This paper reports the results of a longitudinal study into the drivers of customer satisfaction in a large UK Bank. The findings confirm the significance of staff satisfaction and service quality, suggested by the service profit chain literature, but dispute that this comprises a simple linear relationship. The findings also question the pre-eminence afforded to the soft elements of the service encounter suggested by much of the Services Marketing literature. A five year study of the relationship between customer satisfaction and the technical and functional aspects of service quality suggests that technical service quality plays a critical role in determining customer satisfaction. Further analysis identifies Business Processes Management as a significant driver of technical service quality.
PurposeThe purpose of this paper is to further investigate the linkages between business process management (BPM) and customer satisfaction. Also, to challenge the dominance of the customer contact perspectives on service processes and to propose a more systemic focus on the totality of service design.Design/methodology/approachThe research builds on the existing work of Maddern et al. through the use of structured equation modelling (SEM) tool. The multiple SEM models described here provide a more robust statistical approach for confirming/refuting the constructs found in the earlier research.FindingsThis paper presents the results of an empirical analysis, based on longitudinal data from a large UK bank on drivers of customer satisfaction. The results confirm that process management is a critical driver of technical service quality. This suggests that companies with reliability/dependability issues should not emphasise customer satisfaction programmes based on SERVQUAL intangibles until substantial improvements in process design have been achieved.Research limitations/implicationsThe research is limited to a single case study of a UK bank over a five year period. The generalisibility of these findings is therefore limited. Further work in other sectors and over longer periods would establish the reliability of the findings. The paper also highlights some limitations in the service operations literature, particularly the emphasis on customer presence within the service process.Originality/valueThe paper uses time series data to identify the importance of BPM in achieving higher levels of customer satisfaction. The authors provide a platform for further research based on the design of service delivery systems and their impact on customer satisfaction.
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