AN ASSESSMENT ON SERVICE RECOVERY IN COMMERCIAL BANKS IN CAMEROON: CASE OF ECOBANK BUEA

ABSTRACT

This study evaluates service recovery practices in Ecobank Buea, a leading commercial bank in Cameroon. Service recovery refers to the strategies used by companies to resolve customer complaints and issues after service failures. The focus is to assess the effectiveness of Ecobank Buea’s service recovery processes, the challenges faced, and how these efforts impact customer satisfaction and loyalty.

The research adopted a mixed-method approach, combining quantitative surveys and qualitative interviews. Surveys were conducted with 150 customers who had experienced service failures, while interviews were held with 20 Ecobank staff, including customer service and management personnel. Data from customers focused on their experiences with the bank’s response to service failures, while interviews with staff aimed to understand internal recovery processes and challenges.

The findings reveal that Ecobank Buea employs several service recovery strategies, including prompt resolution of customer issues, offering compensations like fee waivers, and using feedback to improve services. The bank has a structured process for managing complaints, starting from customer reporting to final resolution, with well-trained customer service teams handling these issues. Automated systems for tracking and resolving complaints also play a crucial role in ensuring timely recovery.

Despite these efforts, the study uncovers several challenges that undermine the effectiveness of service recovery. First, delays in resolving certain complex issues, particularly those involving interbank transactions, were a major source of dissatisfaction. The bureaucratic nature of the banking system also hampers the swift resolution of some complaints. Furthermore, while the frontline staff are well-trained in customer service, there are gaps in their ability to handle more technical or complex issues. Additionally, many customers expressed concerns about inconsistent communication from the bank, with some complaints receiving attention faster than others.

Customer satisfaction with Ecobank Buea’s service recovery efforts is mixed. Some customers appreciate the promptness and professionalism of the bank’s responses to simple service issues like ATM failures or account discrepancies. However, others reported dissatisfaction with how long it takes to resolve more complex issues, such as loan processing errors or fraud claims. The study also found that customer loyalty was significantly influenced by how well their issues were resolved, with satisfied customers more likely to continue banking with Ecobank despite occasional service failures.

To improve service recovery, several recommendations were made. Ecobank should enhance its internal communication and coordination between departments to expedite the resolution of complex issues. Moreover, the bank should introduce more proactive communication channels to keep customers updated on the status of their complaints. Continuous staff training is necessary to equip employees with the skills to handle both simple and complex service issues effectively. Lastly, implementing a more transparent and standardized service recovery policy could help manage customer expectations better.

In conclusion, while Ecobank Buea has implemented solid service recovery practices, addressing the identified challenges will be key to improving customer satisfaction and loyalty. A more efficient and customer-centric service recovery system will not only reduce customer churn but also strengthen the bank’s reputation in Cameroon’s competitive banking sector.

Keywords: service recovery, customer satisfaction, Ecobank Buea, service failure, commercial banks, customer loyalty, Cameroon.