Fees Contribute To Dissatisfaction Among Self-Directed Investors

Our 2012 U.S. Self-Directed Investor Satisfaction StudySM, released yesterday, finds that although self-directed investors’ overall satisfaction with their investment firm has improved from 2011, satisfaction with trading charges and fees has decreased for a second consecutive year.

We’d like to share with you a short video that highlights some of the results from the study.

. . . Continue Reading Fees Contribute To Dissatisfaction Among Self-Directed Investors

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

What Does it Take to Keep Self-Directed Investors Satisfied?


Expectations and requirements of self-directed investors have evolved significantly during the past 10 years. While inexpensive trade commissions and a reliable platform were critical in the past, they are now perceived as a cost-of-entry.

Now more than ever, self-directed investors want information and tools to assist them in their decision-making. High-performing firms . . . Continue Reading What Does it Take to Keep Self-Directed Investors Satisfied?

Craig Martin Joins the J.D. Power Financial Services Team

We are pleased to announce that Craig Martin has joined J.D. Power and Associates as a Director in the Financial Services Practice.

In this role, Craig will focus on developing and delivering high-quality insights, recommendations, and presentations for the investment services and mortgage practice.

Craig brings a wealth of knowledge regarding customer experience. Most . . . Continue Reading Craig Martin Joins the J.D. Power Financial Services Team

3 Habits of High Ranking Customer Service Champions

We’d like to share with you a short video featuring elite companies recognized as J.D. Power 2012 Customer Service Champions.  They all describe their stories with one common theme, and that is the importance of assuring consistency across service channels.  In this video, you’ll hear from:

Chip Dufala, Erie Insurance – Executive Vice President, Services Rob . . . Continue Reading 3 Habits of High Ranking Customer Service Champions

Key Social Media Trends Affecting the Wealth Management Industry

In 2011, 65% of adults used social networking sites, a dramatic increase from 29% just 5 years earlier. Additionally, 50% of adults actively used social media last year.*  Growth is expected to increase in 2012, as Twitter adds 500,000 users per day on a worldwide basis.* Online discussions related to full service investors is heavily focused on advisors/brokers.  Consumers discussing full service investor experiences online often reference “financial advisors,” “investments,” and “wealth management,” as illustrated in the following word cloud:*

Research conducted by our Consumer Insights and Strategy (CIS) Department, which provides social media analysis and reporting to understand consumer attitudes and behaviors relative to brands, products, services, and current topics, identifies the following key trends affecting the wealth management industry among full service investment firms. All of the following comments from online consumers were gathered by the CIS Department.

1.  Trust is the most frequent theme in consumers’ online discussions.

Consumers often state that they trust their current advisor/broker. However, a lack of trust prompts many of them to look for a new advisor. New investors also ask advice from their peers when seeking a trustworthy advisor. Some financial advisors are viewed as promoting their own agenda, rather than looking out for their client’s best interests.

2.  Social media has increased the transparency of advisor plans and service levels.

Investors typically share the advice they receive with others to seek validation for their financial plan. Investors also seek feedback from others as a second opinion. Continue reading ›

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How Can Credit Card Issuers Keep the CFPB at Bay?

With the Consumer Financial Protection Bureau expanding oversight beyond credit cards into other areas of financial services such as Mortgages, a reasonable question arises as to what bankers can do to keep the CFPB from becoming involved with a bank’s customers. The bureau represents an alternative to which over 9,000 consumers have already turned with complaints or problems, based on a co-presentation I gave with Marla Blow of the CFPB at last week’s Card Payments Forum. Ms. Blow described how the Bureau operates in expeditiously cataloguing, communicating and tracking problems in coordination with credit card issuers.

It is a laudable objective on behalf of cardholders, but what if anything can the issuers be doing themselves to avoid the involvement of the CFPB in the first place? In the work I did preparing the presentation for the Forum and the findings from J.D. Power’s 2011 Credit Card Satisfaction Study, issuers can and should do three things to help keep the regulators at the CFPB at bay when addressing cardholders’ complaints.

1.  Educate customers to avoid problems in the first place

Customer education through transparent communication is one of the best ways to reduce a problem or complaint from arising in the first place! J.D. Power’s 2011 Card Study showed that both Transactors (who pay off balances each month) and Revolvers (those who carry balances) benefit from better understanding of their credit card terms. When these card holders completely understand their terms, only 8-9% report having had a problem or issue over the last 12 months. Compare that incidence rate to cardholders who do not understand their terms, where 12% of Transactors and a whopping 21% of Revolvers had problems when they lack understanding of their terms.

2.  Empower frontline staff to enable First Contact Resolution

The ability to address and resolve customer issues at the initial point of contact goes great strides to satisfying customers and Continue reading ›

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Becky DeGeorge Joins the J.D. Power Banking Team

J.D. Power and Associates is pleased to announce that Becky DeGeorge has joined the Financial Services Practice of J.D. Power and Associates as Senior Director, Customer Experience Management.

In this role, Becky will expand our capabilities to help our clients to:

Identify and prioritize improvement opportunities leveraging data from all customer touch points including . . . Continue Reading Becky DeGeorge Joins the J.D. Power Banking Team

Key Banking Topics in Social Media

The challenges confronting banks that seek to bolster their bottom-line profitability, retain customers, and stay competitive in the marketplace are formidable. Research conducted by J.D. Power‘s Consumer Insight and Strategies Group to track social media activity regarding banking issues between April 2011 and March 2012 finds that:

  • Online sentiment was distinctly negative not only regarding fees, but also for bank technology
  • Complaints associated with website or online issues were a major source of discontent in technology-related messages

With customer feedback on critical topics discussed online going from technology to fees and service, banks should see the handwriting on the wall and provide an appropriate outlet for these customers, along with an acknowledgement and guidance for direction for immediate response.

Source: 2012 J.D. Power U.S. Retail Banking Satisfaction Study

Retail Banks aren’t the only ones that have an opportunity to engage with the vocal online customer. Credit card holders appear to be even more outspoken onlinne, but card issuers appear to have learned this a bit faster than their Retail Banking peers. Continue reading ›

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3 Action Items to Bolster Satisfaction While Cutting Costs

Bankers have entered the new “Post-Recession Reality” and reality is indeed setting in. In light of all the external pressures within the industry, bottomline profitability will be even more elusive to attain in the months and years ahead. Increased regulatory pressures, fee restrictions, diminutive margins, soft loan demand coupled with ongoing credit risks, and . . . Continue Reading 3 Action Items to Bolster Satisfaction While Cutting Costs