E*TRADE Financial Corporation is a financial services company founded in 1992 that provides brokerage services for stocks, options, futures, mutual funds, currencies, and bonds. It has faced issues with customer satisfaction and meeting expectations. Some customers had high expectations that the company could not meet with its available technology. Others struggled to use advanced services or incurred losses. Some were concerned about prices. To address this, the company redesigned services to be more convenient, conducted a promotional campaign, trained employees on new services and customer service, empowered employees to improve customer satisfaction, educated customers, and formed a team to direct corrective actions.

2.  HEADQUATERS- 135 East 57th Street, New
York, NY 10022, United States.
 Phone: 646-521-4300
 Fax: 212-826-2803
 Web Site: http://www.etrade.com
 The Company was founded in 1992, which deals in
providing brokerage services for many US stock
exchange markets, option markets, future
markets, mutual funds markets, currency trading
and bonds trading. It also provides researches and
reports related to these markets; and advisory and
asset management services to retail clients.
A Case Study on E*TRADE Financial Corporation
Overview

3.  The company has two main issues
1. Customer Satisfaction
2. Meeting Customer Expectation
 The customers were facing problem with
the banking service provided by the
company.
Problems Faced By The Company

4.  Some customers had a very high standard of
expectation that neither the company nor the
market competitors could provide with the recent
available technology used.
 Many customers especially the older ones, have
difficulties in using some of the advanced
services and incurred losses during trading.
 Some customers were concerned about the
brokerage services price, and they were
considering the another brokerage firms that
provided same services with lower prices.
Why

5.  Redesign the company's services to be
convenient to as much customers.
 Design a big promotional advertising
campaign, and to be lunched through
business related TV channels and financial
web sites.
 Training the employees to the new services
and on customer relationship marketing.
 Give the authority, the tools and empower
the employee for optimum customer service
satisfaction.
Steps Taken By The Company

6.  Educate the customers on the services in an
easy and convenient way sp that they know
what to do.
 Taking part in seminars and events about
financial services. This will have good impact
on the company’s image and brand loyalty.
 A well organized and highly skilled team
should be formed to direct this action plan
step by step, evaluating its effectiveness and
updating it to meet new changes in the
industry.
Cont......

7. Service
 A Service is an act or performance one party can offer
to another that is definitely intangible and does not
result in ownership of anything. Its production may or
may not be tied to the physical product.

8.  Service is an intangible offering with little or no
transfer of physical products to the customer.
 Service is one part of product-service mix being offered
to customers
 The main offering is the product but the supplier also
provides some services.
Service levels

9.  Services impact customers more directly than products
do.
 Marketing of services has to be more deliberate.
 Positioning must be razor sharp.
 Promotion more challenging due to intangible nature of
services.
 Same service can be delivered in various ways.
Principles of marketing apply to services

10. Difference Between
Service & Product marketing

11. Four Factors That Distinguish Services
Marketing
 Intangibility
 Service can’t be owned
 Inseparability
 Perishability

12. Examples of Service Industries
 Health Care
 Professional Services
 Financial Services
 Hospitality
 Travel
 Others Some other examples of service industries can
be hair styling, pest control, plumbing, lawn
maintenance, counselling services, health club etc.

13.  It is very important to understand and meet the
customer expectations
 Consumers of services value not only the outcome of
the service encounter but also the experience of taking
part in it.
 Reliability:- Service provider should be able to deliver
the promised service each time the customer decides to
avail of it.
Meeting customer expectations

14.  Credibility:- Can customers trust the service
company's and its staff?
 Security:- Can the services be used without risk?
 Responsiveness:- How quickly do service staff respond to
customer problems and requests?
 Behavior of employees:- Do services staff act in a friendly and
polite manner?
 Communication:- Is the service described clearly and accurately.

15. Three types of marketing in service
industries
 Internal marketing
 External marketing
 Interactive marketing
F
M K

16. Internal marketing
◦ Marketing conducted by a service firm to train and effectively
motivate its customer contact employees and all the supporting
service people to work as a team to provide customer
satisfaction.

17. External marketing
◦ Traditional marketing incorporating the 7Ps
 Price
 Product/service
 Place
 Promotion
 People
 Processes
 Physical evidence of the services marketing mix.

18. Interactive marketing
◦ Marketing that recognises that the perceived service quality
depends heavily on the buyer-seller interaction.
◦ Emphasis on relationship marketing.

19. Service
 Pure services are tangible
 Higher perceived risk in decision making process.
 Provide service trials where ever possible.
Promotion
 Intangible elements of services may be difficult to
communicate
The services marketing mix

20.  Word of mouth is critical to success
 Persuade satisfied customers to inform others of their
satisfaction.
 Encourage potential customers to encourage current
customers.
Price
 An indicator of perceived quality.
 Important in matching demand and supply.

21. Place
 Distribution channels for services are more direct
 New technologies permit service companies to provide
services without customers coming to their facility.
People
 Service quality is inseparable from quality of services
providers

22.  Employees of service organizations have to be adept in
multiple roles.
 Examine the role played by customers in service
environment.
 Seek to eliminate harmful interactions.

23. Physical evidence
 The environment in which the service is delivered.
 Includes any tangible goods that facilitate the
performance and communication of the service.
Process
 Procedures, mechanisms and flow of activities by
which a service is delivered to customers.

24.  Process and its visibility are both important for
customers
 Process should be employed only when it is required to
provide a service and not because customers have come
to expect it.

25. SERVICE QUALITY Mgmt

26.  Gap between consumer expectation and management perception:
Management does not always correctly perceive what customers want.
Hospital administration may think patients want better food, but patients
may be more concerned with nurse responsiveness.
 Gap between management perception and service-quality
specification:
Management might correctly perceive customers’ wants but not set a
performance standard. Hospital administrative my tell the nurses to give
“fast” service without specifying it in minutes
Managing service quality

27.  Gap between service-quality specifications and service delivery:
Personnel might be poorly trained , or incapable of or unwilling to meet
the standard; or they may be held to conflicting standards, such as taking
time to listen to customers an serving them fast.
 Gap between survive delivery and external communications:
Consumer expectations are affected by statements made by company
representatives and ads. If a hospital brochure shows a beautiful room, but
the patient arrives and finds the room to be cheap and tacky
looking, external communications have distorted the customer's
expectations.
 Gap between perceived service and expected service:
This gap occurs when the consumer misperceives the service quality. The
physician may keep visiting the patient to show care, but the patient may
interpret this as an indication that something really wrong.

28. Campus Overview
907/A
Uvarshad, Gandhina
gar
Highway, Ahmedab
ad – 382422.
Ahmedaba
d
Kolkata
Infinity
Benchmark, 10th
Floor, Plot G1,
Block EP & GP,
Sector V, Salt-Lake,
Kolkata – 700091.
Mumbai
Goldline Business
Centre Linkway Estate,
Next to Chincholi Fire
Brigade, Malad
(West), Mumbai – 400
064.

29. THANK YOU