Table of Contents
Executive Summary
-
- The market
- Banking industry increasingly concentrated
- Strengthening economy leads to new opportunities
- The consumer
- In many FS sectors, majority of customers unsatisfied
- Financial service providers seeking referrals should just ask
- Loyalty built by customer experience, trust, and relevant services
- Parents are engaged consumers
- Older consumers more loyal, show higher satisfaction
- 25-44 year-olds more likely to make recommendations
- More affluent consumers most loyal
- What we think
Issues and Insights
-
- How can FS firms convert loyalty into referrals and repeat business?
- The issues
- The implications
- How can FS providers increase loyalty among parents?
- The issues
- The implications
- How can providers deal with issues regarding trust and security?
- The issues
- The implications
Trend Application
-
- Trend: Experience is All
- Trend: Make it Mine
- Trend: Prove it
Market Drivers
-
- Key points
- Number of banks falling
-
- Figure 1: Number of FDIC-insured banks and credit unions, 1995-2014*
- With more handheld devices, online banking becomes paramount
-
- Figure 2: US mobile phone sales and forecast, 2012-17
- Unemployment falls below six percent
-
- Figure 3: US unemployment rate March 2013-March 2015
- With improved economy comes positive outlook
-
- Figure 4: Personal financial outlook, July 2012-September 2014
- Women playing more prominent financial role
-
- Figure 5: Individuals with annual income of $150,000 or more, by gender, 2003-13
- Millennials face challenge of hefty student debt
-
- Figure 6: Share of debt for consumers aged 20-29, 2005 and 2014
Leading Companies
-
- Key points
- American Express, Discover lead credit card companies in satisfaction
- Midsized banks face new technology challenges
-
- Figure 7: J.D. Power customer satisfaction index Rankings, retail banks – Mid-Atlantic Region, 2014
Innovations and Innovators
-
- Citi®Double Cash Card rewards consumers for making payments
-
- Figure 8: Citi®Double Cash Card banner ad, 2015
- Apple Pay looks to shake up payment industry
-
- Figure 9: First National Bank of Omaha ApplePay ad, 2015
- Betterment, Wealthfront offer “Robo-Advisor” investment guidance
-
- Figure 10: Betterment online ad, 2015
Marketing Strategies
-
- Incentive-based referral strategies are popular
-
- Figure 11: Kroger 1-2-3 Rewards® Visa® refer a friend offer email, 2015
- Figure 12: Chase email, 2015
-
- Figure 13: Chase travel rewards email, 2015
- Fraud and security protection can put customers at ease
-
- Figure 14: Bank of America website, 2015
- Figure 15: Wells Fargo customer email, 2015
- Excellent customer service includes in-person check-ins
-
- Figure 16: Merrill Lynch Retirement Check-up email, 2015
- Figure 17: Geico customer satisfaction survey, 2015
-
- Figure 18: Allstate Payment confirmation email, 2015
- Discover card offers free credit score as consumer perk
-
- Figure 19: Discover Card account statement, 2015
Level of Customer Satisfaction
-
- Key points
- Respondents are satisfied with primary banking provider
- Customer satisfaction is not strong in many financial sectors
-
- Figure 20: Current satisfaction level, January 2015
- Satisfaction with financial services providers increases with age
-
- Figure 21: Current level of satisfaction – Any satisfied, by generation, January 2015
- Opportunity to reach young women via personal bankers
-
- Figure 22: Current level of satisfaction – Satisfied, by gender and age, January 2015
- Satisfaction with provider increases with household income
-
- Figure 23: Current level of satisfaction – Satisfied, by household income, January 2015
- Several financial services sectors are doing well with parents
-
- Figure 24: Current level of satisfaction – Satisfied, by demographics, January 2015
- Black consumers least satisfied
-
- Figure 25: Current level of satisfaction – Satisfied, by demographics, January 2015
Likelihood to Recommend
-
- Key points
- Consumers not always following through on desire to recommend
-
- Figure 26: Likelihood to recommend, January 2015
- Men aged 18-34 likely to recommend several financial sectors
-
- Figure 27: Likelihood to recommend, by gender and age, January 2015
- Opportunity for primary banking providers to connect with less affluent
-
- Figure 28: Likelihood to recommend, by household income, January 2015
- Majority of social media users are likely to recommend FS providers
-
- Figure 29: Likelihood to recommend, by social media use, January 2015
- Hispanics far more likely to recommend
-
- Figure 30: Likelihood to recommend – Likely, by demographics, January 2015
Incidence of Recommendation
-
- Key points
- Majority of respondents don’t recommend
-
- Figure 31: Actual recommendations, January 2015
- Millennials and Gen Xers more likely to make recommendations
-
- Figure 32: Actual recommendations, by demographics, January 2015
- Men aged 18-34 most likely to recommend
-
- Figure 33: Actual recommendations, by demographics, January 2015
- Recommendations happening on social media
-
- Figure 34: Actual recommendations, by demographics, January 2015
Reasons for not Recommending
-
- Key points
- Consumers need more opportunities to make recommendations
-
- Figure 35: Reasons for not recommending, January 2015
Purchasing Behaviors
-
- Key points
- Most consumers don’t purchase additional services from providers
-
- Figure 36: Financial services products purchased, January 2015
- Consumers aged 55+ are least likely to purchase additional financial services
-
- Figure 37: Financial services products purchased, by demographics, January 2015
- Parents two times more likely to purchase additional products
-
- Figure 38: Financial services products purchased, by demographics, January 2015
- Opportunity to cross-sell products to Hispanics
-
- Figure 39: Financial services products purchased, by demographics, January 2015
Type of Financial Services Products Purchased
-
- Key points
- Credit cards the financial product acquired most frequently
-
- Figure 40: Types of financial services products purchased, by demographics, January 2015
- Men more likely to purchase additional financial products
-
- Figure 41: Types of financial services products purchased, by gender, January 2015
- Consumers aged 45+interested in new investment products
-
- Figure 42: Types of financial services products purchased, by demographics, January 2015
- Millennials with mid-level income purchase most additional products
-
- Figure 43: Types of financial services products purchased, by age and household income, January 2015
Likelihood for Repeat Business
-
- Key points
- Customer loss is a potential issue for most financial sectors
-
- Figure 44: Likelihood for repeat business, January 2015
- Loyalty builds with age
-
- Figure 45: Likelihood for repeat business – Likely, by age, January 2015
- Social media users more loyal
-
- Figure 46: Likelihood for repeat business – Likely, by social media user, January 2015
- Loyalty increases with household income
-
- Figure 47: Likelihood for repeat business – Likely, by household income, January 2015
Consumer Attitudes toward Loyalty
-
- Key points
- Loyalty built by customer experience, trust, and relevant services
-
- Figure 48: Consumers' attitudes toward loyalty, any agree, January 2015
- Consumers associate loyalty to dedication and commitment
-
- Figure 49: Collage of Qualboard quotes and images of consumers’ definition of loyalty, February 2015
- Males 18-34 one demographic group whose loyalty may be influenced
-
- Figure 50: Consumers' attitudes toward loyalty – Agree, by gender and age, January 2015
- Those with high household income value pillars of loyalty
-
- Figure 51: Consumers' attitudes toward loyalty – Agree, by household income, January 2015
- Majority of parents feel they are being taken for granted
-
- Figure 52: Consumers' attitudes toward loyalty – Agree, by children in household, January 2015
Loyalty Index
-
- Key points
- Satisfied customers are loyal customers
-
- Figure 53: Current level of satisfaction – Satisfied, by loyalty index January 2015
- Loyal customers very likely to recommend services to network
-
- Figure 54: Likelihood to recommend – Likely, by demographics, January 2015
- Loyal customers very likely to repeat business
-
- Figure 55: Likelihood for repeat business – Likely, by demographics, January 2015
Appendix – Trade Associations
-
- American Bankers Association (ABA)
- American Financial Services Association (AFSA)
- Consumer Bankers Association (CBA)
- Credit Union National Association
- Independent Community Bankers of America (ICBA)
- Mortgage Bankers Association (MBA)
- National Credit Union Association (NCUA)
Back to top