Why do you look familiar? - Exploring the role of employee-customer identification in adapting the service offering

Abstract

PurposeThis study aims to explore employee-customer identification and its consequences in the banking, financial service and insurance (BFSI) sector. We also look at the mediating role of psychological ownership and work orientation (calling) between employee-customer identification and the adaptability of service offerings.Design/methodology/approachIn this study using a sample of 215 frontline employees from the BFSI sector in five Indian cities, the data was analysed using partial least squares structural equation modelling (PLS-SEM) in Smart PLS- 3.2.7 software.FindingsWhen employees consider customers as individuals similar to them, they tend to be more accommodating of customers' diverse needs resulting in adapting the service. The study empirically establishes that psychological ownership and work orientation (calling) mediate the relationship between employee-customer identification and service offering adaptation.Research limitations/implicationsThis kind of identification can remedy the perennial problem of mis-selling in the BFSI context. The new insights gathered from these customer interfaces can be transferred upwards within the organisation to formulate actionable strategies. Hence, when employees feel their work is satisfactory, it leads to improvement in both profit margins as well as asset turnover for high-contact service firms.Originality/valueThe results demonstrate that employees who identify with their customers are more accommodative of customers' diverse needs resulting in adapting the service resulting in improved performance.