Connecting with consumers can lead to successful business in retail banking: a mixed-methods study of customer service elements, service excellence, satisfaction, and business outcomes in the U.S retail banking.
DOI:
https://doi.org/10.54536/ajfti.v4i1.7569Keywords:
Age Moderation, CFPB, Consumer Complaints, CRM, Customer Satisfaction, Customer Service Excellence, Employee Training, Hybrid AI-Human Service, Retail Banking, Service Complacency Paradox, Service Profit Chain, United StatesAbstract
In this research on consumer complaints in US retail banking services, mixed-methods approach was used (18 interviews and survey of 500 consumers from Florida, Texas, California, Ohio, and New York). Regression analysis revealed that out of seven service factors examined, five significantly predicted Customer Service Excellence (CSE) (R² = .308, p < .001), where Employee Training (β = .241) and Customer Relationship Management (CRM) (β = .194) were the two most important predictors. Further, CSE significantly predicted customer satisfaction (β = .376, R² = .148, p < .001). Moderated regression analysis showed that age influenced the relationship between training and CSE (interaction β = .143, p = .002) such that elderly consumers (55+) showed 76% higher responsiveness to training than younger consumers. This study presents the concept of Service Complacency Paradox—Texas was the first in customer satisfaction but second in number of complaints—and thereby extends the Service-Profit Chain theory by taking into account population growth as a contextual variable. There are four main contributions: (1) validity test of Customer Service Excellence Index (CSEI); (2) identification of the Service Complacency Paradox; (3) first time confirmation in the US that senior citizens are competence-sensitive rather than technology-resistant consumers; and (4) survey validation using official government complaints. Possible implications of minimizing CFPB complaints can be achieved through prioritizing employee training and CRM, especially for customers aged 55+ and in high-complaint states such as Florida, Texas, and California.
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