Building and Implementing Good Customer Policy

4.2.1.2. Penetrating new market areas

Not only developing in traditional market areas, commercial banks must quickly develop plans to penetrate foreign markets. When expanding markets abroad, commercial banks need to pay attention to business conditions, laws, and business environment of the host country.

Expanding to foreign markets, first of all, neighboring countries, is a condition for commercial banks to expand their relationships as well as learn more experience from the neighboring markets. Not only that, if there is a reasonable direction, this will be an ideal opportunity for commercial banks to promote their image, position and reputation even to domestic customers.

However, the implementation of a new investment strategy must depend on the potential of each Bank as well as the ability to understand the market and reasonable implementation plans. In order to grasp and control demand as well as manage customers, it is necessary to build a set of customer evaluation indicators through the following criteria: reputation, financial situation, habits, potential for using non-credit services to classify customers and have a reasonable customer management and retention regime. This is also a principle that needs to be noted when implementing activities in any new customer area.

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4.2.1.3 Build and implement good customer policies

The customer policy that Vietnamese commercial banks aim for is to maintain important large customers and be proactive in competing with other banks; focus on expanding the new customer base; the customer care policy of Vietnamese commercial banks needs to be adjusted to suit the new business orientation; strive to ensure the highest level of care and supply, comprehensively meeting all customer needs in a sustainable manner on the basis of efficiency while maintaining safety and sharing benefits. Vietnamese commercial banks need to build a policy for important customers of the system because these customers have influence and bring great efficiency to the industry; build a loyalty network based on the benefits that customers bring, linked to interest rate policies, fees, and specific care policies to retain customers. This helps maintain

Long-term cooperative relationship with commercial banks. To serve customers attentively, it is necessary to pay attention to monitor to recognize customer needs and quickly find the best way to meet them. Clearly define each customer must have a Department/branch/officer responsible for care and management. Clearly stipulate the coordination mechanism between branches in customer relations; strictly implement sanctions to handle competition between branches. Unify regulations, apply common policies to customers (interest rates, service fees), avoid the situation where branches apply differently leading to internal competition, reducing the overall efficiency of the system.

For customers directly approved by the Head Office, it is necessary to clearly define the related responsibilities of the parties in managing and serving customers.

For large customers, it is necessary to implement a comprehensive pricing mechanism, have a policy to reduce routing fees according to usage volume, and perfect the point accumulation mechanism for customers using the service in conjunction with a promotional after-sales policy.

For customers with good reputation and finance, effective business needs to be well taken care of by offering full service packages, paying attention to customer care, implementing preferential policies on service fees and service manner.

For new customers with low income, banks need to approach and advise customers on payment services such as salary transfer via bank and electricity and water bill payment services with many utilities, the most suitable and preferential fee policies to share and support customers in the initial stage.

Banks need to manage and take good care of customers to avoid other banks that also want to approach their bank's prestigious customers. Banks need to have good relationships with transaction representatives, regularly ask about service style and convenience, and grasp customer needs in accordance with trends.

As customer needs are increasingly diverse in the competitive market, banks are paying attention to improving service quality, ensuring the attractiveness of products to retain and attract customers to use their services. Customer satisfaction with service quality is a vital factor and the main target that banks want to aim for.

Not only using direct communication channels with customers, Vietnamese commercial banks can also apply many different forms to strengthen long-term relationships with customers such as: Participating in corporate events such as annual summaries, participating in social activities, co-sponsoring with businesses, personalizing relationships, the board of directors increases meetings, information exchanges with customers including issues beyond the scope of meetings will create close ties between customers and the bank; organizing sports and cultural exchange programs between banks and businesses, supporting new product introductions of customers. Strengthening connections with customers through signing cooperation programs, strategic partnerships.

4.2.1.4 Building a Marketing Strategy

Improve marketing skills and knowledge for staff, especially those who have direct contact with customers. Participate in advertising, propaganda, product introduction and promotional programs, and distribute leaflets.

Participate in social activities, sponsor useful programs on television to create a good image in customers such as sponsoring scholarships, participating in building charity houses, sponsoring programs to surpass oneself. Design a website with high utility and an interface that can attract customers' attention, advertise new, modern services on the website with unique slogans.

Online marketing is one of the top concerns of most Vietnamese businesses, including banks, especially in the context of digital technology flooding the market. However, this new form is like a double-edged sword, the majority of promoters do not have experience, so in reality, implementing online marketing is still limited in Vietnam. Either it is implemented but not effective or it is effective but not commensurate with the potential spent. Online marketing tools that can be applied at banks in Vietnam include:

- Onsite Marketing: this form is done right on each website.

Bank. Any bank pays great attention to the interface image of the website. However, it needs to be simple to make it easier to look up and find information for the majority of website users.

- SEO (search engine optimization): this is a method to bring the website to the TOP 10 position in the search results page. This quickly leads users to the content they need, shortens the search process and easily creates a good impression.

- Online support: as soon as users access the website, this tool will appear (in the form of chat or automatic email) to support customers to save time for customers.

- Email marketing: this form is less expensive but the efficiency is quite high when the Bank is completely proactive in approaching target customers. Sending emails can be completely timed and the information sent, and can be commercialized when integrated into the website link. Using email marketing, the Bank can also freely adjust the design and content.

- Social media: these marketing methods target customers' tastes through social networking sites. Banks can connect with friends, create fan pages to update the Bank's activities, and exchange and consult customers online. Connecting with the community is highly effective as it helps banks promote their image and create a customer community to exchange information.

- PR online (Public Relation): PR or public relations is a modern term that refers to a set of tasks to maintain relationships with customers. To create a good image of the Bank as well as control multi-dimensional information about the Bank, PR online helps to promptly process information as well as limit risks for the Bank.

- Promotion: To promote their image, Banks actively sponsor programs or organize events themselves. All these events take place online but the Bank's image is easily present.

and make an impression on Internet users.

- Online advertising: text advertising, banner advertising, video, rich media... are many different advertising channels combined to promote the image and brand of the Bank as well as introduce new products and services.

Thus, to most effectively reach a large number of customers who prefer the Internet, online marketing is the best choice for banks. It is possible to combine many different tools to achieve the highest efficiency or use each tool in each different stage of the Bank's strategy.

4.2.1.5 Increase the target ratio of profit from non-credit services in the total planned profit of the bank

Vietnamese commercial banks are aware that they need to abandon the habit of only doing business in the credit sector, competing by interest rates and exchange rates, and encroaching on market share mainly by expanding their networks because this competition makes input costs high, has many potential risks, and is inefficient... Therefore, first of all, the banks themselves must realize the need to develop non-credit services to limit risks and bring significant benefits to the banks. Only with such awareness can the banks themselves devise a service development strategy with a reasonable structure to minimize risks, in line with the trends and practices of developing banking services.

From awareness to action, Vietnamese commercial banks quickly started to build specific solutions to develop non-credit services. Through a correct view of developing non-credit banking services, Vietnamese commercial banks must build for themselves reasonable targets in the profit ratio that they strive to achieve annually. From the set targets, banks must propose specific solutions to achieve this ratio and continuously control the situation. According to experience from developing services from developed countries, this ratio is about 40-50, but in the current context of domestic banks, this ratio is about 30-40, which is reasonable, focusing on short-term services.

Banks need to use software to track sales and profits

types of credit and non-credit services in each type, especially focusing on modern products and services. To build a more reasonable ratio between the two types of credit and non-credit services, banks will provide appropriate orientations through monitoring sales, profits and risks. Every year, commercial banks need to organize an assessment of the actual ratio achieved compared to the planned ratio and identify strengths and weaknesses and causes of limitations in the development of non-credit services.

Vietnamese commercial banks need to develop criteria for allocating operating costs to non-credit services to accurately calculate the contribution level of non-credit services.

4.2.2. Group of solutions to develop non-credit services at commercial banks in depth

4.2.2.1 Increase responsiveness based on customer empathy

Increasing responsiveness is a necessary condition for Vietnamese commercial banks to develop non-credit banking services. Vietnamese commercial banks have now focused on providing necessary information on non-credit services to meet customers' needs. However, many customers rate the responsiveness of Vietnamese commercial banks at only an average level.

Service delivery efficiency is the response to customer expectations from the service provider. This is demonstrated by the effort to provide services quickly and satisfy customers. Service providers need to enthusiastically help and advise customers, respond to customers promptly, and actively support their needs and resolve all customer problems during the process of accessing or using the service. This shows that customers still prefer to conduct transactions directly with bank employees rather than through automated channels. The reason is that resolving complaints through other channels is often slow.

Customer complaints during the service use are suggestions or motivations that push commercial banks to constantly improve service quality. There are some common errors when customers use the service that need to be quickly resolved by banks. Therefore, quickly recording

It is necessary to give customers a proper answer or an exact appointment to resolve the complaint. Customers need to be respected instead of blaming and prolonging the processing time in the Bank, which reduces the reputation as well as affects the image of the Bank in the eyes of the public. Doing this helps strengthen customers' trust in the financial system. Sometimes in some cases, the Bank thinks that hiding information or ignoring customers' opinions will help limit bad things for the Bank, but in reality, it is not like that. In many cases, the Bank satisfactorily resolves the customer, even if the Bank is wrong before, it is easy to gain public sympathy and is also a way to increase trust as well as promote the image to potential customers.

Customers choose a Bank to use its services, which means they put their trust in it. Therefore, the Bank is like a companion in the customer's plan. Each customer needs to be treated like a god. The core part that makes the difference in each transaction between the Bank and the customer is the human factor. The thoughtful reception and the dedicated care of the Bank's staff help customers to be more open when sharing their plans, and also help the Bank itself collect much necessary information.

To grasp the desire to meet or satisfy the expectations of customers as well as to strengthen the relationship, it is necessary to exchange information with them. Information exchange is considered the key to open the door to customer needs. Therefore, commercial banks need to pay attention to holding customer conferences or organizing customer needs surveys or simply through service evaluation forms. There are many different forms that can be implemented to both promote and reach customers most effectively. In addition, getting information from customers also helps the customer care department in the Bank to implement programs with customers more effectively.

Commercial banks need to recognize and pay special attention to the issues that customers are most concerned about. Bank staff should be attentive, thoughtful, and not

make customers wait a long time to be served. Banks must proactively notify and consult customers before providing services when the bank changes prices and usage fees.

4.2.2.2 Increase the utility and applicability during product use

The quality of service provided is also assessed by the convenience and ease of use or access of customers. A good product but not integrated with many accompanying utility services is difficult to compete in the context of technological development. It is easy to see that recently, banks have focused on investing in technology development to improve the quality of service provision in the market. Along with that is the expansion of cooperation with many business organizations to help customers proactively choose their payment methods. That is consistent with the current payment and service usage trends. Not only that, cooperation with business organizations also helps customers of banks receive benefits or incentives from those organizations. Another benefit from integrating benefits in using banking services is that it helps customers stay at home to still be able to perform online transactions to serve many different needs.

However, a limitation in providing multi-functional products is the ability to receive and use them in transactions by customers. Most high-tech products require a certain level of use and a modern network system and tools. For that reason, most high-tech products with many applications are focused on developing in urban areas and are rarely or even not applied in rural areas.

Besides the utility in the product used, convenience is also shown in the way customers are served, such as scientifically arranging tables or documents that need to be consulted for customers or conveniently when customers need to get them for use.

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