Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on April 18, 2013, at 7:57 am
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.
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on January 9, 2013, at 1:58 pm
 Social novices and mavens, what goals are you setting in 2013 to strengthen your social relationship with consumers? Consumers know what they want from their social media interactions with brands, but do you know how they are looking to engage?
To better understand this challenge, J.D. Power and Associates recently hosted an online research community. Based on that research, three goals emerged that companies should focus on in 2013.
- How consumers are looking to engage with brands
- Which social efforts most grab consumers’ attention
- How you can begin to make the most of your social efforts in 2013
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on November 29, 2012, at 11:21 am
J.D. Power is committed to helping companies understand and navigate the rapidly changing landscape of social media. To that end, the 2012 Social Media Usage Study has been piloted to examine how consumers are currently using social media to interact with companies and to understand the current social media practices companies employ. To continue looking at how companies interact with consumers via social media, we will be releasing the comprehensive study, collaborating directly with businesses and consumers, in January 2013 that fully examines why and how consumers engage with companies via social media.
In the meantime, take a look at the topline findings from the study pilot in the whitepaper titled “Understanding the Impact of Social Media on Companies.”
Download the Whitepaper
What else would you like to see out of this study?
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on November 1, 2012, at 8:58 am
In case you missed a few of our recent online events and complementary research reports, we’re including them for you here. We promise, just like the day after 1/2 price Halloween candy, it’s not a trick. Just a heartfelt way for us to treat you, our loyal banking fiends and fans for your continued support. Enjoy!
What Do Small Business Owners Expect From Their Bank?
This exclusive webcast provides an inside look into the results of our J.D. Power and Associates 2012 US and Canadian Small Business Banking Satisfaction Study that will be released next week. Below are only some of the many issues discussed during the webcast:
- How customers’ perceptions have changed since 2011
- The latest trends emerging in the small business banking industry
- Which factors are having the biggest impact on customer satisfaction
Download the full webcast
The Dividends of Improving Best Practices for Social Media Research
In this whitepaper, we’ll show you that without well-established and proven guidelines on query construction and data extraction, very different results and conclusions can be obtained by different analysts attempting the same social media data search.
In extreme cases, analysts can create such highly divergent queries that the associated data leads to different answers to even simple questions, such as:
- Which brand is my main competitor?
- Is Product1 more of my brand’s conversation this month centered around product?
- Is the sentiment expressed toward my brand this month more or less positive than the sentiment expressed toward my brand last month?
Download the full whitepaper
Using Voice of the Customer Information to Improve Business Performance: 5 Keys to Success
This presentation explores how clients use J.D. Power and Associates and other Voice of the Customer data with ROI or other business metrics to analyze under-performance to drive improvement.
Download the full presentation Continue reading ›
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on October 25, 2012, at 8:56 am
From our J.D. Power and Associates 2012 Credit Card Website Evaulation Study, the following viewing account history best practices highlight some of the exceptional techniques utilized by credit card issuer websites.
1. Recent Activity Link
Chase and Discover Card offer a link to recent activity from the website’s landing page
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2. Offer Multiple Formats for Statements
Discover Card allows customers to download statements in multiple formats. Citi Cards offers customers navigation links from the log in field on the home page
___________________________________________________ Continue reading ›
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on October 18, 2012, at 11:46 am
With the fluctuating economy and new banking regulations continuing to affect the expectations that small business owners have of their banking experiences, financial institutions need to be armed with the insights that can help them meet and exceed these expectations. They need to know:
- How customers’ perceptions have changed since 2011
- The latest trends emerging in the small business banking industry
- Which factors are having the biggest impact on customer satisfaction
Our J.D. Power and Associates 2012 US and Canadian Small Business Banking Satisfaction Studies will provide these insights and much more!
Join us for an exclusive webcast during which we will give you an insider’s look into the results of these studies!
Webcast Details:
DATE: Tuesday, October 30
TIME: 2:00 – 3:00 PM ET
SPEAKER: Jim Miller, Senior Director, Banking Practice at J.D. Power and Associates
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on October 16, 2012, at 12:06 pm
Unlike the majority of full service investors, self-directed investors MUST seek out information to aid in their decision-making regarding investments.
Did you know that satisfaction is highest among self-directed investors who use investment magazines and their firm as primary sources of this information?
The majority of self-directed investors (68%) indicate using their firm as one source of information, which is 4 percentage points lower than in 2011 (68% vs. 72%, respectively), and 30% of investors indicate that their firm is their main source of information, which is virtually the same as in 2011. Below are the top 10 main sources of information that self-directed investors indicate using to aid in their investment decision-maiking:
Not depicted above, but included in our J.D.Power 2012 US Self-Directed Investor Satsfaction Study, Sharebuilder from ING Direct leads the industry in the proportion of investors indicating that they use their firm as the primary source of information (36%), followed closely by E*TRADE Financial (35%) and Fidelity Investments (33%).
Data Source: J.D. Power and Associates 2012 US Self-Directed InvestorSatisfaction Study SM
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on October 10, 2012, at 9:15 am
From our J.D. Power and Associates 2012 Credit Card Website Evaulation Study, the following account log in best practices highlight some of the exceptional techniques utilized by credit card issuer websites.
1. Offer Prominent Log-in Fields
Citi Cards and Chase use color and shading to draw attention to log-in fields
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2. Streamline Navigation
Citi Cards offers customers navigation links from the log in field on the home page
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Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on September 24, 2012, at 1:29 pm
Did you know that customers who INTEND to switch primary financial institutions have the greatest value?
Bank customer attrition rates, both actual and intended, continue to increase. According to data from our J.D. Power and Associates 2012 US Retail Banking Satisfaction Study, intended attrition has increased significantly to 12.9% from 10.7% in 2011 after having decreased from 2010 to 2011. The actual attrition rate has steadily increased since 2010, reaching 9.6%(1) this year.
By bank size, Midsize Banks have the highest attrition rate (11.3%), followed by Regional Banks (10.3%); Big Banks (10.0%); and Small Banks and Credit Unions (7.4%).(2) While most customers who switch leave one Big Bank for another Big Bank (29%), 19% of customers switch from a Big Bank to a Small Bank or Credit Union, demonstrating customers’ willingness to trade the convenience of a large banking network for the personal service of a local small banking network or credit union.
Notes: Actual AttritionRate is based on the 2012 Financial Services Screener
Continue reading ›
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on September 14, 2012, at 5:48 am
 Social media, a non-traditional method of customer interaction is clearly becoming increasingly important for banks to understand.
It’s no longer just a vehicle for customers to vent about poor experiences, praise their bank for exceeding expectations, or read about other customers’ positive or negative experiences—it has now become a legitimate service channel!
Social media sites not only allow customers to interact with their bank, but also provide another medium to converse with representatives, get questions answered, and resolve problems. For example, data from our 2012 J.D. Power and Associates US Credit Card Customer Satisfaction Study shows that during the past 12 months, 5% of credit card customers have contacted their issuer through their social media site to ask a question, resolve a problem, or make a request.
Although many questions or problems may need to be handled outside of the social media site that was the initial contact, it is important for banks to show they are listening to their customers’ “pain points” by providing an actual response to the social media posting.
Did you know that only 60% of customers who contacted their credit card issuer via social media received a reply?
Needles to say, the impact of replying to a posting on overall satisfaction is profound, as Interaction satisfaction among customers who have received a reply to their social media contact is notably higher than among those who did not receive a reply (802 vs. 748, respectively). Findings from our recent study also revealed that optimizing customer satisfaction with their social media experience does not end at merely responding to the request, but that issuers should continue to focus on the following:
- Resolving the initial issue at hand
- Offering additional assistance
- Thanking the customer for their business
When each of these best practices are met, Interaction satisfaction increases to 839, which is 91 points higher than when they are not met.
Source: J.D. Power and Associates 2012 US Credit Card Satisfaction StudySM
The Bottom Line:
With the continued advancement of technology shifting the way customers interact with financial institutions, it is vital for banks to proactively respond to the changing demands of their self-service channels and understand the importance of being responsive to feedback posted on social media sites.
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U.S. Financial Services Study Release Dates for 2013 JANUARY
Social Media Benchmarking Study
APRIL
Retail Banking Satisfaction
Financial Advisor Satisfaction
MAY
Customer Switching & Acquisition
Full-Service Investor Satisfaction
JUNE
Self-Directed Investor Satisfaction
JULY
Primary Mtg Servicer Satisfaction
Dealer Finance Satisfaction
AUGUST
Credit Card Satisfaction
OCTOBER
Credit Card Website Evaluation
NOVEMBER
Small Bus Banking Satisfaction
Mtg Originination Satisfaction
Consumer Auto FI Satisfaction
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FOR MORE INFO regarding these studies, please contact: Holly Zagresky at (248) 680-6319 or via email at Holly_Zagresky@jdpa.com
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