mmso project report
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2011
Service Audit
Submitted By
Abhilash Prasad Sahoo
Gaurav Sharma
Rishi Raj
Shailendra Singh
Sharma Mohit
Vijit Jain
Vinit Bhardwaj
Virendra Pratap Singh
Vishal Singh
Submitted to
Ms. Yogita Singh
Table of Contents
Executive Summary
Introductions of ICICI BANK LTD.
7 P’s of marketing mix
Weakness in 7 P’s
Service Blueprint
Service Gap Model
Flower of Service
Service quality (Rater scale)
Recommendations and suggestions
Acknowledgement
It is a matter of great satisfaction and pleasure to present this report for the subject Managing
Marketing and Service Operation. I take this opportunity to owe my thanks to all those
involved in the execution of the project.
I am really thankful to ICICI BANK LTD. for giving their valuable time to us for the survey of
their branch in sector – 54 (Gurgaon).
I would like to express my deep indebtedness for Avinash Jaiswal (mob. - 99998-70757) branch
officer, for information and briefings they provided during the survey.
I take this opportunity to whole heart thanks to our faculty guide Ms. Yogita Singh who guides
us at every step in the execution of the project.
Introduction
ICICI BANK is the India’s second largest bank and largest bank among private banks in India. The bank
has a network of 2,543 branches in India and 7,037 ATM’s. Globally, ICICI BANK has presence in 19
countries, including India.
ICICI BANK provides a wide range of banking products and financial services to corporate and retails
customers through a variety of channels. ICICI BANK has its subsidiaries in the areas of investment
banking, life and non-life insurance, venture capital and asset management.
This is the bank which has leveraged technology to introduce several innovations to make banking
simple and convenient for the customer.
ICICI BANK has been awarded by the business world “Most Tech-friendly bank” in 2011.
Managing director and CEO of ICICI BANK Ms. Chanda Kocher was ranked 10TH in the list of “Top 50
women in the world business2011” by financial times.
Recently ICICI BANK is in news to launch their websites in Hindi for the convenience of customer.
7 P’S of ICICI BANK
Product
ICICI bank offered many types of product. The product and service offered by the organization in various
field.
1. Saving Account- ICICI bank offered various types of saving account with a convenient feature
like women’s account, senior citizen account, youngsters account etc.
2. Fixed Deposit- In ICICI bank the fixed deposit is very safe and very flexible. Fixed deposit
provides a combination of good feature.
3. Loan- In ICICI bank there is many types of loan -
(1)- Home loan
(2)- Car loan
(3)- Personal loan
(4)- Two wheeler loan
(5)- Medical equipment loan
(6)- Farm equipment loan
4. Cards In ICICI bank there are different types of card-
Credit card
Debit cum ATM card
Travel card
Business card
Commercial card
Price
Price basically regulate by RBI and IBA. The rate of interest is controlled by BI and other interest is
control by IBA. The pricing policy of a bank is considered important for raising the number of customer
with the deposit also the quality of service is provided through direct relationship with the free charge.
ICICI bank are required by two fold strategies-
o First strategy is concerned with free charge and interest.
o Second strategy is related to the interest paid
So these two strategy follow the ICICI bank. And both the strategy is important to the
bank to establish to the correlation. It’s a win- win situation to both buyer and seller. Assets and liability
mix is also impact the pricing strategy. Another important pricing mix is earning assets is the risk of loss.
It’s a very relevant to the loan pricing.
Promotion
ICICI bank there are promote product in different component and those component are-
(1) Advertising (2) Print Media (3) Publicity (4) Sales Promotion (5) Personal Selling (6) Telemarketing People
All the people are directly or indirectly involve the consumption of the banking. People mix is very
important of marketing mix. In ICICI bank the employees are very contact with customer. So the
employees are play very important role in any service organization. Service company can be only as
good as its people. The basic need in any service organization is to develop the motivation of employees.
Every employees of ICICI bank is committed to 5 core value-
(1) Integrity
(2) Customer first (3) Boundary less (4) Ownership (5) Passion Therefore investing the people quality in service business means investing in the product quality.
Process
ICICI bank basically follows RBI guideline. The ICICI bank activities have been segregate into various departments accordingly.
(1) Standardization (2) Customization (3) Number of steps (4) Simplicity (5) Customer involvement
Place
The 2 important decisions in place mix are-
o Making available the promised services to the ultimate user o Selecting the suitable place to open in the branch
For the safety and security provision, ICICI BANK provides best infrastructure facility, to coverage the
market and most important is convenient to both the bank and user.
Physical Evidence
Physical evidence is basically material part of the service. There are many examples of the physical
evidence and that evidence are-
(1) Internet / web page (2) Paperwork (3) Brochures (4) Furnishing (5) Business Card (6) The building The physical evidence also include, Punch Line, Employees dress code etc.
Weakness in 7 P’s
There are 7 P’s, out of which there are weaknesses in People and Physical Evidence due to which ICICI BANK
service hampering.
Utilization of PEOPLE in the inefficient manner:
People in the ICICI BANK has not been utilized properly the employee of branch are not ready to provide the wow
service to the customer. They provide only that service for which they have been recruited i.e. providing the
service. Sometime customer has problem related to his/her account they guide them to call customer care even
the problem is critical, they do not listen to the customer. This is the service industry and due to intangibility in
nature, customers unable to claim for the same service.
Here, the main reason is either supervisory problem or the training required to the employee specially the
interpersonal skills.
If we see the company mistake then it is that either they recruit wrong supervisor i.e. deputy manager/manager.
Here the problem creates in the interactive marketing and internal marketing within the organization.
Technical Problem in Physical Evidence:
In the branch or ATM most of the time servers are down due to which transaction couldn’t happen, this situation
adversely affects the service and customer has to face inconvenience.
Service
Marketing
Company
Customer EmployeeInteractive Marketing
Not providing the wow
service to customer they
only do the job for which
they recruited
-They recruit wrong
supervisor
-No proper training to
employee
Service Blueprint
A layout of all the key activities involved in creating and delivering the service supported by support
system.
A key characteristic of service blueprint is that it distinguishes between what customers experience
“front- stage” and the activities of employees and support processes “back-stage” where customers can
not see them.
Service blueprints clarify the interaction between customers and employees and how these interactions
are supported by additional activities and service backstage. Because they show the interrelationship
among employees roles, operational processes, information technology and customer interactions,
blueprints can facilitates the integration of marketing, operations and human resource management
with in a firm.
Blueprints also give managers the opportunity to identify potential process fail point, where things are
going wrong and diminishing the service quality. Knowledge of such fail points enables managers to
design procedure to avoid their occurrence.
The blueprint has 5 components
Physical Evidence
Customer Actions
Onstage/ Visible Contact Employee Actions
Backstage Employee Actions and
Support Processes
Physical evidence
It is at the very top of the blueprint. Physical evidences provide some degree of tangibility to the services
offered. So anything associated with the process can be listed under physical evidence if it provides
tangibility. Seen in this regard, even employees of the company and their attire also provide tangibility.
Different physical evidences associated with the services of ICICI Bank are:
1. Website
2. Browser
3. Employees 4. Attire of the employees 6. Pamphlets 7. Office
Service Blueprint of ICICI BANK
Line of interaction
Line of visibility
Line of Invisibility
Websites Pamphlet Employee Office
Seek Information Take call Give appointment Meet Sign up form
Submit the document Look the demo Give the form for sign up
Make call/email Process the form
Collect the document
Clear the deficiency in
form
Take call/email Fix appointment Process the form forward
Inform the customer about
deficiency in the form
Training to new employee Processing the form Inform about
deficiency
Activate client
account
Physical
Evidence
Customer
Action
Onstage/
Front Stage
Back stage
Support
System
Customer Actions The customer actions area includes the steps, choices, activities and interactions that the customer performs in the process of purchasing, consuming and evaluating the services. The possible customer actions list for the clients of ICICI Bank is a very long one, which can be modified into following actions 1. Seeking information 2. Taking Calls
3.Giving appointments to the executive
4.Meeting the executives
5.Signing up the forms
6.Submit the documents
7.Watch the Demo
8.Transactions using the login ID
9.Calling up Relationship Managers
Onstage Contact Employee Actions
Now, paralleling the customer actions there two areas of contact employee actions. The steps and activities that the contact employee performs that are visible to a customer are the onstage employee actions. The onstage contact employee actions identified at ICICI Bank are: 1.Make Calls or send e-mails 2. Take Appointments 3.Meeting clients and pitch the product 5.Get the forms signed up 6. Collecting documents 7.Process the forms 8.Clear deficiencies in the form if any deficiency has been found.
Backstage Contact Employee Actions Those contact employee actions that take place behind the scenes for the support of the onstage employees are called backstage contact employee actions. In ICICI Bank that are as follows: 1.Making calls to the customers 2.Attending calls of the existing customers (both internal as well as external) and
prospective customers who call up for information.
3.Fixing appointments for the onstage contact employees
4.Processing the forms and forward for account activation
5.Inform onstage contact employees about the deficiencies in the form if found. 6.Informing the customers about the deficiencies in the form (this can be clubbed with the first action of making calls). 7.Advise the customers (Relationship Managers)
Support Processes This part of the blueprint covers the internal services, steps, and interactions that take place to support the contact employees in delivering the service. In this case, we have following support
processes:
Generate leads for the acquisition process
Training to new employees
Processing the forms
Inform about the deficiencies if found to the contact employees.
Activating the account
Service Gap Model
Knowledge Gap:
This gap is raised due to not knowing that “what customer expect”. The knowledge gap is the difference
between the management perception and customer expectation. Here the management has no idea
that what customer expect.
Standard Gap:
This gap is the difference between standard perceived and actual service standard made. The reason
behind this gap is “not selecting the Right Service Design Standards”.
Management perception – Customers all problems get solved by phone banking or by writing mail.
Customer expectation – Phone banking should only for the service not for the complaint handling.
In this case, customer want there should be some responsible person in the branch with whom
they can talk face to face for the critical problem, but whenever customer visit the branch for the
problem, officer guide him the phone banking.
Management do not know about this serious problem, there are many customer who seek some
specialized officer who listen him.
Here, the gap raised due to wrong service provided in wrong channel.
Standard Perceived (Planned) – “Please be on line your call will be connected within one minute”
This reply often customer listen whenever they called the phone banking. ICICI BANK has made
standard of connecting the call of customer within one minute.
Actual service standard made - Most of the time the call exceed the standard time and customer has
to wait for long time to talk to officer.
Here, this gap impact the service of ICICI BANK in the phone banking channel due to long call taken
by the officer the customer care.
Management either need to increase their employee in that channel or should increase their
standard time to wait for customer.
Delivery Standard:
“Not delivering to service standards made by the company” is the main reason to raise this gap which is
called Delivery Gap. This gap is the difference between delivery standard made by the company and
actual delivery.
Communication Gap:
If the firm does not provide the service that is promised generate the communication Gap. This is
difference between what the companies promised and what actually they delivered in other word we
can say that “Mismatching promises and performance”.
Perception Gap:
This is the hidden gap. In this gap the role of customer plays vital role and “customer make perception”
about the company for specific service which is not communicated. Here, the difference is that what
customer perceived and what actually delivered by the company.
Delivery standard - Customer make the request to get the cheque book at their address timely and
actual time standard made by the company is 3 working to receive by the customer.
Actual standard – Often customer receive their deliverable late that is the time get exceeded by the
company and customer lose the confidence on the company. The customer with whom we talk, they
receive their cheque book after 7 days of making the request.
Here, the employee dispatch late the customer’s deliverable the reason they take time more time for
the execution and forward late the request of customer to concern department.
Communication Promise – “Sir, you upgrade your debit card to platinum debit card you will get 1
movie ticket free on purchasing 2 tickets”. These types of communication made by the officer for
cross-selling their products to existing customers.
Actually delivered – Customer not get the same benefit which was promised before buying that
products.
Hence, it is mismatching the promises and performances within the organization. There are many
customers who buy products for the benefits but they do not get due to some terms and condition.
Customer perception – Customer visit the branch keeping in mind that this is the private bank and he
will get service immediately and get his work done very soon.
Service delivered – Customer has to wait for his turn in the branch and the time get exceeded what
he perceived despite it is private bank.
Interpretation Gap:
In this gap there is discrepancy raised due to wrongly interpretation made by the customer. This gap is
the difference between communication done by the company and the same communication interpreted
by the customer in other way.
Service Gap:
Here the gap is differences between customer expectation and customer perceived. In this scenario the
gap is raised due to what customer expects to receive and their perceptions of the service that is
actually delivered.
Flower of service
Supplementary services play one of two roles. Facilitating supplementary services are either required for
service delivery or aid in the use of the core product. Enhancing supplementary services add extra value
for customers. In ICICI Bank, the core service is Account opening and other services are classified
according to whether they are facilitating supplementary services or Enhancing supplementary services.
Facilitating Services Enhancing Services
Information Consultation
Order taking Hospitality
Billing Safekeeping
Payment Exceptions
Communication Done – “Sir, your EMI date of loan is 10th of every month”, this communication is
made by the officer in the ICICI BANK.
Communication Interpreted – Customer deposits the EMI amount on 10th of every month and EMI
get bounced.
Here, EMI date is 10th of every month, customer interpret that if he/she will deposit the EMI
amount at any time on 10th EMI will get deducted from their account automatically, but it can’t.
EMI is considered on the opening balance of the day. Here, customer interprets wrongly whatever
officer communicate.
For the service gap we need more survey from the customer which we had not done. We had
surveyed very few customer for this project, hence this gap we unable to analyze.
INFORMATION
To obtain full value from any good or services, customers need relevant information. New customers
needs information like Saving account details, charges for account opening, what minimum balance
should be there in account, terms and conditions of saving account, details of documentation work,
banking hours. Existing customers needs information like any change in policy, details of any policy.
In ICICI Bank, for every service like Saving and Current account, Loans (Personal, Home, Car), Credit Card
they have employees which have the detail information about that service. The concerned person gives
the whole detail about the service which customer looking for, terms and condition of respective
service.
They also have the facility of 24 hr Customer Care. If customer needs information regarding any service
then they only have to dial a toll free number and they can collect information and also can solve the
query.
ICICI Bank has their official website, in which they mention all the service, service detail, terms and
conditions. Customer can collect all information which he/she required by sitting in home or office.
ORDER TAKING
Once customers are ready to buy, a key supplementary element comes into play- accepting application,
account opening. After selecting the service by customer it’s very important to do the process fast and
accurate. After selecting the service by customer, the next step is documentation and verification. The
concerned employee takes care of application form, proper documentation and relevant process so that
customer should not face any problem in future.
It’s very important that all the process should be complete within limited time period promised by the
company. It’s only possible when all the Information given by company should be equally understand by
the customer. During the whole documentation and verification process, concerned employee of ICICI
bank will be in touch with the customer so that customer should not suffer any problem in future.
BILLING
Inaccurate, illegible, or incomplete bills risk disappointing customers who may, up to that point, have
been quite satisfied with their experience. The transactions done through the employee account should
be known by the customer so, ICICI bank have the facility like they provide monthly statement to
customer by these they can check their previous transaction.
ICICI bank also provide the facility like mini statement through ATM and also internet banking. By these
customer not required to go in bank to check previous transaction now he/she can check through
internet or ATM.
They start new mobile banking in which customer get the information after crediting or debating the
account.
PAYMENT
In ICICI bank, they take some charges for giving the facility but they always try to make the system more
transparent.
In ICICI bank, for every transaction through debit card they take some charges for giving the facility and
for giving the debit card they also take some charges. They also have the system like they deduct some
charges for not maintaining the AQB. All the information regarding the additional charges is given to the
customer at the opening of account and if there any change in charges then they provide all the
information through mail or by SMS.
CONSULTATION
Value can be provided to the customer here by offering advice and consultation tailored to each
customer’s needs and situation. This is a very important function since the requirements & capabilities
of every customer are different. ICICI bank has consulting officers who helps customers according to
their requirement.
‡
HOSPITALITY
Hospitality related services should ideally reflect pleasure at meeting new customers and greeting old
ones when they return. When a customer is visiting the physical outlet of the bank, he is investing time
and energy. Thus a bank must ensure that the environment is welcoming. Hospitality includes Greeting
from the Banks employees, Friendliness of the staff especially at the information desk/help counter.
In ICICI bank, Hospitality starts from the security guard because they are the first person from bank who
meets with the customers. In ICICI bank, always there is a one employee in help desk to attain the
customer.
For senior citizen and handicapped person they have separate sitting arrangement so that they will not
face any problem.
SAFEKEEPING
When customers are visiting a service site, they often want assistance with their personal possessions.
ICICI bank always maintains the customer database secured so that no one can use the data for any
wrong purpose. Inside the bank they have instruction board by which they gave information like how to
use the ATM card, how they maintain their account secured.
ICICI bank have their own parking area in maximum branches because customer enters into the bank
premises by keeping their vehicle in parking area of bank so it’s also important to have security in
parking area.
.
EXCEPTIONS
Exceptions involve supplementary services that fall outside the routine of normal service delivery. ICICI
bank gives the additional services for the important or loyal customer for their long term relations. It
includes the up gradation for debit card and loan amount.
RATER SCALE
These five dimensions have been found to be relevant for a wide range of organizations ICIC BANK and,
although the importance of each dimension will vary. The model is used by bank to identify and assess
customer expectations, to plan and improve services, and to measure customer satisfaction.
Reliability
Ability to perform the service dependably and accurately service threw the employs to the best way of
obtaining a better understanding of your customers’ needs and expectations is to ask them. However,
before you do this, it is useful to put some work into obtaining a view of your services from your
customers’ perspective. Deliver the service you promised and what your customers believed they were
promised, the service must be timely, consistent, accurate, and dependable An example of reliability
the ICICI bank 3D master and visa card service which provide customer secure pin and six digit numeric
password identification number to the customer personal use in banking service.
Assurance
Employees’ knowledge and courtesy and their ability to inspire trust and confidence. A comprehensive
Car and two wheeler Insurance policies that keep it secure against damage caused by natural and man-
made calamities, including acts of terrorism. Avail of Own Damage, Personal Accident and Liability cover
all in one policy. Insurance in India is governed by the India Motor Tariff, so the coverage for your
vehicle would be the same no matter which company you would buy it from. Moreover, Insurance is
mandatory and needs to be renewed every year. So choose the best insurance company in India. ICICI
bank provides all kind of vehicles and life insurance facilities to the specific consumers.
Tangibles
Appearance of physical facilities equipment, employees, and communication materials personnel and
communication materials look attractive and appropriate. ICICI BANK Services differ from physical goods
as they emphasize experience qualities, which can only be discerned after purchase or during
consumption. Service offering are becoming an integral part of today’s business and in the process of
differentiating one’s offerings effectively in the eyes of the consumer, branding services have started
playing an important role. Building a strategic relationship with the customer is very essential. To
develop service brands, choose appropriate brand architecture, position the brand, develop the
programmers needed to deliver the brand and align the business system to the brand promise.
Employs well dressed in bank to provide best service to the customer in banking time for example some
banking clients required for saving account in bank and transaction account and withdraw money from
the account and accounting transfer these type of services are likely tangible services in ICICI bank
provide to the consumer.
Empathy
Caring, individualized attention given to customers. It is easy to access staff; services and information
the communication with customer’s clear, appropriate and timely, employs provide services that are
appropriate to the individual needs of the customer the staff demonstrate they understand the
customer’s needs and situation. ICICI bank caring the individual’s consumer the specified needs.
They provide loan services to consumer, ICICI Bank loans have a lot of offer to those people who require
finance for different needs and purposes such as marriage expenses, purchasing a car or a home,
financing higher education or even planning a holiday trip. Given below are the different categories of
loan products offered by ICICI Bank
ICICI Bank personal loans
Home loans
Commercial vehicle loans
Loans against securities
Car loans
NRI loans from ICICI Bank
Corporate financing from ICICI Bank
Business financing from ICICI Bank
Export Finance
Agricultural Financing from ICICI Bank rowers:
Responsiveness
Willingness to help customers, provide prompt service and solve problems. Employs willing to help the
customer, provide prompt service, and resolve problems satisfactorily.
For example a customer of ICICI Bank. ICICI Bank offers great service to its customers. Customer really
impressed with the standard of global banking facilities provided by ICICI Bank. It is making banking a
pleasant experience for customers. The efforts of ICICI's Customer Service Centre. The banking with
ICICI gives a lot of peace to the mind. ICICI bank gives customer trading information threw sms alerts
and gives a personal phone call to the consumer and tell about the stock market and tell how to invest
and gain profit , the bank not take extra charge from the consumer these information, it is
responsiveness of bank.
Recommendations and Suggestions
ICICI BANK requires many changes in order to improve their service, so that they can acquire the
customer and retain their existing clients. This bank is one of the largest bank in India and leader in
innovation and new technology in the banking arena but in some area it seems weak i.e. service.
As service audit has been done, there are many improvements need to improve which is mention below:
Company must recruit the right people who can lead the team very well, they can motivate their
officer to work in the branch efficiently and accurately to provide wow service
Training required in order to improve the service in the front stage where employee interacted
with customer face to face. Training should be focus more on interpersonal skill
In the branch, when server get down customer has to wait for long time, if server down for 3-4
minutes then customer can wait but for half an hour it impact the service. Here, the bank should
keep some other substitute in order to provide faster service. In the service industry, physical
evidence plays a major role for retaining the customer.
Management should do the market research in order to get the details about the customer
“what they expect” like for handling complain there should be some officer from grievances
department in the branch with whom they can talk, make the request and get the status
regularly
Banks should increase their standard time to wait in call, while calling phone banking
In the back stage the process should be fast to dispatch the customer deliverable so that
customer receives it timely. The concern department (backstage) receives the request to
dispatch the deliverable very late from the front stage employee
During cross-selling the products, employee should not wrongly communicated to the customer
because there is a chances will be increase to lose the existing clients and due to word of mouth
it might be they unable to acquire some new clients.
References
Services Marketing – Lovelock, Wirtz and Chatterjee
www.icicibank.com
Avinash Jaiswal (mob. - 99998-70757) branch officer, ICICI Branch Manager Sector-54,
Gurgaon
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