|Mobile Mobility: Understanding Youth Dissatisfaction in Mobile and Online Services|
|Written by Andy Rooks|
|Wednesday, 25 July 2012 12:49|
This article originally appeared in the ABA Banking Journal.
Conventional wisdom states that it’s much easier to retain clients than attract new ones. With that in mind, it’s crucial for banks to understand what drives customer satisfaction, and what can cause unhappy clients to leave.
Corporate Insight recently conducted an online survey of 1,000 bank customers to understand the relative importance of online and mobile banking features and the overall customer experience. Our Bank Customer Survey Report summarizes our key findings and highlights pertinent themes and trends found in the total survey sample. When we asked participants about the likelihood of moving their primary checking account, 10% reported that they would “probably” or “definitely” switch accounts in the near future.
On average, these dissatisfied banking customers were younger and held fewer liquid household assets than the overall sample. More strikingly, mobile banking customers were reportedly twice as likely to switch bank accounts. 14% of participants that had logged into their bank account via a mobile device in the past year reported that they would “probably” or “definitely” switch accounts, as compared to only 7% of non-mobile banking customers. This emphasizes the need for banking firms to provide effective mobile banking offerings.
Next Stop Isn’t Necessarily a Bank…
The survey also asked participants which type of financial institution they would likely move to in the event they leave their bank. Over three quarters (77%) of participants said that they would move to a different bank. However, a surprising 48% reported that they would switch to a credit union. Mobile customers once again stood out, as they were much more likely than others to switch their primary checking account to a self-directed brokerage account. 13% of dissatisfied mobile customers reported that they would switch to a self-directed brokerage, as opposed to only 2% of non-mobile banking customers.
What Influences Customer Satisfaction?
According to the survey, customer satisfaction is driven by several pillars of the customer relationship with the bank including product involvement, customer service and website quality. Customers that use bill pay are reportedly more satisfied with their bank than those that do not. The same goes for customers that have a credit card with their primary bank. Over three quarters (78%) of survey participants with a credit card at their primary bank reported that they were “very” or “extremely satisfied” with their bank. Generally, more frequent use of products and services is positively correlated to customer satisfaction.
Another relevant aspect of the banking relationship is customer service, even though study participants did not contact customer service very often. A surprising 69% of survey participants typically contact customer service once a year or less often. However, those infrequent interactions have an outsized impact on satisfaction. Nearly all (93%) of customers that are likely to recommend their bank to a friend or colleague were also “very” or “extremely satisfied” with their customer service experience on the phone. This compares to just over half (56%) of other customers.
Finally, customer satisfaction is also closely tied to the quality of Web offerings. Survey participants were asked how they value certain aspects of their bank’s website. Customers that were likely to recommend their primary bank reported that they value ease of navigation and strong user authentication over other attributes. Customers under the age of 40 also rated access to mobile banking “very” or “extremely important” more than three times as frequently as did older participants.
While a significant percentage of customers are dissatisfied with their banks, there is no simple explanation for customer loyalty. Banks are now increasingly competing with each other, as well as credit unions and self-directed brokerages. Rates and fees may appear as a significant factor in customer demand, but banks should not underestimate the importance of good customer service and competitive Web and mobile platforms.