Assume that you are a manager of a bank branch.Write a list of the implications of intangibility for you firm?
As a manager of a bank branch, the intangibility of the services offered by the firm has several implications. Here are some key considerations:
1. Customer Perception: Since the services provided by a bank are intangible, customer perception becomes crucial. It is important to tangibilize the intangible by creating a positive, trustworthy, and reliable image of the bank through consistent branding, strong customer service, and transparent communication.
2. Customer Expectations: Since customers cannot physically see or touch the services being offered, their expectations of quality, efficiency, and value may vary. Managing and meeting customer expectations becomes critical to maintain customer satisfaction and retention.
3. Service Quality: The intangibility of banking services makes it challenging to assess and evaluate service quality in real-time. Implementing customer feedback mechanisms and incorporating technology-driven solutions (such as online surveys, chatbots, or interactive feedback systems) can help track and improve service quality.
4. Trust and Credibility: Trust plays a vital role in the banking sector, as customers rely on the bank to safeguard their money and personal information. Building and maintaining trust becomes crucial in the absence of tangible cues. The bank needs to establish robust security measures, maintain confidentiality, and demonstrate ethical practices to instill confidence in customers.
5. Differentiation: In a highly competitive market, banks need to differentiate themselves from competitors to attract and retain customers. Since many banking services are similar across different institutions, intangible aspects like personalized customer experience, expert financial advice, innovative service delivery, and superior digital platforms can help set the bank apart.
6. Employee Training: Due to the intangible nature of banking services, employees must possess the necessary knowledge, skills, and competencies to effectively communicate and fulfill customer needs. Regular training sessions should focus not only on technical knowledge but also on developing strong interpersonal and problem-solving skills.
7. Effective Communication: With intangible services, clear and effective communication becomes crucial to manage customer expectations, resolve issues, and convey complex financial information. Developing a customer-centric communication strategy and providing adequate training to employees can ensure consistent and reliable communication with customers.
To address these implications, as a manager, you can focus on developing a strong customer-centric culture, implementing robust service quality management systems, investing in employee training and development, and leveraging technology to enhance customer engagement and satisfaction.