Marketing approaches used by managers to Address customer service challenges in banking in Kenya

Abstract

The banking environment m Kenya has been changing; there has been tremendous growth in the banking sector in the last twenty years. These changes have made banking a very competitive business. This study sought to establish, from the management perspective, the challenges faced in marketing banking services and to determine approaches banks use to overcome these challenges. Data was collected through a questionnaire either personally administered or left to the respondents to fill in. Both closed and open-ended questions were used. Data was collected from 39 banks out of 43 banks (90.7%) registered with Central Bank of Kenya. Data was tabulated using basic statistical analysis such as frequency distribution, mean, and percentages. A content analysis was also carried out. • The main challenges identified when marketing banking services were; understanding customer expectations, courtesy of front office employees and having a product range to meet customer needs. • Some of the approaches banks have used to overcome challenges in marketing banking services are undertaking research, staff training and public relation activities. The research achieved the two objectives and based on the findings the following conclusions were drawn: • Banks had a clear strategy in handling peak period but they lacked a strategy for handling extra staff during slack period. The banks respond positively to peak hours with a policy of increasing the customer bank accessibi+ity platform either adding or rotating staff, and opening for longer periods. However the banks lack a single- minded approach to the slack period, from the research it was clear that there was no single strategy from the banks on the way to handle extra staff not required during this period. • The banks lack an understanding in the gap between their understanding of the customers and coming up with specific follow-up on customer satisfaction. • The marketing concept is still in its infancy in the banking sector and their definition of the concept is basically advertising, sales, and customer service.