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Banking Customer 2020: Drive customer engagement & seize digital's opportunity​

Increasing customer expectations requires banks to become indispensable versus just transactional vendors.​

Overview

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Digital’s influence continues: Every customer is now a digital customer, albeit moving at different speeds.

Despite banks investments in digital, our latest research of more than 16,000 bank customers shows continuing customer churn. Customers report switching or giving part of their business to new providers in response to poor experiences with their current banks.

Winning banks will meet—or exceed—customers’ expectations. They will consistently deliver regardless of which interaction channel the customer chooses. And, they will become Everyday Banks.

Key Findings

Our research identified eight trends that can help banks better understand customer expectations and how to meet them:

  1. 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. However, more and more consumers’ intend to buy less from their current providers.

  2. First-contact resolution is key to retention. Eighty percent of customers who switched providers due to poor customer service said they could have been retained.

  3. Digital channels have significantly increased the number of overall interactions. The average customer has 17 interactions with its main bank per month—10 are online or with a mobile device.

  4. After switching to digital, customers want more services. Sixty-one percent of banking customers expect to have more online interactions.

  1. High, but slower growth in, customer service expectations gives banks a chance to catch up. Most companies are still not giving consumers the kind of service they want.

  2. Customer loyalty program adoption is rising, but fails to keep customers committed for the long haul. One-third of banking consumers participated in at least one loyalty program; however, it’s primarily to gain access to the “best deals.”

  3. Compelling offers could win back customers. Consumer perceive switching hassle to be low, and those who switched reported the new provider offered them compelling things.

  4. Non-traditional competitors are gaining ground. Almost half of customers would likely bank with a company they currently do business with that does not currently offer banking services.

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"18 percent of consumers switched providers, while 27 percent added new providers."

Recommendations

Banks must go beyond just adding more digital options. They must deliver consistently positive end-to-end customer experiences across both digital and traditional channels.

Banks looking to truly differentiate themselves should become Everyday Banks. As the vital centers of digital ecosystems designed by them, Everyday Banks can offer customers complete solutions. By adding value in new ways, these banks strengthen relationships to increase customer retention, and, ultimately, drive profits.

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