Customer Satisfaction and Banking Organisations
Customer Satisfaction studies done across the world by globally respected American Customer Satisfaction Index(ACSI) demonstrate that citizens across countries/geographies alike, favour banks who focus less on collecting fees and more on delivering excellence in their customer relationships over the long haul. Particularly in developed country like US, credit unions are demonstrating far more customer satisfaction than the banks. And over the years, it is seen that they have a history of being a satisfaction pacesetter, scoring at or near the top among 43 ACSI industries. ACSI 2015 customer satisfaction benchmarking data suggest that in 2015, the industry could be experiencing some pains as its ACSI score dropped 4.7% but nevertheless, credit unions continue to receive some of the best customer experience benchmarks in the ACSI. ACSI data also suggest that at the same time, regional and community banks are demonstrating excellent customer service through customized, personalized designed customer experience. Across an array of customer experience elements, community banks earn scores that approach—or even exceed—credit union ratings.
So, why are community banks, credit unions doing better than the traditional large banks?
Worldwide it is evident that the big banks have been able to dominate with physical presence, having extensive branch networks, name recognition and being able to spend a lot on advertising, but the popularity of banking via the Internet has levelled the playing field. For some banks, “what were once advantages have now become liabilities”. The next 10 years will see more changes in banking than in the last 100 years. Given the demographic shift & the urban-rural diversity across locations, the service approach across all channels & aspects of banking services, including at all stages of customer life-cycle will need innovative approaches. And thus measurement and benchmarking of customer satisfaction can help organisations to prioritize actionable and investment to design/deliver a superior Customer Experience. And thus there is enhanced necessity to measure Customer Experience/Satisfaction correctly. Research highlights that to correctly estimate Customer Satisfaction there has to be a correct understanding of cause and effect and thus it is important to measure and benchmark end customer satisfaction of organisations
Customer Experience needs to be designed extensively taking into consideration all the customer touch points. A recent Bloomberg Business article talks about popularity of local banks over the “big banks”. The trend worldwide with young generations is that citizens/customers discuss how fewer fees and a more “high-touch” approach is driving young bank customers away from national institutions and toward local banks. Even as many banking transactions move online, young customers also look for a one-on-one approach and are more likely to seek financial advice.
And thus to enhance Customer Satisfaction, a good customer service is needed taking into consideration the customer feedback. Customers’ engagement and feedback patterns in turn are fuelling innovation, newer products, and services. So for organisations being more open and interactive are the ways to understand and work with the change.