Experience radar: 2013 US Retail Banking Trends

Retail Banking challenges and
Opportunities

 

Despite many threats to profitability, retail banking trends point to many opportunities for growth. Based on retail banking trends, the five behaviours that banks can adopt to enhance customer experience and create value are:

  • Win the fee war: 1 out of 4 memorable bad experiences involved rates or fees. Fees and rates dominate the banking experience.
  • Fix the bad first: 2 out of 5 customers shifted business to another bank after a bad experience. Turn issues into opportunities to build loyalty.
  • Help your story get told: 50% of recommendations are due to good experiences, not discounts or free products. Customers can become your best marketers.
  • Go digital. It matters: 3 out of 5 want the option of researching products on their own rather than asking bank employees. Customers are asking for more digital options.
  • Balance automation with the human touch. A consumer would typically be willing to pay a 9% price premium for issue resolution with a live representative.

Experience Radar can help you:

  • Develop products and services that matter to customers
  • Figure out whom to target and how to market experience-based offerings
  • Set yourself apart in an increasingly competitive environment
  • Connect the dots between customer value and sustainable financial performance
  • Attain top-of-wallet status with your customers.

Retail banking trends show that the customer experience is quickly becoming a differentiator for retail banks. By measuring the experiences of thousands of consumers, our Experience Radar defines the five core attributes of the retail banking customer experience: quality, support, convenience, presentation and community.

About the Study

This year’s series of studies measures the experiences of about 6,000 U.S. consumers across multiple industries. The Experience Radar assigns value to a broad set of customer experience attributes broken down into industry-specific elements and then ranked by what target segments value most. Through our study of retail banking trends, understanding the wants and needs of the retail bank customer points the way toward competitive advantage.