In J.D. Power’s most recent U.S. Retail Banking Customer Satisfaction Study, the six largest banks (Bank of America, Citigroup, JPMorgan Chase, PNC Financial, U.S. Bancorp and Wells Fargo) lead the industry in customer satisfaction. Smaller banks and credit unions fell behind, suggesting less effective investments. But how can this be? Shouldn’t these big banks be losing the customer experience battle to the more personalized service of their smaller, more local competitors? The recent Digital Banking Report provides part of the answer: only one third of retail banks have a formal customer experience initiative.
Customers and call center employees are frequently envisioned as the houses of Montague and Capulet, eternally struggling against each other. Customers constantly complain about poor treatment, hold times, and unhelpful staff. Employees describe these jobs as the worst they’ve ever had, facing the full brunt of customer wrath. As a result, call centers average annual turnover rates above 40%, while customer loyalty numbers continue to decline.
Improving customer experience increases customer lifetime value. In fact, it dramatically increases it, as research indicates that satisfied customers spend more than twice as much as unsatisfied customers. But how does one begin constructing a business case applying this fact?
Make Shopping Enjoyable to Encourage Sales
On a previous blog, my colleague Jason shared a finding from Centriam’s 2017 Retail Study: customers who had an enjoyable shopping experience were more likely to be promoters. This finding is especially robust among millennials, the largest generation in the US. Millennials who said their experience was extremely enjoyable were nine times more likely to be satisfied with the price they paid, and twice as likely to repurchase as millennials who said their shopping trip was slightly or not enjoyable. These findings suggest that making shopping enjoyable could potentially double your sales among this key demographic!