Improving Satisfaction Among Credit Card Customers

Although credit card satisfaction continues to improve, a large percentage of customers indicate they do not fully understand their card’s terms, benefits and rewards program, according to our  J.D. Power 2013 U.S. Credit Card Satisfaction StudySM released today. 

Satisfaction in each factor has increased, as have ratings for Brand Image. However, it is important to note . . . Continue Reading Improving Satisfaction Among Credit Card Customers

Big Banks Make Big Gains in Customer Satisfaction

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 . . . Continue Reading Big Banks Make Big Gains in Customer Satisfaction

Optimizing the ROI of Customer Satisfaction

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, . . . Continue Reading Optimizing the ROI of Customer Satisfaction

Small Business: Respect and Dedication

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 ›

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Communication and Transparency Drive Higher Mortgage Origination Satisfaction

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 . . . Continue Reading Communication and Transparency Drive Higher Mortgage Origination Satisfaction

Small Business Banking Still the Red-Headed Stepchild

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 ›

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What Do Small Business Owners Expect From Their Bank?

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 . . . Continue Reading What Do Small Business Owners Expect From Their Bank?

Top 10 Sources for Gathering Investment Information

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 . . . Continue Reading Top 10 Sources for Gathering Investment Information

Credit Card Customer Website Expectations

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 . . . Continue Reading Credit Card Customer Website Expectations

Understanding Actual vs. Intended Customer Attrition

Did you know that customers who INTEND to switch primary financial institutions have the greatest value?

Bank customer attrition rates, both actual and intended, continue to increase. According to data from our J.D. Power and Associates 2012 US Retail Banking Satisfaction Study, intended attrition has increased significantly to 12.9% from 10.7% in 2011 after having decreased from 2010 to 2011. The actual attrition rate has steadily increased since 2010, reaching 9.6%(1) this year.

By bank size, Midsize Banks have the highest attrition rate (11.3%), followed by Regional Banks (10.3%); Big Banks (10.0%); and Small Banks and Credit Unions (7.4%).(2) While most customers who switch leave one Big Bank for another Big Bank (29%), 19% of customers switch from a Big Bank to a Small Bank or Credit Union, demonstrating customers’ willingness to trade the convenience of a large banking network for the personal service of a local small banking network or credit union.

Notes: Actual AttritionRate is based on the 2012 Financial Services Screener

Continue reading ›

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