While the abundance of interactions that occur in social media provide a unique opportunity for banks to engage with their customers, many are struggling to keep up. Institutions that utilize social media are challenged in many areas:
- Measuring social media efforts within their industry and comparing them across industries
- Identifying whether the right amount and type of social content is being shared with customers
- Learning which best practices are used by the highest performers within their industry and across industries, and identifying how to adapt them
- Tracking social media performance efforts over time
- Demonstrating the value of social media to internal stakeholders
The J.D. Power and Associates 2013 Social Media Benchmark StudySM, publishing late this month, measures the consumer experience in engaging with companies via social media. The study explores consumers’ social media experiences with both marketing and service across 100 US brands in a number of industries including some of the following:
Retail Banking: Bank of America, Chase, and Citibank
Credit Card: American Express and Wells Fargo
Telecommunications: T-Mobile, Verizon, and AT&T
Airline: American Airlines, Delta Air Lines, and Virgin America
Automotive: Toyota, Ford, Kia, Dodge, and Mercedes-Benz
Utilities: Southern California Edison and Duke Energy
Join our J.D. Power research team for a complimentary preview webcast and be among the first to hear the J.D. Power and Associates 2013 Social Media Benchmark StudySM results.
Register now to learn:
- How do retail banking and credit card brands perform in their social media efforts relative to other brands within and across industries?
- What are the biggest challenges holding financial service companies back from better social performance?
- How do top performing companies across industries “do what they do” to deliver customers the best social experience possible?
DATE: Tuesday, January 29, 2013
TIME: 2:00-3:00 pm ET
Original post by Banking.com Staff on December 28, 2012
As announcements go, it wasn’t a very big deal when the British Bankers’ Association said at the end of the year that it is urging its 200 member banks to participate in a broad, two-pronged initiative to boost the industry’s image. Part of the plan is to monitor “people’s concerns before they become massive scandals”—a worthy goal, to be sure. But this wasn’t an isolated symptom of the problem. At around the same time, a Financial Times survey of 93 Members of Parliament revealed that fully two-thirds of the legislators believe British banks should be required to create a stronger barrier between investment banking and what’s known as ‘high-street’ operations. More worryingly, this wasn’t a liberal push for more regulation—the number of Conservative MPs backing the idea is actually higher than their Labour counterparts. There’s already a proposal to create a ‘ringfence’ around retail banking, but the new research indicates that many think the changes don’t go far enough.
That’s really the recurring theme here. If 2012 was a year of major change for banking institutions and individuals around the world, then 2013 will require even more.
A tsunami of bad news throughout the year was capped off by the news late in December of massive fines levied against UBS. The Swiss banking conglomerate ponied up $1.5 billion to global regulators, including $700 million to the Commodity Futures Trading Commission (CFTC) alone, the largest such settlement in the agency’s history. The fines stemmed from the charges of manipulation directed primarily at the bank’s Japanese securities subsidiary, all part of the mushrooming Libor scandal. Continue reading ›
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 ›
By Jeffrey P. Marsico, Executive Vice President of The Kafafian Group, Inc
This post originally appeared on Jeff for Banks
I had a very interesting conversation with a bank client today. He called me to discuss, among other things, his bank’s expansion strategy. During the discussion, I mentioned that I had recently driven by one of his branches and that it was the biggest in town. What he said about it inspired this post.
Being the biggest branch in town, in terms of square footage, is not something cheered among industry pundits these days. Indeed, if I were to summarize the sentiment, it would be that future branches would be much smaller, but with big a** signs. Those were another bank consultant’s words, not mine.
This CEO isn’t buying it. He said that since that branch underwent a $1.5 million renovation, its deposits grew by 40%. In prior years its deposit totals had remained in a relatively tight band. He opined that it is “amazing what visibility, access, and egress” does for a branch. He also said that his business owner customers demanded a nearby branch.
But he did not think the branch had to be in the same town as the business. The next town over would due.
Now that makes sense to me. If it costs, on average, $600,000 per year in operating expenses to run a standard branch, wouldn’t it make sense to build a large, marquis-type branch in every other town that cost $800,000 per year? By abandoning the every town strategy, you effectively save $400,000 per year. Continue reading ›
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.
Register for the complementary 2012 Primary Mortgage Origination Satisfaction Study Webcast
Date: Thursday, November 29
Time: 2:00 – 3:00 PM EST
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 ›
Best Banking Blogs of 2012
The Financial Brand, the premier online publication for bank and credit union marketers is conducting the second most important election this week; Best Banking Blog “2012 Readers’ Choice” awards.
Our J.D. Power and Associates Banking Blog, as part of having received the prestigious “Editor’s Choice” award, is now nominated for the “Reader’s Choice” award for Best Banking Blog of 2012. Your vote counts, and we would be grateful for your support!
To be recognized alongside our friends and distinguished bank bloggers Jim Marous, Ron Shevlin, Brett King, Bradley Leimer, Matt Wilcox, JJ Hornblass, Liz Lum, Chris Skinner, Serge Milman, Christophe Langois, Jim Bruene, Randy Smith and Jim Van Dyke is an honor in itself.
Congratulations to all of our fellow nominees for your continued dedication and delivery of superb insights to our banking community.