CHICAGO – A new survey offers reasons consumers are giving for moving or not moving their financial accounts, as well as what they are looking for in the process.
The new BAI Banking Outlook Webinar- Leading Indicators in Customer Retention includes research based on feedback from more than 1,200 consumers and financial services leaders from organizations ranging in size from community banks to large mega banks.
“BAI researchers surveyed consumers to understand key areas in banking cross-sell activities, customer Net Promoter Score (NPS)—a metric indicating the level of customer satisfaction and loyalty—and customers’ experiences through various channels,” BAI reported.
Among the highlights in the report:
- Millennials are more likely to be shopping for (and opening) new accounts than Gen X or Baby Boomer generations
- The most commonly mentioned reason for not opening an account after shopping related to the amount of time it took and the difficult account opening process across products
- Because of painful account opening processes, customers who open an account as a result of cross-selling processes are less loyal than customers who do not open new accounts. In short, the cross-selling process to new and existing customers is hurting NPS, BAI said
- 60% of people most recently cross-sold are more likely to switch main banks in the next two years. Only 47% of customers who were not cross-sold would switch banks
- Millennials have on average more than 70 interactions per month with their main financial service provider, while GenXers have only an average of 60 and Boomers have fewer than 45. Millennials also express the most frustration with digital channels
‘Risk of Not Understanding’
“Our research offers leaders insight into the risk of not understanding their customers’ journey, how NPS data is impacted by cross-selling and what customers expect in order to stay with their main bank,” said Karl Dahlgren, managing director of Research for BAI, in a statement. “Our goal with the most recent installment of the BAI Banking Outlook is to help financial service leaders understand their current customers’ needs and pain points. This fact-based information will enable leaders to identify priorities for improvement and understand how to deepen their valued relationships over time.”
For more info or to watch the free webinar, visit: https://www.bai.org/conferences-events/webinar