More Than Just Lip Service

How customer service can boost profits for GCC banks

Banks in the Gulf Cooperation Council (GCC) countries are flush from the effects of the regional economic boom. Yet while GCC banks are remarkably profitable compared to global peers, there is a serious gap in the quality of their customer service. Why should this matter? Because satisfaction in the teller line—and on the phone and online—can have a direct impact on the bottom line. A midsized GCC bank with world-class customer service could increase profits anywhere from $50 million to $150 million a year.

Keeping new customers as satisfied as existing ones expands the circle of advocacy, and boosts profits in a sustainable way. We found that a 5 percent increase in customer retention increases profitability by 20 to 80 percent, depending on the product type.