Over the past decade, the lens through which customers view their bank and through which banks view their customers has shifted considerably. What once was a channel-dominant view of the customer (“Suzie uses the branch most often, so let’s make sure her branch experience is stellar.”) shifted to a more complex multichannel view (“Suzie interacts with us across many channels, how can we make the various experiences seamless?”), and then to the current focus on enabling a true omnichannel experience (“We need to engage Suzie positively wherever she is, whenever that is, by whatever communication methods she is using.”).
When free checking took over the banking industry, differentiating on customer service or the “customer experience” came into much greater focus. Products had become largely commoditized, and banks were anxious to grow their deposits, which generated significant fee revenue and capital for lending. Through superior customer service, the thinking went, banks could attract those deposits and grow their bottom line. And for many banks, this was a highly successful strategy.
Today’s consumers have made a dramatic shift toward banking through online channels and smartphones, and the new demand for digital banking compels financial institutions to develop a holistic, real-time platform encompassing all channels.
Further, a user-friendly digital-banking approach helps banks and credit unions make services “stickier” for accountholders: a report by CEB TowerGroup revealed that customers who use mobile banking are 53 percent less likely to leave; if they use both mobile banking and bill pay, they are 82 percent less likely to leave.
Data from the 2013 U.S. Retail Banking Satisfaction Study finds that satisfaction and loyalty metrics among Affluent customers are lagging those of Non-Affluent customers. In turn, financial institutions are jeopardizing their ability to deepen the share-of-wallet they hold with their most valuable segment of customers.
Contrary to findings within the retail banking segment, data from the 2013 Full Service Investor Study finds that Affluent investors are significantly more satisfied than Non-Affluent Investors (818 vs. 785, respectively), leading to lower levels of intended attrition. Therefore, financial institutions have an opportunity to identify the drivers of Affluent customer satisfaction from the wealth management experience and translate them into the retail banking experience.
Read more at JD Power
Improving Affluent Customer Satisfaction to Increase Loyalty
Survey results released in October show 51% of consumers switched service providers due to poor service the previous 12 months. During that time, retail financial institutions was one of three categories of companies that experienced the most customer switching. What does that mean for financial institutions? Three opportunities to improve Business.
The new Current Account Switching Service in the UK has now been live for four months, and has been accompanied by a pretty impressive marketing campaign – TV ads, radio, print, web and even billboards extolling the virtues of the new service. Individual banks are also advertising hard to win new customers and keep the ones that they already have. The campaigns are clearly working; according to Payments Council figures, 59% of the public are aware of the service and there were 17% more accounts switched in the last quarter of 2013 compared to the previous year.
It’s time for banks and credit unions to consider the potential of providing mobile banking customers single-click live customer support similar to Amazon’s Mayday button that is embedded on the latest Kindle Fire HDX tablets. Similar to a virtual version of Apple’s store-based Genius Bar, without needing to wait in line or leave your house, a banking version of Mayday could provide both basic customer support as well as specialized or advisory services that could revolutionize both mobile and online banking.