Although credit card satisfaction continues to improve, a large percentage of customers indicate they do not fully understand their card’s terms, benefits and rewards program, according to our J.D. Power 2013 U.S. Credit Card Satisfaction StudySM released today.
Satisfaction in each factor has increased, as have ratings for Brand Image. However, it is important to note that opportunities for further improvements remain. Recommendations for additional focus areas for credit card issuers include:
Deepening customer awareness and understanding of terms, benefits, and rewards, potentially through proactive communication campaigns. Issuers should use consistent messages via all available channels to deepen understanding and awareness of offerings.
Continuing to invest in functionality of self-service interaction channels. Given the continued shift toward digital interaction channels, customers areconsistently looking for advancements in technology. Therefore, websites need to be maintained and upgraded as necessary to ensure easy navigation and availability of clear and concise information. Mobile apps are becoming more widely used; thus, the focus on improving functionality will become increasingly important going forward. Finally, clear processes for handling customer questions/requests submitted via email or online chat must be developed. Issuers must provide the same level of service courtesy and knowledge that is delivered through personal channels, such as the branch and call center.
Maintaining focus on delivering a high level of service during every interaction, given the importance of call center. Although customer contact via this channel is infrequent, every interaction carries a larger weight in overall satisfaction compared to the other interaction methods. Issuers must implement a customer experience framework that addresses customers’ needs and expectations by focusing on employee recruitment, training, coaching, and recognition in order to achieve the desired experience levels.
Preventing problems, as well as eliminating barriers for resolution. Analysis of problem data and determination of problem root causes may help banks adjust policies and procedures.
The 2013 Credit Card Satisfaction Study includes responses from more than 14,000 credit card customers and was fielded from May through June 2013
Retail banking customers in Canada have high expectations when it comes to using technology to conduct their banking business. Banks may not be meeting these expectations, especially in mobile, which may be driving the lower ratings for innovation provided by customers. According to our J.D. Power & Associates 2013 Canadian Retail Banking Customer Satisfaction StudySM, in 2013, 58 percent of customers perceive their bank as being technologically innovative, down from 66 percent in 2012.
While mobile penetration is not catching on as fast in Canada, compared with the United States (8% vs. 18%, respectively) banks could help raise mobile banking penetration and customer satisfaction by improving their mobile offerings. Providing a mobile banking option is critical in migrating routine transactions, especially deposits, out of the branch, helping to reduce bank costs while providing convenience for customers.
According to our study, during the past 12 months, mobile banking customers in Canada have used mobile to conduct a banking transaction 33 times, on average, compared with 51 times in the United States. Transactions may include making a deposit, transferring money from one account to another, finding a location, checking an account balance or paying a bill, depending upon the services offered by the bank.
A decision to switch banks is often driven by a mix of frustration with the previous bank and attractive offerings from the new bank.
Attracting new business within the retail banking industry is unique. While there are several variables that can “pull” customers toward a new bank, data from our J.D. Power and Associates 2013 Retail Banking Satisfaction StudySM has found that customers generally will not switch banks unless they are also “pushed” away from their prior relationship.
While poor service and high fees are most likely to push customers away, branch convenience, promotions and recommendations help to attract customers to a new bank.
What are you doing to protect your current relationships?
As the retail banking landscape continues to evolve, banking organizations need to always be tuned in to what customers expect from their bank and how they can provide them with a more satisfying banking experience.
As our J.D. Power Retail Banking Satisfaction Study moves to quarterly fielding and reporting for the 2014 study, banks are now better able to track their success with satisfying customers throughout the entire year!
The first quarterly wave of the 2014 Retail Banking Satisfaction Study was fielded in April 2013 and will be published on Tuesday, July 23rd.
We invite you to join us for a complimentary webcast during which we will discuss key findings from this study and address the following topics:
- How customers are interacting with their bank
- Trends in customer satisfaction and loyalty
- Changes we are seeing since the publication of the 2013 results
Date: Wednesday, July 24
Time: 2:00 – 3:00 PM ET
When the market is doing well, satisfaction among full service investors is high.
This is evident by examining the correlation between satisfaction in the Investment Performance factor during the past 7 years and trends in the S&P 500 index during the same period. At a minimum, investors expect their financial advisor to provide the most effective guidance with respect to the performance of their portfolio.
Analysis at the investor level shows that among the majority of investors, Investment Performance satisfaction aligns with the relative returns reported for their portfolio. In other words, approximately 60% of investors combined fall into the high portfolio performance/high Investment Performance satisfaction quadrant or low portfolio performance/low Investment Performance satisfaction quadrant, as shown in the following figure.
However, investment performance alone isn’t the driver of performance satisfaction among some investors. A significant proportion of investors do not follow the script and fall into the high portfolio performance/low Investment Performance and low portfolio performance/high Investment Performance quadrants (approximately 40% combined). The large number of investors in these quadrants raises the question, what can firms and advisors do to enhance investors’ perceptions of their portfolio performance?
For more information about our J.D. Power & Associates 2013 Full Service Investor Satisfaction Study, please contact: Holly Zagresky at: (248) 680-6319 or email her at email@example.com.
Overall customer satisfaction with retail banks improved significantly from 2012, largely a result of improvements made by big banks,(1) according to our J.D. Power and Associates 2013 U.S. Retail Banking Satisfaction StudySM released today.
“Many of the big banks have made great strides in listening to what their customers are asking for: reducing the number of problems customers encounter and, more importantly, improving satisfaction with fees,” said our own Jim Miller, senior director of banking here at J.D. Power and Associates
Below are a few highlights from the study:
- Fees have begun to stabilize and banks have helped their customers better understand their fee structures. Satisfaction in this area has begun to rebound, and is up by 14 points this year from 2012.
- One-third (33%) of customers say they “completely” understand their fee structure, compared with 26 percent in 2012.
- Fees also have been a major source of customer problems and complaints. The stability in fees, coupled with banks placing more emphasis on preventing problems, has lowered the proportion of customers experiencing a problem by 3 percentage points year over year, to 18 percent in 2013.
- While customers appreciate the personal service they receive at their branch, such transactions are slowly declining, while the numbers of online, ATM and mobile banking transactions are increasing.
- As banks roll out envelope-free ATM deposits and deposits by mobile phone, customers are finding it easier to handle routine transactions without needing to visit their branch.
“Successful banks are not pushing customers out of the branch, but rather providing tools that make it easier to conduct their banking business when and where it is convenient for them,” said Miller. “Customers are quickly adopting mobile banking, making it a critical service channel for banks, not just a ‘nice to have’ option.”
For study results by region, view retail banking satisfaction rankings at JDPower.com
For more information on this 2013 U.S. Retail Banking Satisfaction Study, please contact Holly Zagresky at (248) 680-6319 or via email at Holly_Zagresky@jdpa.com
(1)Big banks are defined as the six largest financial institutions based on total deposits as reported by the FDIC, averaging $180 billion and above. Regional banks are defined as those with between $180 billion and $33 billion in deposits. Midsize banks are defined as those with between $33 billion and $2 billion in deposits.