 |  |  |
Industry News Large banks better at obtaining new accounts 2010-06-30 A new study by J.D. Power and Associates shows that larger banks have more success attracting banking customers who are looking for a new primary financial institution. The study found that larger banks were able to secure prospective customers 70 percent of the time, compared to a 59 percent success rate for smaller regional banks. The ability of banks to attract new accounts was directly tied into their ability to give gifts for new account-holders or attractive promotional interest rates. Twenty-four percent of new customers at large banks cited those promotional incentives as their reason for joining. But J.D. Power also found the higher capture rate did not translate into customer loyalty in banking. Twenty-four percent of those customers said they would either "definitely" or "probably" switch banks again within the next year - compared to 13 percent of customers who chose a bank for other reasons. That finding means that larger banks should be focusing on ways to prop up customer loyalty solutions once a free gift or promotional rate has lost its luster. The higher capture rate for larger banks was found despite the the findings of a recent Forrester report, which indicated that larger institutions have received lower customer satisfaction rates compared with smaller banks and credit unions. The same report said that a "modest increase" in customer experience could boost bank revenues by $305 million for every $10 billion in revenues. 
Two More Words on Client Retention
|
 |
 |
 |
 |
 |
 |
Contact Us | FAQ | Site Map | PNT Privacy Pledge | © 2008 PNT Marketing Services