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Malayan Banking Berhad (Maybank) is the largest financial services group in Malaysia. It has a strong regional presence in South East Asia. The founder of Maybank is Khoo Teck Puat while Abdul Wahid Omar is the current CEO of Maybank Corporation. Maybank was incorporated in Malaysia on 31 May 1960 and start its operations on 12 September 1960. Maybank was listed on Kuala Lumpur Stock Exchange (now Bursa Malaysia) on 17 February 1962. The objectives of Maybank is to humanize financial services across Asia by advising customers based on their needs, being at the community’s heart, having fair terms and pricing as well as providing convenient access to financing (Maybank, n.d.).
Over the years, Maybank kept up its expansion and evolve into a major banking and financial services group, providing various products and services to customers such as commercial banking, asset management, hire purchase, Internet banking and so forth. Maybank had 384 branches operational in several parts of Malaysia as well as 1750 offices in 14 countries such as Singapore, Brunei, Hong Kong and other nations. Headquarter of Maybank is located at Kuala Lumpur, Malaysia. It has over 40000 employees to serve more than 18 million customers worldwide. Maybank faces intense competition in banking industry which includes Public Bank, CIMB Bank, Hong Leong Bank and others (Maybank, n.d).
2.0 SWOT Analysis
Malayan Banking Berhad (Maybank) is the leading regional market which is the largest bank in Malaysia. Maybank is the largest Banking Service provider in Malaysia where they place their ATM Machines widely available all over Malaysia. They is also the first bank to provide instant international money transfer service available through Malaysia, Singapore, Indonesia, Brunei, Philippines, Cambodia and Pakistan. It is more convenience for their customer to do money transaction all around the world. Besides, the services provided by Maybank are comprehensive. Their product line diversified from financing, loans, deposit, insurance to investment Banks. Maybank is also the first bank who introduces internet banking in Malaysia. They provide a user-friendly website, www.maybank2u.com.my for their customer to get updated information and provide customer feedback instead of doing money transaction. The high performance and high-ROI customer relationship management (CRM) program of Maybank has leaded them to won the CRM Excellence Award 2010. It has emerged tops under the “Growth” category for its successful launch of the country’s first Event Based Marketing (EBM) initiative.
The weakness of Maybank is customer satisfaction rating of Maybank is still low and they are rated at number 7 out of 8 banks in Malaysia for customer service in year 2012 (Scribd, n.d.). Inefficient Service and poor customer service also is one of the weakness of Maybank. For example, Maybank does not have bank systems be automated with built-in security features to verify their customer’s accounts and details without having to rely on a piece of physical paper with a signature. This would make customer harder to replace card or change account if go to different branch. Besides, much of the banking operations of Maybank are focused in and around Malaysian and Singapore. Hence, it has limited global penetration. And much of the revenue of Maybank comes from retail banking and Islamic banking. Thus, It will has less revenue comes from other offering. In addition, Maybank has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may weaken over time due to homogeneous products served.
Maybank have the opportunity to grow global Islamic Finance Market as a Maybank Islamic Berhad. It can increase the profitability by accessing international financial market for procuring funds cheaply and deploy fund prudently. Besides, Maybank have the opportunity to growth in internet banking that will increase the customer base. They can increase usage of online banking as moderate users and people tend to do more of their transaction and banking activities online where as several service can be provided for companies and organizations via online system. Maybank also restructuring their strategy in order to scout for potential investments and acquisition targets, with detailed insight into the companies’ strategies, financial and operational performance (Bursa Community, 2011). In addition, Maybank also have the opportunity to do business expansion in ASEAN region. By opportunities which have been provided between ASEAN countries and the amount of export and import among these countries, Maybank can play a big role in facilitating financial transaction for these transports. They can wider regional Islamic Finance Market to Indonesia, Singapore, Brunei, China, the Philippines and the Middle East. On the other hand, Maybank can do advancement in technology to provide better services which will result to gain more customers.
Maybank have principal competitors such as Public Bank, CIMB Bank, Hong Leong Bank, RHB Bank, HSBC Bank and Citibank. There is an aggressive competition strategy among the main banks. The introduction of Internet has created opportunities and also threats in the e-banking line. The threat of existing competitors in the e-banks is very high as they are using the concept of point of parity. Maybank2u.com does not monopolize the market and there are competitors such as Hong Leong online banking, CIMB clicks and many more. This allowed the customers to switch brands easily (UKEssays, n.d.). Besides, the customer of Maybank always concern with the safety issue of online banking. They are more likely to do transaction in the traditional ways rather than online banking. This is because they are lack of confidence toward safety and security issue of online banking. They are afraid of their information will be intercept by hacker. Others than that, the changes in economic policies in South East Asian countries and current macroeconomic scenario across the global will affect the bank significantly. This is because Maybank aim to grow Islamic business in markets like Indonesia and Singapore as part of their focus on the ASEAN region.
2.5 CRM Problems
Long waiting time at counters is one of the Maybank CRM problems. Customers who want to settle their matters at counters need to wait to be served for a long period of time. It is even worse during peak hour. Sometimes, the waiting time can take up to more than one hour.
Furthermore, long queuing times at self-service terminals such as cash deposit Machines, cheque deposit Machines and ATM Machines is Maybank CRM problem too. Customers will get angry and feel dissatisfied especially when they are rushing time but still need to queue for a long period of time.
Moreover, getting wrong information from customer service line or frontline staffs is another CRM problem. This will result in customer dissatisfaction because customers need to sacrifice their time to go to Maybank branch on purpose to settle the unresolved issue. Bad attitudes of employees will cause customer feel angry and dissatisfied towards the poor service too.
In addition, low customer loyalty is major CRM problem too. Customers often feel frustrated when they face several problems such as login failure, transaction error and system down while doing online transaction via Maybank company website (www.maybank2u.com.my). This can cause Maybank to lose their customers because of customer dissatisfaction.
3.0 Customer Segmentation & Customer Profile
Maybank operates in six segments, which include consumer banking, business and corporate banking, global market, investment banking, insurance and asset management and international banking.
For consumer banking, Maybank targets mass affluent customers who can earn around RM3000 per month. They also target entrepreneur who aged between 22 to 42 years old that have financial complexity. Maybank debit card segment is targeted among the young generation who aged between 18 to 32 years old, particularly students, teenagers and homemakers. This young generation segment is more likely to make simple transactions through Maybank. Maybank also targets young family who aged between 25 to 42 years old that are looking for a mortgage.
Corporate banking offers one-stop financial solutions tailor-made to the specific requirements of individual corporate clients from government linked companies (GLCs), public-listed Malaysian companies and multinational corporations.
Business Banking caters to small medium enterprises (SMEs) and commercial enterprises not listed on Bursa Malaysia, providing commercial finance, trade finance, cash management and factoring services. SMEs have lower price sensitivity, strong customer loyalty and large market size. SMEs are often high-net worth individuals and their growth potential is high as well.
Maybank Islamic offers Shariah-compliant products and services to a growing Muslim and non-Muslim base in Malaysia and overseas (Maybank Annual Reports 2010, n.d.).
4.0 CRM Objectives
Maybank CRM objectives are to reduce customers’ waiting time, increase customer satisfaction and improve customer loyalty.
5.0 CRM Plan
5.1 Reducing customers’ waiting time
Most of the working peoples will make use of their lunch time to settle down their matters at Maybank branch. Hence, Maybank should have more counters operated during peak hours in order to reduce customer’s waiting time. Besides, Maybank should assign more well-trained staffs to solve customers’ problems at frontline. In order to provide excellent customer service, Maybank needs to offer training and development program for employees to gain skills and knowledge. This allows Maybank employees to have full knowledge about the company’s operations and equipped with the required skills to deal with customer service at frontline. The work efficiency and work productivity of employees can be improved too. When employees work better, they will serve individual customer in a faster way and this can reduce other customers’ waiting time. Customers will feel satisfied with the efficient services provided by Maybank Company.
The peak periods that most of the peoples are making transaction at ATM Machines often occur during the beginning of a month and end of a month. Hence, Maybank need to ensure that all ATM Machines have sufficient cash flow along the year especially during peak periods to avoid withdrawal problem which in turn can reduce the time for customers to queue at ATM Machines. Besides, Maybank can place ATM Machines at areas such as petrol stations, universities, hospital, shopping centers and so forth. It is more convenience to the public for money withdrawal. This can help Maybank to overcome the overcrowded problem at ATM Machines because customers can do transaction without the need of going to Maybank branch. Moreover, Maybank should check the conditions of all machines at self-service terminals on a regular basis. They have to take immediate actions if machines are not working properly. The company should employ professional and technical workers to sort out the reasons that cause system malfunction as well as repairing it. Furthermore, Maybank can assign well-trained employees to assist customers who are not familiar with machine functions by telling them how to operate the Machines to make transaction so that customers who are queuing behind are not being affected.
5.2 Increasing Customer Satisfaction
Improving service quality is the best way for Maybank to increase their customer satisfaction. Maybank can launch a “Serve from your HEART” program (Maybank Annual Report 2010, n.d.). It is a bank-wide service pledge that focuses on providing excellent and consistent customer service. Maybank is committed to understand their customers’ expectations, enhance the delivery of service as well as using the quality service to differentiate their business from the intense competition in banking industry. The HEART acronym is referring to Humility, Efficiency, Appreciation, Respect and Trust (Maybank Annual Report 2011, n.d.). Maybank wants all of their employees to serve customer and handling customers’ complaints from their HEART and deal with customers in a sincere and genuine manner. Customers will get delighted if they are served by well-trained employees who have good attitudes and always put a smile on their faces.
5.3 Improving customer loyalty
In order to achieve this objective, Maybank has to make great improvement in their operations. In today’s technology world, most of the people are doing transaction via Internet at home because it is easy and convenient. Maybank need to continuously upgrade the company website in order to avoid customers’ dissatisfaction. They have to invest latest and advanced software and hardware to ensure the company website is going smoothly with high speed. Maybank also have to make sure that their customers’ information is private, safe and confidential. This allows customers to have more confidence while doing transaction with Maybank and thus, it helps Maybank to sustain their customers. In addition, Maybank can introduce customer loyalty programs to add value on their business. For example, Maybank can reward customers through lucky draw, special treatment, free food and beverages as well as others events. Moreover, Maybank can put hard effort on their corporate social responsibilities by joining charity events, donation, community service and so forth. This can establish a high brand reputation among customers. Customers loyalty will increase when Maybank have a positive brand image.
6.0 Evaluation & Monitoring Methods of CRM Plan
Customer engagement survey is an annual survey form that is used to collect feedback from customers. It helps Maybank to determine whether their CRM objectives have been achieved in one year period. In this survey form, customers are required to determine their satisfaction level towards Maybank customer service and provide views for company improvement. Through this survey, Maybank can know about customer expectation, customer loyalty and the critical improvement areas that allow the company to gain greater customer satisfaction and higher profitability.
Internal Employees Survey is conducted to determine the team effectiveness amongst internal support groups. It is distributed to Maybank employees to evaluate others employees work productivity and effectiveness. Maybank Company can use this survey to evaluate employees’ performance in customer service and problem resolution. They can determine whether employees are working effectively to reduce customers’ waiting time.
Maybank can know whether their CRM objectives have been achieve through face-to-face interviews with customers. It allows Maybank to collect instant feedback directly from customers through two way communication. Besides, staffs Key Performance Indicators (KPI) are used to measure employees’ performances. It helps Maybank to measure customer rating of service, number of process errors, number of human errors, time allocated for problem resolution and others.
Furthermore, Maybank uses real time performance measures to evaluate the quality of services at difference branches. The company can assign independent evaluators to posing as customers and making transactions at Maybank branch to track the consistency of service levels.
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