First direct is a division of the HSBC Bank. It provides a range of banking services, offering customers products such as current accounts, credit cards, savings accounts, insurance and loans. What is different is that first direct does not have a branch network. Customers access services over the internet or by telephone or through mobile phone banking services and text messaging. first direct has been providing online banking services for almost 20 years. It now has more than 3,000 employees and 1.1 million customers. Over 80% of transactions use the online channel. For customers that wish to contact the bank by phone, first direct 's call centres work 24 hours a day, 7 days a week, 365 days a year. They receive more than 200,000 calls each week. First direct's mission statement is 'pioneering amazing service'. This means that customer service is used to set the direction for the business. In other words,customers come first. This is not an empty slogan. Market research shows that, in terms of customer satisfaction, first direct is the number one bank. It confirms that the bank has a reputation for quality customer service. This has also been demonstrated by comparative studies. The bank was the leading performer in the Top 50 Call Centres for Customer Service benchmarking programme and it came top in the Finance Sector in the Institute of Customer Services (ICS) Satisfaction Awards. At the heart of providing customer service is the notion of 'respect'. This involves respecting the business' employees, as internal customers within the organisation, as well as external customers. Using this concept influences how colleagues and individuals at first direct act towards each other as well as how they deal with customers. To achieve customer satisfaction, first direct sets and monitors service standards. On average a customer's call is answered in 13 seconds. Customer service representatives are available around the clock. This means that customers always get totalk to a real person not a machine and they never have to push buttons before they get to talk to someone. The focus in all operations is on providing quality customer service. This helps first direct in the marketplace. It means that even though it is an online bank, it can provide a personal service missing in many other banks. The intention has been to avoid becoming a faceless call centre. Individuals are well trained and are empowered to act on customer issues. This means that customers are not passed from one person to another. The same customer representative will phone to deal with an issue, so that the customer is not always dealing with different individuals. In this way, first direct gets to know its customers. It can even provide a personal touch, like occasionally sending flowers to a customer or their partner to mark a birthday. To maintain these standards first direct identifies what customers expect from banks in terms of customer service provision. It then builds these customer expectations into the services it provides. For example, this involves:a) ensuring first direct colleagues are courteous and informed that they know about the bank's products and services, b) dealing with any complaints promptly and fairly, c) following up sales and d) offering informed guidance on any products that are available (subject to financial regulations). Questions 1. What are the benefits of providing good customer service? How can an organization achieve superior level of customer service? Sight a few examples in the above case study to substantiate your thoughts. ? 2 How would you differentiate between the terms - Customer satisfaction, Customer delight, exceed expectations? Should HSBC first direct build a culture to create a delight for its customer?