India’s Banks’ Taglines, Trust Building and Customer Satisfaction
This case study enables a discussion on how earning ‘customer trust’ is critical for Indian banks (public and private sector) the factors hampering the same and how they are overcoming these hurdles by coming up with unique brand positioning strategies like tweaking their brand promises with unique taglines which position themselves on a personal tone as a friend, partner or a family member in order to build trust, satisfaction and earn customer loyalty and the impact of the same on consumers and their behavior.
Over a period of time, the service delivery gaps were increasing for various banks. Their ‘promise and performance’ became inversely proportional and the customers stated losing trust in them.
Banks have valued the importance of consumer relations and how it plays an instrumental role in building trust and therefore improving the overall efficiency of their business. They started to redefine their brand communication strategies on a new platform, where the customers could connect with them on the tone of emotional rather than on self-expressive or functional benefits. Most of the banks started to devise various communication strategies which reinforced themselves as a friend, family and trusted partner to the customers. Had this strategy struck a chord with the consumers? Do these taglines help build the trust, satisfaction and earn the required loyalty? All in all what is the consumer behaviour towards these taglines?
Prerequisite Conceptual Understanding/ Before the Classroom Discussion
This case study presupposes a conceptual understanding of the following. A working knowledge along with the business implications of the following concepts would enable an effective discussion leading to more practical solutions than a mere intellectual exercise. The participants were asked to read the following concept from the textbook – Leon G. Schiffman, et al., Consumer Behavior, 10th Edition, Pearson Publications 2010, to help them better connect the concept:
||Chapter No. & Name
||1- Customer Value, Satisfaction,Trust and Retention
||How Indian banks (public and private sector ) are coming up with various communication strategies through different platforms to build customer trust and earn their loyalty
In addition, the students were asked to jot down different taglines of various banks (from both private sector and public sector) of India, so that a comparative analysis of different taglines could be carried out in the classroom.
Expected Learning Outcomes
At the end of this case study, students/participants should be comfortable/conversant with:
- • The logic of limiting positioning platforms for banks, especially Indian Banks (Professor YLR Moorthi’s three value propositions would be of great use to deduce this)
- • The impact of taglines devised on the personal tone on consumers and how far they help build customer trust and earn loyalty and most importantly understand the relationship between customer trust and customer satisfaction.
- • What does it take all the Indian banks to leverage the power of social media? Would social media enable banks to gain customer trust?
- • The importance of 5Rs (Reputation, Responsibility, Relationship, Reward and Rigor), as opposed to the traditional 4Ps. Only by building relationships, should the students be encouraged to deduce the relevant insights, as has been highlighted in the ensuing pages.
This case study can be used for the following modules/topics in the Consumer Behavior Course:
- • Providing customers with value
- • Ensuring customer satisfaction
- • Building customer trust
- • Securing customer retention
- I. What is your analysis of the taglines given in Exhibit III of the case study? How many banks have the words, ‘trust’, ‘family’ and ‘friend’ in their taglines? How far this strategy of positioning on emotional benefits would enable the banks to gain customers’ trust?
- II. What do you mean by a value proposition? Do you agree with professor Y.L.R. Moorthi’s (page#1, para 2) hypothesis of, “ Foreign banks in India are chosen for self-expressive benefits, private Indian banks are chosen for functional benefits and public sector Indian banks for emotional benefits.” Analyze the same with Exhibit III of the case study.
- III. .............
The classroom discussion and analysis for this case study could be summarized through the Board Plan [Exhibit (TN)-I]. However, the classroom discussion was facilitated under three broad sections as explained below.....................