Six Sigma: A Tool to Increase Customer Satisfaction at Bank of America

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Ever since its formation, BoA had given greater importance to increasing its size and securing larger numbers of customers than providing customer satisfaction and retaining customers. In due course, the company realized that the quality of service it was providing was getting poorer due to its inefficient processes. Therefore, the company decided to make process improvements throughout the company. However, the plans did not materialize due to a lack of systematic implementation. When Lewis took over as the Chairman and CEO in 2001, he adopted an organic growth strategy, which emphasized building strong customer relationships. The strategy succeeded in creating a strong customer base for the bank in the US...

After the application of Six Sigma and other tools in 2001, it was estimated that BoA gained more than $2 billion through significant cost savings and revenue generation from 2001 to 2003. The initial GB project in 2001-02 reduced 70% of errors and missing items in customer statements. It reduced errors in encoding and the number of delays in posting customer transactions. Most of the initial Six Sigma projects in BoA concentrated on the ATM system failures and defects in telephone banking and online banking, which were reduced by 88% by 2002. By 2002, with a strong focus on customer issues and performance gaps, the GB project became a huge success which proved the applicability of Six Sigma to financial services.

BOA achieved an increase in delighted customers from 41% of 2001 to 50% in 2003 with an increase of more than 2.5 million customers. In 2003, the account losses were reduced by 28%. Also, the number of accounts was increased by more than a million in 2003...

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