- The document summarizes the findings of a 2006 research study on customer satisfaction with banks in Zambia. - The study found that customers had many complaints about long wait times, poor customer service, lack of seating, and other issues. - However, some customers also praised aspects like reliable service and good customer relations. - The implications are that banks need to improve their customer orientation and reposition their operations to better meet customer needs and build loyalty to ensure future survival and profitability in the competitive banking environment.

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BANKING & FINANCE RESEARCH
PUBLICATION ON:
WHAT CUSTOMERS EXPERIENCED FROM THEIR BANKS IN ZAMBIA
(BANK CUSTOMER SATISFACTION RESEARCH)
Researched & Published by: Njekwa Njekwa
YEAR: 2006

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About the researcher
The researcher is a freelance Banking and Marketing consultant with over 16 years of
Retail and Corporate Banking experience up to senior level (Credit Risk Management,
Financial Services Marketing and Customer Services) and has published various
scholarly articles in Banking and Finance. He is an editor of the Banking and Finance
journal (Money matters news) and member of the publications and public relations
committee of the Zambia Institute of Banking and financial Services and appointed
chief examiner of the Banking and Finance examinations.
He is academically qualified with a Master’s degree of Science in Marketing (MSc in
Marketing) from the University of Glamorgan in Wales (United Kingdom)
He is also professionally qualified as (ACIB) Associate Chartered Institute of Bankers
(UK) and (ACIM) Associate Chartered Institute of Marketing (UK).
Njekwa Njekwa (Mr.)
MSc (UK), ACIB (UK), ACIM (UK), PGDipM (UK), PGDipMS (SA), DipBCM (SA).

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Table of contents
Foreword --------------------------------------------------------------------- 4
Introduction -------------------------------------------------------------------5-6
Banking activity --------------------------------------------------------------6
Research results --------------------------------------------------------------7
Implications of research results --------------------------------------------11
Competitive challenge ------------------------------------------------------ 11
Conclusion ------------------------------------------------------------------- 12

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Foreword
The objective of the research study was to find out how customers perceive and
position their banks in Zambia. The results are fundamental as concerned Banks will
learn the weaknesses in their banking activities, and such banks may need to re-
position their business operations in order to achieve sustainable competitive
advantage.
The effective application of the marketing concepts and theories may lead to
improved customer satisfaction, creating long term relationships with Banks. So, it is
recommended that Banks take that pro-active stance in every business sphere to
guarantee future survival.
The fact that banks are operating in an open competitive environment is a cause for
concern for those banks that have not spared the customer to be ‘KING’.
This means that, Customer Lifetime Value of that particular bank may be shortened as
customers migrate to competitor banks that offer Total Quality Satisfaction.
The results from this research project should be a wake-up call for banks, to apply
quality based competitive strategies to re-build and grow their business activities,
which will ultimately stimulate the means of achieving the financial values of sales
and profits.

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Introduction
The source of the research results is from the author’s Management Research project
conducted, for his Master’s degree of Science in Marketing (MSc) from the
University of Glamorgan in the United Kingdom, Wales.
The project was specifically chosen to help all organisations and mainly those banks,
which do not view marketing as a management function and process responsible for
identifying, anticipating and satisfying customers’ needs and wants profitably.
The author is to some extent disappointed from his research findings that some banks
in Zambia even to day do not have any Strategic Business Unit (SBU) of marketing to
coordinate the respective activities of the organisation. In plain language, they have
not taken to understand the importance of marketing in an organisation.
From the research, it was found that organisations that do not use marketing concepts
and theories are far behind and have little or not prospered at all. The converse is true;
those that have applied marketing concepts and theories have gained greater value for
themselves and for their customers and are on the roadmap to prosperity.
It was also found in a comparative study of some banks in Zambia (Multiple Case
study approach) that, those that poorly use the center of any marketing activity have a
poor market share of core deposits and those that apply quality marketing mix
ingredients as strategy satisfied their customers and resulted into improved
organisational performance as follows:
The author has data and information at his disposal, obtained from banks studied,
such as Financials, Product brochures, Newspaper publicity, Tariff guides, Annual
reports; results from questionnaires and observations (both participant and non
participant), etc and these were used in the comparative study for an insight critical
analysis.
It is also interesting to notice that despite aggressive marketing strategies, some banks
instead have a decline in share of deposits (mainly due to promotion on wrong targets
and unprofitable segments). However, this may be a question mark on the face of it,
but in real life, it is not guaranteed that heavy promotional spend can gain you a
competitive edge even when you are operating in a growing market. It is the
application of the marketing mix elements that will be discussed later in this article
Customer
satisfaction
Improved
organisational
performance
Quality marketing mix
application
Quality marketing mix
Quality marketing mix

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that is of significance to achieve financial objectives, and in this case, improved
deposit growth/sales.
Banking Activity
To come up with strategies and tactics required to improve deposit growth, we need to
first of all understand the business of banking and the importance of deposits,
commonly referred to as raw materials.
Banking activity remains critical to national development and scholars have identified
the banking sector as one, driving most economies of the world.
The core activity of a bank is funds inter-mediation, which entails mobilizing of funds
from the surplus units and channeling such funds to the deficit units. This facilitates
capital formation and generates growth in the economy.
Banks in order to execute the inter-mediation function ought to be adequately
equipped in human, financial and material resources and must demonstrate high
degree of integrity in order to muster the necessary confidence for the function.
Banks therefore need to evolve strategies for productive deposit mobilization in order
to meet the increased demand for credit finance from sectors across the economy. It is
true to say that Banks rely on deposits to fund loans and also, deposits can be invested
by banks on the money and capital markets for a better return.
Commercial Banks in Zambia therefore as engines of economic development must
mobilize adequate deposits, which are essential raw materials, used to achieve their
ultimate corporate objective: to earn returns at least equal to the cost of capital and as
a contribution to economic growth as already stated.
For organisations like banks to achieve their deposit growth objective, they must
effectively apply the center of any marketing activity, the “Marketing Mix variables”
commonly known as the 7Ps, (Product, Promotion, Price, Place, Process, Physical
environment and People) as a strategy. These must not only be memorised and known
in theory, but it is its application that banks need to understand, and how exactly the
marketing mix must be used for a maximum yield.
It is the combination of the marketing mix variables, which may yield better business
results, but surprisingly, many organisations do not do this and only apply part of the
tools and even wrongly. This has raised a cause for concern to the author who is an
experienced Chartered Banker (ACIB) and Chartered Marketer (ACIM) to see such
things taking place. Marketing concepts must be seriously upheld for a quick
recovery, failure to which planned organisational growth may be squeezed. This is
justified by one of the banks studied, whose deposit market share in the past 4 years
only increased, by 0.77% on average. The author has strongly argued that this was not

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the Bank’s corporate objective to expand cautiously considering that, it spread
viciously in the country by opening many Bank branches. What quickly came to the
minds of the author was ‘Quantity versus Quality” marketing strategies in the absence
of the marketing mix variables (the 7 Ps of Marketing).
It may not be acceptable, in a growing market such as Zambia and may indicate poor
application of the Marketing Mix ingredients, as a strategic and alternative corner
stone of marketing. The marketing tools have been researched and written for us by
marketing Gurus, but are not fully put into practice, perhaps for lack of appreciation
of the wonders marketing can perform if utilised effectively.
I have some literature review from some banks in Zambia and developed countries on
how they have effectively applied the mix elements and good results achieved. Why
can’t we benchmark such activities in Zambia?
The key issue therefore remains on how banks can effectively apply the marketing
mix elements to achieve the deposit growth objective.
The author can be contacted, on how banks and organisations at large may apply the
marketing mix as strategy to achieve deposit/sales growth within the time framework.
However, it is pleasing to note that some banks in Zambia are already applying the
marketing mix effectively, though have greater room to exceed.
The research findings below definitely need Quality application of the Marketing mix
corner stone, but it is the manner of application required to reverse the findings to
normality

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Research results: What customers experienced from their banks.
Before highlighting the strategies and tactics to improve deposit growth, I would like
first to detail my findings on the customer satisfaction levels in their banks. It is up to
the concerned bank to take it up from there and find exactly from the
author/researcher what bank customers really expected and what they actually
received from their respective banks - (Research findings are Not edited):
Did you know that this is what your customers said about your bank?
1. There is need to secure more chairs for customers, as the one which is there is not
enough.
2. Your services are horrible:
- Bank tellers are too slow and a nuisance to customers, yet they are using
computers
- Customer relations is very poor
- Don’t be surprised if you start loosing customers
3. Tell your workers to work on PR
4. You should put more chairs for your customers. We are sick and tired of standing.
Some of your customers will fall.
5. You should improve in the following:
- Why does it take longer than usual to withdraw from an account with Chipata
Branch? I have been waiting for 45 minutes. Your services are always off-line.
you should improve.
6. Since I have noticed a lot of your customers wait for longer period standing, I
don’t
Know whether they think are petrol powered. Increase on your waiting seats. Only
two, to cover more than ten customers.
7. The guard is there to safe guard our interests and not to increase intimidation on
already tired customers. Teach them some important customer relations.
8. You are requested to improve on the service because you are very slow.
Concerned customer.
9. Made to wait for more than an hour to check for money transfer. The person
authorised to sign takes too long and services are too slow.
10. Suggestion from customer: Please, provide some seats and drinking water for
customers. I thank you in anticipation, yours, customer.
11. There are delays in us receiving the transfer copies after funds have been remitted.
We require these copies immediately after our account has been debited so that we
are able to follow up with foreign suppliers in order to have goods delivered to us
in time.

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12. We appreciate your bank, for introducing the facility of ‘on line deposit of cash
and cheques at various centers in Zambia’, but at the same time, there is a long
delay in crediting our accounts at Lusaka for the on-line deposits made in Ndola. I
feel definitely there is a scope for you to improve in this area.
13. The Bank looks good but the plant in the middle is too big. It overshadows the
customers’ heads. Please move it near the water tank. Worried customer.
14. Tell people who work around this building to attend to customers immediately
and reduce the situation where the customers are waiting when they are just
chatting.
15. You should provide more chairs and the time taken to provide your services
should be reduced (improve effectiveness and efficiency).
16. We receive wrong bank charges in a month, bad attitude by tellers, and poor
customer service.
17. Improve on services provided such as respect to clients. Give customers the right
bank charges instead of overcharging.
18. Provide medical insurance for the clients
19. Your bank services are rated “ Bad”
20. There are some unexplained debits on the account and several hidden charges.
21. Long queues when seeing personal bankers or depositing cash/cheques.
22. Long queues at month ends
23. Why all new cashiers?
24. Should offer better rates
25. Assign one or two counters for paying salaries at month end.
26. Provide Night safe, Agriculture loans.
27. The bank itself is not spacious to cater for a large number of people. They are
inefficient and no proper procedure of giving out salaries/other bank services.
28. Improve in procedure of serving customers
29. I have had no problem with my bank for the past 12 months.
30. The service is very good – timely and efficient. The bank is on-line with all other
branches through out the country.
31. High interest rate when borrowing

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32. Long waiting time (Queues) during peak periods.
33. The bank should provide individual long-term capital loans like mortgages, motor
vehicle and equipment loans
34. Book balance is too high
35. Services are very poor, interest is too high and they don’t update customers with
bank statements and instead, the customer pays for it if he needs one.
36. They should put up two counters to service customers within given time, one for
corporate customers and the other one for individual people.
37. Customers should be allowed to withdraw big balances without notices.
38. People with cheques should have there own counters
39. Poor ATM services and poor customer relations
40. The minimum balance for savings account holders is low and affordable
41. Poor customer service, sometimes tellers are rude to customers/late processing of
salaries i.e. education.
42. ATM- machines not very reliable, sometimes, balance advice slip after
withdrawing money is not printed.
43. It is not easy to get a bank statement and statements should be available when
needed
44. I have chosen this bank because it is reliable; there is a good customer relation.
45. Tellers are very slow, bank too small. There is always one teller to pay out
salaries. They should improve on customer service.
46. The bank should look into the issue of attending to clients without them having to
wait in queues for a long time.
47. The bank has become very inefficient. You give them an instruction; they do not
do it until you go back at least 10 times. All they do is blame one another.
48. They should use as many counters as possible
49. Service charges are too high
50. They don’t update customers with bank statements and instead, the customer pays
for it if he needs one.

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Implications of research results
From the above customer complaints and few praises, the implications on all banks
are that, they need to re-position the way they carry out the business of banking, in
order to satisfy the needs and wants of customers. This may result into customer
retention, loyalty and creation of long term relationship, giving birth to profits and
future survival.
Customers have challenged banks, and to create Customer Lifetime Value (CLV),
customer orientation is the answer. It is advised therefore that alternative strategic
choices may level the playing field, failure to which the deposit growth objective may
be a nightmare.
Banks must not easily allow competitive forces to have a look-in, making in-roads in
the core business of banking where they have a competitive edge, but instead, must
build and hold on to their market share strategies cultivated, and the yield may be
better deposit/sales.
Competitive challenge
Increased competition in the financial services sector is the force that has driven more
organisations to seek out marketing. Banks are receiving more competitive threats
from the internal environment and mainly, from competitors sharing same segments.
It is therefore a challenge to offer what customers expect, and envisage what the
future direction of the organisation should be. Banks must also go an extra mile to
offer actual and augmented service product benefits to differentiate the offerings in
order to create the basis of competitive advantage. Differentiation strategies are key
and the use of the marketing mix tools is one strong case to increase the market share
of deposits.
The researcher is happy to see some banks in Zambia offering augmented customer
benefits like, prestige car park, tea and coffee, cold drinking water and bank staff
going round inside the banking hall in search of customers depositing cheques, and
they do it for them to reduce on bank waiting lines. Some banks are already offering
queuing discipline facilities like television programs, entertaining and refreshing tired
customers in waiting lines with news papers.
The researcher would not be surprised to see bank staff during this rainy season
escorting their valued customers to the car parks in umbrellas with bank logo, adding
value to the core service products, exceeding customer perceptions and expectations.
There is need therefore, for banks to be constantly alert to potential benefits they can
offer to their customers, especially those benefits which are hard to copy by
competitors, not based on “ what we do” but “ how we do it”.

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Conclusion
Banks should always use the marketing mix toolbox as a strategy in their operations
to achieve total customer satisfaction, and all the highlighted customer complaints,
worries, negative perception and service underrating may be minimised.
I am challenging banks and other institutions to prove me wrong and if in doubt on
how you can apply the marketing mix ingredients, then “Let me do it for you” and
you will prove me correct. All I am asking institutions is for the quality application of
the cornerstone of marketing -: Product, Price, Place, Promotion, Physical evidence,
Process and People (7Ps) to achieve unmatched sustainable competitive advantage.
These elements may be already applied by your organisation, but are they being
applied in the correct way and combination? Is the market share of your deposits/sales
declining or experiencing a hardcore growth? Have you exhausted all your
deposit/sales growth strategies? Do you just need help on competitive strategies and
advice on how to set up an effective marketing unit or to carry out marketing research
to develop your business? Do you need perhaps to formulate a service product
guarantee scheme for enhanced TQM? Or you just need the insight of customer care
and relationship Management?
Then contact:
Njekwa Njekwa
MSc, ACIM, ACIB, PGDipM, PGDipMS, DipBCM
Tel: +27 76 127 9770
Email: njekwa.njekwa@gmail.com
A detailed copy of the research project for +- 20,000 words with marketing mix
strategies and literature reviewed may be requested from the researcher –
Njekwa Njekwa.