(503) 567-2314 info@opiniator.com

A recent report from the consulting company CG42 highlights in alarming detail the vulnerability in the US to retail banking customer defection. The study was built upon earlier work and conducted in June 2018 using over 4,000 in its survey. The banks reviewed included Bank of America, Citibank, Chase, Capital One, BB&T, SunTrust, U.S. Bank, and Wells Fargo. The future for some of these is bleak – in fact:

The Stakes Have Never Been Higher

By stakes – they highlight the specifics:

If existing customer frustrations are not addressed, the top ten retail banks are projected to lose in the next 12 months:

Retail Bank Losses

The study highlighted many current frustrations with the existing providers that are causing them to consider defection to a competitor or explore online banking. These include:

  • My bank engaging in dishonest, unethical or illegal practices
  • Being nickeled and dimed with incidental charges
  • Not offering competitive rates and/or pricing
  • Having my personal or account information compromised/put at risk
  • Being hit with overdraft charges
  • Bad service
The latter should not be surprising – in fact, we wrote about this recently and shared that the gap between customer experience and expectation in retail banks is over 20% – see the chart below.
Retail Customer Experience Expectation Gap
More progressive retail banks are now allowing feedback to be generated by both customers and visitors at any point in the contact cycle. When the feedback is at the point of experience, the opportunity to take corrective action is delivered – through immediate staff alerts to fix the issue, improve operations and recover the customer before they defect. Or worse, defect and go online to complain.
The level retail banking customer defection is not sustainable – but can be helped by real-time customer feedback.
Feedback methods might include via the customer’s own cell phone, or an on-location tablet both used to collect operational satisfaction data. Even the humble email can be a prompt for post-transaction customers to give specific feedback on the transaction and even the staff serving them. The full feature list is here.