One thing is clear from Accenture’s Banking Customer 2020 study: Customer loyalty is weak and it is the banks’ responsibility to keep their business. If you have not read the report, I strongly recommend taking the time to examine how you can win and keep customers. In the meantime, here is a summary of the eight banking trends the report identifies as critical to keeping and winning customers. We think it is spot on.
- Customers are buying, but less so from current providers.
Globally, 27 percent of bank customers purchased/subscribed to a new financial product/service over the last six months. More and more consumers intend to buy less from their current providers.
- The secret to retention is resolving issues on the first-contact.
80 percent of customers who switched providers say poor customer service is what drove them away. They would have remained a customer if the first contact was satisfactory.
- Digital channels increased the total number of overall interactions.
The average customer has 17 interactions with its main bank per month: 10 are online or with a mobile device.
- After switching to digital, customers want even more services.
61 percent of banking customers expect to increase their online interactions.
- High customer service expectations gives banks a chance to catch up.
Most companies are still not giving consumers the kind of service they want.
- Adoption of Customer loyalty program is rising, but programs fail to keep customers.
One-third of banking consumers participated in at least one loyalty program; however, it’s primarily to gain access to the “best deals.”
- Compelling offers can win back customers.
Consumers say switching providers is not difficult and is relatively hassle-free. One-third of consumers across industries who switched from a provider said they would consider returning within two years if they received better pricing or a superior product.
- Non-traditional competitors are gaining ground.
Almost half of customers would bank with a company they currently do business with that does not currently offer banking services. Accenture separately estimates that competition from non-banks could erode one-third of traditional bank revenues in North America by 2020.
The entire report is very insightful. If you have not read it, and are in the financial services industry, it is definitely worth taking the time to read how you can leverage these banking trends to win and keep customers.
