Good customer service is as vital for microfinance institutions as it is for other service providers, because strong relationships with clients forge lasting success. Customer service is a powerful marketing tool because it is linked to customer satisfaction and retention – make the customer feel special and he/she will keep coming back.

All service providers should follow the basic rule: Under promise and over deliver. This can be achieved in the following ways (at the field level):

• Loan officers are friendly and respectful with microfinance clients
• Loan officers possess and share quality information with clients (knowledge about features of loan products, client business, etc.)
• Client needs and domestic/business problems have been identified and acted upon, if possible
• Wide range of products are available to serve varying needs of microfinance clients
• Clients are treated with fairness, respect and sincerity – communication is candid and transparent
• Clients are made to understand the workings of the microfinance institution (pamphlets, literacy campaigns, discussions, lectures, etc.)
• Responsible clients with good credit scores are given special treatment (perhaps larger loan sizes, lower interest rates, flexible repayment schedules, etc.)
• Treat employees like your customers
• Adequate redress mechanisms allow customer complaints to be handled promptly and transparently.

The MFI Marketing Blog put together an interesting exercise regarding the immediate reaction loan officers may have to client complaints about various issues:

Well, I just assumed I could use your loan for myself, and not just for my business. Nobody told me that I couldn’t.
Possible response: I can tell that you’re upset, Mrs. Ghaffar.

Your interest rates are too high for me! I have a limited income.
Possible response: I can appreciate your need to save money.

Your report said my group had a B rating, but it actually has a AA rating!
Possible response: Oh no! I’m sorry for the mistake!

We’ve been waiting four weeks to get this loan and now you want to delay it again!
Possible response: I’m sorry for the delay. I know it must be frustrating for you.

Read other articles about microfinance theory and practice.