NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL LUU VINH HIEN IMPROVING CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY Bachelor of Business Administration i[.]
INTRODUCTION
RATIONALE
Established in 2000, the Vietnam Stock Market has played a crucial role in boosting both market capitalization and the country’s overall economy By 2007 and 2008, Vietnam had around 150 securities companies, fostering a highly competitive environment that offers investors a wide range of choices Additionally, Vietnam’s accession to the WTO has further intensified competition among securities firms, enhancing the market’s development and integration into the global economy.
To stay competitive and continue growing, VNDIRECT Securities Joint Stock Company must focus on strengthening relationships with existing clients and attracting new ones by enhancing customer value, particularly through high-quality customer service Regularly assessing service quality and customer satisfaction is crucial, as satisfied clients are key drivers of increased sales and profitability Understanding current service performance enables the management team to develop effective strategies for future growth This is the primary motivation behind conducting the research titled “Improving Customer Service Quality for Individual Customers at VNDIRECT Joint Stock Company.”
This research aims to improve the customer service quality of VNDIRECT Securities Joint Stock Company and other securities firms in the industry, promoting professionalism and delivering greater benefits to both clients and the economy.
RESEARCH OBJECTIVES
The purpose of the research is to:
- Define factors to measure the service quality for individual customers at VNDIRECT Securities Joint Stock Company.
- Assess the factors of service quality for individual customers at VNDIRECT Securities Joint Stock Company.
- Analyze the current situation of customer service quality for individual customers at VNDIRECT Securities Joint Stock Company.
- Suggest several solutions and recommendations to improve the quality of customer services for individual customers at VNDIRECT Securities Joint Stock Company.
RESEARCH QUESTIONS
The research aim to answers some questions to achieve the above research objectives:
- What are the factors to measure the service quality for individual customers at VNDIRECT Securities Joint Stock Company? How they affect the service quality for individual customers?
- What is the current situation of customer services for individual customers at VNDIRECT Securities Joint Stock Company? What are the strengths and weaknesses? What are the reasons for drawbacks?
- How to solve those problems to improve the current situation?
RESEARCH SCOPE
This research focuses on evaluating the quality of customer services for individual clients utilizing securities services It aims to identify key issues in customer service delivery and provide solutions to enhance satisfaction The study specifically examines the challenges faced by VNDIRECT Securities Joint Stock Company in maintaining high service standards Improving customer service quality is essential for building trust and loyalty among individual investors Recommendations include implementing targeted strategies to address service deficiencies and optimize customer experience at VNDIRECT Securities.
- Location: the research was implemented in the Headquarter of VNDIRECT Securities Joint Stock Company – which is located in No.1 Nguyen Thuong Hien Street, Hai Ba Trung District, Hanoi.
- Time: The secondary data was collected from 2013 to the present time The primary data was conducted in November 2015.
RESEARCH METHODOLY
Secondary data was gathered from reports, books, online sources, and previous research studies to identify appropriate theoretical frameworks and develop an effective research model for customer service quality.
Secondary data was gathered from reports, articles, and official documents related to VNDIRECT Joint Stock Company to assess the current state of customer service quality for individual clients.
- In-depth interview: 04 manager of VNDIRECT Securities Joint Stock
The interview aimed to gather insights from the company regarding the securities services process and the essential qualities required to excel in this field Participants discussed the current state of securities services at VNDIRECT Securities Joint Stock Company, highlighting its advantages and disadvantages, and shared potential strategies to address ongoing challenges Additionally, the interview explored the company's future development plans to strengthen its position in the securities market and ensure sustainable growth.
A customer survey was conducted at VNDIRECT Securities Joint Stock Company to assess client satisfaction with their securities services The survey was distributed directly to customers visiting VNDIRECT Stock Exchange or sent via email, targeting individuals who have used the company's brokerage services A randomized sample of 150 customers was selected, resulting in 123 completed responses The survey was carried out over a period from November 10th to November 30th.
November. o The content of survey form is shown in Appendix 1.
The collected data was encoded and stored using Microsoft Excel, facilitating efficient data management Subsequently, SPSS 20 was utilized to perform comprehensive analyses, including Descriptive Statistics, Exploratory Factor Analysis, and Reliability Analysis, to ensure the accuracy and validity of the findings.
STRUCTURE OF THE RESEARCH
The main content of the research is structured into five comprehensive chapters, following essential sections such as Acknowledgement, Table of Contents, Abbreviations, List of Tables, List of Figures, Executive Summary, References, and Appendix These chapters facilitate an organized presentation of the research findings, ensuring clarity and coherence throughout the study This layout enhances the document’s usability for readers seeking in-depth insights into the research topic, aligning with best practices for academic and professional reports.
Chapter 2: Literature review and theoretical background of customer services qualityChapter 3: Research methodology
Chapter 4: The situation of customer services quality for individual customers at VNDIRECT Joint Stock Company
Chapter 5: Conclusion and recommendation to improve the customer services quality for individual customers in VNDIRECT Joint Stock Company
THEORETICAL BACKGROUND ON THE QUALITY OF
THEORETICAL BACKGROUND OF CUSTOMER SERVICE QUALITY
2.1.1 The concept of customer service
Service is an intangible product delivered through communication, information, and perception activities facilitated by the provider As a widely used term, it encompasses various definitions from professionals and researchers, highlighting its unique nature in the marketplace.
According to Gronroos (1990), a service is an activity or series of activities that are mostly intangible and occur through interactions between customers and service employees, physical resources, goods, or service systems These services are typically designed to provide solutions to customer problems, emphasizing the importance of customer engagement and resource integration to deliver value.
According to Zeithaml and Bitner (2000), service is an activity, process and method to create value for the customers to satisfy their need and demand.
According to Kotler and Armstrong (2004), service is an activities or benefit that businesses offered to the customers to create, strengthen and expand relationships and cooperation with the customers.
According to ISO 8402, service is defined as the outcome produced through interactions between the supplier and the customer, as well as the internal processes within the supplier organization It encompasses the efforts made to meet customer needs and fulfill their demands effectively Ensuring high-quality service is essential for satisfying customer expectations and maintaining competitive advantage in the marketplace.
According to Philip Kotler (1997) service is an action or an activity which affect any ownership Service may be related to tangible product or intangible product.
In general, service is a process which takes place in the interactions between the supplier and customers to meet the demand of customers, in the way that customers desires
2.1.2 The concept of customer service quality
According to Babakus and Boller (1992), ensuring the quality of products and services remains a significant societal concern Service quality is challenging to define and measure, as there are currently no effective methods or strategies for managing it Unlike tangible products, service quality cannot be controlled using traditional methods, due to its unique characteristics that influence how services are delivered to customers.
Services are intangible products that are produced and consumed simultaneously, often in the presence of both the customer and the service provider (Bowen, 1986) The human elements involved in service delivery increase the likelihood of errors from employees and customers, primarily because intangible behavioral processes are difficult to control (Bowen, 1986) Effective management of these interactions is crucial to maintaining service quality and customer satisfaction.
According to Parasuraman, Zeithaml and Berry (1985), service quality is the perception of customers of the services Also according to Parasuraman at el.
Service quality, as defined by Zeithaml (1987), is customers' assessment of the features of a service, reflecting their overall judgment and attitude towards it It represents the gap between customers' expectations of the service and their perceptions of the actual service received According to 1988, service quality can be viewed as an overall evaluation or attitude towards the service experience.
According to Lewis and Booms (1984), service quality refers to customers' perceptions of how good a service is Delivering high-quality services involves consistently meeting or exceeding customer expectations, ensuring satisfaction and loyalty Creating exceptional service experiences is essential for satisfying customers and enhancing overall business success.
According to ISO 8402, service quality refers to the characteristics of an object that enable customers to meet their requirements or expectations It emphasizes that service quality is ultimately measured by customer satisfaction, which is determined by the gap between the expected and perceived service Providing high service quality involves understanding and meeting customer needs to ensure their satisfaction.
If the performance of service achieved is higher than the performance of service expected, the service quality is excellent.
If the performance of service achieved is equal to the performance of service expected, the service quality is good.
If the performance of service achieved is lower than the performance of service expected the service quality is low
High-quality services lead to increased customer satisfaction, while low-quality services result in customer dissatisfaction The perceived value by customers is created through the service's value chain, which includes key elements such as the service itself, staff performance, competitors' activities, and customers' knowledge and understanding of the service Ensuring excellence in these areas is essential for delivering a positive customer experience and maximizing perceived value.
Service quality is fundamentally based on the delivery process, the features of service operations, and customers' knowledge and understanding of the service It can be evaluated through three key aspects: the physical quality of the service (such as equipment and facilities), the quality of the organization or supplier (including operational management, reliability, and brand image), and the quality of the delivery process itself (notably the interactions between the provider and the customer).
In general, there are some basic characteristics of service quality:
- It is much more difficult to assess the quality of service compared to the quality of tangible products.
Service quality is determined by a comparison between customer expectations and the actual performance delivered by the service provider It reflects how well the supplier meets or exceeds customer needs and demands, impacting overall customer satisfaction Ensuring high service quality requires consistently aligning service delivery with customer expectations to foster loyalty and positive perceptions.
THE CONCEPT OF QUALITY OF SECURITIES COMPANY
A securities company serves as an intermediary that facilitates the trading of stocks and bonds on behalf of clients, connecting buyers and sellers in the stock exchange market By acting as a middleman, securities firms provide investment opportunities and support investors in making informed decisions Additionally, they offer comprehensive services that supply essential market insights and factual information to assist clients in optimizing their investment strategies.
Securities companies primarily offer brokerage services, with research being a vital component of their operations Securities brokers analyze the performance of joint-stock companies and securities, categorizing stocks into various portfolios to advise clients effectively As trusted advisors, they must understand market trends and the factors influencing stock market movements Additionally, they evaluate companies across different industries to inform investment decisions and help clients optimize their portfolios.
Besides brokerage services, securities companies also offer customers with other securities services such as depository, corporate finance, proprietary trading and portfolio management.
There are several basic functions of Securities Company:
Securities companies act as mediators by establishing systems that efficiently allocate assets from inactive money sources to individuals seeking to utilize their financial capital They facilitate this process through underwriting and securities brokerage services, ensuring a flexible and effective mobilization of funds.
Establishing a valuation mechanism for transactions through an auction system enables investors to actively and objectively determine asset prices By leveraging comprehensive information sources about the market, company operations, and transaction mechanisms, investors can accurately price their investments, ensuring transparent and fair valuation processes.
Creating liquidity for securities, easily transforming from securities to cash and vice versa, which helps investors to minimize financial loss during investing
Securities companies play a crucial role in stabilizing and adjusting the securities market through proprietary trading and acting as market creators In accordance with government regulations, these firms are required to use a designated portion of their transactions to buy stocks during market declines and sell securities during price increases This active intervention helps maintain market stability and ensures orderly price movements.
Consulting investors is a key service provided by securities companies, leveraging their financial expertise to act as intermediaries during transactions, thereby saving clients time and reducing costs in stock market investments These firms enhance investing efficiency by offering comprehensive market research and tailored advisory services to individuals, companies, and organizations Their consulting solutions help clients make informed decisions, minimize risks, and maximize profits, ultimately improving overall investment outcomes.
Providing the authorities with information of stock market
MODEL FOR MEASURING CUSTOMER SERVICE QUALITY
2.3.1 Service quality model of Gronroos, 1984
Gronroos developed the Nordic Model of Service Quality in 1984, analyzing how technical and functional quality influence perceived and expected service quality based on Parasuraman's five performance gaps The model highlights that customer perception of service quality is primarily shaped by three key factors: customer satisfaction with the service received, their overall level of satisfaction, and the company's image and reputation.
Figure 2.1 The Nordic model (Gronroos,1984)
Technical Quality: including the real value that the customers achieve from the services that the company supply.
Functional Quality: represent the process of delivering service to the customers using service It includes five components: reliability, tangible, assurance, responsiveness and empathy.
The image and reputation of a service provider serve as crucial filters that shape customer perceptions of service quality Consumers often assess whether a service is high or low quality based on their past experiences, which significantly influence their trust and loyalty This effect becomes more pronounced when customers repeatedly use the same service or engage with the same supplier over time, reinforcing their perception of consistent quality and reliability.
The model highlights a direct link between customers' perceived service quality and key aspects such as functional and technical quality Additionally, the company's image indirectly influences perceived service quality, shaping customer perceptions and expectations Ultimately, the model suggests that high service quality directly contributes to customer satisfaction, emphasizing the importance of both functional excellence and strong brand image in delivering a satisfying customer experience.
Research on customer service quality aims to identify key components such as functional quality and technical quality that influence overall customer satisfaction Additionally, understanding how the company's image affects customers' perceptions of service quality is crucial These insights help businesses enhance their service delivery and improve customer experience, ultimately boosting customer loyalty and competitive advantage.
2.3.2 SERVQUAL Model of Parasuraman & ctg (1985)
Parasuraman & CtG (1985, 1988) pioneeringly researched service quality, establishing an effective method to measure and evaluate customer perceptions of service excellence This groundbreaking work led to the development of SERVQUAL, a model that combines "Service" and "Quality" to assess customer perceptions The model evolved by emphasizing the importance of the “customer’s perceived service quality,” which serves as the most accurate and objective indicator for evaluating and improving customer service standards.
According to Parasuraman et al (1985), service quality perceived by customers can be analyzed through a model consisting of 10 components In the early 1990s, this model was refined to form the RATER framework, which emphasizes five key factors: Reliability, Assurance, Tangibles, Empathy, and Responsiveness This streamlined approach helps businesses better understand and improve overall service quality.
Reliability: represent the ability to supply the customers with promised service with a trustworthy and accurate manner right in the first occasion.
It also showed in several aspects such as time, schedule or correct and up- to-date information.
Assurance: represent the knowledge and behaviors of service providers and their ability to convey confidence and trust to the customers.
Tangibles: represent the physical evidence of the service provided, such as appearances of the staff, equipment or facilities.
Empathy: represent the ability to express concern or provide cares or attention for each individual customers.
Responsiveness: represent the readiness and willingness of employees to help customers by providing them with rapid and prompt services.
According to SERVQUAL model, there are five gaps which affect the perceived service quality:
Gap 1 refers to the disconnect between customers' expectations for service quality and the provider's perception of those expectations This gap often occurs because suppliers do not fully understand what service characteristics truly enhance or create quality in the customer's perspective Bridging this gap is crucial for delivering consistent, high-quality service that meets customer needs.
Gap 2 refers to the disconnect between service providers’ understanding of customer expectations and their ability to translate that understanding into measurable service quality criteria Despite being aware of what customers expect, providers often struggle to deliver services that align with those expectations, highlighting a gap in effectively converting perceptions into actionable service standards Addressing this gap is crucial for ensuring that service delivery meets customer needs and enhances overall satisfaction.
Gap 3 arises when frontline staff fail to meet established service standards, impacting overall service quality The role of employees directly interacting with customers is crucial in delivering high-quality service that meets customer expectations and enhances satisfaction Addressing this gap ensures consistent service delivery and improves customer experience Effective staff performance is vital for closing this gap and achieving service excellence.
Figure 2.2 Customer Service Model of Parasuraman (1985)
Gap 4 occurs when a discrepancy exists between the communication and information customers receive about the service and the actual service delivered This gap can lead to inflated customer expectations, which may result in dissatisfaction if the promised service is not fulfilled Advertising and media significantly influence this gap by shaping customer perceptions and expectations of the service Ensuring consistent and truthful communication is essential to align customer expectations with actual service delivery and maintain perceived service quality.
Gap 5 arises when a discrepancy exists between the expected service quality and the actual service experienced by customers According to Parasurama et al (1985), this fifth gap is crucial in determining overall service quality, as customers gauge their satisfaction based on the alignment between their expectations and the delivered service; when there is a significant difference, it negatively impacts their perception and overall experience.
Parasuraman et al (1985) identified that service quality is directly influenced by the fifth gap, which depends on the effective management of the first four gaps To enhance service quality, it is essential for service administrators to focus on bridging this fifth gap by addressing underlying issues revealed through gap analysis Improving communication, understanding customer expectations, and aligning service delivery can significantly reduce the fifth gap, leading to higher customer satisfaction and better overall service performance.
Figure 2.3 Measuring Service Quality using SERVQUAL model
The SERVQUAL model consists of two parts, each containing 22 statements, designed to assess different aspects of customer service perceptions The first part evaluates customer expectations regarding the service they anticipate, without considering the service provider, while the second part measures the customer's actual perception of the service received By analyzing the differences between expectations and perceptions, the model identifies service quality gaps, which can be quantified through a specific gap analysis equation This approach helps businesses pinpoint areas for improvement to enhance overall service quality and customer satisfaction.
Service quality = Level of perception – Level of expectationThe statements are:
To ensure a high-quality service environment, it is essential to have up-to-date equipment and maintain visually appealing physical facilities Employees should be well-dressed and neat in appearance, reflecting professionalism and attention to detail Additionally, the appearance of physical facilities should align with the type of service offered, creating a coherent and inviting atmosphere for customers.
Reliability is essential in delivering exceptional customer service, demonstrated by a sincere interest in solving customers’ problems and performing services correctly the first time Customers develop trust when they feel confident in the quality and consistency of the services provided, which are delivered promptly as promised Maintaining accurate, error-free records further reinforces the company's commitment to reliability and building long-term customer trust.
RESPONSIVENESS o Inform customers when services will be performed. o Offers prompt services to customers. o Always willing to help customers. o Readily respond to customers’ request.
ASSURANCE o Able to instill confidence in customers. o Customers feel safe in their transactions. o Employees are courteous at all the times. o Have knowledge to answer customers’ requests.
CONCEPTUAL FRAMEWORK
The research titled “Improving Customer Service Quality for Individual Customers in VNDIRECT Joint Stock Company” draws on existing studies, reports, and articles related to customer service quality and brokerage service excellence It utilizes established theoretical frameworks, including the SERVQUAL model by Parasuraman et al (1985) and the SERVPERF model developed by Cronin These models provide a foundation for measuring and enhancing the quality of customer service in the brokerage industry, ensuring the research is grounded in reputable and effective service quality assessment tools.
Combining the measuring criteria from Taylor (1992), Gronross (1984), and other models is essential for a comprehensive assessment of customer service quality at VNDIRECT The study initially employed the SERVPERF model’s 22 statements across five dimensions to gauge customer perceptions, prioritizing perception-based measurement over the traditional SERVQUAL model These statements and dimensions were adapted and integrated with Gronross’s technical quality dimension to ensure a holistic evaluation Additionally, previous research on service quality, such as Luong Thi Mai Huong’s 2015 thesis on brokerage services of Nha Viet Real Estate Joint Stock Company, supports the importance of combining multiple models for accurate measurement.
Several studies have contributed to understanding service quality measurement, including Phi Thi Le Quyen's research on improving customer service quality at Nam Hanoi Branch of Maritime Bank, which emphasizes tailored approaches for individual customers Nguyen Huy Phong and Pham Ngoc Thuy's comparative study of SERVQUAL and SERVPERF in Vietnamese supermarkets highlights key service performance metrics, while Phan Chi Anh, Nguyen Thu Ha, and Nguyen Hue Minh’s research on service quality measuring models identifies six main factors—five independent and one dependent—comprising 34 criteria Additionally, Nguyen Thi Phuong Linh's application of the SERVPERF model to assess mobile communication service quality in Da Nang further refines these measurement frameworks Collectively, these studies have resulted in a comprehensive service quality measurement model tailored for individual customer service at VNDIRECT.
QS= β0 + β1*IF + β2*CS + β3*CC + β4*TS + β5*IM + U i
Figure 2.5 Conceptual Framework for measuring customer service quality at
VNDIRECT Securities Joint Stock Company
VNDIRECT's office is strategically located for easy customer access, ensuring convenience and visibility The operational hours are designed to meet customer demand, providing flexible service options The office is equipped with high-tech, modern equipment such as advanced computers, stock transaction screens, and a user-friendly website, enhancing the overall client experience Maintaining a clean and visually appealing environment is a priority, reflecting professionalism and attention to hygiene Additionally, VNDIRECT effectively implements modern technology into its transaction and management processes, ensuring efficient and seamless financial services.
VNDIRECT staff possess professional knowledge and skills in securities, ensuring they can efficiently serve customer needs and resolve issues promptly They are committed to providing prompt and attentive service when receiving orders, maintaining a professional and courteous attitude at all times The staff prioritize delivering the best benefits to customers by actively listening to their individual investment goals and experiences, thereby building trust and confidence Their dedication to customer satisfaction and personalized support underscores VNDIRECT's commitment to excellence in securities services.
VNDIRECT prioritizes exceptional customer care by resolving customer complaints and issues promptly and satisfactorily Its processes are designed to be convenient and user-friendly, ensuring a seamless experience for clients The dedicated customer service hotline efficiently manages customer orders, enhancing overall satisfaction Additionally, VNDIRECT offers valuable securities investment workshops that deliver insightful and engaging guidance, empowering customers to make informed investment decisions.
VNDIRECT offers highly competitive transaction fees compared to other securities firms, ensuring affordable trading for customers Customers can place transaction orders accurately, quickly, and conveniently through VNDIRECT’s offices, customer service hotline, or online website system The company provides valuable investment consulting services such as brokerage support and securities newsletters to enhance client benefits Financial support services like advanced payment options, purchase order guarantees, and securities lending cooperation are designed to benefit customers VNDIRECT ensures that securities exchange market information on its website is always up-to-date, accurate, and easily accessible Customers can confidently perform securities transactions, knowing that VNDIRECT prioritizes safety, fairness, and confidentiality in handling their transaction information.
VNDIRECT, a reputable company, is dedicated to providing customers with professional and trustworthy services, supported by a team of highly skilled staff who maintain a professional appearance The company's transaction environment is thoughtfully designed to be both professional and welcoming, ensuring a positive experience for clients VNDIRECT staff members consistently dress neatly, with well-designed uniforms that reflect the company's commitment to quality Additionally, the VNDIRECT website features a clean, professional design, enhancing user experience and reinforcing the company's credible image.
VNDIRECT is a trustworthy securities company that consistently provides high-quality services, earning the confidence of its customers Satisfied clients are eager to recommend VNDIRECT’s securities services to friends and family, highlighting their positive experiences Customers frequently think of VNDIRECT first when they want to exchange, transact, or invest in securities, demonstrating the company's strong presence in their financial decisions Overall, clients are continually satisfied with their securities transactions at VNDIRECT, reflecting the company's commitment to excellence in customer service.
RESEARCH METHODOLOGY
RESEARCH PROCESS
Research process is carried out through six steps:
1 Conducting research on literature review and theoretical framework; colleting secondary data.
2 Form a list of dimensions to measure VNDIRECT customer service quality
3 Conducting survey with customers and in-depth interview with VNDIRECT managers to collect primary data.
5 Determining the current situation of VNDIRECT customer service quality for individual customers.
6 Suggesting solutions and recommendations to improve customer service quality At VNDIRECT Securities Joint Stock Company.
RESEARCH METHODOLOGY
To develop a comprehensive understanding of the research topic, relevant information sources including reports, books, articles, magazines, websites related to securities, and previous studies were meticulously gathered to provide an overall perspective.
Steps of qualitative research are included:
Define the factors influencing customer service quality for individual customers at VNDIRECT Securities Joint Stock Company.
Define the level of impact of the factors on customer service quality for individual customers at VNDIRECT Securities Joint Stock Company.
Define the specific demand of customers for customer service quality for individual customers at VNDIRECT Securities Joint Stock Company.
An in-depth interview with managers was conducted to gather their insights and enhance the measurement of the customer service quality model Based on these findings, an official research framework and theoretical model were subsequently developed to improve understanding and assessment of service quality.
The quantitative research was done by sending survey form to customers atVNDIRECT office or through email The number of respondents is 123 customers.
Steps of quantitative research are included:
Design the survey form, conducted a demo survey with 10 customers and adjusted to have appropriate questions.
Official survey: survey with the survey form (give the hard copy of survey to clients coming to VNDIRECT office or sent survey to customers by Google Form and email)
Survey question measurement is based on four fundamental standards: reliability, value, variety, and ease of response Ensuring measurement reliability is crucial to eliminate uncertainty and produce trustworthy data In this study, a five-point Likert scale was employed to assess the factors influencing customer service quality for individual clients of VNDIRECT.
Level 5: Totally agree/ totally satisfy
Level 1: Totally disagree/ totally dissatisfy
DATA COLLECTION
This thesis utilizes secondary data collected over three years from VNDIRECT's financial reports, company articles, websites, and magazines Annually, VNDIRECT publishes an official annual report that provides comprehensive information about the company's profile, organizational structure, mission and vision statements, and human resource management status.
Primary data is collected through customer evaluations to assess the quality of customer service from the customers' perspective This approach helps identify the strengths and weaknesses of VNDIRECT's customer service, providing valuable insights to enhance overall client satisfaction.
A customer survey was conducted to evaluate service quality at VNDIRECT, with questions designed around five key assessment factors outlined in Chapter 2; each criterion was broken down into smaller questions to facilitate easier customer responses The survey was administered through two methods: directly at the VNDIRECT office located at No.1 Nguyen Thuong Hien and via an online Google Form sent via email Out of 150 customers with trading accounts invited to participate, 123 provided their responses The survey was conducted over the course of one month, from November 1 to November 30, 2015.
An in-depth interview was conducted with VNDIRECT’s management team to gather insights on the key factors influencing customer service quality for individual clients and the company’s strategies for improvement The interviewees included Mr Vu Hoang Viet, Director of the Individual Customer Service Department; Mrs Dam Thi Huong Sam, Marketing Manager; Mrs Le Huong Mai, Director of the Human Resource Department; and Mr Nguyen Tuan Anh, Director of the Brokerage Service Department This comprehensive discussion aims to inform future initiatives to enhance personalized customer experience at VNDIRECT in the current market environment.
DATA ANALYSIS
After being collected, the data was then encoded and stored by Microsoft Excel For the analyzing, both Microsoft Excel and SPSS 20.0 were used to conduct different type of analysis.
To assess the reliability of the measurement, Cronbach’s Alpha Reliability Analysis was performed Researchers generally consider a Cronbach’s Alpha of 0.8 to 1.0 as indicating excellent reliability, while a score between 0.7 and 0.8 is deemed acceptable Moreover, some scholars suggest that a Cronbach’s Alpha above 0.6 is acceptable, especially for new research topics or respondents unfamiliar with the questions (Hoang Trong – Chu Nguyen Mong Ngoc, 2008) Therefore, in this study, a Cronbach’s Alpha above 0.6 was considered acceptable for reliability.
The overall fit of variables in the analysis is evaluated using the KMO (Kaiser-Meyer-Olkin) measure, where values between 0.5 and 1 indicate data suitability for exploratory factor analysis (EFA) If the KMO score falls below 0.5, the data is deemed unsuitable for EFA Additionally, the fit of the sample and the significance level are assessed through Bartlett’s Test of Sphericity Factor extraction is performed using the Varimax rotation method and Principal Component Analysis, with acceptable factors having initial Eigenvalues greater than 1 and cumulative squared loadings exceeding 50% For meaningful interpretation, factor loadings should also be larger than 0.5, indicating strong correlations between variables and factors Based on EFA results, the proposed model is evaluated to determine whether adjustments are necessary, including adding, removing, or modifying factors or variables.
The measurement data are analyzed using Linear Regression Analysis with Ordinary Least Squares (OLS) through both Enter and Stepwise methods This regression model tests for the presence of multicollinearity, a phenomenon where independent variables are highly correlated, potentially causing issues in distinguishing their individual effects on the dependent variable Multicollinearity can be identified by examining the Variance Inflation Factor (VIF); a VIF value below 5 indicates that multicollinearity is not present in the regression model.
After testing the result of the regression, it can be concluded that the coefficients of regression are not biased and the result is reliable.
THE RESULT OF THE RESEARCH – THE CURRENT
OVERVIEW OF VNDIRECT SECURITES JOINT STOCK COMPANY
Vietnamese Name: Công ty cổ phần Chứng khoán VNDIRECT
English Name: VNDIRECT Securities Joint Stock Company
Founded: 2006 by IPA Investment Group
Headquater: No 1 Nguyen Thuong Hien Street, Hanoi
Email: support@vndirect.com.vn
Website: https://www.vndirect.com.vn
Business Activities o Securities Brokerage o Depository o Corporate Finance o Proprietary Trading o Underwriting o Portfolio management
Vision: To become the first choice of every investor
Mission: Grow sustainably for the benefits of every customer, every shareholder and every employee
Core Values: Integrity – Commitment – Professional Knowledge – Positive Attitude
VNDIRECT Securities Joint Stock Company is a prominent member of IPA Investment Group, specializing in financial services and real estate investment Licensed under number 22/UBCK – GPHDKD on November 16, 2016, by the State Securities Commission, VNDIRECT is a reputable player in Vietnam’s financial industry.
Some memorable milestones through the development history of the company:
November 2006: VNDIRECT was founded with charter capital of VND
April 2007: Established Ho Chi Minh City branch
November 2007: Raised charter capital to VND 300 Billion
December 2008: The Headquarter of the company moved to No.1 Nguyen Thuong Hien Street, Hai Ba Trung, Hanoi
December 2009: VNDIRECT overcame the financial crisis and was ranked 1 st among securities companies and 2 nd in finance and banking sector
February 2010: Raised charter capital to VND 450 Billion
August 2010: Raised charter capital to VND 1000 Billion
October 2010, VNDIECT appointed Mr Nguyen Hoang Giang as Chief Executive Officer (CEO)
December 2012, Established Da Nang Branch
Quarter 3/2011: Ranked 1 st in Stock brokerage market share on HNX
2014: Raised charter capital to VND 1,550 billion and became the third largest securities company in terms of capital size
After 8 years of development, VNDIRECT has become a securities company focusing on retail brokerage with the equity of VND 1,835.3 billion, 57,400 customer accounts and a team of nearly 600 employees who are specialized in finance and securities
4.1.3 Functions and missions of VNDIRECT
There are several basic functions of VNDIRECT Securities Company:
VNDIRECT serves as a vital bridge in the financial ecosystem by developing a flexible system that mobilizes assets from inactive money sources Through its underwriting and securities brokerage services, the company effectively channels financial capital to those in need, fostering liquidity and supporting economic growth.
Implementing a valuation mechanism through an auction system enables investors to actively and objectively determine the price of assets By utilizing comprehensive information sources about the market, company operations, and transaction processes, investors can accurately assess and set fair prices for their investments This transparent and data-driven approach enhances decision-making and promotes efficient market transactions.
Creating liquidity for securities, easily transforming from securities to cash and vice versa, which helps investors to minimize financial loss during investing
VNDIRECT plays a crucial role in adjusting and stabilizing the securities market by engaging in proprietary trading and acting as a market maker Through these activities, VNDIRECT actively intervenes to influence and regulate securities prices, helping to maintain market stability and ensure smooth trading operations.
Under government regulations, securities companies are required to allocate a designated portion of their own transactions to purchase stocks during market declines and to sell securities when stock prices rise This mandatory practice aims to promote market stability and ensure regulated trading behaviors within the stock market.
VNDIRECT's sales force specializes in financial consulting and transaction mediation, helping clients save time and reduce costs while improving investment efficiency in the stock market Additionally, VNDIRECT offers comprehensive consulting services, including market research and tailored information for individuals, companies, and organizations, enabling precise decision-making, risk minimization, and increased profitability.
Providing the authorities with information of stock market
Figure 4.1 Organization Structure of VNDIRECT
(Source: VNDIRECT Company Meeting Report, September 2015)
4.1.5 VNDIRECT’s services, market and customers a Characteristics of Services
Services encompass all activities involved in the interaction between customers and providers, aimed at satisfying customer needs and delivering value This process includes every step where value is created through customer engagement, ensuring a seamless experience that meets demands Effective service delivery is essential for building customer satisfaction and fostering long-term relationships By focusing on these interactions, businesses can enhance their offerings and differentiate themselves in competitive markets.
Naturally, VNDIRECT’s business activities is about providing services to its customers Therefore, VNDIRECT’s services also have basic characteristics similar to other companies’ services: intangibility, inseparability, perishability and variability.
Most services offered by VNDIRECT are intangible products, characterized by intangibility, which makes their outcomes unclear, uncountable, unseeable, and impossible to store or measure before consumption This inherent intangibility complicates advertising efforts, as the value is based on the customer-provider relationship rather than physical attributes Consequently, VNDIRECT faces challenges in assessing customer perceptions and evaluating the quality of its services due to their intangible nature.
Secondly, VNDIRECT services have the characteristics of inseparability between the providers and the consumers VNDIRECT’s services are produced and consumed simultaneously Thus, the customers directly control the services process.
VNDIRECT’s service quality can vary over time due to factors such as customer needs, provider performance, and evolving company standards This variability may lead to inconsistency in the services provided, potentially diverging from customer expectations As a result, clients may experience fluctuations in service reliability when engaging with VNDIRECT.
As for the customers, when experiencing services of VNDIRECT or other securities companies, they have many different options and choices, which will lead to the inconsistency in their decisions.
VNDIRECT staff are the primary point of contact with customers, directly influencing customer choices and service consistency To ensure high-quality services, VNDIRECT emphasizes comprehensive staff training, ensuring that team members are well-trained and exhibit excellent professional behavior.
Finally, service is perishable and cannot be stored for a future use.
VNDIRECT’s services are intangible and do not require storage, as the production and consumption processes occur simultaneously Their service demand fluctuates over time, closely tied to Vietnam and global stock market conditions To meet changing market needs and maintain high service standards, VNDIRECT continuously updates and adapts its offerings in response to market fluctuations.
VNDIRECT Securities Joint Stock Company offers a comprehensive range of essential stock market services, including securities brokerage, proprietary trading, underwriting, and financial capital services, establishing itself as a key player in the financial industry.
VNDIRECT serves as a vital intermediary, enabling investors to buy and sell stocks efficiently and conveniently through its advanced order placement system and digital price lists As with other securities firms, brokerage services are crucial to VNDIRECT's business, generating income and attracting active accounts and transactions These activities not only boost the company's revenue from brokerage commissions but also contribute to profits across other financial services.
Advance Payment: Investors can use VNDIRECT Online Advance Payment Service to advance immediately when sell transaction orders is matched.
VNDIRECT offers a Purchase Order Guarantee service, where the company arranges funds to cover payments on behalf of customers when their securities purchases exceed their available deposit amount This service ensures seamless transactions by bridging the gap between the investor's available funds and the purchase amount, providing added convenience and security.
Term Deposit: Term Deposit Service is the utility for the investors who have idle cash in the account with flexible interest rates and attractive terms.
Securities Lending Cooperation: Investors may borrow to purchase securities with high rate and diversified portfolio, based on the cooperation with the third financial institution.
THE ASSESSMENT OF CUSTOMER SERVICE QUALITY FOR
INDIVIDUAL CUSTOMER AT VNDIRECT SECURITIES JOINT
Survey sample size: 123 customers give their opinions to the survey questions All of the respondents had made securities transactions at VNDIRECT Securities Joint Stock Company.
An in-depth interview with four key managers—Marketing Manager, Brokerage Services Director, Customer Service Director, and Human Resources Director—revealed valuable insights into the importance of service quality in meeting customer demands and achieving company objectives They emphasized that delivering exceptional service is crucial for customer satisfaction, brand loyalty, and competitive advantage The managers discussed how aligning service quality with strategic goals enhances overall organizational performance and supports sustainable growth Their perspectives highlight the vital role of continuous improvement and customer-centric approaches in fulfilling market expectations and driving business success.
The primary data was collected from 123 customers of the company To be specific, the demography of the respondents’ profile was described as followed characteristics:
Chart 4.1 Age group of Respondents
Among the 123 surveyed customers, 41% (50 respondents) are aged 35 to 50 years old, followed by 38 customers aged 25 to 35 years, indicating that middle-aged adults are the primary demographic This trend suggests that individuals in these age groups are more likely to have stable employment and income, driving their demand and financial capacity for securities investments Additionally, customers over 50 years old account for 18% (22 respondents), while those under 25 years represent only about 10% of the total survey respondents.
Chart 4.2 Gender groups of Respondents
The result of the survey shows that in 123 respondents who have been using VNDIRECT Securities Joint Stock Company to invest their money in stock market,
87 customers is male (which takes up 70.73% of total sample), while that number of female respondents is 36 customers (which is 29.27% of total sample).
The data indicates that the majority of respondents hold higher education degrees, with nearly half (46%) possessing a bachelor’s degree Specifically, 56 out of 123 respondents have earned a bachelor’s degree, making them the largest educational group within the sample Additionally, approximately 25% of participants (31 respondents) have graduated from college, highlighting the significant representation of college-educated individuals in the survey.
Other College Bachelor Master and Ph.D
Chart 4.3 Education Level of Respondents
There are a small 1% difference between the two smaller group of customer, respondents with higher education level (Master or Ph.D degrees) and the respondents with other educational background, 15% and 14% respectively.
Investing in securities for less than 1 year 1 year - 2 years 2 - 3 years more than 3 years
Chart 4.4 Investing experience of Respondents
Approximately 34% of respondents, representing 41 customers, have been investing in the securities market for 1 to 2 years An equal percentage, 25% or 31 customers, have traded stocks for less than one year and for 2 to 3 years, indicating similar levels of experience within these timeframes Additionally, 16% of participants have been investing in stocks for more than three years, highlighting a segment of long-term investors.
Most respondents are aware of VNDIRECT Joint Stock Company primarily through modern information channels, with 78% citing television and 65% referencing Internet sources such as online stock market news, financial magazines, stock consulting articles, and market analysis In contrast, only 52% learned about VNDIRECT through word of mouth, and just 37% through traditional newspapers, highlighting the prominence of digital and electronic media in company awareness.
Chart 4.5 Information Approaches of Respondents
Types of services used at VNDIRECT
Se cur itie s T ran sca tio ns
Mo ne y t ran sac tio ns
Ba sic co nsu ltin g s erv ice s
Ad van ced co ns ulti ng se rvi ces
Fin an cia l su pp orti ng se rvi ce s
Types of Services used at VNDIRECT
Chart 4.6 Types of services used by Respondents
The survey revealed that all 123 respondents have utilized VNDIRECT's securities transaction services, highlighting its popularity Additionally, 63.41% of respondents frequently use VNDIRECT's money transfer services Nearly half of the participants (47.97%) have used securities supporting services, such as basic consulting, while 50.41% have engaged with financial supporting services In contrast, advanced consulting services and other specialized offerings are less common, with only 20.33% and 7.32% of respondents reporting usage, respectively.
At VNDIRECT Office By hotline By online website By brokers
Chart 4.7 Making transactions method of Respondents
The chart indicates that the majority of VNDIRECT customers prefer using the online website for making transaction orders, accounting for 63.41% The customer service hotline is the second most popular method, with 56.91% of respondents (70 customers) choosing to place securities transactions via phone Additionally, 47% of customers (58 respondents) prefer submitting orders directly at VNDIRECT offices, while 40.65% (50 respondents) utilize brokerage services for their transactions.
Frequency of using VNDIRECT services
Among the 123 respondents, 37% (46 customers) typically use VNDIRECT services, including securities, money transactions, and support services, 5 to 10 times per month Additionally, 29% of respondents access VNDIRECT services 10 to 20 times monthly, while 22% use the services less than 5 times A further 12% of users have a higher demand, utilizing VNDIRECT services more than 20 times each month This data highlights the varying frequency of VNDIRECT service utilization among clients, reflecting diverse engagement levels.
Frequency of using VNDIRECT services per month less than 5 times 5 - 10 times 10 - 20 times more than 20 times
Chart 4.8 Frequency of using VNDIRECT services of respondents
Cronbach’s Alpha results for independent and dependent variables help identify variables that do not contribute meaningfully to the regression model If deleting an item increases Cronbach’s Alpha, it is recommended to remove that variable to improve reliability Conversely, if removing a variable decreases Cronbach’s Alpha, it should be retained in the survey to maintain consistency Therefore, variables must satisfy these conditions to ensure accurate and reliable measurement in the analysis.
(2) 0.3 < Total Correlation < Cronbach’s Alpha if Item Deleted < CronbachAlpha
Table 4.1 Cronbach’s Alpha Reliability Analysis
Variable Scale Mean if Item
Scale Variance if Item deleted
Cronbach’s Alpha if Item Deleted
INFRACSTRUCTRE & FACILITIES (IF), Cronbach’s Alpha = 0.869, N of
COMPETENCE OF STAFF (CS), Cronbach’s Alpha = 0.912, N of Items = 7
CUSTOMER CARE (CC), Cronbach’s Alpha = 0.760, N of Items = 4
TRANSACTIONS (TS), Cronbach’s Alpha = 0.920, N of Items = 9
IMAGE OF COMPANY (IM), Cronbach’s Alpha = 0.837, N of Items = 5
QUALITY OF SERVICE (QS), Cronbach’s Alpha = 0.776, N of Items = 4
Based on the analysis, only variable CC4 should be removed due to its high Cronbach’s Alpha if Item Deleted, indicating it may not contribute reliably to the measurement scale The remaining 33 variables meet the necessary criteria, demonstrating their validity and measurement significance Overall, the Cronbach’s Alpha Reliability Test results confirm the internal consistency and reliability of the variables, as summarized in the accompanying table.
Table 4.2 Cronbach’s Alpha Reliability Analysis Result Summary
3 Customer Care 0.760 CC4 01 variable is removed
4 Transactions 0.920 All variables are included
6 Quality of Service 0.776 All variables are included
The research proceeds with Exploratory Factor Analysis (EFA), utilizing Varimax rotation for the independent variables and no rotation for the dependent variables within the "Quality of Service" dimension This step ensures the accurate identification of underlying factors by meeting essential conditions, such as sampling adequacy and factor loadings Implementing EFA helps simplify data structure and enhances the understanding of critical variables impacting service quality, aligning with best practices in SEO-focused content.
(1) The value of Kaiser-Meyer-Olkin (KMO) statistics must be higher than 0.5.
(2) The value of Barlett’s Test of Sphericity must be lower than 0.05
(3) The value of factor loading must be equal or higher than 0.3
(4) The Initial Eigenvalue must be higher than 1.
(5) Cumulative % Extraction Sums of Squared Loadings must be higher 0.5
After conducting analysis with SPSS, the results are showed in below tables.
Table 4.4 EFA results for Independent Variables
Components 05 components from Varimax rotation
Variables All variables have statistical meaning
Table 4.5 EFA results for Dependent Variables “Quality of Service”
Variables All variables have statistical meaning
After conducting 01 EFA for independent variables and 01 EFA for dependent variables, there is no need to remove any variables, as all of them fulfill all conditions mentioned above.
Based on the results of Cronbach’s Alpha Reliability Test and Exploratory Factor Analysis, a Linear Regression with factors influence the service quality for individual customers is developed.
QS= α + β1*factor1 + β2*factor2 + β3*factor3 + β4*factor4 + β5*factor5 + Ui
In this thesis, coefficient of linear correlation r (according to Karl Pearson,
1897) is used to test the correlations between independent and dependent variables.
This study examines the impact of five independent variables—"Infrastructure and Facilities" (IF), "Competence of Staff" (CS), "Customer Care" (CC), "Transactions" (TS), and "Image of Company" (IM)—on the dependent variable "Quality of Service" (QS) The analysis utilizes the average scores of these dimensions to perform a correlation analysis using SPSS The results, presented in the accompanying table, illustrate the relationships between these factors and their influence on service quality, providing valuable insights for enhancing customer satisfaction and operational excellence.
Table 4.6 Correlation Analysis for factors influencing customer service quality of individual customers at VNDIRECT
MIF MCS MCC MTS MIM MQS
The correlation coefficients demonstrate the relationship between the independent variables and the dependent variable, "Quality of Service," with all Sig values indicating statistical significance The study employed Principal Component Analysis (PCA) with Varimax rotation during the Exploratory Factor Analysis (EFA), ensuring that the independent variables are uncorrelated This approach helps prevent multicollinearity issues in the regression model, enhancing the reliability of the results.
Regression analysis was conducted to evaluate the overall fit of the proposed model, focusing on how independent variables—Infrastructure and Facilities (IF), Competence of Staff (CS), Customer Care (CC), Transactions (TS), and Company Image (IM)—predict the dependent variable, Quality of Service The study utilized the average scores of these dimensions (MIF, MCS, MCC, MTS, MIM, MQS) to perform OLS regression analysis using the Enter/Remove method, providing insights into the significant factors influencing service quality.
Standard Error of the Estimate
F Change df 1 df2 Sig F Chang e
To test the overall fit of model, the Adjusted R 2 is used instead of R 2 because the value of Adjusted R 2 is lower than R 2 and have more value in the reality than R 2
The result of the analysis shows that Adjusted R 2 = 0.628, which means 62.8% of the change of dependent variable is explained by independent variables.
Squares df Mean Square F Sig.
Total 57.841 122 a Dependent Variable: MQS b Predictors: (Constant), MIM, MCS, MCC, MTS, MIF
The regression model demonstrates statistical significance with a p-value below 0.05, indicating it effectively predicts the outcome variables This suggests that the model is a good fit for the data Additionally, there is a strong linear correlation between the independent and dependent variables, reinforcing the model's predictive reliability.
Table 4.9 Coefficient of Regression Model
Standardiz ed Coefficien ts t Sig Collinearity
B Std Error Beta Toleran ce
CONCLUSION
The result of these analysis has helped to answer the first two questions mentioned in the Research Objectives:
- What are the factors to measure the service quality for individual customers at VNDIRECT Securities Joint Stock Company? How they affect the service quality for individual customers?
Currently, VNDIRECT Securities Joint Stock Company maintains a customer service quality tailored to individual clients, characterized by attentive support and efficient trading processes Its strengths include a user-friendly platform, comprehensive financial products, and responsive customer assistance, which enhance client satisfaction However, weaknesses such as occasional delays in resolving complex issues and limited personalized service options impact the overall customer experience These drawbacks often stem from increasing transaction volumes, insufficient staffing during peak hours, and the need for continuous staff training to meet diverse client needs Addressing these challenges is essential for improving service quality and maintaining a competitive edge in the securities industry.
The research on customer service quality at VNDIRECT Securities Joint Stock Company reveals that service quality for individual customers is directly impacted by five key factors, highlighting the multifaceted nature of delivering excellent customer support.
At VNDIRECT, all five factors—Infrastructure and Facilities (IF), Competence of Staff (CS), Customer Care (CC), Transactions (TS), and Image of Company (IM)—positively impact customer service quality, though their levels of influence vary Among these, Transactions (TS) has the most significant effect, with a beta coefficient of 0.391, indicating that 39.1% of the variation in customer service quality can be explained by this factor Following closely, Infrastructure and Facilities (IF) also play a vital role, with a coefficient of 0.207, accounting for 20.7% of the variation.
The competence of staff significantly impacts the quality of service, accounting for a 17.4% change with a coefficient of β2 = 0.174 In comparison, customer care contributes a smaller influence, explaining only 4.9% of the variation in service quality with a coefficient of β3 = 0.049.
"Image of Company" accounts for 12.9% (β5 = 0.129) of the variation in customer service quality Hypothesis tests conducted at a 5% significance level confirm that all five factors significantly impact the customer service experience for VNDIRECT's individual customers, with all sig values below 0.05 Collectively, these factors explain 62.3% of the variance in customer service quality, highlighting their strong influence.
The assessment of VNDIRECT’s customer service quality for individual customers reveals a generally acceptable level, with a mean score of 3.82 on a 1-to-5 Likert scale, despite no outstanding feedback The highest-rated factor is “Infrastructure and Facilities,” with a mean of 3.91, reflecting VNDIRECT’s reputation for advanced management, transactions systems, and innovative technology that provide a competitive edge The “Transactions” factor follows closely with a mean of 3.75, significantly contributing 39.1% to overall customer satisfaction, alongside “Infrastructure and Facilities,” which accounts for 20.7% Customer service is further positively influenced by VNDIRECT’s staff, yet notable drawbacks exist, particularly in the “Customer Care” factor, with a mean score of only 3.48, indicating customers’ dissatisfaction with personalized attention and promptness Improvements are needed in complaint handling processes, transaction fees, and the customer hotline, as direct interaction and personalized service remain crucial to enhancing overall customer satisfaction despite the company’s strong technological infrastructure.
RECOMMENDATIONS FOR IMROVING THE QUALITY
OF CUSTOMER SERVICE FOR INDIVIDUAL CUSTOMERS
AT VNDIRECT SECURITIES JOINT STOCK COMPANY
ORIENTATIONS TO IMPROVE THE CUSTOMER SERVICE QUALITY
An analysis of VNDIRECT Securities Joint Stock Company's customer service quality highlights the key factors impacting service performance, along with an assessment of the company's strengths and weaknesses Based on these insights, several strategic recommendations are proposed to address existing challenges and enhance overall service quality These measures aim to not only resolve current issues but also to sustain and improve performance in response to the growing demands of customers The suggested improvements focus on delivering better customer experiences for individual clients and ensuring VNDIRECT can meet the increasing expectations in the competitive securities industry.
Improving the human resource of the company: recruitment process, job performance assessment, training and promotion.
Enhancing customer service is a priority at VNDIRECT, focusing on upgrading the customer hotline and call center for more efficient support We strive to improve our team's professionalism to ensure personalized care for each client, delivering a pleasurable and satisfying experience during transactions and service interactions.
As a technology leader, our commitment is to maintain and strengthen our advantages in management and transaction systems, as well as our diverse product and service offerings We continuously improve our website and enhance our management systems to deliver an exceptional user experience Our goal is to provide customers with innovative products that incorporate the latest technological advancements, ensuring we stay at the forefront of the industry.
Improving the effectiveness of marketing activities to increase the trust of customers with VNDIRECT brand name.
RECOMMENDATIONS AND SOLUTIONS TO IMPROVE THE
5.2.1 Improving human resources and competence of staff
At VNDIRECT, the competence and dedication of our staff are crucial in delivering exceptional service experiences that delight our customers In 2012, the company experienced rapid growth, with the number of employees increasing significantly, including brokers rising from 50 to meet growing customer demand.
Effective management and training of a 170-employee team require careful selection of applicants from the recruitment stage, focusing on both professional securities knowledge—especially for brokers—and essential interpersonal skills like communication, persuasion, and negotiation Empathy and responsiveness are crucial for attending to customers' individual investment needs, enhancing their overall experience Providing prompt service and timely problem resolution are key to building customer trust and confidence in VNDIRECT’s services The competence of staff significantly impacts service quality; therefore, implementing regular training programs, led by managers and experienced staff, ensures employees remain knowledgeable about the company, its offerings, and the securities market Such initiatives foster a positive working environment, encouraging staff to share expertise and pursue their careers within the company.
Furthermore, salary and rewarding policy is suggested as a method to encourage employees and departments to perform much more efficiently in their tasks.
5.2.2 Improving and utilizing technology advantages
VNDIRECT has a competitive edge in leveraging advanced technology to deliver innovative products, services, and an enhanced trading experience for customers Customers appreciate the company's modern infrastructure and facilities, reflecting their satisfaction However, continuous improvement is essential, as rapid technological advancements and evolving market conditions pose the risk of competitors surpassing VNDIRECT in the future.
VNDIRECT must redesign its website to enhance user-friendliness and accessibility, addressing current low feedback ratings The website's information is poorly organized, causing confusion among first-time visitors and difficulty in locating service details To improve customer awareness and confidence in the company, the website content should be updated and systematically restructured for a seamless browsing experience.
VNDIRECT should upgrade its information technology infrastructure and develop comprehensive, easily accessible data platforms to ensure customers can access important documents effortlessly from anywhere Past system outages in 2015 caused significant disruptions for clients during transactions, highlighting the necessity of a stable and sustainable IT foundation Given that most securities transactions are conducted online, maintaining robust IT systems is crucial for customer satisfaction and operational efficiency Additionally, increasing the IT department staff is recommended to adequately meet the growing demands and ensure system reliability.
To enhance its offerings, the company should focus on improving both the quality and quantity of transactional and supporting products Currently, consulting services lack differentiation from competitors, with brokerage being the only prominent offering To address this, VNDIRECT needs to introduce advanced tools such as technical analysis and stock market forecasting to provide greater value to customers Expanding product variety will not only increase customer satisfaction but also reinforce the perceived value of VNDIRECT’s services, making service fees appear more reasonable and competitive.
Customers are dissatisfied with the lengthy account registration procedures at VNDIRECT, emphasizing the need to reduce paperwork and implement online processes for greater convenience While protecting customer information is paramount in the financial industry, especially in stock exchange transactions, many competitors have adopted online wallets that enable payments via smartphone scans VNDIRECT’s IT department should consider developing secure, paperless methods to streamline account registration without risking customer data loss.
As a leading technology innovator in the industry, VNDIRECT should expand its product offerings by developing mobile applications With the rapid growth of smartphone users, having a user-friendly app that enables customers to conduct transactions directly from their devices enhances the overall experience Offering features such as real-time stock charts, financial news, analysis tools, and quick trading options can provide customers with a seamless and enjoyable experience Additionally, launching a mobile app gives VNDIRECT a competitive edge over other securities firms by catering to the increasing demand for mobile banking solutions.
To better serve its customers, VNDIRECT Securities should systematically collect and store customer information to build a comprehensive database This approach will enable more efficient management of customer securities accounts while providing valuable insights into individual client needs By understanding each customer's preferences and behavior, the company can tailor its services accordingly, enhancing overall customer satisfaction and loyalty Implementing these strategies will strengthen VNDIRECT Securities' ability to deliver personalized financial solutions and maintain a competitive edge in the market.
Establish an information desk to gather and address customer opinions and complaints, enabling the company to better understand customer experiences This approach helps identify challenges during service operations and facilitates the development of effective solutions to enhance overall customer satisfaction and improve operational efficiency.
Purchase appropriate and modern software to manage customer database, segment customers in different groups and applied CRM.
5.2.4 Improving the Hotline and Call Center
The hotline and call center, crucial for handling customer orders and complaints, have received low-rated feedback due to system instability Customers report being unable to contact hotline staff through the website's online chat, highlighting communication issues An efficient telephone hotline is essential to manage the high volume of transactions and orders via the call center Therefore, VNDIRECT should expand its hotline staff and upgrade the existing online support system to improve customer experience.
5.2.5 Improving marketing strategies and creating brand image
Currently, VNDIRECT Securities remains relatively unknown outside its existing transaction account holders To boost brand awareness and attract target customers such as students and housewives interested in financial investment, VNDIRECT should enhance its reputation as a trustworthy securities company that can generate profit for clients Implementing online advertising on popular financial websites and social media platforms can significantly extend VNDIRECT’s reach to a broader audience, increasing awareness of its specialized products and services.
5.2.6 Applying CRM system in management
Implementing an effective Customer Relationship Management (CRM) system is essential for VNDIRECT to enhance customer tracking, from account opening to transaction analysis, thereby improving overall service quality Revitalizing the CRM system can help VNDIRECT attract new customers, build trust, and strengthen relationships with loyal clients Additionally, re-engaging former customers who have ceased using VNDIRECT’s services can increase retention and foster long-term loyalty Therefore, VNDIRECT should invest in upgrading and actively utilizing its CRM system to boost customer acquisition, satisfaction, and retention.
In today's highly competitive business environment, organizations prioritize customer retention over acquisition to sustain a competitive advantage VNDIRECT Securities must identify and analyze the key factors influencing customer service quality to enhance performance and increase customer satisfaction This research focuses on improving the service quality for individual customers at VNDIRECT, aiming to explore relevant influencing factors, assess their impact, and evaluate the current state of VNDIRECT’s customer services Based on these insights, targeted recommendations are proposed to elevate the overall service quality of VNDIRECT Securities Joint Stock Company.
The research conducted the survey with 123 customers and in-depth interview with 04 managers of VNDIRECT After collecting and analyzing the data,
This article identifies five key factors that influence the quality of customer service for individual clients at VNDIRECT and examines their respective impact levels The findings aim to provide valuable insights for enhancing securities service quality, with the goal of improving overall customer satisfaction The research results and recommendations are dedicated to helping VNDIRECT strengthen its customer service offerings in the competitive securities industry.