Table of Contents

1. What are the key moments of truth for customers at the bank? What metrics would you
use to assess the bank’s performance for each one? (10 marks)...............................................3

2. What are the key issues in the case? Describe them from both the customers' and
employees' points of view. (10 marks)..................................................................................... 4

3. Come up with three potential solutions to these issues. For each, construct a decision tree.
(10 marks)............................................................................................................................... 5

4. Describe what research you would conduct (both research types and methodology) to help
determine which solutions would be the most effective. (10 marks)........................................8
Eastern Lotus Bank Case
https://www.iveypublishing.ca/s/product/eastern-lotus-bank-xiamen-service-opera
tions-management/01t5c00000CwqnHAAR

1. What are the critical moments of truth for customers at the bank? What
metrics would you use to assess the bank’s performance for each one? (10
marks)
Key moments of truth:
A counter transfer: Within the case, a customer requested to withdraw her
deposit in cash; however, the teller advised that this would have incurred a fee.
Metrics for this situation could be customer satisfaction and customer retention
rates for accounts. Also, the ease with which the funds are withdrawn is another
metric that can measure the efficiency of the process.
Opening accounts: In this case, two persons wished to open accounts to obtain
tourist visas. The metrics used here can include the time each customer takes to
be served and the overall customer experience.
Updating information on accounts: A customer visited the bank to update his
information on his account. However, while this process typically takes only three
minutes, he waited more than twenty minutes. As a result, metrics that can be
used here include customer waiting time and time taken to complete service at
the teller.
Use of online and mobile banking: Regarding this case study, some customers
lacked interest or had no time to use the platform. Online banking services offer
many services that can be completed in a shorter time frame, thus saving time
and resources. Metrics that can be used include the ease of navigation for
customers on the platform, time taken to complete a service using the platform
and customer satisfaction of use.
 2. What are the key issues in the case? Describe them from both the
customers' and employees' points of view. (10 marks)
Human resources management: There is a lack of revision of the processes and work
distribution from human resources, leading to employees finding the distribution of work
unfair. Some employees feel they have a heavier workload than their coworkers, which
demotivates them. When employees are not happy with their jobs and the processes
are not constantly reviewed, it reflects that the customers are not served efficiently and
effectively, leading to customer dissatisfaction.
Long waits and processing times: Some types of transactions, such as margin
deposits for tourist visa processes, involve many operations and paperwork that lead to
the long time spent by tellers with these few customers. These transactions are also
time-consuming for employees and customers and often represent frustration. Even
when there are short lines in the bank, customers might have to wait for long periods
just because of these clients. Also, some customers have to do short transactions and
wait in the same lines as customers doing longer operations. Sometimes, the
employees cannot provide an accurate waiting time, which might make customers wait
longer than expected and become disappointed with the service.
Rigid and complicated bank procedures: Some bank processes become time- and
energy-consuming for customers. For example, when customers need to do business
and personal banking, they must do different lines, meaning they must be redirected
from one teller to another. For the employees, it might make sense to do it like this due
to specialization, given that these customers can do it through online banking, but they
don’t know how to do it or would instead handle it in person. Also, there are situations
like the account information update and the remittance application that involve much
back and forth with the client, especially if something is missing or if there is a mistake,
which can lead to many visits from the customer and generate unhappy customers that
don’t want to go back. The employees might end up doing rework.
Customers that are not tech-savvy: 90% of customers use online banking, especially
after being told about the benefits of being faster, which can mean lower fees when
using it. However, there are still customers who are afraid of using it and don’t want to
learn because of fear of making mistakes and having financial losses, especially elderly
customers. With these customers, this means longer processing time for cash
withdrawals (around 15 minutes) compared to online transfers (around 1 minute) and
that the employees are using their time for operations that can be done online, which
implies that customers have to make lines for being attended. Also, there are some
bank fee charges, such as transfers to another bank account to purchase financial
products. Since clients don’t want to pay these fees and don’t want or know how to use
online banking, they choose to make cash withdrawals, which represents a risk for them
to carry large amounts of cash with them.

3. Come up with three potential solutions to these issues. For each, construct
a decision tree. (10 marks)
Solutions from an Employee Point of View:
 ​ Process Revision: Management should review and streamline processes to
ensure customer service efficiency and effectiveness. This might involve
conducting process audits, identifying bottlenecks, and implementing solutions
to expedite service delivery, beginning with a detailed audit of the HR processes,
focusing mainly on employee transparency and fair workload distribution. Create
an open feedback loop for employees and set up a performance management
system and skill enhancement training. It will also be vital in implementing a
program to manage employee stress and burnout, optimize communication
channels, and measure the impact of customer satisfaction. Simultaneously,
address complicated bank procedures by simplifying processes, integrating
services, and providing customer education on online banking. Introducing
in-person digital assistance and automating routine tasks complemented by a
proactive customer support team will be a significant improvement. A regular
oversight and review will be beneficial here to identify and minimize any
inefficiencies and provide a satisfactory customer experience.

Decision tree:
 ​
​ Online Banking Education: To effectively address customer hesitations about
online banking, offering comprehensive training and support tailored to their
specific needs is crucial. This involves understanding customers' concerns, such
as fears about security or confusion about navigating online banking platforms.
By providing personalized guidance and emphasizing the benefits, such as lower
fees and greater convenience, you can help alleviate these fears and encourage
adoption. Additionally, designating specific staff or resources to assist
customers with online banking queries can further reduce the burden on frontline
employees and ensure that customers receive the support they need to feel
confident using online banking services.

Decision tree:
Solutions from a Customer Point of View:

​
​ Reducing wait time during peak hours: To enhance customer satisfaction and
streamline operations, it is imperative to implement effective strategies to reduce
wait times. By proactively addressing this issue, businesses can significantly
improve the customer experience. One approach involves increasing staffing
levels during peak hours to ensure enough employees are available to handle the
influx of customers efficiently.
​ Additionally, optimizing service workflows can help streamline processes and
minimize unnecessary delays. Leveraging technology solutions such as
appointment scheduling software or virtual queuing systems can further expedite
service delivery by allowing customers to book appointments in advance or join a
virtual queue remotely, thus reducing the time spent waiting in line.
​ By cohesively implementing these strategies, businesses can reduce wait times
and create a more seamless and enjoyable customer experience.

Decision tree:
 4. Describe what research you would conduct (both research types and
methodology) to help determine which of your solutions would be the most
effective. (10 marks)

Process Revision: To analyze this solution, it is recommended to do Quantitative

Research using the statistics the bank should have on:
● Number of clients that are served at the bank
● Number of clients served by each teller daily
● Analysis of the complexity of the transactions managed by each teller
● Types of transactions, and time of each transaction
● Information on customers service: number and types of complaints
● HR data on employee complaints

Once all data has been gathered, we can establish the relationship between two or more
variables, draw conclusions and define strategies to improve the processes.

Online Banking Education: To engage customers to use Online Banking Solutions, it is

recommended to do Qualitative Research and conduct Customer Surveys through the
bank website, by phone, and in person at the bank branches to understand customers'
fears and needs.
After reviewing the information, we would recommend implementing a campaign to
educate the customers on the use of online banking and offering discounts or prizes to
encourage customers to participate. Resources should be assigned to ensure
customers receive the support they need in using online banking services.

Reducing wait time during peak hours: To be able to reduce wait time during peak
hours successfully, we recommend doing Mixed Methods research involving
information from employees and customers regarding the following:

● Analysis of the complexity of the transactions managed by each teller

● Types of transactions, and time of each transaction
● Conduct surveys on employees, to understand their needs and significant
problems
● Conduct surveys on customers, to understand their needs and wants
Once all data has been analyzed, define the best strategies to reduce waiting times, and
allocate resources to increase the staff if it is necessary, to improve the service process.