Customer Satisfaction Measurement for Service Management in South African Banks

Abstract

This study sought to explore possible reasons to explain why, despite the money spent by banks on customer satisfaction surveys, the satisfaction scores have either remained unchanged or become lower. The study explored two broad dimensions; the ability of the banks to effect corrective actions that would lead to improved customer satisfaction and the effectiveness of the survey instruments used by the banks. Qualitative interviews were conducted with bank employees who work with customer satisfaction surveys within the big four banks in South Africa; Absa Bank, First National Bank, Nedbank, and Standard Bank. The findings, though exploratory in nature, reveal significant impediments to the realisation of improved service levels, from which would come improved customer satisfaction scores. In terms of the banks themselves, this study found that there are no systems in place to interpret customer satisfaction survey data and to effectively act upon the findings. This was reinforced by the bank employees not having the capacity to interpret and use the survey results. The study also found the instruments used are not effective in terms of what they are intended to achieve. They are incorrectly designed thereby incorrectly focused. In addition, the people who are meant to use them do not understand how to use them. The findings of this study seem to point to customer satisfaction as something that the banks know they should be paying attention to, but seem not to know how to best go about it. The strategic importance appears to exist only in the annual reports and strategy documents. The environment, as a result, is not conducive for the implementation of corrective actions. Unless these factors are investigated further, and effectively addressed, it seems likely that the banks will continue to spend a lot of money on these customer satisfaction surveys. They will not however, achieve what they should be achieving; improved customer satisfaction, and higher customer satisfaction scores.