River City National Bank

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Discussion of the situation

River City National Bank has been successful over the past 10 years of its operation. This has made the bank to be characterized by a fast growth. As a community bank, River City National Bank has managed to develop and maintain a positive public image. The high standards results from effective customer service delivery mainly from Garry Miller who is the bank’s president.

Despite the fact that the firm’s fast growth is a positive trend towards the firm attaining a high competitive advantage and hence its survival in the long term, there are a number of challenges that the firm is facing. One of the main causes of these challenges is lack of sufficient facilities to ensure effective customer service.

For example, there is only one commercial teller. In addition, there are three booths which are used in paying and receiving. These facilities are not sufficient considering the fact that the bank has a large number of customers. The resultant effect is that the customers are usually overcrowded.

Despite the firm’s management team incorporating long working hours, the problem still persists. As a result, there has been an increment in customer complaints since they have to wait for long hours before they are served. In addition, the tellers are rude to the customers. This has culminated into reduction in the level of customer satisfaction.

In an effort to solve the problem, the firm’s board of directors made a decision to put up a remote drive-in bank near to the main bank. The new facility enabled the bank to reduce over-crowding in the bank. However, the firm did not create sufficient market awareness of the new remote drive-in bank. This culminated into under-utilization of the facility by the customers.

The firm is also faced with fluctuation in demand. The bank is usually overcrowded during Fridays and on paydays while other days of the week are not very busy. There are also instances of customers being turned away in the process of balancing during peak days such as Fridays.

Service delivery in the remote drive-in is unusually slow. This arises from the fact that some customers are not well prepared when coming to the bank which increases the time required serving a single customer. The customers are recommending the bank to extend its working hours to 9 pm on Fridays. However, some tellers are against the idea.

Would the wait time decrease if the bank developed specific lines for the different transactions?Segmenting customers

Developing special lines for different transactions would play a significant role in the firm’s management team effort to reduce waiting time. This arises from the fact that there would be an increment in the degree of effectiveness and efficiency amongst the tellers. The resultant effect is that there would be a reduction in waiting time. From the study, it is evident that some customers are a cause of slow service delivery.

This arises from the fact that they are not prepared when going to the bank which culminates into an increment in the time required for a teller to serve a customer. Long waiting time can result into an increment in the level of frustration amongst the customers. There is a high probability of frustrated customers not returning to the bank again for various services upon creation of an impression of poor service delivery.

In order to attain this, the firm’s management team should segment its operation according to the various transactions undertaken. For example, if a particular group of customers require a particular service which can be executed within the minimum time possible, a special line should be put in place.

This means that they will not waste time waiting for slower customers to be served. This will culminate into a significant reduction in the level of customer complaints.

Should River City National Bank reduce staff?

Currently, River City National Bank is in its growth phase which is evident in the increase in business activity. The firm has experienced an increment in its customer base. In order to serve its customers effectively, the firm’s management team increased its staff. This is inline with the firm’s mission of ensuring maximum customer satisfaction.

Decision to reduce the staff would culminate into ineffective customer service. Considering the increase in the number of customer base, the firm would experience an increase in waiting time. In addition, there would be an increment in the amount of work load amongst the tellers and other staff members.

This would have the effect of increasing the level of stress amongst the firm’s staff culminating into a decline in the level of job satisfaction and hence the productivity of the employees. Having the right number of staff is one of the ways through which a firm can be able to improve its competitive advantage.

How can Ms. Shang-ling Chen’s study of the number of transactions be useful in making the bank more efficient and increase customer satisfaction?

By studying the number of transaction conducted in the bank, it is possible for the bank to improve its efficiency of operation and also the level customer satisfaction.

This arises from the fact that the firm can be able to determine the effective number of tellers it should have for it to ensure that customer waiting time is minimal. In addition, studying the number of transactions conducted in various days of the week, it is possible for River City National Bank to be effective in allocating tasks to staff.

This arises from the fact that the firm would be able to identify days and hours in a week when maximum customer support is required.

From the study, it is evident that the number of transactions conducted during the morning hours is relatively higher compared to those conducted in the afternoon. In addition, the number of transactions conducted on Fridays is relatively higher compared to other days of the week. The findings of the study would enable the firm’s management team to formulate an effective operational strategy.

Hypothesis: “Hiring an evening shift just for Friday, may resolve customer complaints.”

Fridays is one of the days when the bank experiences a large number of transactions during the morning and afternoon shifts. Considering the fact that the banks operational policy is to close at 7 pm in the evening, there has been an increase in the level of customer complaints. The complaints arise from customers being turned away before they are served which is an indication of lack of courtesy.

By hiring an evening staff on Fridays, there is a high probability of the firm resolving customer complaints. Extending the working hours on Friday is a positive gesture that the firm is sensitive to customers’ complaints. Inclusion of an evening shift on Fridays means that the afternoon shift would be released from their duties.

This would ensure that service delivery is optimal since they will not be tired. Paying attention to customer’s complaints is one of the ways through which a firm can increase the level of customer loyalty.

SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis for the company

Strengths

A strong management team which is committed at ensuring a maximum level of customer satisfaction.
A well organized operation schedule which ensures that the employees are not very much tired.
Long working hours which increases flexibility amongst the customers.
The firm has managed to develop a positive public image which has culminated into an increment in demand for the firm’s services.

Weaknesses

Lack of proper customer awareness of the firm’s new facility resulting into underutilization.
Long customer waiting time

Opportunities

A high probability of growth due to increased business.
Establishing special lines for specific transaction can result into an improvement in effectiveness and efficiency of service delivery.
By creating market awareness, the firm can improve service delivery to its customers.
Improvement of service delivery through reduction of overcrowding by setting other facilities.

Threats

Some of the firm’s staff are rude to the customers
Employee resistance to the firm’s proposal to increase working hours. This can result into lack of job satisfaction and hence reduction in their productivity.
Fluctuation in demand leading into inefficient service delivery.

Conclusion

From the analysis, it is evident that the River City Bank is facing a number of challenges in its operation. One of the challenges facing the firm relates to reduction in the level of customer satisfaction. In addition, the firm has witnessed an increment in the level of its business activities. This has culminated into overcrowding within the firm.

In order to deal with the problem of overcrowding, the firm’s management team should establish additional outlets. This would enable the firm deal with increase in the number of its customer base. The branches established should be strategically located to ensure ease of access by the customers.

In addition, sufficient market awareness of the new branches should be created. Establishment of additional branches would play a significant role in shifting a significant number of customers from the current branch thus avoiding crowding.

The firm’s management team should also consider establishing a network of Automated Teller Machines (ATMs). These machines would ensure efficient delivery of various banking services across the country such as making deposits and withdrawals. Incorporation of ATMs would enable the firm to increase the level of customer satisfaction.

This arises from the fact that a high degree of flexibility amongst the customers will be attained since they will not be required to adhere to specific working hours for them to undertake certain tasks. For example, the ATMs would increase the customers’ ability to access their accounts at all times.

Considering the high rate of technological innovation, the firm’s management team should consider implementing the emerging technology. One of the technologies which the firm should integrate is internet banking. Apart from ensuring effective service delivery to its customers, internet banking will also enable the firm to increase its customer base considering the increase in demand for it’s the firm’s services.

Long waiting time is one of the major causes of an increment in the level of customer dissatisfaction. In order to reduce customer waiting time, the firm’s management team should segment its operations depending on the transactions being undertaken. Segmenting will not only result into reduction of waiting time but also an improvement in operational efficiency of the employees.

In addition, the firm should ensure that necessities such as pens and deposit slips are strategically located. This will ensure that the customers are well prepared before approaching the tellers. Frustrations resulting from long waiting hours can also be reduced by provision of reading materials such as new magazines and newspapers. In addition, the firm should also install television sets within the banking hall.

Rudeness is also one of the causes of the increment in the level of customer dissatisfaction. Customer dissatisfaction can result into a reduction in repeat purchase behavior amongst the customers. This presents a threat in a firm’s effort to survive in the long run as a going concern entity.

In order to solve this problem, the firm’s management team should incorporate the concept of customer focus. This can be attained by training the tellers and other staff members on how to be friendly to the customers.

One of the issues which should be emphasized is ensuring that the employees know their customers and being friendly to them. This will play a significant role in developing customer satisfaction since it will help in overcoming negative feeling amongst the customers while waiting to be served.

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