PEOPLE, SERVICE AND PROFIT AT

SUBMITTED BY: ABHISHEK SOOD (SMBA12041) PALLAVI GHAI (SMBA12021) SARANYA SHUKLA (SMBA12067)

INTRODUCTION Jyske Bank was established in 1967 after merging four Danish banks operating in Jutland. Jyske Bank had been considered as a typical Danish bank which is prudent, conservative, wellmanaged and undifferentiated till the late 1990s. However, with the new strategy, the bank developed to guide differentiation from the mid of 1990s among great amount of Danish banks in customer satisfaction. Within this report, how a service firm repositions itself and then the analysis of specific strategies related to different gaps in the Service Quality Gaps Model will be briefly shown. The first approach of Jyske Bank to repositioning process was determining its core values as the main features of Jyske Differences. These core values were that the bank should have commonsense, be open and honest in both word and action, be different and unpretentious, have genuine interest and equal respect for people in their three groups of stakeholders, shareholders, customers and employees, and be efficient and persevering. Later, understanding these core values and the importance of soft factors to customers, Jyske Bank made improvement and development to service delivery by tangible changes, intangible changes and communication. Jyske Bank made tangible changes by reorganizing around account team primary point of contact so that their customers are well-served and understood, redesigning branches with modern architect, warm colors, original art and round tables, letting customers sit next to bankers, providing coffee for customers, juice and play area for kids in order to make customers feel more welcome. Besides, the bank focuses on every detail like employees photo on business card. Moreover, Jyske Bank was also active in making intangible changes throughout the bank. These differences involved training employees in team building and customer service (caring, asking, listening), empowerment of employees, changing management style to thinking strategically and leading change through coaching, selection of new hirers for social abilities, values and attitudes, using IT tools and creating Jyske way of life. No doubt that these overall changes played an important role in the banks repositioning. The success of Jyske Bank is thanks to the awareness of the customer gap between customer expectations and customer perceptions in service business and the delivery of service of which the quality meets all five dimensions. They were able to identify what customers expect from banking service in general and in Jyske Bank services in particular. Jyske bank focused on the

main targeted segment which includes families and small to medium sized companies but not for everyone. Research was also made to point out that the customers were interested in and responsive to a Jyske type bank and that they were also interested in softer attributes of service not just price and location. Each customer of Jyske Bank is assigned to an account team that is willing to get to know them individually, listen to, help them and customize solutions to fit their needs. These actions reflect accurately and faithfully the responsiveness, assurance and empathy dimension of service quality perceptions. Tangibles are also another dimension that helps Jyske bank to generate service quality strategy for having relevant service designs and standards. New physical representations of the bank are new IT systems helped employees take customer through a process to determine their needs and the right solutions, computers are visible to customers so they participate and are aware of process and decisions, new branch design-warm,friendly,family-oriented etc.Over the years ,Jyske bank also made great efforts to deliver the right service standard via a giant variety of actions such as designing support system and technology for employees, training employees, having management coaching and leadership, empowering in decision making of branches, making efficient internal communication with video of Jyske differences, Jyske fun. Finally, aiming at matching real performance to promises, on one hand, Jyske bank and employees had been working hard on the internal changes and growth to make sure that they can consistently deliver Jyske differences to customers. On the other hand they focus and rely on word of mouth communication as the main promotional activity but not any other advertising. Reality shows that the Jyske core values and differences did give the bank a proper way to keep the balance among their three stakeholders, customers, employees and shareholders and close all the gaps between them and customers. Getting high satisfaction from customers, Jyske bank really achieved the customer loyalty and increase in profit.

7PS OF MARKETING SERVICES

Product - Banking Products & Services

Place -Denmark Price -Similar to other offerings, but with a slight premium. Promotion -Only WOM. Process - IT system, Online Investor profiles., reducing turnaround time, Physical Evidence - Coffee bars, Play center, special design meeting rooms, same type of chairs for employees and customer, (employee id photos)

People -Account teams, training, motivation, and empowerment.

THE JYSKE VALUE CHAIN

Internal Service Quality Rising Business Volume and Profits Staff Retention

Client Loyalty

Staff Satisfaction

Client Satisfaction

Staff Efficiency

External Quality

QUESTIONS What is Jyske Banks new positioning or competitive differentiation strategy? Answer: The bank positioned itself by approaching the core values. These core values form an essential part in any organization. These are: Common sense Be open Honest in both word and action Be different and unpretentious Have genuine interest Equal respect for stakeholders, shareholders, customers and employees. Be efficient and persevering

Competitive PositioningTo be competitive in the market, research was carried out which showed that Dutch families (60% Retail) and small Danish business (40% Commercial), were favorable towards the idea of bank that had a persona and believed in what it stood for (ZEITHMAL, BITNER and GREMLER 1996).The main point of differentiation came out to be customer relationship because it served the main linkage between the bank and the customer. Also, in order to be more competitive in the market, the bank targeted on service innovation and developing tools. They tried to be economical by utilizing the demographic segmentation and avoiding the high cost of maintains services. Tangible Aspects To improve on the tangible aspect of the bank, it made changes by redesigning the branch. More customized services were being offered to the customers to satisfy their personal needs. Moreover more efficient customer oriented account teams were added which dealt with the customer on one to one basis. Intangible DifferencesWith respect to intangible things, special training was provided to all the employees who included team building and customer service sessions. This training could help the employees to handle the customers in a better way. Also, Jyske management strongly believed that value is created through decisions and encouraged empowerment of not only employees but the whole branch with the managers to set the examples through their leadership and management style. What changes did the bank make to get to its new position? What effect did these changes have? Tangible changes: Reorganizing around account team primary point of contact so that their customers are well-served and understood.

 redesigning branches with modern architect, warm colors, original art and round tables, letting customers sit next to bankers, providing coffee for customers, juice and play area for kids in order to make customers feel more welcome. The bank focuses on every detail like employees photo on business card. Intangible changes: Training employees in team building and customer service (caring, asking, listening) empowerment of employees Changing management style to thinking strategically and leading change through coaching, selection of new hirers for social abilities, values and attitudes, using IT tools and creating Jyske way of life. designing support system and technology for employees Making efficient internal communication with video of Jyske differences, Jyske fun. New physical representations of the bank are new IT systems helped employees take customer through a process to determine their needs and the right solutions, computers are visible to customers so they participate and are aware of process and decisions, new branch design-warm, friendly, family-oriented etc.The effect of these changes are clearly visible on account of the increase in customer satisfaction and highest customer satisfaction level among competitors. Analyze Jyske Banks success using the Service Quality Gaps Model found in Chapter2. What are Jyske Banks strategies for closing the 5 gaps in the model? Customer gap refers to the difference between the expectations of the customer and their perceptions. In this case the bank was a typical Danish bank with features of prudent, conservative, unremarkable and undifferentiated.Their main target were the customers who can invest in large at a premium. A customer in this case basically expects high standards of the bank. They expect the employees to treat them well and be soft and well spoken.Therefore, the target market expected a high quality service from the bank.

The customers were receiving services where the store design and service standards go hand in hand. The bank identified the areas in which they were lacking and thus took a step to fill the customer gap. They implemented Jyske differences to differentiate between Jyske and its competitors .The main changes resulted in an open layout that appears more like a wine bar or clothing store. Customers were greeted by a concierge at the Ask Bar. Free coffee was made available at the coffee bar; bank products were displayed just like in a super market so that they can be inspected can be inspected. Transactions could be done at the Money Bar. Alternatively, customers can relax in the Oasis area to enjoy one of the flat-screen TVs that adorn the walls. All these efforts were to fill the gap between the customer expectation and perceptions. The success of Jyske bank is only because they were aware of this gap and took measures to overcome it. In your opinion can Jyske Bank sustain its growth and success? Would you invest in Jyske Bank? Yes, Jyske bank can sustain its growth and success as earlier also they made constant efforts to fill the gap. In future also, theyll make sure to provide better services to the customer. The bank believes in the RATER model which can be shown as below: Responsiveness Assurance The bank follows the policy of being open and honest all the time. To keep each other upto date on relevant matters and dont misuse and misquote information. Respect agreements entered. They accept and rectify their mistakes. Accept new ideas and constructive criticism. Allow common sense to exist when they face issues They follow existing rules and regulation. They accept that control measures are necessary to a certain degree.

Empathy Reliability Tangibility Allot a customer to a group of bankers Cheerful work environment Be competent and preserving Focus on the competencies Allow employees to assume responsibility on day to day basis. Treat people as individuals. Focus on a long lasting relationship with shareholders, customers and employees. Understand the needs of the customer and provide service accordingly. Provide genuine interest and equal respect to all customers