion 2003 With access to the Globus system and its alliance with Vietcombank, Techcombank commenced issuing the F@stAccess card on December 2003 The Bank also completed deployment of the Globus system throughout its whole network on 16 December 2003 and began the process of developing a new corporate identity Techcombank’s Cho Lon branch was established Registered capital was increased to VND 180 billion on 31 December 2003 2004 Techcombank inaugurated its new identity on June 2004 Registered capital was increased to VND 234 billion on 30 June 2004, VND 252.2 billion on August 2004, VND 262 billion on 20 September 2004 and VND 412 billion on 30 November 2004 The number of branches increased from 15 branches to 25 by December 2004 Registered capital was increased to VND 412.7 billion on December 2004 92 2005 Six new branches and 15 new transaction offices were established in Lao Cai, Hung Yen, Vinh Phuc, Bac Ninh, Nha Trang and Ba RiaVung Tau since the beginning of this year Registered capital has been increased to VND 617 billion by 31 December 2005 2006 Awarded “Excellent International Payment” from the Bank of New Yorks, Citibank, and Wachovia In February 2006 Techcombank has earned a Ba1 credit rating for its VND deposit service by the USbased Moody’s Investor Services Registered capital has been increased to VND 1,500 billion In December 2006, Techcombank officially issued the first Visa debit card in Vietnamese market 2007 Techcombank total asset up to 2.5 billion USD Becoming the joint stock bank with the second largest transaction network including 130 branches, TSO at the end of 2007 HSBC increases the sharing capital to 15 %, directly and sufficiently support Techcombank’s operation Profoundly transforming in structures with the establishment of corporate service department, department of credit and risk management, completing structure of banking service and individual finance Upgrading the core banking system to T24R06 Is the blossoming year of card services with the total issued card number up to more than 200.000 cards for all kinds The first and only bank approved the achievement in technological application and leading in market developing measures Implementing the “secret customers” program, in order to access the service quality and attitude to customers of front-line staffs at Techcombank TSO Receiving award “Top Trade services 2007”- award given by Ministry of industry and Commerce for typical enterprises, operating in trade services that Viet Nam committed to implement as joining WTO 93 2008 Receiving award of “ the most satisfied service in 2008” voted by readers of Sai Gon Tiep Thi magazines in February 2008 In March 2008: Launching Techcombank Visa Credit card In May 2008: Launching Cash Deposit machine( ADM) Implementing many projects on technological modernization: upgrading the core banking system to sample T24 R7, member of two cooperated card organization Smart link and Bank net, connecting ATM system with strategic partner HSBC, opening free Call Centre ( 24/7) 1800 588 822 Receiving Golden Star Award 2008 given by young enterprises association in September 2008 Increasing the property rate of HSBC to 20 % and raising chattered capital to 3.165 billion dong in September 2008 In September 2008: Launching Techcombank Co-brand Visa card with Vietnam Airlines On 19th October 2008: Receiving award “ reputed securities trademarks and the top Joint stock company of Vietnam” given by securities committee 94