The major problems facing the credit card division are a lack of communication between the marketing and operations departments, and inaccurate report distribution to over 1,200 institutions. Steps to develop a good performance system include measuring employee satisfaction and productivity, creating customer value, and linking these internal measures to external customer satisfaction and loyalty metrics. Internal and external data are related through cause-and-effect linkages, but real service level is best measured externally through customer satisfaction surveys. The final recommendation is for marketing and operations to work together on redesigning the customer survey.
The major problems facing the credit card division are a lack of communication between the marketing and operations departments, and inaccurate report distribution to over 1,200 institutions. Steps to develop a good performance system include measuring employee satisfaction and productivity, creating customer value, and linking these internal measures to external customer satisfaction and loyalty metrics. Internal and external data are related through cause-and-effect linkages, but real service level is best measured externally through customer satisfaction surveys. The final recommendation is for marketing and operations to work together on redesigning the customer survey.
The major problems facing the credit card division are a lack of communication between the marketing and operations departments, and inaccurate report distribution to over 1,200 institutions. Steps to develop a good performance system include measuring employee satisfaction and productivity, creating customer value, and linking these internal measures to external customer satisfaction and loyalty metrics. Internal and external data are related through cause-and-effect linkages, but real service level is best measured externally through customer satisfaction surveys. The final recommendation is for marketing and operations to work together on redesigning the customer survey.
The major problems facing the credit card division are a lack of communication between the marketing and operations departments, and inaccurate report distribution to over 1,200 institutions. Steps to develop a good performance system include measuring employee satisfaction and productivity, creating customer value, and linking these internal measures to external customer satisfaction and loyalty metrics. Internal and external data are related through cause-and-effect linkages, but real service level is best measured externally through customer satisfaction surveys. The final recommendation is for marketing and operations to work together on redesigning the customer survey.
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1) What are the major problems facing the credit card division?
The first case question for discussion is identifying major problems that are facing the credit card division. The first major problem facing the division is the breakdown in communication between the marketing department and the operations department. This is a huge problem, because the lack of communication between the respective departments is trickling down to the customers. One reason that the customers are giving a rating of poor because the survey questions are based on the marketing side and the performance criteria doesn’t match up well between marketing and operations. The leaders of the two departments need to get together and design the customer survey in relation to both marketing and operations, and they need to get the idea of “protecting their own turf” out of their heads and start working together. Another major problem facing the division is that reports are routed to over 1,200 institutions, some electronically and others by mail. The division doesn’t have total control over providing accurate and timely report distribution, because they have to rely on other banks and various types of transportation modes such as an airborne courier.
2) What are steps required to develop a good internal and external performance and information system The second question for discussion is what steps are required to develop a good internal and external performance system. The Service-Profit chain model is a great template to use when developing good internal and external performance measures. This model is based on a set of cause-and-effect linkages between internal and external performances. The first step in this model starts with the service delivery system and measures internal service quality, which then tabulates and measures employee satisfaction, employee retention, and employee productivity. This is a very important measure that companies need to focus on. As the saying goes "Happy employees make happy customers." Companies need to make sure that their employees have received the proper training to make them successful Companies also need to make sure that their employees are property motivated, so that they can keep their productivity as high as possible. Some ways of motivation are bonus and incentive programs.
The next step is the service concept, is the step that creates external service value to the customer. This is a very important step in the process, and companies need to make sure that they are doing everything that they can to create value for the customer. This is the moment of truth for the company. A reason that customers are giving a poor rating might be due to the wait time or since employees can't resolve customer issues when calling in. This all links into the external performance measures which is the target markets. These can be measured by customer satisfaction and customer loyalty. High customer satisfaction and loyalty leads to higher revenue growth and profitability.
3) How should internal and external performance data be related? Are these data related? What do charts and/or statistical data analysis tell you? Question three deals with how internal and external performance data should be related. Internal and external performance data are related by cause-and-effect linkages. For example, when employee satisfaction and productivity are low that is going to affect customer satisfaction and loyalty. However, when employees are highly motivated and productive this trickles down to the customer, therefore making the customer happy and loyal Graphs and statistical data are very important when analyzing this model. Graphs can show trends in important areas of the division and can also show us areas that need to be worked on and which areas are performing the best.
4) Is the real service level what is measured internally or externally?
Question four is dealing with how real service level is measured. The service level can be measured externally, and this is measured by customer satisfaction and loyalty. Managers can measure this performance by monitoring wait time when customers are calling in when they have questions or concerns. Another way this can be measured is by the percent of calls that are answered, this can be affected when customers are waiting on hold for long periods of time, and then in turn they get frustrated and hang up without talking to anyone. This could be a possible explanation to why the customer survey shows that the credit card division is rated as poor. Case question five
5) What are your final recommendations?
The final recommendation is that marketing and operations need to take this survey very seriously and put all department issues to the side and hammer out a very well written and thoughtful survey that has marketing and operation strategies embedded into it. The questions need to be tailored to the customer and need to be more distinct in what they are asking. On the other side of this issue, some argue that there is too much stock put into these surveys, because the numbers seem to be very good when it comes to the data shown. So why are the customers rating the credit card division as poor? One conclusion could be that the numbers can be skewed from one bad customer experience and overshadow all of the good customer experiences in concluding this case study, you can see that there are some problems facing the credit card division.
The biggest problem is that marketing and operations are not on the same page when it comes to the designing of the customer survey, thus resulting in a poor rating. There are also some very important steps that need to be followed when developing a good internal and external measurement system, and identifying how these steps are related is very important. Management also needs to focus on what these numbers are actually telling them, sure the numbers are great, however, the design of the survey questions is giving them a poor customer rating.
