Retail Banking Customers Less ‘Price Sensitive’

Data from J.D. Power’s 2014 Retail Banking Satisfaction Study  finds that customers are becoming more tolerant of monthly maintenance fees.

2014 study data finds that Fees satisfaction among customers paying a fee has increased to 594 (on a 1,000-point scale), which is significantly higher than 2013 study findings. Furthermore, the increase in satisfaction is especially profound among Affluent Retail Banking Customers.

Banks are doing a better job of illustrating their ‘value proposition’, which has helped mitigate dissatisfaction with fees. In other words, customers have a better understanding of the services and features available to them for the price they are paying.

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In addition to illustrating the associated value, other drivers of Fees satisfaction include:

  • Ensuring that customers ‘completely’ understand the fees associated with their account
  • Ensuring that customers are aware of available fee discounts/waivers
  • Maintaining stable fee structures associated with accounts

Data from the 2014 Retail Banking Satisfaction Study was released to subscribers on April 29th, 2014.

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1 comment to Retail Banking Customers Less ‘Price Sensitive’

  • Jeff Brown

    People are becoming more accepting of banking fees because they are realizing how much good the services that the banks are offering them are doing for them. The banks have done a great job creating or exposing (if they had already been implemented) all of the extra services they provide to their customers. Bank of America which I know from personal experience is the banking king of fees also has a ton of extra services that I had never known about until I went in and applied for a new credit card. They have investment tools to help you put your money in the right place. They offer services to help you save your money or buy a house. BoA even has services that can help you plan out your budget. All of these services cost money and the banks pass these costs down to you in the form of fees. If you do not use any of these services then you might be upset with the high amount of fees. The “affluent retail banking customers” that the article should not even be counted in this statistic. The reason their satisfaction of fees is so high is because the fees don’t bother them not because they are actually happy to be charged extra money. Another way that they have increased the “popularity” of fees is by offering “free” incentives. So even though the banker has to pay a monthly fee for his/her checking account they are given the opportunity to download a free mobile app or are reimbursed their atm fees charged to them from taking money out of another banks’ atm. The banks are also given reward for certain things within a persons’ checking account. So in essence people aren’t really paying fees they are just substituting paying for all these other things by paying for fees instead.

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