A Yen for quality: marketers in the United States can learn something about customer service from Japanese financial institutions.

A consulton recently was "wowed" by who he found during a tour of five banks outside Tokyo. (Feature)

Imagine a bank that had:

* Uniformed bank employees who greet you at the door.

* No teller lines--ever.

* Chairs that you can sit in while conducting business with a teller.

ON come to the world of Japanese banking--where customer service is uniformly excellent. Bank marketers from the United States can pick up service tips from are Japanese, according to Karl Steene, president of Karl M. Steene and Associates, a marketing consulting firm in Vero Beach, Fla. Until January, Steene was director of marketing at the Riverside National Bank of Florida, Fort Pierce.

Last year, Steene visited five Japanese banks on a vocational tour of Japan sponsored by the Rotary Club. The goal of Rotary Club trips is to promote friendship and understanding between citizens of different countries. Steene's trip allowed him to meet Japanese businesspeople and professionals, stay with several families, and tour banks in Miyazaki and Kagoshima Prefectures, about an hour and a half outside Tokyo.

From their hearts

What made the service quality in these Japanese banks so remarkable? First and foremost, Steene was struck by the consistency of deeply respectful and courteous treatment. "Whether I was walking with guides or alone, I was always immediately acknowledged and welcomed. The employees greeted me with eye contact and spoke to me saying "Konichiwa" which means "welcome." Their manner was so sincere, I really felt it came from their hearts." Steene added that he saw the same heartfelt greeting extended to every customer who entered the bank.

Steene said that he has spent years working in marketing as well as in customer service and has conducted many studies on the value of service quality in improving a business. "Here in the United States we may be very successful in the classroom teaching our employees what to say and how to behave. They may score 90 to 100 percent on the tests, but they don't consistently apply what they learn in the workplace. Here, customer service is often only in the employees' heads, not in their hearts." Steene concludes that is why customer service efforts are not as successful in the United States as they could be. "It was the Japanese bank employees' sincere desire to make the customer happy," says Steene.

Dedication to service quality means more than "going the extra mile," too. For example, Steene cautioned against asking a Japanese bank employee a question if you aren't willing to wait for the answer. Why? "Because if the first person you ask cannot answer your question, he or she will call a colleague for assistance and stay with you, too, to ensure your question is answered. If the second person is unable to answer the question, a third will be called. Eventually, you may be surrounded by three or four people (some talking on cell phones to other colleagues) working hard to answer your question. They will not be satisfied until you are happy and your question is answered. They appear very unhappy if you are unhappy and do not rest until your needs are met," says Steene, "and this may take 30 to 60 minutes, so be prepared!"

It is true that the culture in Japan is quite different from the culture in the United States, and that may account for the fundamental differences in the level of customer service. In Japan, the culture teaches citizens to be loyal and support the goals of the group. Deep respect for elders, co-workers, superiors as well as customers, is demanded and expected, and working for harmony with each other and within groups is the goal. But even more striking is their belief that to be of service is a profound honor--not a job or a requirement.

During his Japanese stay, Steene was repeatedly tempted to tip restaurant servers and taxi drivers for their excellent service, as is the custom in the United States. But Steene remarked that everyone he offered a tip to was deeply offended. These Japanese workers did want Steene to think that they needed a monetary incentive to do their jobs well.

Several of the banks Steene visited displayed their dedication to service by offering rows of chairs for waiting customers and as well as chairs across the counter from the tellers. When customers arrive at the banks, they take a number for consumer banking services, commercial banking or real estate--whatever their business for the day--and take a seat in a comfortable chair where they can relax or work. When their number is called and posted on a large screen, customers can move to Sit across from the teller and conduct their business. There were no customers standing in long lines in the banks that Steene observed.

Another small but thoughtful customer service that Steene saw in almost every bank was "loaner" eyeglasses available at the teller and check-writing counters for customers to use.

For commercial customers, a novel feature that Steene noted was dear "post office boxes" located in bank lobby. Customers could leave paperwork to be reviewed by the bank in the glassfronted box and return later to pick it up. Employees could see immediately which lockers had work waiting for them, and customers could see the work was completed when they returned.

High-tech/high-tough

In addition to the high levels of personal service, Steene also noted that the Japanese banks were among the most technologically advanced he'd ever seen. "In the United States, we are familiar with ATMs that dispense cash and accept deposits. Japanese ATMs are far more sophisticated. You can deposit a 10,000 yen note and receive 10 1,000 yen notes back (or receive larger bills for smaller ones), you can exchange yen for dollars, and you can transfer funds from one bank to another." These added features contributed to further customer service and convenience.

Behind the ATMs a "robot" on rails moved back and forth monitoring and refilling ATMs as needed. Even the bank's inbound/outbound call center was highly professional and exhibited the highest level of customer service. All the call center employees wore uniforms (as did the lobby stall) and greeted him in the same courteous fashion when he toured the center. The employees exuded the same sincerity and warmth as they worked with customers over the phone.

If the banks that Steene visited all embraced the same customer service initiatives, how did one bank differentiate itself from another? Steene says that many of the banks in Japan have a 30-40 percent market share and that just two or three banks dominate the market. Differentiation may not be as important a factor in Japan as it is in the United States. However, some of the banks do specialize in commercial banking, while others focused more on consumer banking.

There were differences in the services some banks provided: not every bank offered "sit down service," possibly due to space considerations. Since real estate is at a premium on the mountainous islands of Japan (where only 10 percent of the land is residential), there are very few chive-ups.

Some financial institutions offer "pocket banks" (they even use the word "pocket"), which are very small branches tucked into neighborhoods as an additional local office. Other banks offer extensive access to ATMs to add to their appeal--one bank has 100 branches and 400 ATMs.

Finally, computer and home banking are also quite popular and very advanced in Japan. It appears Japan is perfecting the high-tech/high-touch combination. While offering all the very latest in technological convenience and enhancements, they are working equally hard on maintaining high levels of service quality whenever there is an opportunity to meet with customers.

No need for formal training

So, how much training do these five Japanese banks provide their employees to ensure that this level of service quality is consistently provided all its customers? Steene is reluctant to admit they need very little formal training. The deeply respectful and service-oriented culture of the Japanese gives them an extraordinary starting point.

What's hurting our service attitude in the United States? There are many reasons why customer service may not be at the level the financial services industry would like. One theory Steene offers is the commission structure. "Paying bank employees commissions reduces our chances for sincere quality service. Commissions encourage bankers to provide the best service to the customers that respond (and purchase) the most--they do not encourage bank employees to provide global high quality service to all customers."

Steene admits that it is hard to quantify customer service's effect on the bottom line, but he firmly believes it has a huge impact "A colleague of mine, Linda Walker of Lundstrom, Walker and Associates, has said it best Really connecting with another person is the key to great service quality," says Steene. "I have seen customer service training and focus work well at the Ritz Carlton and at banks. Training down to the details of appropriate language and responses to customers. I believe banks are doing much better at customer service. I also believe that after a while really connecting with others changes you--if you take the first step."

A former editor of ABA Bank Marketing magazine, Tanja Lian Sablosky is currently a freelance writer in Reston, Va.

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