Customer Experience and Customer Mis-Management

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Is Outsource IT functions always beneficial to us? asked and debated by few local co-op. bank executives in India during sunday luncheon. I had impression of Co-op. banks as SME segment of Banking. They are less than greedy but more than cost concious investor. They trade off quality and cost better than a bigger bank and usually customer service savvy. Sometimes CO-op. bank are successful in maintaing better customer relationship than a large commercial bank apart from higher interest rate for depositor.

Best example to reinforce my above statement is to share my personal "Customer Experience Management" experiments. I started long back, experience the service deliverables by becoming a customer and interacting with process and framework put in place.

Part A: Interaction with Co-op. Bank:
I intentionally cut a cheque for fewq thousands to be issued to one of friendly merchant which bound to BOUNCE. Since, merchant has favoured me of not sueing me for bouncing the cheque I came to know that, Co-op bank officer was kind enough to snail mail about the cheque return which was avoided by giving me partial credit.

Part B: Large Private commercial Bank:
One of my cheque issued as bill pay from very well known Indian Private bank (Bank gets lot many award for Corporate governance and excellance for last few years), Cheque bounced due to insufficient fund. Bank never bother to use any of it's channles like Internet banking, Mobile phone, OFfice and resi. phone, Snail mail to intimate the same and debited Rs.250/= as returning charges. I felt shocked that, bank manager as well as that bank is so poor and bankrupted that, they debited the amount but can't spend 5 to 10 Rs. in order to save customer's crediability or allow TOD(Temp. Overdraft) and honor cheque with additional Rs.300 to 400/=.

I declare all that CRM investment, Outsourcing strategy, that made this commercial bank so greedy that, they eat up flesh out of bone of customer and ignore the experience that customer experience out of this. It's folly that, these banks will not be able to retain customers and will allow them to go to other banks.


I often surprised that, big trumpating by such banks about outsourcing and innovative product. It is like glossy presentation full of jargons impressed upon the directors and top management. What is that this guys are doing wrong an SME's are not doing wrong?

Innovation is the Key. Innovation will be born not out of such big elephants - Large Comm. Private Bank who can't dance (Except the one who gets Louis Gastner - Ex. CEO of IBM) but, either new enterent or SME segment of banks like Co-op Banks, who shed away lot of head weigth.

Indian goverment sanctioning Rs. 15,000 crore for revival is going to turn the economy on fast track and after few months, GDP grwoth of 8 to 10% is achivable. Marketplace will see lot more liquidity and better trade options with such new innovative services from SME banks.

One of the example of Printing Outsourcing case is good for eading.