IMPACT OF CUSTOMER SERVICE ON THE PERFORMANCE OF COMMERCIAL BANKS

TABLE OF CONTENTS

Declaration ..................................................................................................................... v

Approval ....................................................................................................................... vi

Dedication .................................................................................................................... vii

Acknowledgment ........................................................................................................ viii

Abstract ........................................................................................................................ ix

List of diagrams .............................................................................................................. x

List of abbreviations ..................................................................................................... XI

CHAPTER ONE

1.0 INTRODUCTION .................................................................................................... 1

1.1 Background of the study ............................................................................................ 1

1.2 Background of the case study .................................................................................... 2

1.3 Statement of the problem ........................................................................................... 4

1. 4 Purpose of the study .................................................................................................. 5

1.5 Study questions ......................................................................................................... 5

1. 6 Study objectives ........................................................................................................ 6

1. 7 Conceptual framework .............................................................................................. 6

1. 8 Scope of the study ..................................................................................................... 9

1.9 Significance of the study .......................................................................................... 9

CHAPTER TWO

2. 0 LITERATURE REVIEW ....................................................................................... 11

2.1 INTRODUCTION............................... ....... .................................. ... . ......... 11

2.2 Importance of customer service ............................................................................... 14

2.2.1 Customer loyalty................................................................ . .................... 14

2.2.2 Beating off competition ...................................................... . ··························· 14

2.2.3 Increased sales and profits .................................................................................... 14

2.2.4 Better image and public relations .......................................................................... 15

11

2.3 Essential elements of a good service ........................................................................ 15

2.3 .1 To want to provide a service ................................................................................. 15

2.3 .2 To make an offer of a service ................................................................................ 16

2.3 .3 To make a commitment to provide the service required ........................................ 16

2.3.4 To report on progress of the work ......................................................................... 16

2.3.5 To present the results ............................................................................................ 16

2.4 The Four Absolutes of Quality Improvement.. ......................................................... 17

2.5 Indicators of performance ........................................................................................ 18

2.5.1 Liquidity .............................................................................................................. 18

2.5.2 Spread .................................................................................................................. 18

2.5.3 Volume of sales ................................................................................................... 18

2.5.4 Number of customers ........................................................................................... 18

2. 5. 5 Growth of assets ................................................................................................... 19

2.5.6 Profitability .......................................................................................................... 19

CHAPTER THREE

3.0 RESEARCH METHODOLOGY ............................................................................. 20

3.1 INTRODUCTION .................................................................................................. 20

3.2 Design and location of study ................................................................................... 20

3. 3 The study population ............................................................................................... 20

3.4 Sampling design ..................................................................................................... 21

3.5 Types of data ........................................................................................................... 22

3. 6 Data collection techniques ....................................................................................... 22

3. 7 Methods to be used .................................................................................................. 22

3.8 Analysis and interpretation ...................................................................................... 23

3. 9 Limitations of the study ........................................................................................... 24

CHAPTER FOUR

4.0 DATA ANALYSIS AND FINDINGS .................................................................. 25

4.1 INTRODUCTION ................................................................................................. 25

4.2 Effects of customer service on performance of commercial banks ........................... 26

lll

4.3 Whether customers operate other accounts in other banks ........................................ 27

4.4 Other factors affecting performance of commercial banks ....................................... 28

4.5 Comparison of SCB customer services with other banks ....................................... 31

4.6 Ranking of customer loyalty in SCB ........................................................................ 32

4.7 Whether SCB has appropriate IT to deal with customer complaints ......................... 33

4.8 Relationship between customer service and employee I customer relationship ......... 35

4.9 Challenges of customer service ................................................................................ 36

4.10 Solutions to these challenges ................................................................................. 37

CHAPTER FIVE

5.0 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS..... ................... . 39

5.1 INTRODUCTION ................................................................................................... 39

5.2 Summary ................................................................................................................. 40

5.3 Conclusion .............................................................................................................. 40

5. 4 Recommendations ................................................................................................... 41

APPENDICES

Appendix I .................................................................................................................... 42

Appendix II ................................................................................................................... 43

Appendix III ................................................................................................................. 44

Appendix IV ................................................................................................................. 49

Appendix V ................................................................................................................... 50

Appendix VI ................................................................................................................. 51

IV