Page 1 of 18
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 05
April 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 214
The Role of Customer Service on Organizational Profitability in
United Bank for Africa
Presidential Road Enugu Branch
1.Mbah Paulinus Chigozie
dovegroupp@gmail.com
Department of Business Administration
Enugu State University of Science and Technology.(ESUT)
2.Okonkwo Joy Obiageli
Department of Business Administration
Enugu State University of Science and Technology.(ESUT)
3.Odinachi Catherine Ebele
Department of Business Administration
Enugu State University of Science and Technology.(ESUT)
Abstract
This research work titled “The Role of Customer Service on Organizational Profitability in
United Bank for Africa Presidential Road Enugu Branch”. The specific objectives were: to
examine the influence of good listening ear to customers, to examine the relationship between
the service of highly skilled staff and generation of incomes, to examine the relationship between
keep service promises and providing courteous through added value, to examine the relationship
between effective communication to clients and sales of the organization. A population of 101, A
sample size of 85 was drawn from the population using Taro Yamane formula. The Chi-square
(x2
) was used to analyze the data. The findings include: there is positive influence of good
listening ear to customers,
2 (95, n = 81) = 38.23, p < 0.05, there is positive relationship
between service of highly skilled staff and generation of incomes.
2 (95, n = 81) = 59.98, p <
0.05, there is positive relationship between keep service promises and providing courteous
through added value.
2 (95, n = 81) = 69.35, p < 0.05, there positive relationship between
effective communication to clients and sales of the organization.
2
(95, n= 81) =40.21, p <
=0.05. The study concludes that it is important that the efforts of firms to enhance the level of
service requirement that is vital to firms that wish to gain competitive advantage. Given the
importance of customer services in any organization and the likely economic effects on banks’
growth and development, it becomes expedient to examine how Customer services in Nigeria
Page 2 of 18
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 05
April 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 215
banking sector can better be improved if attention is given to the time a customer spend waiting
for the service to be rendered, the average time a customer spend with the cashier, the
probability that the bank cashier is idle. The study recommends that there is need to need to
constantly carry out research on the taste of customers in order to develop corresponding
products to suit these tastes. This comes against the backdrop of the intense competition for
customers by many of the financial institutions. Again, there is the need for in-service training
and refresher courses for the staff of UBA presidential road Enugu branch because of the
negative responses given by some of the customers about a few of the staff of the bank in terms of
relationship building.
Keywords: Customer Service, effective communication and probability
INTRODUCTION
There is no gain saying the fact the fact that the banking sector is the catalyst for economic
growth and development, as no activity can effectively be carried out in other sectors without
looking the way of the banking industry. This could be adduced to the fact that the banking
sector is pivotal to any country’s goal of achieving larger economies of scale among comity of
nations. Opinion differs among experts in banking and finance as well as the customer service
professionals as to what constitutes effective customer services in the banking sector but they all
agree that it is an age long issue for which there do not seem to be any consensus in sight. The
issue of how to improve customer services to boost banks profitability has a long history in the
banking sector. Some elements of customer service under this study include: appearance,
attitude, attentiveness, tact, guidance, systems, flexibility, anticipation, communication,
organization, convenient days and hours of operation, friendly tellers that are quick and
knowledgeable with good communication skills, good listening skill and problem solving
abilities. The importance of customer service in the Nigeria Banking system is absolutely
essential for continuity in business and expansion given the competitive nature of banking
services. Most successful business organizations have stated that the ability of providing an
unbeatable customers services as sets them apart.
Customer service means providing a quality product or service that satisfies the needs/wants of a
customer and keeps them coming back. Good customer service means much more – it means
continued success, increased profits, higher job satisfaction, improved company or organization
morale, better teamwork, and market expansion of services/products. The model for customer
service and bank profitability can be model thus: Customer service = Accurate information +
Zero service time. Customer services activities that may boost bank profitability in Nigeria may
include pleasant welcome address by banks staff to customers, smiling, good eye contacts, soft
tone of voice, hand gesture, good telephone etiquette, this are simple customer service gesture
with high business return.
Good customer service enables an organization to enhance its reputation among the customers. It
helps the staff of an organization in problem solving and creating ability for multi-task in areas
such as navigating complex databases and switching between different computers to find
Page 3 of 18
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 05
April 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 216
information for the caller. Hence it becomes an advantage for call centre employees in today’s
workplace to have the ability to think quickly on their feet so they can deal quickly with involved
information while working under pressure.
(Shaw and Ivens, 2002; Voss, 2003; Prahalad and Ramaswamy, 2004; Meyer and Schwager,
2007), have suggested that customer experience may provide a new means of competition. This
can be noted in the way and manner in which the Nigerians banks nurtured their customers in
service delivery. This done in other to retained old customers, get new customers and also
increase profitability. The manner in which the Nigerians banks will increase profitability may
be tailored towards the volume of transactions and turnover. This can influences expectations
(Johnson and Mathews, 2013; Flanagan et al., 2005) and build confidence (Flanagan et al.,
2005).
Statement of Problem
The financial sector in Nigeria has not too long ago faced a turbulent period which arose from
the global economic slowdown and the rot discovered in the sector. Poor profit maximization,
low sales and production, decrease in customer satisfaction etc. have eroded customers
confidence and subsequently expected apathy from customers towards the sector. Bad service,
including seemingly small things such as the way employee answers the telephone, can devastate
a business. Appearance, attitude, attentiveness, systems, flexibility of banks employees have
negatively affected the profitability of the organizations. The service a customer received or
purchased come with an experience. Such an experience can be good, bad, or indifferent.
Services always come with an experience and that all service encounters provide an opportunity
for emotional engagement, however, mundane the products or service might be.
Objectives of the Study
The general objective of the study is to examine the role of customer service on organizational
profitability in United Bank for Africa, Presidential Road Enugu Branch Branch, the specific
objective includes to:
i. Examine the relationship between the service of highly skilled staff and generation of
incomes.
ii. Examine the relationship between keeping service promises and providing courteous
through added value.
iii. Examine the relationship between effective communication to clients and sales of the
organization.
Research Questions
The following research questions will guide the study.
i. What is the relationship between service of highly skilled staff and generation of
incomes?
ii. What is the relationship between keeping service promises and providing courteous
through added value?
