1.0 Introduction
1.1 Background of the Study
The structure of the Nigerian Economy, it shows us clearly that all business enterprises operating with in the economy depends solely on the existence of the customer. This is to say that the absence of the customer in a business organization makes the existence of such an organization worthless. In this vain any manager of a business organization who has as his main aim profit maximization for his organization should make sure its customers is effectively managed.
One of the best ways of managing customers in the banking industry is through an effective customer relation and satisfaction. Customers relation according to Nwokocha as written in Ihuoma (2004) involves an inter play of different level of elements, referred to as the relation mix, this mix is the various elements and levels of a company's customer relations efforts and it philanthropy, Research, Education, information Reward /Award.
On the other hand, customer satisfaction by kotler Philip (1994) is a function of perceived performance and expectation. If the performance falls short of expectation the customer is dissatisfied, if the performance matches the expectations, the customer is satisfied; if the performance exceeds the expectation the customer is highly satisfied or delighted, therefore when customer' expectation are met, the customer derives satisfaction. Many banks are aiming- for high satisfaction because customers who are just satisfied still find it easy to switch over to other banks that offer a better customer service.
Satisfaction leads to customer loyalty and this in turn translates to goodwill which is an intangible asset. It is important to emphasize that effective customer satisfaction in the banking industry is achieved through a result oriented customer service. This is the reason why customer service as a unit in the banking industry, is a call point for customer enquiry, request, complain or suggestion, the system operates on a feed back pattern whereby customers opinion are digested and translated to enhance, service quality. The service is a dynamic function and it involves a process of redefining the customer needs and most of the time thinking ahead of the customer in order to have an edge in the market or keep in tune with modern realities.
The failure and successes of any bank depend mainly on the kind of service given by the bank to its customer and the way the bank can 'make an improvement in the services given to their customers so as to be highly satisfied. It may be obvious to know that a typical study of these kinds in the past may have been carried out and factors which actually lead to customers' dissatisfaction were never discussed as it stands this work will look into these factors at both the internal and external angle extensively, the researcher will proffer solution to this outstanding problems and also make recommendations where necessary.
1.2 Statement of the Problem
The following problems will be examined as it relates to customers satisfaction and relations in the banking industry. Some of such problems to be examined or investigated are the effect of customer waiting time, what strategies to use in reducing drastically the waiting time of each customer So as to keep old and gain new customers. Obtaining overdraft facility is also a huge problem that needs to be dressed.
How banks will help themselves and their customers by facilitating loan procedures or be prompt in issuing overdraft facility to their worthy customers. External beauty they say has a magnetic force of attraction. Also to be addressed will be the external environment of the bank, how it can be made attractive e.g. provision of parking lots etc.
The public relations of the bank will also be addressed, such as attitude of employees in satisfying customers or scaring them away. Banks social responsibilities are those responsibilities banks owe to the environment they operate in. Issues like the consequences they will face if such social responsibilities are being neglected? Will neglecting or taking such responsibilities disrupt or satisfy the customers? These will also be treated in the later chapter.
1.3 Objectives of the Study
- To determine the pattern of bank customer relationship and satisfaction in the banking industry with reference to the three selected banks.
- To identify various ways through which banks can maintain effective relations and satisfaction.
- To identify factors militating against effective customer relations and satisfaction in the banking industry.
- To make recommendations on the best possible means of addressing the problems identified in (i), (ii) above.
1.4 Research Questions
- Can a customer have free access to a banker for enquiries of charges?
- What are the implications for a customer who has not his /her account for a year or more?
- Can an individual or your customer run a double account in your bank?4. How can you advise a customer to operate in the bank of CBN?
1.5 Significance of the Study
The importance of this study cannot be over emphasized. It will be relevant to the management of the banking industry, as findings from it will help the banks on how to improve the services rendered to their customer. Secondly, it will be of immense importance to update the work in terms of changes in the business environment of future researchers. This research work will also be of a great help other sectors in the service industry, examples an insurance, information service, restaurant, education etc. it will expose to them, the importance of customer relation and satisfactions and strategies on how to make successful.
Finally these works will be of a great benefit to the banks particular, in assisting them know the effects of new innovations on the customers, as the banking industry is now highly competitive, thereby adapting to changes and fulfilling the need and wants of customers effectively and efficiently.
1.6 Scope of the Study
The effective customer relation and satisfaction in the banking industry serve as the method used by the bank to gain insight into their existing and future customer base .It allows the bank to measure the amount of the customer that already exist along with the product and services that need to be offered in order to retain customers. For example, if a current customer maintains his large investments portfolio with a bank dealer, the future value of that customer to the bank is quite great, if the customer can be convinced his holding to the bank.
The customer relation and satisfaction in the banking industry must be constantly monitored for proper coding, business types, income and cost allocation along with rate analysis. For example, if the bank enters into a new line of business such as insurance, the customer relation and satisfaction system must be updated and changed for the inclusion of a new business line along with all the associated information necessary for functionality. Also the establishment of new account and customers must be proper verifying for decoding that is entered into the system.
1.7 Limitation of the Study
This study limited itself to three (3) banks in Owerri metropolis instead of the 25 official banks. This is as a result lack of finance, time and the magnitude of banks being 25 numbers. In this circumstance, the project work will lay emphasis on the pattern, problem and prospect of customer relations and satisfaction in Owerri metropolis with reference to (3) three banks.
A lot of limiting factors were .encountered and they are factors ranging from problem of sourcing for necessary data needed, to financial constraints and others associated with getting the right respondents.
Base on the topic of the study ,the limitation of the study are those problems the researcher faced in the research of the study. One of the problems faced are bad weather condition, time, poor response from the respondents, insufficient fund/capital, in explanation to these:
Time:
some of the banks sometimes give same time which other bank give for your research and sometimes marches with the researcher's school activities.
Poor Responds Form The Respondents:
The officials in these banks give poor responds to some of their customers and this only can make one loose interest in the research work.
Insufficient Fund / Capital:
As students, money sometimes is problems faced by some of us. Money for transportation from one bank to another are problems in which some students face.
1.8 Definition of Terms
Phche:
Ones deepest feeling, or ones attitude toward something or somebody. What someone thinks about a product / service being offered.
Overt:
An act that is being done openly and no longer secretly. E.g. A customer's response in service /product being offered.
Enclaves:
An area, city or country was things are done differently; culture, religion behavior and attitudes are different from one another.
Laggard and Leaders:
Laggard refers to people that is lacking and have been overtaken by others. While leaders are those that have the desired good qualities and are ahead of others.
Sigmund Fraud:
This is connected with ideas in a human mind that are not easily expressed; both might be done mistakenly thereby revealing the inner feelings of such persons.
Dwindling:
Something or persons being reduced to nothing. Where a large audience or customers gradually leave until no one remains to patronize a company.
Epoch-Making:
Trying to have an important effect on people's lives. Making people change there feelings or attitude concerning a product or service positively. In other words convincing people to change their minds.
Phyiosophy:
The study of the principle of right and wrong in human conduct i.e. knowing what is right or wrong.
Customer Orientation:
Lecturing / teaching or making the customer understand a particular product / service, benefit and consequence.
Caveat Venditor:
A French word of alerting the seller / employee to be careful /beware or take caution.
Caveat Emptor:
A French word of alerting the buyer / customer to be careful / beware or take caution.
