Dear all,

This correspondence is in response to the mail sent by the Vice President of Marketing
recommending that the Renaissance Savings and Loan Bank can offer better services to
customers by reducing the waiting time in teller lines from an average of six minutes to an
average of three which will attract more customers and give an edge over competition.
The rationale for introducing extended business hours in the bank from 8:30 to an extra hour
after work is that it will help customers accommodate their busy schedules and therefore the
bank can provide better service.
Although there is some merit to this recommendation, however, it does rest upon some
assumptions and reasoning that require further discussion.
The first assumption being made is that improving customer service by reducing waiting time in
the teller lines will help the bank attract new customers and differentiate itself from the
competitors. However, it must be noted that customers may not be bothered by the waiting time
and in fact be quite happy with the same. Hence extending the business hours may not benefit
the purpose of providing customer satisfaction. Moreover, we have no way to comment that
these customers will appreciate the move and recommend the bank to other people helping the
bank attract new customers.
The second assumption being made is that extending the business hours from 8:30 to one
additional hour beyond the closing time will allow customers to accommodate time in their busy
schedules. However, this is quite questionable because there is no way of knowing if the
customers will be available in the bank during those hours. The customers might have work
schedules that start before 8:30 and close even after the one extended hour in the bank.
The third assumption being made is that all customers in the teller lines are waiting for an
average of six minutes. However, there can be customers who have a waiting time of less than
that. Moreover, all customers may not have visited the bank to be attended by any bank teller.
There is no way of knowing why a person visited the bank. It can range from possibilities of
meeting the branch manager or enquiring about basic benefits provided by the bank.
These assumptions also identify that much more supporting evidence or research needs to be
provided. For instance, what has not been mentioned is if the waiting time of six minutes is
better/ worse than the competitors in the market as well as what services are the other banks
providing at the moment. Moreover, there is no evidence to suggest that extending the business
hours will increase the customer base or enhance the bank’s image of the customer-friendly
bank in the town.
Also if the goal of the bank is to attract more customers and provide improved customer
satisfaction then all existing services including waiting time should be reviewed to ensure that
customers are satisfied.
Therefore the HR department recommends that the extended business hours suggestion be
reviewed again before implementation.

Regards,
Vice President Human Resources,
Renaissance National Bank