Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on March 7, 2013, at 5:22 pm
Do you understand the connection between customer satisfaction and financial performance?
In case you missed our J.D. Power and Associates complimentary webcast last week, we examined how the links between customer experience and business results – and their drivers – vary by product.
We explored the revenue drivers in retail banking, credit card and mortgage, and revealed answers to some of the most frequently asked ROI questions like:
- What is the impact of problem reduction on costs?
- What are the biggest reasons for attrition, and what can you do to avoid it?
- What is the relationship between satisfaction and switching?
- What improvements in satisfaction will have the biggest impacts on share of wallet and retention?
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on February 14, 2013, at 8:51 am
 Businesses can no longer adopt a trial-and-error approach to social media as all-new research finds a link between social media and business metrics such as consumers’ likelihood to purchase or interact with companies through leading social channels, according to the J.D. Power and Associates 2013 Social Media Benchmark Study,SM released today.
The inaugural study is based on responses from more than 23,200 U.S. online consumers who have interacted with a company via the companies’ social media channel. Fielded from November to December 2012, the study measures the overall consumer experience in engaging with companies through their social platforms for both marketing and servicing needs across more than 100 U.S. brands in six industries: airline, auto, banking, credit card, telecom and utility. The study establishes performance benchmarks and industry best practices that provide insights to companies to help them maximize their social media efforts.
Social Media Servicing vs. Social Media Marketing
The study focuses on two types of social media engagements, marketing and servicing, and provides best practices for each. Marketing engagements include connecting with consumers to build brand awareness and affinity, in addition to promoting coupons and deals. Servicing engagements include answering specific consumer questions or resolving problems.
The study finds that social marketing engagements vary by age group. Nearly one-third (39%) of consumers 30-49 years old and 38 percent of those 50 years and older interact with a company in a social marketing engagement context, while only 23 percent of consumers who are 18-29 years old interact with companies. In contrast, 43 percent of consumers who are 18-29 years old use social media for servicing interactions, while 39 percent of consumers who are 30-49 years old use social for servicing needs. Only 18 percent of consumers who are 50 years and older interact with a company via social for a service-related need.
Key Findings
- 67% of consumers have used a company’s social media site for servicing, compared with 33% for social marketing.
- Younger consumers (18-29 years old) are more likely to use brands’ social media sites for servicing interactions (43%) than for marketing (23%).
- The automotive industry balances marketing and servicing engagements better than any other industry included in the study.
- Consumer expectations for social interactions vary across industries, although quality content and responsive service representatives are keys to higher satisfaction levels.
Want to learn more about our J.D. Power and Associates 2013 Social Media Benchmark Study,SM including banking and credit card brand performance?
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
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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 October 4, 2012, at 12:15 pm
The proportion of credit card customers who use online channels to perform basic tasks continues to increase, with those who use a smartphone or tablet preferring different experiences from those who use a computer, according to our J.D. Power and Associates 2012 Credit Card Website Evaluation StudySM (CCWES) released today.
The inaugural study examines the usefulness of credit card company websites across six attributes (in order of importance) utilized in our J.D. Power and Associates 2012 U.S. Credit Card Satisfaction StudySM:
- Speed of completing desired activity
- Appearance of website
- Ease of navigating the website
- Ranges of service that can be performed online
- Usefulness of information provided via the website
- Clarity of information provided
During the past three years, credit card customers’ usage rates for self-service interaction (online and mobile) with their card issuer have increased, while usage rates of all other channels, such as mail and live and automated phone calls, have decreased.
Most notably, 78 percent of credit card customers use their computer to go online and interact with their issuer in 2012, compared with 76 percent in 2011 and 75 percent in 2010. Mobile phone usage has increased to 7 percent in 2012, compared with 4 percent in both 2011 and 2010.
Questions? For more information about this study, please contact Holly Zagresky at 248-680-6319 or Holly_Zagresky@jdpa.com.
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on September 18, 2012, at 9:01 am
As appeared in The Financial Brand on September 11, 2012. The Financial Brand, written and published by Jeffry Pilcher, is an online publication focusing on issues and advice that affect bank and credit union brands.
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Customers are happier now that credit card companies are making less changes to the ways their programs are structured.
Credit card customers say they are more satisfied this year, according to the US Credit Card Satisfaction Study from JD Power & Associates. The reason why? Nothing changed. Credit card companies have stopped tinkering with rates, fees and rewards programs, which has come as welcome relief to customers who have come to dread the onslaught of surprise changes.
(2012 J.D. Power and Associates U.S. Credit Card Custom Satisfaction Study©. The McGraw-Hill Companies, Inc. All Rights Reserved.)
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.
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on September 10, 2012, at 4:54 am
Do you know about our inaugural J.D. Power and Associates 2012 Credit Card Website Evaluation Study? We’ll publish it on October 4th, and we’re excited to share some of the research details with you!
The websites of credit card issuers serve as a major portal for customers to service their accounts and obtain information throughout their relationship with the credit card company. This study provides an analysis of cardholders’ perceptions of their issuer’s website and explores the correlation between website usability and customer loyalty and advocacy.
We invite you to join us for a complimentary webcast during which attendees will learn how the insights gleaned from the study may help credit card issuers to:
- Increase website effectiveness
- Create websites that excel in content, appearance, navigation, and speed
- Estimate return on investment for proposed site changes and enhancements
- Compare competitive site features across multiple industries
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Complementary Webcast Details:
Date: Tuesday, September 25 - 2:00 PM EST
For more information, please contact: Holly Zagresky at Holly_Zagresky@jdpa.com
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on August 31, 2012, at 9:09 am
Rewards is a primary driver of switching and selection in the credit card industry. This is especially true among Transactors,(1) who cite rewards as the primary reason for selecting their primary card, as well as the primary reason for leaving their previous credit card issuer. Notably, rewards has also become an important driver of selection and defection among Revolvers.(2)
According to the 2012 J.D. Power and Associates US Credit Card Satisfaction Study, during the past 3 years, the percentage of Revolvers who have shopped for a better rewards program has increased (27% vs. 25% in 2011 and 23% in 2010). Rewards programs are now the second-most-important reason why Revolvers have switched credit card issuers in 2012, behind only a low APR, which is down to 28% from 43% in 2010. As with switching, selection is also driven by rewards, as the rewards program is the primary reason Transactors selected their new card (72%) and the second-most-important reason Revolvers selected (33%), following a lower APR (37%).
So yes, rewards programs are rewarding for both customers and issuers! In fact, overall satisfaction is significantly higher among customers who have a rewards program than among those who do not have a rewards program (770 vs. 700, respectively). More importantly, rewards programs have a positive impact on customer advocacy and retention, as customers with rewards are considerably more likely to say they “definitely will” recommend their credit card issuer, compared to those without a rewards program (30% vs. 18%, respectively), and are considerably less likely to switch primary credit card issuers (31% vs. 23% “definitely will not” switch).
Rewards programs also have a positive impact on both customer spend and usage. On average, customers with rewards programs spend in excess of three times more per month on their primary card and conduct nearly three times the number of transactions per month than do those without a rewards programs.
2012 J.D. Power and Associates U.S. Credit Card Custom Satisfaction Study©. The McGraw-Hill Companies, Inc. All Rights Reserved.
Make sure they Understand the program
Not clearly communicating a card’s rewards program may have a larger detrimental impact on satisfaction vs. not offering a rewards program at all. Satisfaction is lower among customers who say they do “not at all” understand how rewards are earned than among those who do not have a rewards program associated with their card. Moreover, satisfaction among customers who either “partially” or do “not at all” understand how to redeem rewards is lower than among those without a rewards program (692 vs. 700, respectively). Consequently, it is critical that customers are aware of how rewards are earned and even more critical that they understand how rewards are redeemed. ©
The Bottom Line:
- Rewards during the past 3 years has become a main driver of selection and satisfaction among Revolvers, who historically have selected cards based on APR.
- The root cause of reward dissatisfaction is a lack of clarity regarding what rewards can be earned…..which is driven by vague and confusing messaging on billing statements and online Web portals.
- Keep rewards programs simple, display rewards earned, provide information on reward promotions and special offers; and implement and/or promote rewards tracking tools via the Web portal.
- When there are different rates at which rewards are accumulated based on purchase categories, clearly communicate them to customers via billing statements, website, and email.
FOR MORE INFO regarding our 2012 US Credit Card Customer Satisfaction Study, please contact Holly Zagresky at (248) 680-6319 or via email at Holly_Zagresky@jdpa.com
1 Transactors are customers who always or usually pay their entire credit card balance each month.
2 Revolvers are customers who typically pay less than their total monthly balance.
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on August 27, 2012, at 2:43 pm
 According to our 2012 U.S. Credit Card Satisfaction Study released late last week, the competitive environment is stabilizing and credit card issuers are making substantial strides in improving areas that were previously problematic—particularly communication and problem resolution. So, what comes next? How are customer expectations changing, and what are the implications for issuers? Where should issuers focus their efforts in the future?
1. Digital channels and self-service
The shift to online use and away from phone and mail continues. Customers are performing more routine activities online, such as reward-related activities, and are contacting call centers less often with questions or requests and are beginning to seek answers via self-serve channels, such as online. In fact, data from our 2012 Credit Card Satisfaction Study indicates that customers are attempting to resolve problems on their own and are moving away from contacting the call center for simple problems, but contacting the call center to deal with more complex issues.
2012 J.D. Power and Associates U.S. Credit Card Custom Satisfaction Study©. The McGraw-Hill Companies, Inc. All Rights Reserved.
In addition, 7% of customers indicate using a mobile device to interact with their credit card issuer, and 5% have used social media for service transactions. Another emerging trend related to the increased use of digital channels for routine transactions and greater reliance on self-service tools is that the issues about which customers contact the call center are becoming increasingly complex. This has important implications for the role of the call center and the requirements for call center representatives.
THE POINT: Not only will issuers need to continue to commit resources to online as the workhorse for routine transactions, but they will also need to simultaneously invest in and develop these emerging online channels since customers prefer this method of communication above all others. Knowledgeable employees that are able handle complex problems are a necessity.
2. Rewards and Communication
An examination of recent success in the market, as defined by the highest-performing issuers, American Express and Discover Card, and the most improved issuers, Chase and Barclaycard, shows that two drivers of advantage in the past—rewards programs and customer communications—will continue to provide an expanding competitive edge in the future. Continue reading ›
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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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