Q1. What is JYSKE bank’s new positioning or competitive differentiation strategy?
Ans1.) JYSKE bank’s new positioning strategy basically has been developed to reconstruct themselves as a customer oriented, customer centric bank. Their new differentiation strategy basically consists of four components.
1. Out of the Box service:
They began to think out of the box and this led to them targeting specific segments of customers and thus developing a niche market consisting of what they considered the right set of customers. They assigned a small group of their bankers to every single customer to make sure that every customer received timely, effective service with a combined effort of the ...view middle of the document...
Their customer oriented approach, providing training and thus empowering their employees to take informed decisions at the branch level and their cutting edge IT tools basically took their service culture to the next level.
Q2. What changes did the bank make to get to its new position? What effect did these changes have?
Ans. To get to its new position, the bank brought about some tangible and intangible changes which had certain effects. They are,
1. Account Team – This began when they assigned a particular team of bankers to each and every customer. They then introduced the team based performance criteria. The team members could work on the customers problem at hand collectively thus enabling them to come up with appropriate solutions at a quicker pace thus achieving the highest level of customer satisfaction.
2. Branch Design – JYSKE bank shelled out huge sums of money to completely transform the design of their bank branches. They wanted to make the banking experience a convenient one for their customers.
• The new design included a café that served fresh coffee and juice to the customers who were waiting to be served and a play area for children.
• They created a round table set up where three or four bankers would sit at each table to provide faster efficient solutions to customers.
• Their IT systems were created in such a way to help facilitate interaction between the banker and the customer. Also the bankers computer system was placed in such a way that the customer could also see what was happening on the screen which promoted the feeling of openness.
• If a particular conversation proved to go on for a while, comfortable meeting rooms were built where the banker and the customer could relax and feel at home.
1. Training to employees – They began to provide adequate training to their employees on customer satisfaction and team building.
2. Decentralization of their loan process – Initially, when a customer used to apply for a loan, the branch head would not have enough authority to sanction the loan. He in turn would have to forward the application to the regional manager for approval and this process was lengthy and inconvenient to the customer. By providing adequate training at the branch level, they were able to empower their employees at this level to sanction loans up to a specific amount without having to get regional approval.
Q3. Analyse JSYKE bank’s success using the service quality GAPS model found in chapter 2. What are the banks strategies for closing the 5 gaps in the model?
Ans3. Customer Gap – This gap seemed to be quite minimal as the difference...