Advances in information technology impacted and transformed the service landscape in a significant way. The impact of information technology on the banking industry is quite remarkable and banking is now easier than ever to say the least. There are 5 advances in information technology that have greatly impacted and helped to transform banks, such as FNB. The first advance is the rapid growth of the Internet. Value can now be easily provided to customers through services that gather raw data and then transform it into valuable information for customers. FNB clients can now easily go on the FNB website and find all the information they are looking for with regards to their specific queries. This helps the customer to avoid standing in a long queue at the bank just to ask a simple question. It is important to remember that the website must be updated regularly if the relevant information were to change. The second advance is compact mobile equipment. This can be in the form of tablets or mobile phones that have access to the internet and sophisticated internet services almost anywhere in the world. FNB was the first African bank to make use of a banking app that enables customers to do all their banking through their mobile phones or tablets. This is massive step forward for FNB in relation to customer satisfaction, but it is important to remember that there will be a very large expense on this app in order to keep it secure and functioning well at all times. The third advance is wireless networking. A lot of locations have wireless hotspots where customers can access the internet for free or at a given price. For FNB to stay ahead of consumers they had to install wireless internet at almost all their branches to make sure that they maintain customer satisfaction. This is a big expense for FNB, but they had to step up to the plate to make sure that their customers don’t switch to other banks in search of wireless networking services. The fourth advance is faster, more powerful software. Companies have to make sure that they don’t fall behind competitors who offer more advanced software for customers to make use of on the companies’ websites. Even though FNB was the first African bank to offer mobile banking, they can’t sit back and just leave it there. They will have to hire or train software engineers to ensure that they stay up to date with new possibilities to increase the functionality of their mobile banking app. The fifth advance is the digitization of text, graphics, audio, and video. This has greatly enhanced the wide variety of services that companies can offer to their customers. FNB can now post video tutorials on their website to help clients to understand their mobile banking app and to make use of all the available features that the app offers. FNB will have to make sure that they maintain a secure and credible app and website, which is free of viruses that attempt to obtain a client’s banking details when they log onto the app.
There are several important reasons why FNB should attempt to identify and segment their markets carefully: The first is to ensure better matching of customer needs. Customer needs differ and creating separate offers for each segment makes sense and provides customers with a specialized solution. With all the different cultures in Africa, FNB’s offerings must be sensitive to the region they operate in. The second reason is to effectively target marketing communications. FNB needs to deliver their marketing message to a relevant customer audience. If the target market is too broad, there is a strong risk that the key customers are missed and that FNB might attract the wrong customers. Attracting the wrong customers that are not in the right place at the right time could cause chaos and conflicts. FNB’s cost of communicating to customers also becomes too high / unprofitable. By segmenting markets, they can reach the target...
Bibliography: Czernowalow, M. (2014). Banking on smart devices pays of for FNB.Available: http://www.itweb.co.za/index.php?option=com_content&view=article&id=136815. Last accessed 18th Aug 2014.
Lovelock, C (2011). Services Marketing. 7th ed. New Jersey: Pearson publications. p1-115.
Noack, T. (2013). Kulula. Available: http://www.planespotters.net/Airline/Kulula. Last accessed 18th Aug 2014.
Unknown. (2011). The 7Ps. Available: http://www.learnmarketing.net/servicemarketing.htm. Last accessed 18th Aug 2014.
Unknown. (2012). Brand marketing. Available: http://www.kulula.com/brand/marketing. Last accessed 18th Aug 2014.
Please join StudyMode to read the full document