The Role of Complaints Handling System in Enhancing Customer Satisfaction
CHAPTER ONE
OBJECTIVES OF THE STUDY
The general objective of this study is to examine the role of complaints handling system in enhancing customer satisfaction, a case study of First Bank PLC. The specific objectives include the following:
- To examine customers’ opinion on the level of complaints handling system in First Bank PLC.
- To ascertain the influence of complaint log book in policy formulation in First Bank PLC.
- To find out the records of prevalent customers’ complaints in First Bank PLC.
- To investigate the approaches of managers in in First Bank PLC in handling customers’ complaints.
- To find out whether retention resulted in all cases after the resolution of customers’ complaint.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
CONCEPTUAL FRAMEWORK
BANKING INDUSTRY
The banking industry in Nigeria comprises of the commercial banks, the merchant banks and the development bank. At the apex of the industry is the central bank of Nigeria (CBN). The commercial banks provides services like acceptance of deposits, granting of short and (very recently) medium term loans to customers, safe-keeping of valuables, offering of pieces of advice to investors ect. The merchant bank on the other hand provide medium and long-term loans etc. The development banks services the development activities by making available about medium and long-term finances for this purpose. The central bank functions regulate the activities of these banks.
Easily, we can point at a member of factors that may be contributing to the unhealthiness and instability in the banking sector. Such factors as unstable macro-economic and fiscal policies, unethical and unprofessional practices, as well as inadequate supervisory activities, rank high on the scale. Developments in the Nigerian political economy since the mid 80s have greatly led to changes in the structure and art of banking. The period witnessed the proliferation of banks and other financial institutions. From CBN annual report (1994), there were 66 (sixty-six) commercial banks and 54 fifty-four) Merchant banks in Nigeria. According to the CBN diary 2003, as at June 2002, we had the following licensed financial institution 89 (eighty-nine) commercial and Merchant banks, 6 (six) development finance institutions, 97 (ninety-seven), finance companies and 125 (one hundred and twenty five) Bureau de change companies in Nigeria.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
SUMMARY OF THE FINDINGS
The study’s overall objective is to assess the the role of complaints handling system in enhancing customer satisfaction using First Bank Plc as case study. The study further find out the records of prevalent customers’ complaints in First Bank PLC, investigated the approaches of managers in First Bank PLC in handling customers’ complaints and find out whether retention resulted in all cases after the resolution of customers’ complaint.
The research adopted the survey descriptive design and with the aid of convenience sampling method, the researcher conveniently selected eighty (80) participant who are management and staff in First Bank PLC. Self- structured questionnaire was issued to the respondent of which seventy-seven (77) responses were retrieved and validated for the study. The study made use of of descriptive analysis where data from field survey was analyzed using simple percentage, mean and standard deviation presented in frequencies and tables.
CONCLUSION
In Nigeria, some companies see the potential benefits of effectively handling customer complaints and the First Bank Nigeria Limited is not an exception. Incorporated as privately operated banks in 1894 with a mission to, amongst other things provide excellent value to customers, First Bank Nigeria Limited’s drive to serve customers has been unflinching, influencing the adoption of several customer service and customer relationship management practices. At some point in their operations, every organization has to deal with dissatisfied customers, some of who may make complaints. How the company handles the complaint resolution process would determine whether the customer is retained to the company or not. Customer retention is an important factor to consider is dealing with customers and conducting business to satisfy customers. When companies deploy customer complaint logbooks, the process of complaint resolution is further enhanced. The customer complaint logbook serves as a record of the complaints and recommendations of customers that when factored into policy decisions, can improve the company’s customer service operations and public image.
Findings of the study reveals that:
- Customers’ opinion on the level of complaints handling system in First Bank PLC is high.
- Complaint log book has a positive influence on policy formulation in First Bank PLC.
- Approaches adopted by the manager includes listening to customer complaints, being understanding, and jotting down salient points to gather relevant facts, discussing the complaint and following up with effective solutions was a very effective complaint handling process.
- Retention resulted in all cases after the resolution of customers’ complaint.
RECOMMENDATION
- Improve service delivery performance by responding quickly. In order to respond quickly to any customer complaints, every customer should be treated equally.
- The job of handling customers on a regular basis demands certain skills. The company must first ensure that the right people with the right skills and attitudes are employed for customer service.
- To effectively handling complaints from the customer, service provider needs therefore to focus on that particular customer problem to come out with the best and appropriate solution so as to keep him satisfied.
- To effectively being responsive to complaints, the organization needs to provide guidance to staff on how to respond to and prioritize They should be aware of internal complaint handling processes including how to assess complaints which may be resolved quickly and those which require investigation.
- To all the workers, the complaints should be acknowledged promptly. Complainants and, if applicable, the person who is the subject of the complaint, should be kept informed of progress and the outcome of the complaint. Complaints should be addressed promptly in order of urgency and staff should be aware of any target timelines for resolving complaints.
REFERENCES
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