MicroSave Briefing Note # 28: Customer Service – Why It Is Important For MFIs

Publication Date: 2004
Published by: MicroSave
Document Type: Other

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Why should microfinance institutions offer good customer services?

This paper explores the necessity of providing excellent customer service for microfinance institutions (MFIs) and describes MicroSave’s approach to customer service. The paper points out that market-led MFIs should offer good customer service to:

• Keep customers;
• Build word-of-mouth business;
• Overcome competitive disadvantages;
• Work more efficiently.

• Culture of customer service;
• Product/service range including the additional services such as customer rewards and incentives;
• Customer knowledge to anticipate and meet customers’ needs and expectations;
• Efficient, effective, responsive and reliable delivery systems;
• Service delivery environment in terms of the location, opening hours, and the atmosphere;
• Technology;
• Employee relationship management and staff incentive schemes.

Finally, the paper highlights MicroSave’s approach to customer service that uses a variety of market research tools to examine the perceptions and priorities of the clients and staff, as well as a comprehensive diagnostic and analysis tool built around the “8Ps” of marketing: Product, Price, Place, Promotion, People, Process, Physical evidence and Position.