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 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 December 6, 2012, at 7:07 am
Original post by Banking.com Staff on December 4, 2012
In a recent blog on Banking.com, we explored how small businesses don’t always get the respect they deserve from the banking world. There’s no question that this sector of the economy is always vital, and increasingly optimistic. In fact, the number of businesses that report being ‘better off’ jumped from 16 percent in 2009 to 33 percent in 2012. This is also a market rich with possibility: on average, small businesses hold deposits four times greater and loan balances 15 times greater than retail banking customers.
And yet, this market continues to rank near the bottom in banking satisfaction. So what’s going on—and what can the industry do to make thing better? The new J.D. Power and Associates 2012 US Small Business Banking Satisfaction Study, a comprehensive research report that identifies and highlights the situation described above, digs deeper into the problems and identifies many of the pain points.
As mentioned in the previous blog, credit is still the primary issue, but it’s not the only one. The J.D Power study lays out more fundamental problems too. In particular, while small businesses are sometimes lumped in with retail banking, there are major differences between the two. Continue reading ›
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on November 15, 2012, at 9:34 am
Overall customer satisfaction with mortgage lenders has reached its highest level in the past six years, according to our J.D. Power and Associates 2012 U.S. Primary Mortgage Origination Satisfaction StudySM released today.
For a second consecutive year, overall customer satisfaction has increased to 761 (on a 1,000-point scale) in 2012 from 747 in 2011 and 734 in 2010. This increase in customer satisfaction is driven by steady improvements related to transparency and communication. The study finds that during the past three years, lenders have improved in the following areas:
- Clearly explaining loan options and ensuring customers understand them
- Following up with customers in a timely manner after they complete their application
- Proactively updating customers on the status of their application
Furthermore, the results of the study show that there is a strong relationship between satisfaction with the origination process and the rates of customer consideration and usage of the same lender for refinancing. Among loan customers who have refinanced in 2012, only 40 percent cite price as their main reason for selecting their lender. Other reasons commonly cited for selection include an existing relationship; previously being a customer; and referrals.
LEARN MORE
Register for the complementary 2012 Primary Mortgage Origination Satisfaction Study Webcast
Date: Thursday, November 29
Time: 2:00 – 3:00 PM EST
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on November 9, 2012, at 11:22 am
Our J.D. Power and Associates 2012 U.S. Small Business Banking Satisfaction StudySM suggests that banks should focus on small business customers because of the value they represent, when compared to retail customers. On average, small businesses hold deposits four times greater and loan balances 15 times greater than retail banking customers.1 Small business customers also carry higher levels of personal banking business than the average consumer. In addition, the profit margins on small business customers are typically larger than those on larger corporate banking customers.
Yet, based on the results of the study, just released today, it appears that small businesses, like Rodney Dangerfield, get no respect. Despite overall satisfaction increasing by 19 index points year over year to 736 (on a 1,000-point scale) in this year’s study, it still represents one of the lowest-scoring financial services businesses that J.D. Power and Associates examines. Only mortgage servicing is lower. Even its perennial low-scoring counterpart, credit card, has surpassed small business banking in satisfaction to levels enjoyed in the retail banking sector.
Now in its seventh year, the study measures small business customer satisfaction with the overall banking experience by examining eight factors: product offerings; account manager; facility; account information; problem resolution; credit services; fees; and account activities.
The Small Stuff Matters
The study finds that when small business banking customers are greeted by name, the positive impact on overall satisfaction is 106 points. However, this occurs only 47 percent of the time, compared to 64 percent of the time among retail banking customers, representing a 17-percentage-point gap. This disparity occurs even though small business customers bank in person at the branch more than twice as often as retail customers (36 times vs. 16, respectively, on an annual basis). Continue reading ›
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 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 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.
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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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