Problem Resolution: Key to Customer Satisfaction and Retention
Student Name
University of Phoenix
Foundations for General Education and Professional Success
Gen 200

September 17, 2010

Resolution: Key to Customer Satisfaction and Retention Customer retention always has been a major concern for banks. Despite the initiation of many strategies to improve customer satisfaction, a revolving door still exists. In thise paper I will examine the cause of customer attrition, the effect technology has on customer satisfaction, and a possible solution for the problem of customer retention.

The Rrevolving Ddoor Thousands of banks operate in the United States, all of them offering the same products with little variation or distinction from one bank to the other. Non-traditional banks and other financial institutions compete with bank customers by offering the same products as banks. Banks must be exceptional to compete with their competitors and acquire and retain new customers (Fest, 2005). Good! Most customers choose a bank for its the quality of service. Many will even pay a higher premium for preferred treatment. Long wait times, rude customer service representatives, and high fees go a long way to making customers unhappy. To combat thesethe problems banks have implemented schemes such as greeters or lobby managers to direct lobby traffic, on-stage behaviors employees must follow in customer contact areas to delight customers and low or no fee deposit and credit products. Unfortunately, despite huge investments in Customer Relationship Management (CRM) banks still find their churn (attrition) rate increasing (Fest, 2005). Banks continue to close almost as many accounts as they open in any given period. Undoubtedly, the high churn rate is a direct result of customer satisfaction (dissatisfaction) with bank service quality.