Analysing the Effectiveness of Business Support to Enhance the Service Quality and Customer Satisfaction of Nagad Ltd.

Abstract

This research investigates the role of the Business Support Division (BSD) in enhancing service quality and customer satisfaction at Nagad Ltd., a leading Mobile Financial Service (MFS) provider in Bangladesh. Using analysis of structural equation modelling (PLS-SEM) through SERVQUAL’s five dimensions (tangibles, reliability, responsiveness, assurance, and empathy), survey data from 301 Nagad head office employees have been analysed. The results demonstrate that Internal Service Effectiveness (ISE), achieved through several Business Support Division (BSD) functions, including interdepartmental coordination, vendor coordination, modelling, and compliance support, raises customer satisfaction (β = 0.532, *p* < 0.001). The three dimensions, which are named Empathy (personalised attention), Reliability (consistent service delivery), and Responsiveness (timely resolution), contribute significantly to ISE. BSD’s operational support (especially human-related aspects) enables customer-facing departments to improve service delivery. The BSD staff should be trained in empathy and reliability first. The internal KPIs used have to reflect the customer KPIs. Resources used for tangibility can also be applied to the other factors. The insights provide Nagad with actionable steps to enhance internal service quality and advance competitiveness in the MFS industry of Bangladesh, thereby increasing their customer-centricity. The internal service effectiveness of Nagad Ltd will be assessed using service quality dimensions based on the SERVQUAL model in Bangladesh.