The document provides background information on Jyske Bank, a Danish bank formed through mergers in 1967. In the mid-1990s, Jyske Bank was recognized as a differentiated but unremarkable bank. However, by 2003 it had established itself as having the highest customer satisfaction through changes to its competitive positioning. It implemented strategies like assigning customers to bankers, improving facilities, reducing processes, and empowering employees to better meet customer needs and deliver a superior service experience.

1. Case Study

2. HISTORY
Incorporated in 1967 through the merger of 4Danish banks.
The mid-Jutland area: Silkeborg Bank, Kjellerup Bank, Kjellerup
Handels- og Landbobank and the Handels- og Landbrugsbank in
Silkeborg.
Recognized at most differentiated and unremarkable bank.
But in mid 90s, the change process lost its differentiating
characteristic.
Till 2003, Jyske bank has maintained the highest number of satisfied
customer.

3. Questions????
Q: As of the mid-1990s,what was Jyske Bank’s competitive positioning,
that is, what did it do for customers relative to its competitors?
Q: As of 2003, what was Jyske Bank’s competitive positioning?
Q: What did Jyske bank change to enable it to deliver its new competitive
positioning?
Q: How did Jyske Bank implement those changes?

4. Strategies (Tangibles)
MID 1990’S 2003
One employee for a group of A customer allotted to a group of
customers bankers
Round tables, computer visible, no
longer a dais, play place, café
Servicescape outlet, specially designed meeting
rooms, change in interiors.
Friendly images of employees.
Physical Evidence: Dull images for
employees

5. Strategies(Intangibles)
MID 1990’S 2003
Training provided to employees Training provided to employees
A long procedure before process The procedure is highly reduced
could be computer for better services.

6. Services 7 Ps

7. Kaffe Bar At Bank

8. Expanded Marketing Mix for
Services
PEOPLE PHYSICAL PROCESS
EVIDENCE
Employees Facility design Flow of activities
Customers Equipment – IT and Number of steps
coffee machines
Communicating Level of customer
culture and values involvement
Employee training Business Cards Surprise audits and
checks
Other tangibles

9. Jyske’s Competitive
Positioning

10. Out of the Box Service
Physical evidence:
Developing a niche market and targeting the right set of customers.
A customer assigned to a group of bankers.
Friendly pictures of employees.

11. Cutting edge
Technology – Similar
Delivery – Significant Difference
a)Tools developed  Customer Needs Identify
b)Tools + People  Cutting Edge

12. Value added
People: Being nice to customers
Making time for customers
Caring about customers.
Focused at niche market
Training in team building and customer service.
Empowerment to employees.
Incentives

13. Service Differentiates
Process: Traditional product selling to customer solution approach.
Delivery of financial products changed.
Employee centric
Empowering employee for decision making
Training
Commitment
Incentives

14. Reliability
Responsiveness
Service Situational
Quality Factors
Assurance
Empathy
Tangibles
Product Customer Customer
Quality Satisfaction Loyalty
Personal
Price
Factors

15. Service Quality
Responsiveness
According to the Companies core values published for the three major stake
holders, Reliability comes under value (1) – Common Sense
>> With both feet placed firmly on the ground, we think before we act<<
•Consider common sense our best guide
•Apply common sense when solving problems and meeting daily challenges
•Allow common sense to override awkward customs and routines
•Take action whenever we encounter examples of bureaucratic and routines
•Observe existing rules and regulations
•Accept that control measures are necessary to a certain degree
•Generate satisfactory short and long term financial results by pursuing sound
business practices
•Apply common sense whenever we incur group expenses

16. Service Quality
Assurance
According to the Companies core values published for the three major stake
holders, Reliability comes under value (2) – Open and Honest
>> We are open and honest in both word and action<<
•Keep each other up-to-date on relevant matters, and do not misuse information
obtained in the course of our work
•Restrict the degree of openness only by business considerations or by
considerations for other stakeholders
•Respect agreements entered into and do not betray the bank’s confidence
•Strive towards making important decisions concerning individual employees on
the basis of constructive dialogue
•Communicate openly about the mistakes we make and the problems we
encounter
•Accept that mistakes are made, that they are corrected, and that focus is then on
learning from the process
•Listen openly to new ideas and constructive criticism

17. Service Quality
Empathy
According to the Companies core values published for the three major stake
holders, Reliability comes under value (3) – Genuine Interest and Equal
Respect
>> We demonstrate insight and respect for other people<<
•Recognize that no two people are alike
•Seek lasting relations with shareholders, customers, and employees
•Offer qualified advice matching the financial needs and requirements of
each customer
•Have job security based on mutual obligations and that we pay attention to
individual and personal needs
•Allow the highest possible degree of personal influence on assignments,
working hours, and place of work

18. Service Quality
Reliability
According to the Companies core values published for the three major stake
holders, Reliability comes under value (4) – Be efficient and persevering
>> We work consistently and with determination to reach our goals<<
•Use JB 2005 (the bank’s core values) as a guide in our daily work
•Are not blown off course because of external circumstances -
•Adopt an organization which promotes efficiency
•Consider security important
•Are convinced that efficiency increases with the level of personal responsibility
•Allow employees to assume personal responsibility for day-to-day decisions –
even when the basis for decision making may not be 100% perfect
•Acquire the level of skills required through personal and professional
development
•Act on the basis of competence rather than organizational charge
•Support our decisions by well-founded arguments, working hours, and place of
work

19. • New IT systems helped
employees take customers
through processes to
determine their needs and find
appropriate solutions
E..g : Determining the style of
investment products based on
risk aversion, time frame and
return goals customized for a
Product particular client
Quality • 98% of the loans processed at
regional office itself
• Smaller loans provided almost
instantly
• Larger loans approval time
reduced from 3 weeks to 10
days

20. • As delivering this type of
service was expensive, the
bank charged a slight premium
• Targeted to customers who
Price were less likely to represent a
credit risk
• Expectations regarding price
and terms were more often
included in the application

21. Service Quality
Tangibles & Intangibles
• Accounts Teams
• Branch Design
• Details
• Empowering the branches

22. Tangibles
Account Teams
1.Caring about customers as individuals
Branch Design
1.Customer interaction with bankers
2.Café: Customer feels welcome
3.Round tables: Equality
4.Screen visible: Openness
5.Home like meeting rooms
6.Better photographs: Old family like

23. Intangibles
Empowering the branches
1.Improved customer experience
2.Quality of information and hence quality of loans improved
3.Acceptable to customer as well as bank
4.Improved branch credit skills, no incentive to make poor loans and
robust internal auditing function

24. Intangibles
Empowerment throughout the Bank
1.When in doubt, ask
2.Working hours and vacation
3.Spend what you need to spend
4.Telling what is expected and checking behavior

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26. Thank You