The previous chapter highlighted the importance of developing and managing customer relationships and the growing concern with customer retention. One set of factors that might induce customer switching relate to poor service provision. Central to any approach to build and maintain good customer relationships is the management of service delivery to ensure quality and minimize the risks of service failure. The ability to deliver a high-quality service that meets the needs and expectations of customers is key to building a competitive advantage in the financial services sector. Because it is difficult for financial services providers to gain a sustainable competitive edge just by offering new products or new product features, attention is increasingly being focused on quality – not least because
By the end of this chapter you will be able to: ● explain the importance of service quality in the marketing of financial
services ● understand the basic principles of the service profit chain ● understand the nature of quality in financial services ● review approaches to the management of service quality ● understand the importance of service recovery.