Customer service at msme level-can the banks help out?
Most times when customer service is mentioned, one’s mind easily goes to the macro businesses, like they are the only ones whose businesses are dependent on good customer service among other elements for efficient business. But that is a fundamental error we make, especially when we ignore the dynamic role of the micro, small and medium enterprises (MSME) as the engine of growth in developed and developing countries. It is a recognizable fact that MSMEs make up the base of any country’s economic pyramid and are the drivers of the economy;creatingjobs and enhancing the growth of Gross Domestic Products (GDP) growth, even as they greatly contribute to economic diversification and social stability including poverty alleviation, as well as play the important role of private sector development.
Considering the above important roles the MSMEs play in any economy, it is however regrettable that they are not given “genuine” attention in Nigeria,especially in a time like this when unemployment hits an all-time high.One would have expected an “unpretentious” approach by all stakeholders toward eradicating the barriers on the way of growing the MSMEs in Nigeria, but in most cases the reverse is the case.
To be fair to the government, there have been efforts to grow theMSMEs, like the high tariff rates imposed on some goods that could be produced domestically, to discourage importation, and in some cases, complete ban on variety of goods to encourage local production, and also, the creation of various support institutions like the Bank of Industry (BOI) and the Nigerian Agricultural Cooperative and Rural Development Bank (NACRAB) established. But more needs to be done.
Like Emmanuel Adebayo, a poultry farmer, observed, “The government should be real in protecting the local industries; did you know that about 80 to 90 percent of the poultry products in the market are imported? Yet they say there is ban on imported poultry products” Adebayo said. Perhaps this is where the argument on government’s “genuineness” comes to play asAdebayo asked rhetorically, “where are these poultry products passing through to come into the country?”He then added with an emotion-laden voicesaying “How will I pay back my loans? Soon the banks will start coming to ask for their money, and that is when you know they(the banks) are not really interested in your growth, but to use you for profit making? So how do I grow?” he concluded.
Fathomably, Emmanuel Adebayo’s outburst maybe seen as lamentation, he is however expressing the views of many other small and medium scale entrepreneurs who are not too sure of the “genuineness” of the financial institutions that approach them for business. One may however figure a guess to Adebayo’s doubt of bank’s genuineness, to be perhaps,somebanks’‘unfriendlyapproach”, in their “desperate” bid to get back their money from an unyielding “defaulters”. That leads us to this question; what could make a hitherto friendly bank go berserk toward a customer? Many a times in an attempt to proffer some answers, we blame it on mismanagement of the banks’ funds by the customer. Conversely, in analyzing this mismanagement, every other thing is looked at, except customer service.
Interestingly, this relationship may continue as long aslimited or lack of access to financing is consistently been cited by MSMEs as one of the main drawbacks to their growths each time the many challenges facing MSMEs are mentioned. So while the MSMEs see lack of access to finance and finance at high interest rates, as their challenge, the financial institutions take the issue of management, especially with regards to financials seriously if they must support or continue to do business with any business, and this is understandably so because the banks are supposed to protect the interest of the institution’s stakeholders, more so their customers whose money they are holding in trust, and should be returned on demand. Therefore, the issue of if banks are “genuine” or not will continue to come to play unless there is change in strategy.
Perhaps in a bid to change strategy, many initiatives have been introduced lately by some financial institutions toward the growth of MSMEs. For examplethe Fidelity bank’s “Fidelity Managed SMEs” which focuses on providing solutions to the challenges faced by SMEs through a multifaceted approach including business advisory and business management; the Diamond Bank’s “Building Entrepreneurs Today (BET) ”programme which focuses on business development and provision of support services to SMEs in Nigeria; First City Monument Bank’s “FCMB Capacity Building Initiative”empowerment programme for Small and Medium Scale Enterprises and Ecobank’s SME Club which offers preferential business support, products and services to its teeming SME customers across the country among other initiatives by other banks. All these are tailored to support MSMEs, but it is important the content of these initiatives be inclusive of not just business efficiency models, and financials, but emphasis on good customer service.
Paradoxically, customer service is veryimportant in any business, yet many MSMEs seem to have lost sight of their customers’ needs. In a bid to be efficient; keeping costs as low as possiblein order to make profit and (still pay back their loans), MSMEs have standardized their business models in a way that hasjeopardized their service delivery without knowing. And the fact is that such organization often become too “robotic, regimental and unfeeling” in their service delivery which “sneakily” affect their bottom line, while they keep looking elsewhere for the causes of their business down falls.
The point here is that customers are like the “geese that lay the golden eggs” and their management should be emphasized as part of the advisory and/or training services these MSME’s initiatives are offering, in order for the MSMEs to enhance their profit, and stay in business. The MSMEs should be taught on how to put flexibility ahead of efficiency because whatever their proposition or services are, customers will always expect some level of good customer service. This means they should be continually innovative in the delivering of good service, knowing that the customers’ needs are not generic, and meeting these needs requires different approach to getting it done. Also,aligningall the areas of the business toward ensuring the customer experience matches their expectations is paramount, and ensuring good communication flow between the business and the customers among other important elements of good customer service is necessary.
If customer is key, he or she deserves the best.
Arinze Okamelu