CASE PRESENTATION ON

JYSKE BANKSUBMITTED BY -SIDHANT ANANDYOGESH SINGLA

VENKAT BHANU PRAKASH JASTI

INTRODUCTION TO THE CASE

• The case talks about JYSKE BANK , which is the third largest bank in Denmark and has been formed through the merger of 4 Danish Banks, having their operations in Jutland .

• The case talks about JYSKE BANK being the market leader in customer satisfaction through their model called JYSKE FORSKELLE, and the practices they adopted to satisfy the customer to their best.

ABOUT JYSKE BANK

• The headquarters are located in Silkeborg, and has branches in Denmark, France and Germany.

• Initially the bank, had a very typical Danish approach of being prudent, conservative, well manager and generally unremarkable.

• The bank followed the traditional Danish approach , which was commonly followed by the most Danish Banks.

• In the beginning of mid – 1990’s the bank led to a change in process , which was different from how the traditional Danish Banks used to operate.

• The changes were called the JYSKE DIFFERENCES , which led to a change in their focus from a product oriented bank to a customer oriented bank.

• As a result of which, the bank became the market leader in CUSTOMER SATISFACTION among all other Danish banks.

“JYSKE FORSKELLE” or “JYSKE DIFFERENCES”• Have common sense

• Be open and honest

• Be different and unpretentious

• Have genuine interest and equal respect for people

• Be efficient and persevering

SEGMENTATION, TARGETTING AND POSITIONING (STP)

SEGMENTATION

• PRIVATE BANKING,CORPORATE BANKING AND CONSUMER BANKING

TARGETTING

• DANISH FAMILIES AND SMALL –TO – MEDIUM DANISH COMPANIES

POSITIONING

• POSITIONS ITSELF AS A BANK WHICH MAKES A DIFFERENCE FOR THE CUSTOMER.

SWOT ANALYSIS

STRENGTHS1. Nice Infrastructure.2. Dedicated and trained employees.3. Market leader in customer satisfaction.4. Huge number of human resources.WEAKNESSES5. Presence only in Denmark.6. Limited customer base – as they focus only on Danish families, and

Small- To – Medium sized Danish companies.

CONTINUED…

OPPORTUNITIES1. Can expand to the international market.2. Can increase their customer base by focusing on other segments of

people.

THREATS3. High liquidity issues may arise in future , as they spend a lot of money

on infrastructural development.4. E- commerce can be one of the biggest threats as it is changing the

focus of the customers from branch banking to online banking.

CASE QUESTIONS AND ANSWERS

Q1. What is Jyske Bank’s new positioning or competitive differentiation strategy?

OUT OF THE BOX SERVICE• Specific target segment

and targeting right segment to customers.

• Small group of bankers for one customer.

• Friendly and new pictures of employees on the ID cards.

CUTTING EDGE• Developing IT tools to help

customers in identify the problem and provide them with appropriate solutions.

• Not only the tools but, also the employees who help the customers with appropriate solutions.

VALUE ADDITION AND SERVICES• Making time and caring about the

customers.• Employee training in customer

service.• Empowerment to employees• Best infrastructure with facilities

like café’s.

Q2.What changes did the bank make to get to its new position? What effect did these changes have?

TANGIBLE CHANGESCHANGES IN ACCOUNTS

TEAMSOne employee was dedicated to one

customer. This made the customer feel that he is

been given due importance.

CHANGES IN BRANCH DESIGN

1. Small teams of employees for providing

customer solution.2. Cafe’s – Provides

homely environment.

3.Round Tables – Portray's Equality.4.Visible Screens –

Portray openness of information with the

customer.

TANGIBLE CHANGES

TRAININGThe banks started providing employees with trainings on team building and customer

service

DECENTRALISATION OF LOAN PROCESS

Initially, if a customer was to apply for a loan, the entire procedure used to take a long time as the branch manager used to write a formal application and

forward the same to the regional level for approval.

After the change in the process the managers were give credit training and were

also give the authority to take decisions for loans

approval at the branch level itself.

Q3.Analyse Jyske Bank’s success using the Service Quality Gaps Model found in Chapter 2. What are Jyske Bank’s strategies for closing the 5 gaps in the model?

CUSTOMER GAP:

The customer gap was very less as the bank was able to provide is customers with their superior services.

They had only targeted the premium customer’s to whom the price did not matter.

As a result of which they were able to provide the customers high quality services and were able to achieve minimum customer gap and highly satisfied customers.

EXPECTED SERVICES

PERCEIVED SERVICES

PROVIDER GAP:• GAP 1: Listening GapThe listening gap was very less, as with the introduction of the JYSKE

FORKSELLE, the bank had come out with IT tool to first figure out the customer’s problem and expectations.

They had dedicated a team of 4 employees per customer to get a better understanding of customer’s problems.• GAP 2: Service Design and Standard GapThe bank was successfully able to close this gap.The bank provided its customer with the best in class service in terms of the

customer solutions and also provided customers with the best infrastructure facilities to make them feel at home.

• GAP 3: The Service Performance gapThe bank was successfully able to retain its employees and provide them

with adequate trainings.Bank was not only the leader in customer satisfaction but was also a leader

in employee satisfaction as well. The employees were provided with good incentives and were kept happy so that they could work.• GAP 4: Communication Gap: The communication gap was very low.The bank provided the customer’s with all the possible information that the

customer required and also provided the customer with all the solutions.

Q4.In your opinion can Jyske Bank sustain its growth and success? Would you invest in Jyske Bank?

• If they continues work with its Jyske Forskelle then it won’t be able to sustain its growth and success• According to this their market share in market won’t rise resulting in

no increase in profits thus not able to expand and will result to decline in growth as Jyske Bank resulting had to close its three branches • London Branch (2008)• Warsaw Branch (2007)• Fuengirola Branch (2007)

• But if the Jyske bank makes changes in its strategies and focus on more customers rather than selective customers then it can gain more market share, more revenues.• Previously they were also charging very high to customers so they

have to reduce that as in today’s scenario customer don’t prefer to pay when competitor’s charges are low.

• No, I would not like to invest in Jyske Bank as Jyske Bank Share value was 192.50 in2004 reached to highest 476 in 2007 but now it is declining constantly reaching to 285 which is not a good symbol for a company to invest in.