Improving Customer Service

The following appeared in a memo from the customer service division to the manager of Mammon Savings and Loan:

"We believe that improved customer service is the best way for us to differentiate ourselves from competitors and attract new customers. We can offer our customers better service by reducing waiting time in teller lines from an average of six minutes to an average of three. By opening for business at 8:30 instead of 9:00, and by remaining open for an additional hour beyond our current closing time, we will be better able to accommodate the busy schedules of our customers. These changes will enhance our bank’s image as the most customer-friendly bank in town and give us the edge over our competition."

Discuss how well reasoned . . . etc.

The customer service division asserts in this memo that improving customer service is the best way for Mammon Savings and Loan to differentiate themselves from competitors and attract new customers. It further mentions possible ways to achieve the same. The presented argument is not without merit. Nevertheless, the argument has many loopholes that need to be plugged in order to make it more convincing.

Improving customer service can be one of the ways to achieve the mentioned goals. That does not, however, make it the best way. The argument fails to address that on what basis improving customer service can be said to be the best way. If it is about attracting customers and differentiating the company from competition, it can also be done by offering better interest rates, well-planned marketing campaigns and providing a wider range of savings and loan options. Besides customer service, a company's brand positioning, marketing communication and product portfolio play an equally important role in helping the company to differentiate itself from competition and attract new customers. An informed decision can be taken only after evaluating all these options. Hence, the argument must categorically state why it thinks that an improved customer service is the best way when compared to other options available to the company.

One of the suggested way is reducing waiting time in teller lines. This effort, however, mandates that the organization increase its daily working hours by one-and-a-half hour. Although such an effort may actually produce the desired results, it will also put extra strain on the existing resources. Such a change is likely to affect the employees work-home balance and would mean more money being paid out to the employees. In terms of the benefits that it would yield, it is not clear if such an effort may be actually worth it or not. May be, the organization would be better off promoting secure e-banking and phone banking for its customers using the same money. It would not only help the organization to accommodate its customer's busy schedules, it would also cost less. The HSBC bank is a good example of an organization that has been doing exactly that to improve customer service at minimal cost.

Concluding, the argument fails to take into consideration alternate ways to achieve the same goals and the possible effect of the suggested changes on the resources and employees. Hence it fails to clearly establish why the suggested way would be the best way to differentiate the company from competition and attract new customers. The argument can be made stronger if it evaluates alternate ways and clearly shows how the suggested course of action is superior to any other way. Failing that, the argument would appear weak and flawed.