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.
We have published the Centriam CX Money Map, which details 12 drivers that make the financial case for a customer experience program. In our last post, my colleague Joe focused on customer enrichment. This week, I will delve into the two drivers involved with reducing costs in contact centers and marketing while maintaining, and potentially improving, customer experience.
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?
To help you build or improve your business cases, Centriam built a single page summary — a map of sorts — which outlines twelve different financial gains resulting from customer experience improvements. These twelve drivers are aggregated into five categories.