Return on quality at Chase Manhattan Bank

A method called "return on duality (ROQ)" has been proposed to evaluate the financial impact of efforts to improve service quality. IS quantifies the project-ed net present value of an improvement: project and calculates retu rn on investment. During 1995 and 1996, Chase Manhattan Bank applied the me thod in a controlled experiment with four test branches and four control br anches within the retail banking: network, with a two-day training program aimed at enhancing service delivery and customer satisfaction. Its primary purpose was to assess the usefulness of the ROQ approach in improving custo mer service. Largely because of the bank's merger with Chemical Bank, the s tudy was not executed as planned. Despite this, the study showed favorable results from the training effort. The ROQ model facilitated interpretation of the study and appears useful for estimating the financial returns arisin g from service;quality initiatives.