Introduction and Background of NBO

The National Bank of Oman has been operating in Oman since 1973. The bank offers a wide range of financial services and supports the economy of Oman by fulfilling the financial needs of businesses and individuals (NBO, 2018). The bank focuses on the financial needs of small and medium-sized enterprises. The National Bank of Oman has been financing some key infrastructure projects in the Sultanate of Oman. The bank is playing a significant role in the development of different areas of the country and facilitating the government in the implementation of diversification strategy (Business Today, 2016). The number of customers of the National Bank of Oman increases every year and both private and public sector organizations benefit from the financial services of this bank. Contemporarily, the National Bank of Oman is confronting a decline in customer satisfaction. The survey shows that over 35 percent of the customers are not satisfied with the services of the bank. This report discusses the issues related to customer service management and suggests strategies to minimize these issues.

 

Issues

The reduction in customer satisfaction is mainly due to some key issues in the provision of services to the customers. The banking system has been playing a central role in the economy of the country (Gertler & Kiyotaki, 2015). This aspect has increased the dependence of individuals and enterprises on the banking system. In addition to the conventional role, the banks have increased their participation in the economy. The banks have expanded the scope of financial services that have expanded the customer base of the commercial and investment banks. This has created challenges for the management of customer services. The inability of banks to cope with the increasing customer demands often results in long waiting queues (Agyei, et al., 2015).

National Bank of Oman engages a significant chunk of the population that has increased the burden on local branches of the bank. The long queues are a common problem in every branch of NBO. The customers have to wait in long queues to get the services. These long waiting queues have negative impacts on customer satisfaction (Ali & Raza, 2017). This aspect reduces customer engagement and negatively influences customer perception.

With the modernization of the banking system, the use of automatic teller machines has been increased for cash withdrawal and other financial services. The introduction of ATM machines has reduced the workload of banks, yet there are many issues associated with it. It has become a challenging task for banks to maintain the functioning of ATM machines. The breakdown of ATM machines influences a vast segment of customers that depend on these facilities to gain financial services. The ATM machines of the National Bank of Oman are not functioning most of the time which hinders the provision of financial services. In some regions, the downtime in the working of ATM machines persists for long periods which discourages the use of this facility by customers.

The procedure of services is long and complicated at the National Bank of Oman which reduces the efficiency of the bank. The procedure of service often creates delays in the provision of services and causes inconvenience for the customers. The customers have to follow the complex procedures for different activities. The unnecessary activities prolong the procedure of services. The time-consuming processes discourage the engagement of customers.

The behavior of banking staff toward the customers is another significant issue in the National Bank of Oman that is reducing customer satisfaction. The key reason for the negative behavior of the staff is the shortage of human resources at NBO. The workloads and challenging tasks negatively influence the behavior of banking staff (Parker, et al., 2017). This issue worsens the experience of customers and eventually reduces their satisfaction of customers with the services of the bank.

 

Strategies and Solutions

The improvement of customer satisfaction is crucial for the survival of banks in the rapidly changing competitive landscape. The banks seek to improve the customer perception of the value to maintain a strong position in the market (Zameer, et al., 2015). A strong customer can achieve a competitive positioning in the banking industry. National Bank of Oman can suitable measures to minimize the issues that are negatively influencing customer satisfaction.

The bank can solve the issue of long waiting queues by increasing the number of its branches across the country. The bank should identify the needs of a specific population segment and provide financial services according to the requirements (Hussain, 2015). NBO should initiate new branches to serve a maximum number of customers in the target area. This practice would reduce the burden of existing branches and address the needs of the vast population segment. This would enable the customers to get the services of the bank without waiting in long queues. This would increase customer satisfaction and minimize the rate of customer disengagement (El-Adly & Eid, 2016). In addition to it, the bank can also expand the operation of existing branches to facilitate the customers.

The issue of improper functioning of the ATM machines can be solved by regular maintenance. National Bank of Oman should upgrade its ATM machines on regular basis to fulfill the customer demands. The bank should identify the bugs in existing systems and employ appropriate strategies to fix them. The bank should replace outdated ATM machines with new machines that offer innovative features. The bank should employ sophisticated technology to ensure the proper working of the ATM machines. A team could be formed that would be responsible for ensuring the functioning of the ATM machines.

The behavior of banking staff plays a significant role in shaping the experience of customers. The shortage of human resources increases the burden on banking staff which often results in a negative attitude of staff toward the customers (Owusu-Ansah, et al., 2016). This problem can be handled by employing more people to reduce the burden on existing banking staff.

National Banking of Oman should identify the human resource requirement of each branch to improve the efficiency of its business process. The bank should improve the workplace conditions for its employees to improve customer satisfaction (Javed, et al., 2014). Furthermore, the training sessions should be launched for the banking staff to improve their dealings with the customers. These measures would positively influence customer satisfaction and improve their perception of the services.

Customer Value

Customer value refers to the value of the product or service perceived by the customers (Kumar & Reinartz, 2016). The customers seek value in the product in addition to the benefits. The value addition can improve the experience of the customers and improve the customer perception of the value. Customer value can be improved by ensuring the customer that it has received the desired value from the product or service. A customer considers a product valuable when it gives more benefit to what the customer has paid. The customer value can vary from one customer to another. The business cannot improve customer value merely by improving the quality of the product (Hsiao, et al., 2016). The businesses have to introduce the features in their products that could provide value to customers.

 

National Bank of Oman can use customer value to increase its profit margins. The customer value enables the companies to formulate strategies that could increase their profitability. Companies can shape the perception of customers and increase their agreeableness to pay more for their products or services. NBO can use the customer value to adopt an aggressive pricing strategy. The customer value can increase the strategic capabilities of NBO. The customer value can enable the bank to enjoy a unique position in the market which can become a competitive advantage for the bank (Kleinaltenkamp, 2015).

Conclusion

National Bank of Oman has witnessed a reduction in customer satisfaction owing to various issues in the provision of services. These issues are exacerbating the experience of customers at NBO and culminating in customer disengagement. This report discussed the problems experienced by the customers at different branches of the National Bank of Oman. The customers have to stand in long queues to avail of the banking services. It becomes inconvenient for the customers to engage with the bank to fulfill their financial needs. The issues in the functioning of the ATM machines and complex procedure of service hinders the efficient provision of services. The negative behavior of banking staff influences customer satisfaction. These issues can be addressed by increasing the branches and banking staff. NBO can build a competitive advantage by improving the customer perception of value.

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