Role of Customer Service Skills on Customer Satisfaction and Its Effects on Customer Loyalty in Pakistan Banking Industry

Abstract

Companies offer different products and services to differentiate themselves from their competitor. In an organizations, employee's abilities and skills to deal with the customers play an important role in succeeding businesses. They offer superior services to their customers that leads to satisfaction. It has become an essential marketing strategy nowadays. Therefore, in this study we try to investigate the role of customer service skills on customer loyalty via customer satisfaction. Generally, bank customers aware of service facility, but the leading factors to select the best service provider bank are to get more comfort and to save time. Due to this fact, the study examined the effect of problem solving skills, reputation building, customer service culture, Non-verbal and verbal communication skills on which customers' intend to select best Pakistani banks. A sample data of 350 respondents is used to test the hypothesis. Exploratory factor analysis (EFA) and confirmatory factor analysis were used to test the measurement model and structural equation modeling is used to test the hypothesis. Findings from analysis suggest that reputation building skills (RBS), Problem solving skills (PSS), Customer service culture (CSC), nonverbal and verbal communication skills (NVCS) show positive and significant impact on customer satisfaction. It is recommended that, bank should educate their employee about how to deal with customer polite and soft skills to compete with other banks in market and develop marketing strategies through social media and other marketing channels to change consumer's attitude in favor of their particular bank.