Does service quality for ar-rahnu matter?

By Dr Hanudin Amin

WHEN service quality is in place, consumers will have two options following the consequences of their dynamic spending and consumption. First, they will tell others that the service quality by Islamic financial institutions (IFIs) that offered ar-rahnu services is exceptional. Second, they will repeat the patronisation owing to loyalty built from the first visit that is thriving.

Service quality is a customers’ expectation drawn from the consumption of products and services. The customers would perceive higher service quality for ar-rahnu services when the delivered services meet their expectations – divulging actual happiness and then it is shared with others both online and offline. If poor service quality follows, some folks just simply ignore the act of sharing, the silence is more appealing and the body languages’ reactions are extending.

On top of that, this write-up examines three questions: Q#1 – Is service quality essential for ar-rahnu?, Q#2 – What are areas that need service quality attention for ar-rahnu? and Q#3 – How to strengthen service quality for ar-rahnu?

Getting customer service rights offers gains for ar-rahnu businesses in Malaysia. The benefits are two-fold:

First, better service quality allows IFIs that offered arrahnu facilities to retain the existing customers through allegiance and better cordiality. The customers engender positive words of mouth that allow others to become new customers for the industry – it is a free help anyway. In turn, this reduces cost in advertisements and appointed new sales agents in attracting new customers. Second, good service quality leads to an improved turnover. Good service delivery can prompt existing customers to put more transactions via their gold pledged at IFIs or at least the revisiting takes place out of the loyalty factor.

In the digital world as of today, customer service quality should be consistently good no matter how customers connect with you – be it offline or online. In the past, customers relied on visiting branch for queries and actual behaviour afterwards but today they can make queries via social media platforms before ending up at the branch of IFIs for a transaction.

To be competitive, some areas need proper research for improved ar-rahnu services. The details are provided.

AREA #1 TIME FRAMEWORK.

The service supplied should not be equalised like personal financing – the former is secured financing whilst the latter is unsecured financing. Time framework should be efficient if one opts the former – faster at reduced waiting time. Complaints may exist when the waiting time exceeds the customers’ expectation and worse comes to worst – they had an experience in transacting at a conventional pawnshop, which is relatively faster in service delivery.

AREA #2 EFFECTIVE DOCUMENTATION. Two perspectives rendered. The effective document should be relearned by IFIs to improve customer service quality to avoid conflict of interest. Their clients need effective documentation, one if suffice then it is worth consideration.

AREA #3 COORDINATION. There is a mismatch when the right customer is poorly treated by the right staff chosen by IFIs – implying looking alone at individuals’ credential may not sufficient to have the right staff. Education and training are important here and if it is attended effectively this issue could be phased out from the industry.

AREA #4 VICINITY. Setting up the premises at the right geography can offer a plus point for the industry to grow effectively. Customers prefer places, which are modest and less concentration of crowded people to reflect their physical appearance factor and different financial needs. They can be of B40 or M40 folks.

AREA #5 ONLINE COMMENTS. Today, people live in two different worlds – be it online or offline. Everyone loved to write reviews and comments on social media platforms, and for those ar-rahnu transactions by IFIs are also subject to this development and should be managed with cautious.

IFIs are typically running a brick-and-mortar store, the extant staff shall adopt specific measures suitable for the industry. Given the areas mentioned above, customer service suggestions include:

MEASURE #1 THE HUMANISTIC MEASURE INCLUSION IN CUSTOMERS’ WAITING TIME. Two viewpoints condensed here. If the customer is in the service, acknowledge them about the completion of time for certainty. If the customer is waiting for the service, acknowledging them and informing them about how long the waiting time is, will be worth consideration.

MEASURE #2 A COGENT DOCUMENT. A simplified version of a transaction document is helpful to resolve a conception that many documents need customers’ signature. A standardised copy of the document is extended to all types of customers to inform that IFIs are fair to their clients.

MEASURE #3 SERVICE RECOVERY SYSTEMS. It is a norm to write an apology note to customers who are discontent about the services with simple vocabulary and confidentiality. If it is orally done, a verbal apology makes customers want to forgive the staff more than fixing the issue without an apology. Personto-person interactions are of advantageous.

MEASURE #4 SHOPHOUSEBASED AR-RAHNU. Customers may appreciate the anonymity that comes with ar-rahnu should the location visited is strategic – nobody in town could know about their financial transactions that are conducted secretly. Their presence through shophouses can be relevant for those needy folks and poor people for dignity.

MEASURE #5 IMPROVED ONLINE PRESENCE. IFIs that offered ar-rahnu facilities should exist online to keep an eye on negative or positive reviews on Facebook and the alike and responded them with a sort of wisdom. Say thank you for positive ones whilst the opposite ones should be corrected quickly

– offering an apology sincerely and cashback transactions if any.

It is conceivable to keep every client happy through consistent improvement in quality services and the fixing of discontents are handled humanely for wellbeing. Instead, customers shall learn to acknowledge workable and positive measures by IFIs in humanising their experience in arrahnu transactions.

Going forward, quality services are always possible when the facilities offered, educational programmes both for staff and clients and objectives of ar-rahnu meet the customers’ expectations. Besides products, effective and pious frontline staff can be an impetus to win customers return transactions and extending the business to new customers to capture another stage of success, where customer service quality etiquette is brought into play, at least.

*The author is an Associate Professor at the Labuan Faculty of International Finance, Universiti Malaysia Sabah, Labuan International Campus. He has a PhD from the International Islamic University Malaysia (IIUM) in Islamic Banking and Finance (PG310163). He can be contacted at hanudin@ums.edu.my