Improving Customer Service at the Agricultural Development Banks in Ghana: An Application of the Queuing Theory

Abstract

Competition for customers in retail services such as the banking industry is often fierce. As such, many firms have placed new emphasis on listening to their customers in an effort to better understand them. At leading or world class firms, the voice of the customer is not treated passively or left to chance. Businesses often go the extra mile to create congenial atmosphere for their customers, particularly in the present era of competitive environment where queues are inevitable in fast growing goods and services market. This article analyses the perceptions of customers about queues build-up at the bank, using the Agricultural Development Bank (ADB) at Koforidua, Eastern Region, Ghana, as a case study. Based on the queuing theory, an analysis of the queuing system at the bank shows that the current performance of the queuing system could be improved to serve customers better when an extra service point is added, and suggests how best the bank can reduce the length of the queues. The study therefore recommends that the management of the bank considers adding an extra service point as this is a significant improvement over the current system, particularly in terms of the time spent by customers waiting in line to be served.

Key words: Queuing theory, customers, competition, time, service point