Study: 34 percent of bank customers will be loyal in 20102010-04-27
For the fourth year in a row, customer loyalty in banking is on the decline, according to a recent report by J.D. Power and Associates.
The study says that although 34 percent of bank customers will definitely not switch banks in 2010 - compared with 46 percent in 2007 - overall satisfaction has decreased on a 1,000 point-scale from 749 in 2009 to 748 in 2010.
The study also finds that poor customer service has so far been the most common cause of customer attrition in 2010, with 37 percent of customers switching for that reason.
Michael Beird, the director of banking at J.D. Power and Associates, says that fees continue to have a significant impact on customer loyalty in banking, with 29 percent of customers switching between financial institutions in 2010 because of high fees for products or services.
"While fees have a significant impact on customer satisfaction, banks may mitigate this effect by giving customers choices," says Beird. "Customers tend to be considerably less dissatisfied when they have different overdraft options. Proactive communication may also help to lessen the negative impact of fees."
Reacting to the fee problem, Bank of America recently announced it will stop issuing overdraft fees. The bank's policy goes into place in June 2010.
Recent Measurement and Insight News
More customers switching banks, survey finds
2011-03-01
While major financial institutions are extremely focused on employing strategies to boost customer retention, a recent survey found that 8.
New app allows consumers to monitor bank accounts and possible fraud
2011-02-17
According to a recent report from eMarketer, the number of U.
Citibank survey shows consumer optimism on the rise
2011-02-04
Customer segmentation analysis from researchers employed by Citibank shows that the general economic outlook among most Americans is on the rise, and that increased optimism could directly translate into better spending levels and an overall spike in the health of U.
Recent Customer Attrition Retention, and Loyalty News
Two More Words on Client Retention
2011-06-23
For the past couple of months, PNT’s “Industry News” has focused on client retention.
Customer Acquisition and Client Retention: New Banking Regulations Bring Challenges and Opportunity
2011-06-16
Banks face customer exodus! The era of free checking is over! Debit Card interchange revenue to be slashed! New ATM charges loom!
These are among the headlines, somewhat sensationalized, being written about regulatory changes enacted as a part of the recent batch of financial reforms.
Bank Call Centers the Bedrock of Client Service: Retaining Clients One Call at a Time
2011-06-16
When TD Bank designed a new call center in Maine it emphasized a commitment to customer service by installing a 9-ton boulder amid the 60,000-square feet of office space.
Recent Customer Analytics News
Under 50 investors offer lucrative opportunity to financial services firms
2011-03-10
When the public hears the term "investor," they often envision an individual at least 50-years-old with a lifetime of business experience.
Generation X remains skittish toward investments
2011-02-09
As customer loyalty in banking continues to waver with the economy, the number of Americans with a savings plan has decreased.
Customer data analysis a 'hot trend' for 2011
2010-12-30
Come 2011, one of the hottest trends for improving customer loyalty will be the implementation of master data management systems, the blog Customer Think predicts.
