In today‟s competitive world, providing quality service efficiently and enhancing customer satisfaction is a vital goal for banks to compete. Currently, with the competition of commercial banks, banks recognized the importance of customer centered philosophies. Therefore, the present study focused on identifying targetcustomers and their voices, assessing competitive service and providing a technical solution to the customer needs by using importance-satisfaction model and quality function deployment in CBE particularly in Bahir Dar. In order to fulfill these objectives relevant data is collected using structured questionnaire, formal and informal interviewing. To analyze and interpret the collected data tools including control charts, figures and tables were applied and the statistical software of Statistical Package for Social Sciences (SPSS Version, 20) was used. As the finding indicates, there is no significant association found between demographic profiles and the service quality dimensions except gender.Mean of service quality dimensions is observed in „tangibles‟ of male is greater than female customers shows that female customers expect more than male customers. So, banks need to focus on female customers during redesign of services. The finding also indicates, the service quality attributes communicates what is to be served, always willing to help customer, respond to customer request, visually appealing equipment, knowledgeable employees, provides services as promised and sincere in solving problems fall outside the Performance lower control limit. The improvement of all these attributes can be done, based on the priority valuesof Performance control matrix index. As the finding indicates, the first customers‟ requirement, which ranked higher was the bank provides services as promised and the bank staff communicates what is to be served. Based on target values, attention to customers and reducing waiting in lines are the highest rank service designs characteristic corresponding to customer requirements with the relative weight value of 18.2% and 16.09%respectively.These rank supports to identify the most useful service design characteristic that can be applied in order to satisfy the voice of the customer. MSc Thesis on Improving Service Quality of Bank industry by using Importance-Satisfaction model and Quality Function Deployment Tekuneh Fentahun, Bahir Dar Institute of Technology, 2018 Page vi Therefore, the study recommends that the bank to use a service improvement tool like importance-satisfaction model and quality function deployment to deliver the service based on customer requirement