1. THE 7 DEADLY SINS OF CUSTOMER SERVICE Adopted from the presentation of Prof. Rene T. Domingo of AIM at the Asian Bankers Conference on May 27, 2005

2. customer service quality

3. What methods does your bank use to check your bank’s level of customer service quality? • mailed customer surveys 38.4% • monitoring teller line wait 25.5% • CEO calls to customers 23.1% • mystery shoppers 22.1% • director visits to branches 21.0% • lobby visits with customers 20.5% • ex-customer exit interviews 17.1% • monitoring phone pick-up time 11.3% • customer focus groups 11.0% • complaint hotline 2.5% • recording of call-center conversations 2.5% • customer town meetings 2.1% • NONE 23.4%

4. “Beautifying Branches” from the Economist 3/22/2001 “According to Abbey National, a British bank which filmed passers-by, window-shoppers actually speed up in order to avoid bank branches.” “For banks, this is a sorry state, since branches are horribly expensive to keep open. On average, branches and their staff account for about half of the costs of a typical retail bank.”

5. “Beautifying Branches” from the Economist 3/22/2001 “One strategy is to transform them (bank branches) into enticing, shop-like places where people want to spend time, and with luck, more money on financial products” “In Japan, Suruga Bank has invited Starbucks coffee shops on to its premises…..” “The Bank of Yokohama offers McDonald’s hamburgers alongside its cash machines.”

7. “Good service is not an accident.”

8. THE DEADLY SINS OF CUSTOMER SERVICE • BUREAUCRATIC SERVICE • “ONE SIZE FITS ALL” SERVICE • NO “AFTER SALES” SERVICE • NO “BEFORE SALES” SERVICE • OPAQUE SERVICE • CONTENTIOUS SERVICE • PAROCHIAL SERVICE

9. Sin No. 1 • BUREAUCRATIC SERVICE bad service = slow service

10. Sin No. 1 BUREAUCRATIC SERVICE In an Average Lifetime…... • The average American spends 49 hours seeing doctors. • The average American spends 64 hours waiting to see doctors. • The average American spends 5 years waiting in lines.

11. Sin No. 1 BUREAUCRATIC SERVICE TOO MANY HANDOFFS

12. Sin No. 1 BUREAUCRATIC SERVICE OVER CONTROL (inspecting the Inspector) MISTRUST

13. Sin No. 1 BUREAUCRATIC SERVICE Banking Benchmark?

14. Sin No. 1 BUREAUCRATIC SERVICE UNDERSTAFFING OVERLOADING

15. Sin No. 1 BUREAUCRATIC SERVICE OVERSPECIALIZATION

16. Sin No. 1 BUREAUCRATIC SERVICE UNEMPOWERED STAFF

17. Sin No. 1 BUREAUCRATIC SERVICE “THE BOSS IS ALWAYS RIGHT.”

18. Sin No. 1 BUREAUCRATIC SERVICE UNSYSTEMATIC PROCEDURES

19. Sin No. 1 BUREAUCRATIC SERVICE NO SERVICE STANDARDS

20. Sin No. 1 BUREAUCRATIC SERVICE CLERICAL ERRORS

21. Sin No. 1 BUREAUCRATIC SERVICE UNRELIABLE EQUIPMENT

22. FAST LANE ONE TRANSACTION ONLY Sin No. 1 BUREAUCRATIC SERVICE WRONG BENCHMARK

23. Sin No. 1 BUREAUCRATIC SERVICE Lesson learned: Cut the red tape by developing one stop-shops run by multi-skilled, multi-tasking, and empowered front-line personnel.

24. Sin No. 2 • “ONE SIZE FITS ALL” SERVICE

25. Sin No. 2 “ONE SIZE FITS ALL” SERVICE INFLEXIBLE, IMPERSONAL (“Everybody’s the same.”)

26. Sin No. 2 “ONE SIZE FITS ALL” SERVICE UNINNOVATIVE (no imagination)

27. Sin No. 2 “ONE SIZE FITS ALL” SERVICE ONE POLICY (to the letter)

28. Sin No. 2 “ONE SIZE FITS ALL” SERVICE “They can have it any color they want, so long as it’s black.” --Henry Ford (1863-1947)

29. Sin No. 2 “ONE SIZE FITS ALL” SERVICE Lesson learned: Don’t mass produce, mass-customize.

30. Sin No. 3 • NO “AFTER SALES” SERVICE

31. Sin No. 3 NO “AFTER SALES” SERVICE TRANSACTION ORIENTATION

32. Sin No. 3 NO “AFTER SALES” SERVICE SALES QUOTA ORIENTATION

33. Sin No. 3 NO “AFTER SALES” SERVICE “LET THE BUYER BEWARE”

34. Sin No. 3 NO “AFTER SALES” SERVICE NO BUDGET

35. Sin No. 3 NO “AFTER SALES” SERVICE Lesson learned: Don’t sell to customers --- create lasting customer relationships.

36. Sin No. 4 • NO “BEFORE SALES” SERVICE

37. Sin No. 4 NO “BEFORE SALES” SERVICE POOR COMMUNICATION

38. Sin No. 4 NO “BEFORE SALES” SERVICE UNCLEAR PROCEDURES

39. Sin No. 4 NO “BEFORE SALES” SERVICE INDIFFERENCE TO INQUIRERS

40. Sin No. 4 NO “BEFORE SALES” SERVICE INADEQUATE FACILITIES

41. Sin No. 4 NO “BEFORE SALES” SERVICE Lesson learned: Treat all inquiries as potential customers.

42. Sin No. 5 • OPAQUE SERVICE

43. Sin No. 5 OPAQUE SERVICE NO APOLOGIES NO EXPLANATION

44. Sin No. 5 OPAQUE SERVICE “CUSTOMERS CAN WAIT.”

45. Sin No. 5 OPAQUE SERVICE “WAITING IS PART OF SERVICE.”

46. Sin No. 5 OPAQUE SERVICE UNCLEAR PROCESS FLOWS

47. Sin No. 5 OPAQUE SERVICE Lesson learned: Proactively update customers of the status of their requests – ignorance is worse than delays.

48. Sin No. 6 • CONTENTIOUS SERVICE

49. Sin No. 6 CONTENTIOUS SERVICE “THE COMPLAINING CUSTOMER IS ALWAYS WRONG.”

50. Sin No. 6 CONTENTIOUS SERVICE UNTRAINED FRONTLINERS