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