Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business. You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy.

Get it on Amazon (Kindle/Print)

Retail banks' loyalty declines further

The study found that overall satisfaction of retail banking customers averages 748 on 1,000-point scale in 2010 - a slight decrease from 749 in 2009. The brand image of banks has also continued to decline, with customers perceiving banks as being more profit-driven than customer-driven, compared with 2009.

In addition, the percentage of customers who say they "definitely will not" switch banks during the next 12 months has decreased significantly during the past three years to 34% in 2010, compared with 46% three years ago in the 2007 study.

The gap in loyalty intent between customers of larger and smaller banks is considerable, with 41% of customers at smaller banks who say they "definitely will not" switch, compared with 32% at larger banks.

Higher customer satisfaction with in-person service and attention is an important contributor to increased loyalty at smaller banks. Acquisition rates are also improving at smaller banks, with new customers accounting for 8% of the customer base, compared with an industry average of 6%.

Poor customer service - the most common reason given for switching banks - was cited by 37% of customers who changed their primary bank in 2010. Performing simple service acts - such as such as greeting customers as they enter the branch, offering additional assistance, and thanking them for their business - may increase overall satisfaction by nearly 50 index points, despite the fact that less than 60% of customers report experiencing them.

"As retail banking customers become considerably less loyal, banks need to focus on getting the fundamentals right," said Michael Beird, director of banking for J.D. Power and Associates. "Banks that get back to the basics - such as maintaining a clean branch and greeting customers upon entering - may help to alleviate some of the distress customers are experiencing and increase their overall satisfaction."

Fees continue to have a major impact on customer loyalty, as 29% of customers who switched banks in 2010 cite high fees for products or services as their reason for switching.

According to Beird, "Customers tend to be considerably less dissatisfied when they have different overdraft options, such as the ability to transfer funds from a savings account or receive a balance alert. Proactive communication may also help to lessen the negative impact of fees, as satisfaction is more than 100 points higher among customers who are aware of changes in fees ahead of time, compared with customers who are taken by surprise."

The study also found that customers may be highly satisfied even when they are charged bank fees, provided that they perceive they are receiving sufficient value in exchange. When satisfaction with fees is above average, customer's ratings for branch access and appearance, promptness of being served, and the bank's website navigation and range of services are also higher than average.

Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business.

You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy. Grab this goldmine of easily adaptable and up-to-date strategies, walk-throughs, trends, technologies, research, suppliers and partners, plus all the supporting arguments you need to build a solid CX strategy.

While most marketers could list maybe a dozen key points for improving their brand's Customer Experience (CX), the researchers and writers at The Marketing Factbook have identified FORTY main 'CX Keys' which will help you drive your customers to new levels of delight, loyalty, advocacy and profitability.

The areas in which customers have direct contact with your organization are perhaps the most obvious places in which CX improvements can be made, and this report addresses all 24 of these 'Direct CX Keys', applicable to offline and online businesses alike.

At the same time there are many other areas that indirectly affect CX (such as the supply chain, policies and processes) in which every business can make simple but far-reaching improvements. This report guides you through the problems and solutions for all 16 of these 'Indirect CX Keys', many of which are often forgotten or under-played even in the best CX strategies.

Get it on Amazon (Kindle/Print)