Cracking The Code On 3 Major Customer Experience Trends In Retail Banking

Our 2012 U.S. Retail Banking Satisfaction Study finds there are three likely outcomes that banks must contend with during the next few years, and all have direct implications regarding the customer experience.

1. Attrition will rise, loyalty will decline

The good news? There have been marked improvements in the measurement of customer retention, loyalty, and advocacy. The bad news? There’s been a notable rise in customer churn. The J.D. Power and Associates study found an increase of two percentage points in the number of customers who say they “probably will” or “definitely will” switch banks in the next 12 months. The trending increases in less-than-loyal customers had abated somewhat in 2011, but today is 4-percentage-points worse than 2009.

What can banks anticipate from this wavering consumer loyalty? Increased switching and attrition, obviously. But consumer utilization of banking products will also drop. The study found that a higher number of customers are reluctant or unwilling to reuse their bank’s products and services in the future, nor are they comfortable recommending their bank to family and friends. This erosion in confidence will also have a notable impact on future organic growth, whether based on share-of-wallet from existing relationships or new acquisitions. After all, fewer fans of your brand means fewer evangelists advocating for your brand.  Continue Reading>

Bookmark and Share

Leave a Reply




You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>