Customer service recovery processes: A case study of Kenya Commercial Bank (KCB) Group

Abstract

The aim of this case study was to examine the service recovery processes at KCB bank group and their effectiveness. The study gives a background and introduces the service recovery process concept, and gives brief overview of the KCB bank group. The study then identifies the research objectives, which were identified as - the service recovery process used at KCB and how effective these processes are. The researcher then gives a theoretical framework on previous studies on customer service recovery processes, service recovery steps, the unique characteristics of the service industry and the importance of handling complaints. The study was carried out among eight members of staff – the head of customer service, three senior managers, two branch managers and two customer service consultants. The research tool used for this study was an interview guide which had open ended questions, and data analysis was done through content analysis. The study was able to establish the service recovery processes used at KCB as solving the customer problem, training employees, apologizing, compensating with something of value, acknowledging and owning responsibility, constant execution of complaints, having convenient banking (increasing accessibility of branches), and minimizing the chances of complaint recurrence. The study established the reasons why KCB employs service recovery processes as; for influencing customers’ future attitude and behaviour, to identify service failure points, opportunities for improvement, retain dissatisfied customers and as a normal management tool for a more effective service recovery process at the bank. The existing service recovery processes identified were noted as not too effective. The study therefore recommends that KCB needs a centralized system for all customer complaints in the entire bank group, ensuring that customers’ fully understand the bank processes, and that they receive timely updates on their complaints. The study also, emphasizes on the need for staff to develop customer focused attitude, and notes the need for the flexibility of bank processes to reduce bureaucracy, and provide alternative channels to customers.