U.S. retail banks could grow their share of deposits by as much as 16.5 percent by improving key elements of their customer experience, according to a new analysis conducted by New York-based Kantar.
The new CX+ study assessed U.S. banks based on a unique combination of their customer experience socres. The roadmap to growth is based on five key CX success factors:
- Clarity of brand promise
- Empowered employees
- Empowered customers
- Creating lasting memories
- Exceptional delivery
In addition, the study identified each bank’s experience gap, which quantifies the difference between their brand promise and the actual customer experience delivered.
The analysis ranks banks according to their performance via Kantar’s CX+ Index, combining each bank’s CX performance score with their experience gap.
USAA topped the rankings based on its ability to deliver superior customer experience in line with its brand promise. Regions Bank, Chase, BB&T and Citizens Bank comprise of the remainder of the top five performing retail banks.
“Our analysis clearly shows retail banks can achieve exceptional financial growth through superior customer experience that is matched with a strong brand promise,” said Erika Pearson, executive vice president customer experience at Kantar. “This requires a deft combination of human empathy and personalization, to engage consumers and meet their needs and expectations. Focusing on customer experience is the single most important investment a bank can make in today’s competitive business environment.”
Other findings underline the clear benefits of delivering strong customer experience:
- Banks that lead in the CX+ Index have a recommendation rate that is 1.9 times higher than banks at the lower end of the index. Additionally, their share of deposits is 1.9 times higher and their customers are 2.1 times more willing to take up new products and services from their bank.
- Banks that let their customer experience decline risk losing up to 12.5 percent of their share of deposits.
- While improved customer experience can benefit financial services companies across the board, the opportunity to grow is particularly significant among women, according to the research:
- Women are often disengaged or underserved in their experience with financial services. The study found that while 61 percent of female bank customers stay with their bank for more than 5 years, on the whole they are less satisfied than men.
- Women have a lower preference score for their bank than men (65 for women vs. 76 for men), indicating that they may be more willing to switch if a better alternative presents itself.
- Women are also less willing than men to take up additional products or services with their bank (64.3 percent vs. 73 percent of men).
The study analyzed 6,000 retail banking customers in the U.S. and was conducted in 2018. To download a copy of the report, click here.