VIETNAM NATIONAL UNIVERSITY, HANOI
SCHOOL OF BUSINESS PHUNG THI PHUONG THAO

SOME SUGGESTIONS TO IMPROVE
CURRENT ACCOUNT SERVICE ENHANCEMENT
AT TECHCOMBANK

Major: Business Administration
Code: 60 34 05

MASTER OF BUSINESS ADMINISTRATION THESIS

Supervisors: Dr. Tran Doan Kim

Ha Noi, 2012

ii
ABSTRACT
SOME SUGGESTIONS TO IMPROVE
CURRENT ACCOUNT SERVICE ENHANCEMENT AT TECHCOMBANK
Phung Thi Phuong Thao
MBA candidate, ReMBA8
Viet Nam National University, Ha Noi.
School of Business
Supervisors: Dr. Tran Doan Kim
vi
TABLE OF CONTENTS

ACKNOWLEGEMENT i
ABSTRACT ii
TÓM TẮT iv
TABLE OF CONTENTS vi
LIST OF TABLES ix
LIST OF FIGURES xi
CHAPTER 1 LITERATURE REVIEW 1
1.1 CUSTOMER REALATIONSHIP MANAGEMENT 1
1.1.1 Definition 1
1.1.2 IDIC: Four implementation tasks for creating and managing customer
relationships. 2
1.2 CUSTOMER SATISFACTION 4
1.2.1. Definition 4
1.2.2. The role of expectations and perceptions 5
1.2.2. Service quality and GAP model 6
CHAPTER 2 TECHCOMBANK CASE STUDY 19

60
4.6 PRODUCT DESIGN 60

viii
4.7 PAYROLL FORCUS 61
4.8 CRM ENHANCEMENT 63
QUESTIONNAIRE 65
REFERENCES 97 ix
LIST OF TABLES

Table 2.1: Techcombank current account portfolio to 2014 27
Table 2.2 : Techcombank CA NIM performance 28
Table 2.3 : Techcombank CA multiple-service Customer ratio 29
Table 2.4 : Techcombank CA’s balance portfolio by products 30
Table 2.5 : Prompt responses to customers’ requests 34
Table 2.6 : Customer satisfaction on Enthusiastic bank staff 34
Table 2.7 : Product structure to fulfill customer needs 35
Table 2.8 : Effective added services 35
Table 2.9: Survey Systematic Sampling – Single Product user 37
Table 2.10: Survey Systematic Sampling – Multiple-Product users 37
Table 2.11: Feedback on customer choice (%) 38
Table 2.11: Other banking services using (%) 38
Table 2.12: Which offer will do customers interested in opening ATM card or
registering for internet banking with TCB? 38
Table 2.13: Feedback on CA opening and services registered procedure (%) 39
Table 2.14: Feedback on card issuance time (%) 39
Table 2.15: Feedback on Token key issuance time (%) 40

Finger 4.4: CRM Capabilities will be mapped [R&D department, PFS action 2013 plan] 63
Finger 4.4: CRM assessment Approach [R&D department, PFS action 2013 plan] 64
1
CHAPTER 1: LITERATURE REVIEW
This chapter reviews literature relating to the research questions and
hypotheses of this study. First, the chapter begins with a summary of
customer relationship management (CRM); then, the relationships of four
implementation tasks for creating and managing customer relationships.
Finally the definition of customer satisfaction and the impact of factor on
customer satisfaction are provided.

1.1 CUSTOMER REALATIONSHIP MANAGEMENT
1.1.1 Definition
Customer Relationship Management (CRM) is “a set of business practices
designed, simply, to put an enterprise into closer and closer touch with its
customers, in order to learn more about each one, with the overall goal of
making each one more valuable to the firm” (Don Pepper & Martha Rogers,
2004).
In a simple world, CRM is a tool helping an enterprise to set up and manage
individual customer relationships.
The CRM is also known by other terms such as integrated marketing
communication (Don Schultz), one-to-one relationship management (Don
Peppers & Martha Rogers), real time marketing (Regis Mc Kenna), customer
intimacy (Michael Treacy & Fred Wiersema)…
“CRM is more than just an outgrowth of direct marketing and the
advent of new technology. It requires new skills, systems, processed
and employee mindsets (Philip Kotler, 2001).”

newsletter is rendered or how a product is bundled. 3
Treating different customer differently could be very expensive if every
interaction and transaction had to be individually adapted. Many enterprises
are now using a technique of mass customization.
“A mass customizer actually does is not customization, but configuration.
The mass customizer pre-produces a dozens, or hundreds, of “modules”, for a
product, and/or its related services, delivery options, payment plants, and the
like. Then, base on an individual customer’s needs, the company puts
different modules together to yield thousands, or even millions, of possible
product configuration (Don Pepper & Martha Roger & Bob Dorf, 1999).”
The biggest obstacle is ensuring that different parts actually work with one
another and can be fit together easily.
The implementation of the IDIC methodology can be broken down into two
categories: analysis and action 4

Finger 1.1: IDIC: Analysis and Action (Peppers and Rogers, 2004)
1.2 CUSTOMER SATISFACTION
1.2.1. Definition
Customer satisfaction, a term frequently used in Marketing and product R&D,
is a measure of how a product or service meet or surpass customer
expectation.
Satisfaction is a widely accepted concept despite real difficulties in measuring
and interpreting. The most common approach is the use of general satisfaction
surveys undertaken every few years and designed to track changes over time.

to service and from customer to customer. A clear understanding of these
needs is necessary to design an appropriate service.
Previous experience 6
Many customers will have had experience of using services before. This
previous experience will influence their future expectation of the service. This
can include their past experience of a similar services.
Word of mouth communications
Expectation of customer may be influenced by other sources other than the
service provider itself. Family, friends, colleagues, media…also influence in
customer expectation shaping.
Explicit service communications.
Statements from leaflets or other publicity material can have a direct impact
on expectation.
Implicit service communication.
This includes factors such as: the physical appearance of the building, well
lighted parking lot…which customer may sense only vaguely.
The overall model of key factors influencing expectation of public services is
widely recognized that the nature and impact of each of these influences will
vary for different customers and services. This is not an additional
determinant of expectations in the same way as those outlined above, but it is
critical to understand when making comparisons between public services: for
some services, the greatest influence on the level of expectations is likely to
be the nature of the customer group that is being served.
1.2.2. Service quality and GAP model
As described above, the service quality model starts from the basic gap
between P (perception) – E (Expectation).
Service quality gap model has been divided by 2 parts: Customer gap and

expect: they may not interact directly with customers, they may be unwilling
to ask about expectations or they may be unprepared to address them, also
they may image all customers are similar to themselves. These will lead to
bad decisions and unreasonable resource allocation that result in perception of
poor service quality.
When management or empowered employees do not acquire accurate
information about customers’ expectations, provider gap 1 is large. Formal
and informal methods to capture information about customer expectations
must be developed through marketing research. 9

Finger 1.3: Provider Gap 1 (Parasuraman, A., Zeithaml, V.A. and Berry,
L.L, 1991)
Gap 2: Not having the right service quality designs and standards.
Gap 2 focuses on difference between company understanding of customer
expectations and development of customer-driven service designs and
Customer expectation
 Inadequate marketing research orientation
 Insufficient marketing research
 Research not focused on service quality
 Inadequate use of market research
 Lack of upward communication
 Lack of interaction between management and
customers
 Insufficient communication between contact
employees and managers
 Too many layers between contact personnel
and top management

Designs and Standards

 Poor service design
 Unsystematic new service development
process
 Vague, undefined service designs
 Failure to connect service design to service
positioning
 Absence of customer-driven standards
 Lack of customer-driven service standards
 Absence of process management to focus on
customer requirements.
 Absence of formal process for setting service
quality goals.
 Inappropriate physical evidence and
services cape
 Failure to develop tangibles in line with
customer expectations
 Servicescape design that does not meet
customer and employee needs
 Inadequate maintenance and updating of the
servicescape
 Not appropriate recovery mechanisms

Management Perceptions
of Customer Expectations
G
A
P
2

customers correctly, high-quality service performance is not certainty.
Standards must be backed by appropriate resources (people, systems, and
technology) and also must be enforced to be effective – that is, employees
Customer-Driven Service
Designs and Standards

 Deficiencies in human resource policies
 Ineffective recruitment
 Role ambiguity and role conflict
 Inappropriate evaluation and compensation
systems
 Lack of empowerment, perceived control, and
teamwork
 Customers who do not fulfill roles
 Customers who lack knowledge of their roles
and responsibilities
 Customers who negatively impact each other
 Problems with service intermediaries
 Channel conflict over objectives and
performance
 Difficulty controlling quality and consistency
 Tension between empowerment and control
 Failure to match supply and demand
 Failure to smooth peaks and valleys of demand
 Inappropriate customer mix
 Overreliance on price to smooth demand

Service Delivery
G
A


 Lack of integrated services marketing
communications
 Tendency to view each external
communication as independent
 Absence of strong internal marketing
program
 Ineffective management of customer
expectations
 Absence of customer expectation management
through all forms of communication
 Lack of adequate education for customers
 Overpromising
 Overpromising in advertising
 Overpromising in personal selling
 Overpromising through physical evidence cues
 Inadequate horizontal communications
 Insufficient communication between sales and
operations
 Insufficient communication between
advertising and operations
 Differences in policies and procedures across
branches or units

External communications to customers
G
A
P
4


16

Gap
Score
Customer gap:
1. How well does the company understand customer expectations of
service quality?
2. How well does the company understand customer perception of
service?
1 = poor
10 =
excellent
Provider gap 1:
1. Market research orientation.
Is the amount and type of market research adequate to understand
customer expectations of service?
Does the company use this information in decisions about service
provision?
2. Upward communication.
Do managers and customer interact enough for management to know
what customer expect?
Do contact people tell management what customer expects?
3. Relationship focus.
To what extent does the company understand the expectations of
different customer segments?
To what extent does the company focus on relationships with
customer rather than transactions?
4. Service recovery.
How effective are the recovery efforts of organization?
How well does the organization plan for service failure?