Banks and Customer Service Delivery: Attracting and Retaining Customers in the Ghanaian Banking Sector

Abstract

The influx of foreign banks into Ghana has increased the competition in the banking sector. This study explores issues relating to making customer service effective as one important area of competitive advantage for banks within the financial sector. The study used a structured questionnaire as the main primary data collection tool. In addition, related works in this area were also reviewed and used as secondary data to support the primary data in the analysis. The study found three main issues confronting the banks. These are: provision of quick and efficient service, ability of the staffs to resolve problems, and privacy of customers in the process. It also found out that there is effective complaint system in place with frontline staffs tracking customer complaints and the branch and customer service managers enforcing their resolutions. However, most complaints were about pathetic attitude of tellers. The notable positive development has led to customer attraction and retention. The study recommended the discontinuation of the concept of specialization in dealing with specific customers, sufficient training and periodic orientation of staffs, enhancing the privacy of customers through seclusion of one-on-one discussions from the public eye and rewarding high performing staffs to promote good attitude towards customers.

Key Words: Customer service; customer attraction; customer retention; customer complaint system