Deliver superior customer experiences with an AI-driven platform for creating and deploying cognitive chatbots
Deliver Awesome UI with the most complete toolboxes for .NET, Web and Mobile development
Automate UI, load and performance testing for web, desktop and mobile
A complete cloud platform for an app or your entire digital business
Detect and predict anomalies by automating machine learning to achieve higher asset uptime and maximized yield
Automate decision processes with a no-code business rules engine
Optimize data integration with high-performance connectivity
Connect to any cloud or on-premises data source using a standard interface
Build engaging multi-channel web and digital experiences with intuitive web content management
Personalize and optimize the customer experience across digital touchpoints
Build, protect and deploy apps across any platform and mobile device
Rapidly develop, manage and deploy business apps, delivered as SaaS in the cloud
Earlier this month I attended American Banker’s Best Practices in Retail Financial Services Symposium. The event reflected the current challenge banks are facing in light of regulation and competition- trying to a strike a balance between growing wallet share while increasing customer retention.
The “Drivers and Implications around Customers Who Switch Banks” session was particularly interesting. Michael Beird, Director of Banking Services Practice at J.D. Power & Associates referenced a report, 2012 U.S. Bank Customer Switching and Acquisition Study. The study compared the bank segments that lost customers in 2011:
I was surprised that midsize banks experienced a higher attrition rate than larger banks. Larger banks - including big banks like Citibank and other nationals - have fallen under heavy public scrutiny for their proposed fee increases and other un-customer-centric policies. Therefore I would have expected the largest banks to experience the greatest customer flight.
Many of the larger banks have acquired new customers through the use of promotions and cash incentives. This might explain why they retained customers - they tend to have more sophisticated customer marketing and loyalty programs in place that reach and impact the customer at the right time and place. Beird also noted that regardless of bank size, more than 50% of all customers who said fees were the main reason to shop for another bank also indicated that their prior bank provided poor service.
As with all types of service, customers weigh the prices they pay against the value of their experience. Some are creatively tackling service with spa-like services, longer hours, or treats for their customers’ four-legged friends. But we know the answer to reducing attrition - regardless of the size of the bank – is improving the customer experience overall.
(1) Big banks are defined as the six largest financial institutions based upon total deposits as reported by the FDIC, averaging between $180 billion and above. Regional banks are defined as those with between $180 billion and $33 billion in deposits. Midsize banks are defined as those with between $33 and $2 billion in deposits. Small/community banks and credit unions are an aggregate of all other banks.
View all posts from Joanna Rosenberg on the Progress blog. Connect with us about all things application development and deployment, data integration and digital business.
Copyright © 2018 Progress Software Corporation and/or its subsidiaries or affiliates.
All Rights Reserved.
Progress, Telerik, and certain product names used herein are trademarks or registered trademarks of Progress Software Corporation and/or one of its subsidiaries or affiliates in the U.S. and/or other countries. See Trademarks for appropriate markings.