This
case is of the JYSKE BANK. It was established in 1967 with the merger of 4
Danish banks. It is the third largest bank in Denmark. In this case it is
focused that JYSKE BANK has a strong ground in the banking market of Denmark
and they are the market leader of customer satisfaction by utilizing their
model called JYSKE FORSKELLE. JYSKE
BANK practices this model to satisfy their valuable customers.
The
model’s name JYSKE FORSKELLE has the meaning of JYSKE differences. That means,
although initially the bank followed the traditional banking approach then it
felt to bring some differences from its core values in customer services
comparing to its competitors. The main goal of this difference was changing
product oriented JYSKE BANK to customer oriented bank.
JYSKE
bank is introducing the 5 dimensions of service quality in its core values of
operations. This relationship between core values and 5 basic service quality
dimensions are –
Core Value
|
Service Quality Dimension
|
Effective and sustainable
|
Reliability
|
Open and honest
|
Assurance
|
Commonsense
|
Responsiveness
|
Genuine interest and Equal respect
|
Empathy
|
Physical innovations in service
|
Tangible
|
Question
1
As of
the mid – 1990s, what was JYSKE Bank’s competitive positioning, that is, what
did it do for customers relative to its competitors?
The JYSKE BANK places great emphasis
on its three groups of stakeholders, shareholders, to treat clients and
employees, with the same respect. If the balance in favor of one or two groups
shifts, is the long-term expense of all groups.
In mid 1990s JYSKE was dealing a group of customers with one
employee. For that reason possibility of serving each customer simultaneously
was pretty difficult which was making fellow customers very annoying and
disappointed. In that case customers’ incompatible needs were negatively
affecting each other.
Employees were provided ID cards with dull images that were not
indicating friendliness in providing services. Moreover loan processing
criteria was pretty critical both for employees and customers. These were
hampering service popularity and long term satisfaction among customers. Beside
that employees were no feeling themselves empowered enough to be one of the
important stakeholders of the organization.
The core values of the Bank are its fundamental basis. In relation
to customers and staff, have the following characteristics which JYSKE Bank
makes it unique:
Common sense
|
Open and honest
|
Different and unpretentious
|
Genuine interest and same attention
|
Effective and sustainable
|
Academy of management led these same values to reevaluate how the
Bank has with their customers. The manager knew that if these values, they
change their conservative attitude of the past and a service, which should be
distributed and innovative Bank wished to remain faithful to the customers
within a competitive banking sector.
Question
2
As of
2003, what was JYSKE Bank’s competitive positioning?
Originally
JYSKE Bank was following an old-fashioned banking system. Its competitive
differentiation strategy was originated from its core values and differences.
Those are consisting equality, transparency, honesty, respect and efficiency.
The goal
was to embed firm’s values in each of the external customer of its business and
operations and stand out from the competition. In the mid-1990s, JYSKE bank
transformed and positioned itself as a very customer-focused bank. Then they began to promote relationships with customers to
understand their needs and solutions in accordance with their strategy.
Its only target was less risk bearing customers those are ready to afford a
premium price and were comfortable with the banks candid personality and
portrayed image.
This strategy went beyond the traditional product-centric
approach, as most of the banks have taken it over. JYSKE Bank differentiates
itself on the aspect of service provision and it invested in tools, employee
capability, solutions and increase spending time with their customers.
JYSKE
introduced a new competitive positioning in its branches and all sorts of
operations. New positioning is shown below -
Out of Box Services -
·
Developing a niche marketing and targeting the
right set of customers.
·
A single customer is assigned to a small group of
employees in each of the branches of JYSKE bank to ensure better and quick
service with compiled effort.
·
JYSKE bank is keeping friendly picture employees
on the ID card.
Value addition -
·
To be nice to every customer to ensure satisfaction.
·
Making available time for customers.
·
Caring customers as much as possible
·
Focusing on niche marketing for extremely
valuable customers.
·
Training for building team and provide adequate
services.
·
Empowering employees with training and allotting
enough power to make instant decision at least at the branch level.
·
JYSKE bank is offering attractive incentives to
their employees to increase satisfaction and commitment to the organization.
Cutting Edge -
Here
tools developed means – Customers’ needs are identified. And the combine effort
of these tools and employees are cutting edges.
·
JYSKE bank developed IT tools to help customers
in identifying customers’ problems and providing proper solutions.
·
Both employees and the tools are providing
appropriate solutions to customers.
Service & culture that differentiates–
·
More employee centric approach to maintain
customer satisfaction.
·
Empowering employees for decision making.
·
Employee training for fro better service
orientation availability for customers.
·
Changing the style of delivering financial
services to customers.
Question 3
What did JYSKE Bank change to
enable it to deliver its new competitive positioning?
Any
product based or service organization can bring some differences in their
corporation. JYSKE bank is a service organization that is required to do some
competitive positioning. It introduced some tangible and intangible differences
in its organization to do so. To maintain the satisfaction among existing
customers and gaining new customers Jyse brought these tangible and intangible
changes into its service system.
Some
Tangible changes those were brought in JYSKE Bank’s operation:
Account
Team:
This was
started when each employee of the branch to serve as primary point of contact.
There were many problems. Gradually JYSKE bank identified that many valued
customers are coming to the bank simultaneously. Employees are busy with customers who were
arrived first. But JYSKE bank were committed to provide individualized service
to each customer. This situation was hampering their commitment. Then the
accounting tem of that bank introduced the team based performance criteria.
That means each of the customer of JYSKE
bank were assigned to a particular tem. The team members were looking that
problem by working together. The facility from that tem based performance was
that providing each customer with great ease, providing individualized service
to each customer and maintaining customer satisfaction in highest level by
keeping close physical proximity with each customer.
Branch
Design:
JYSKE
bank spent huge amount of money to redesign their bank branches. The purpose
was not only to decorate it to look attractive. There were some other reasons
to make their branches customer friendly. So that customers can take their
services with a great ease and comfort. Some of the beneficial effects of the
redesigning branches are -
Interactional
attractiveness - JYSKE bank were creating interactional attractiveness
among valuable customers through architectural and design changes. They are
delighting their waiting customers with coffee, fresh juice and with a play
center for children.
Signifying
Quality - Employees layouts in the branches signifies quality of the
service. Because, 3 or 4 employees were sitting at a single large round table
to provide quick services to customers.
Reinforcing
Openness – IT system of all branches were designed to structure interaction
between team members and customers. Because employees computer screen were
placed like that customers can see them and ensured openness to customers.
If
conversation goes long there were meeting rooms those were ready to give
services with feeling of home.
Details:
JYSKE
bank tried to show that their employees are working with genuine interest to
serve customers properly. For that they hired professional photographer who
worked with employees and captured the genuine interest in employees’ eyes.
That
means JYSKE BANK ensures the physical facilities for customers. These physical
conditions ensured the proper tangible differences in branches of JYSKE BANK.
Some
Intangible changes those were brought in JYSKE Bank’s operation:
To
enable the competitive positioning JYSKE Bank also did some intangible changes
in its operations.
Training:
JYSKE
Bank provided adequate training to their employees. It helped the team based
service strategy of JYSKE Bank to provide service in the way out of traditional
retail business.
Branches’
Empowerment: the decentralization of loan process
As
employees are trained properly they are also given some additional power to
provide the service with a great ease.
Generally
in traditional banking services when customers are arriving for the sake of
arranging loan there are some provisions of allowing getting loan. If a
customer was to apply for a loan the entire procedure used to take a long time
as the branch manager used to write a formal application and forward the
application to the regional level for approval. This is a lengthy and time
consuming process.
To get
rid of this hassle JYSKE BANK empower their employees with proper training to
approve the loan as soon as possible. JYSKE make the particular employee the
owner of the loan. This system was implemented to affect the service internally
and positively. Managers became enabled to contact to customers and collect
information properly. And quality of data collected is increasing. For that
reason manages are approving small loans almost instantly. All the employees
were told – “When in doubt, ask. However, if there is no doubt, go ahead”. From this we can get ideas about the benefit
of empowering employees and improving efficiency of the service.
Question 4
How did JYSKE Bank implement
those changes?
JYSKE
bank brought some changes in its management style. JYSKE used many tools, trainings
and JYSKE values to link them together through the share of values of their
employees. JYSKE bank implemented these in changing especially, their human
resources.
The Bank reached its new customer-oriented competitive method. It
is known as STP and goes through the positioning in 3 stages - segmentation,
targeting and finally positioning. JYSKE bank implemented it in following ways
-
1)
Segmentation is done by following ways –
Private Banking
Corporate Banking
Consumer Banking
2)
Targeting is done by following ways –
Danish families
Small to Medium Danish companies
3)
JYSKE bank finally positioned their bank as – A
bank which makes a difference for the customer.
## JYSKE Bank was selecting their employees not only depending on their
banking skills; they are also evaluating the social abilities of each and every
employee which will go along with service mindedness and some JYSKE values such
as: openness to customers and genuine interest in other people. JYSKE bank
hires employees only if employees are consistent to JYSKE values to ensure
satisfaction of customers.
## JYSKE Bank made employees’ development as every employee’s
responsibility. JYSKE helped in development of employees by investing more on
it. But they kept the development of every employee within the JYSKE values.
## JYSKE bank offers a few monetary incentives to its valuable employees
to keep them motivated and perform better. IT is the part of reward facilities
based on performances. JYSKE provides three types of incentives - stock,
one-time payments and annual raises. The portion of incentives depends on the
overall performance of the bank. If JYSKE bank’s performances are growing, then
the portion of incentives are increasing. Thus employees are getting more
motivation to perform with customer satisfaction.
## JYSKE bank is committed to both customers and their valuable
employees. The promises those they are making are being fulfilled for sure.
Also JYSKE bank is investing more in employees, system and infrastructure to be
the top one in Scandinavian banking market.
Conclusion
At last after studying the case and I can say
that, JYSKE bank’s present competitive market positioning is pretty right and
it is going well. But beside that it must handle daily customer encounters
properly and if any failure occurred then JYSKE must fulfill service recovery
expectations of each customer by following service recovery strategies
properly.
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