What the People Really Care About
Professor Ladhari focused his studies on finding the intentions of behavior in the banking section. The tests that he came up with were a little different than testing behavior itself - he wanted to know how those behaviors were perceived.
The first thing that he found was that word-of-mouth had a very important role in shaping how services were perceived. This indicates that any financial services marketing that is done to the general public should be focused on creating positive emotions about the business first and foremost.
Ladhari Focused his studies on services in the banking industry rather than products. Because services are more intangible, the study served as a good indication into the reason that some banks are able to keep customers loyal.
The Factors of Financial Services Marketing
According to the findings of Prof. Ladhari, there are numerous factors that contribute to perceived service quality. These factors are listed below.
- The tangible dimension – the appearance of personnel, bank facilities and equipment
- The reliability dimension – the actual ability of the bank to perform what it says it will
- The responsiveness dimension – the willingness of employees to perform
- The assurance dimension - the ability of employees to inspire confidence in the banking consumer
- The empathy dimension – the individualized attention for each banking customer
These dimensions differ heavily from the actual service quality that a bank is giving its customers. The actual service quality is considered a factor of only two separate dimensions – technical and functional. Both of these have to do with the actual outcome of the services that are provided.
In short, financial services marketing has to engender trust in customers so that the services provided match marketing as closely as possible. Throughout the performance of the service, the bank must look as though it can take these services to fruition, from its employees to its facilities.
The emotional satisfaction of the customer is paramount in determining how that customer will perceive services rendered. We will take a look at how financial services marketing can more adequately get across this emotional message according to the study by Prof. Ladhari.
Solutions for Financial Services Marketers
The study found that emotional satisfaction, which leads to a heightened perceived service quality, can explain more than 60% of variation in the behavior of banking customers. These numbers, without a doubt, showcase a definite correlation between how a customer feels before walking into a bank and how he or she will feel after walking out of it. If the marketing of a financial services company is shoddy, there is little that employees can do when facing a customer to improve perceived service quality passed certain point.
The study concludes by stating banks should explore the emotions that are brought out of customers through their public image. It is this public image that shapes how customers will talk about the bank after receiving services. Once the image of a bank has been set in the mind of a consumer, it has only to uphold that image through the physical appearance of its facilities and employees. Of course service must be adequate, but it must be accompanied by an emotional stability throughout the entirety of the banking process.
