When it comes to implementing today's service quality programs, Surely, a warm smile, firm handshake and a greeting by name go a long way in making customers feel good about where they bank. But is it enough?

"Customers are ambivalent at best when you get it right, but get it wrong and it kills you," says Oscar Foster Jr., vice president of quality management, community banking at First Chicago Corp. "Mostly what pops up concerning service quality are those things customers expect you to do well."

Implementing good service quality programs is becoming more important as banks differentiate themselves from their competition. No longer is it enough to simply meet customer expectations, many banks instead are focusing on exceeding customer expectations.

"Banks think they deliver good quality service just because they don't get any complaint letters," says Bob Romano, managing partner with Romano & Sanfilippo, a service quality consulting firm in Escondido, Calif. "That's ridiculous. Dissatisfied people don't write letters, they just leave."

Romano says the first step in developing good service quality is being obsessive about asking customers what they think about service. He says service quality is not a program, but a never-ending process. "Developing service quality is not simply putting people through a training program and throwing cash and incentives at them, expecting them to change their behavior," he explains. "That's banking's biggest downfall; it just doesn't work."

Romano breaks service quality into three components: infrastructure, training and organization, and development. The infrastructure sets the standards by identifying variables of service quality and defining them. Surveying both employees and customers on service quality standards is important to determine the components of good service quality. Once the variables have been identified, standards and goals can be set.

Measurement systems to determine whether service quality is being delivered is another important step in the infrastructure. Measurements can include surveys of both open and closed accounts, mystery shopping, focus groups and random transaction sampling using questionnaires. Romano stresses the importance of measuring both internal and external quality service. He says often the service quality of backroom operations have a direct effect on service quality delivered at the front line.

In addition, recognition and accountability programs should be part of the infrastructure. Romano's formula for accountability is setting expectations, providing training and recognizing those who meet the expectations. Recognition does not mean cash, but can include "your name in lights, a pat on the back or being made a hero," he says.

Training gives employees the tools they need to deliver good service quality. Romano says product knowledge and sales skills are essential. "You are educating your employees to determine a customer's needs and then provide the right product," he says. "It is very important that employees understand that sales and service are intertwined. Sales is not a dirty word, it is a service." …