The Banking Customer Experience Report

The Banking Customer Experience Report

The banking industry is in a state of constant change with evolving regulations, new technologies, and disruptive start-ups. But one part of banking hasn’t changed: the need for financial institutions to have a great customer experience management program.

With plenty of available banking options, customers will leave within 14 months if they don’t have a good experience, and 56% of customers looking to leave say their bank hasn’t made an effort to keep them from switching.

Qualtrics interviewed over 550 banking customers to learn what they expect in their banking experience, and what they’ll do if they don’t get it.

Section 1

Customer Acquisition

Concerns about financial stability


Banking customers, especially millennials, are concerned about their bank’s financial stability

Question

How concerned are you about the financial stability of your bank/credit union?

Online-only banks are attractive to many brick-and-mortar customers


Question

Would you consider moving to an online-only bank/credit union?

But MORE ONLINE-ONLY bank customers would consider a SWITCH TO A BRICK-AND-MORTAR BANK 

Question

Would you consider moving to a bank/credit union with brick-and-mortar locations?

Section 2

The Customer Banking Experience

More banking happens digitally (online or mobile) than in person


Question

What percent of your time banking is…

Most financial services are conducted without the primary bank


First-name relationships aren’t important to banking customers


Question

Does anyone at your bank/credit union know you on a first-name basis?

100%

0%

say their bank knows them on a first-name basis

say it’s not important

Qualtrics Experience Management is the world’s most agile platform for customer experience management (CEM), making it easy for companies to monitor, respond, and improve every key moment along the customer journey and incorporate customer feedback into every decision.

Some banking customers are skeptical of advice


Question

Do you believe your bank/credit union provides unbiased financial advice most of the time?

Section 3

Customer Advocacy and Retention

Banking customer longevity can be measured in decades


Question

For how many years have you been a customer at your current bank/credit union?

High fees are the #1 reason bank customers leave


Question

Why have you considered leaving your bank/credit union?

Qualtrics automatically relates dozens of variables and identifies statistically significant relationships using Stats IQ in conjunction survey data with so you know which parts of your customer journey need attention.

Departing customers don’t give warning


Nearly three-fourths of customers who leave won’t tell you in advance they plan to go.

The #1 REASON for not saying anything was that customers THOUGHT IT WOULDN’T MAKE A DIFFERENCE. 

Question

Have you told anyone at your bank/credit union that you are considering switching your bank/credit union?

Most banks don’t try to save departing customers


Question

Did your bank/credit union reach out to you to keep you from leaving?

Customers who are leaving their bank have been CONSIDERING their departure FOR 9 MONTHS and plan to leave within the next 5 MONTHS, making for a decision window of 14 MONTHS.

Question

For how many months have you been considering leaving your bank/credit union?

Question

In how many months do you think you will make the move to leave your bank/credit union?

Half of departing bank customers are “saveable”


Question

Could your bank/credit union do anything to change your mind about leaving?

Lower bank fees can save leaving customers


Question

What could your bank/credit union do to change your mind about leaving?

80%

0%

lower fees

improve service

apologize for a mistake

change a policy

open new locations

expand hours

improve financial advice

improve loan service

secure financial stablity

improve online & mobile service

improve credit card services

LOWERING FEES, and IMPROVING SERVICE are the top ways banks can save customers who want to leave

Many smaller failures cause attrition


70% of customers who PLAN TO LEAVE say it was many MINOR EXPECTATION FAILURES that triggered their decision

Question

Which played a bigger role in your decision to leave? One major expectation failure or many minor expectation failures?

100%

0%

left after one major expectation failure

left after many minor expectation failures over time

Poor service is more likely to cause attrition than poor products


69% of customers who plan to leave say it was DUE TO POOR SERVICE

Question

Which played a bigger role in making you want to leave? Poor service, or poor products

31% of banking customers are promoters


Question

How likely are you to recommend your bank/credit union to friends and family?

What is NPS?

Net Promoter Score® (NPS) concept was developed by Bain & Company's founder of Loyalty Practice to measure customer loyalty. Its adoption and popularity has grown over the past decade, and it’s now used in virtually every industry by organisations of all sizes around the world. In its most simple form, Net Promoter Score can be described with one simple question: "How likely is it that you would recommend [Organization X/Product Y/Service Z] to a friend or colleague?"

Learn more about what Qualtrics can do for you customer experience management program. Whether you are in banking and finance industry or any other space, Qualtrics can help you learn more about your customers through online surveys, website feedback and other channels. To read more original research like this, visit our Research Center.