DELIVERY GAP ANALYSIS

Group 5

SERVQUAL Method

Service Quality: Customers thinking they're getting better service than expected

Satisfaction = f(Expectation and Perceived delivery) SERVQUAL = f(Quality, Performance) Perceived Delivery < Expectation    -->

DissatisfactionPerceived Delivery = Expectation    --> SatisfactionPerceived Delivery > Expectation    --> DelightPerceived Delivery >> Expectation  --> Astonishment

Customer perception, expectation, delivery and profitability are interrelated

Gap Analysis

Key Service Dimensions

•Ability to perform the service accurately and dependably

Reliability

•Competence•Credibility•Security•Courtesy

Assurance

• Appearance of physical facilities, equipment, personnel and information material

Tangibles

•Access•Communication•Understanding the Customer

Empathy

•Willingness to help customers and provide a prompt service

Responsiveness

Methodology: Calculating SERVQUAL Score

Preparing Questionnaire with two Statements

Few questions regarding each Dimension

Customers would give scores between 1 to 7 based on there perception (P) and expectation (E).

The difference between P & E would be added for all questions under each dimension.

Weightage would be given to each dimension

Weighted Average Score would be Calculated

Gap 3 Analysis Also Known as : 1) Service Delivery Gap 2) Service Operation Gap 3) Performance Gap

Documented

Service Quality Specifications

Actual Service Delivery

by Service

Staff

Service

Delivery Gap

Time Norms

Nature of ServiceHDFC Bank DCB

Indian Bank PNB

Cash deposits

a) Teller Counter 3-5 mins 8-10 mins 5-8 mins 3-8 mins

b) Cashier 8-15 mins 8-15 mins

Cash Withdrawals at teller counter 3-5 mins 8-10 mins 10-20 mins

10-20 mins

Issuance of demand Drafts 7-10 mins 10-15 mins 30 mins15-20 mins

Payments of Demand Drafts 7-10 mins 10-15 mins 10-15 mins10-20 mins

Redemption of Fixed Deposits 5 mins Same Day 15-25 mins

15-20 mins

Opening of a New Account 10-15 mins Same Day 20-25 mins20-25 mins

Collection of Cheques

a) Local As per CCIL Max 7 Days 2-3 days 2-4 days

b) OutstationMax 14 days

Max 14 Days 14-21 days

10-14 days

c) Foreign 2-16 daysmax 30 Days - -

Factors

Role Ambiguity

Role Conflict

Lack of teamwork

Technology-Job FitEmployee-Job

FitPerceived Control

Supervisory Control

Systems

Measures to minimize the Gap

Bank’s PerspectiveCustomers‘ Perspective

Providing clear roles Removing conflicts Matching employee job fit Matching technology job fit Recognizing and rewarding

employees who deliver superior service

Give customer-contact employees sufficient flexibility

Build teams and teamwork

By performing their role effectively

By asking questions By taking responsibility of their

own satisfaction By complaining when there is

service failure (surveys indicate that only 5% of the customers do actually report their complains to the service providers)

By filling up the required forms properly so that the service staff won’t take time verifying it

Customer Satisfaction Survey

very good good ok bad very bad

24

72

90

30

0

Ambience

very good good ok bad very bad

18

9096

12

0

Attitude of bank staff

very good good ok bad very bad

30

8490

6 6

Level of product knowledge with service staff

very good good ok bad very bad

42

90

66

18

0

Processing time

Banks’ Insights

Key Dimensions Bank of Maharahtra

DCB Indian Bank

Responsiveness 4 3 4

Attitude 4 3 3

Tangibles 5 2 5

Empathy 4 4 2

Reliability 3 4 3

Bank of Maharashtra

Key Observations Staff: friendly and cooperative Keen on marketing the new products Perspective about gap 3 Claimed to serve the customers as per the

norms. Service delay due to postal delay for

transactions that require outstation clearances, transfers etc.

Measures Employing additional staff

Development Credit BankKey Observations The time norms (TAT) not displayed. Details provided to the customers as and when they enquire. Role ambiguity, was observed in the branch. According to them the customers are well versed with the norms.

Perspective about gap 3 Factors responsible are: technical problems peak hour rush more priority given to HNI customers the transaction size and type. inaccurate details provided by the customers.

Indian BankKey Observations new and small branch less rush and very less workload. intense competition less marketed.Perspective about gap 3: no ‘peak hour rush’ experienced. Postal delay and technological interruptions