Global Survey Shows Long Term Relationship between Banks and Their Customers at a Crossroads
Paris - April 26, 2012 - Today, Capgemini and Efma released the ninth annual World Retail Banking Report which found that while bank customers citing a "positive customer experience" increased modestly by seven percent globally from last year, customer retention is in flux. According to the Report's Customer Experience Index (CEI), which surveyed over 18,000 bank customers across 35 countries, nine percent of customers are likely to leave their banks in the next six months while 40 percent are unsure they'll stay long term. The report shows banks have a significant opportunity to close the customer sentiment gap and address the factors that matter most to them to increase loyalty. Quality of service (53 percent), fees, (50 percent), ease of use (49 percent) and interest rates (49 percent) represent the biggest impact areas to keep customers from leaving. The report also reveals that mobile banking services have yet to be fully leveraged.
The Globe Boasts a Mix of Customer
Satisfaction
Banks are gradually closing the customer sentiment gap and
improving their business and offerings to attain higher
levels of customer satisfaction, however, the survey noted
that some regions are slightly ahead of others. North
American customers are most satisfied with their banks (80
percent), followed by Central Europe (71 percent), Latin
America (69 percent), Western Europe (66 percent), and Asia
Pacific at (53 percent).
"Banks should be applauded for taking the necessary, initial steps to sustain customer relationships," said Jean Lassignardie, Global Head of Sales and Marketing, Capgemini Financial Services. "However, as more non-bank competitors enter the market, banks must differentiate by building innovative products, improving channel management and service, and enhancing their mobile offerings."
Preventing Customer Loss Demands New Approaches to
Traditional Strategies
The report found that banks that have opted to pursue a
traditional strategy of "do-everything" to improve
customer experience need to consider differentiating on only
one or two dimensions, prioritizing their investments to
strengthen core competencies that address their
customers' most pressing demands.
"Twenty-three percent of bankers identified their banks as offering end-to-end models, but in these uncertain times, sustaining this strategy is very challenging," said Patrick Desmarès, Secretary General, Efma. "Right now, banks need to focus on building holistic, prioritized, nimble, and future-proof strategies or risk losing more of their customer base."
The report offers three potential business models to help retail banks be successful:
- Product Leader: Product leaders possess superior skills in developing, bundling, and pricing products, while also managing customer risk and are less concerned about the quantity of new customers acquired. They offer a mix of optimally priced products, taking into account product demand, as well as a customer's risk profile, potential profitability and lifetime value.
- Utilities/Processor: Utilities/processors excel in cost-effective transaction processing and operate their internal systems at optimum transaction speeds and capacity levels, allowing them to scale to meet future processing needs, locally, regionally or globally.
- Distributor: Distributors specialize in channel management and have a strong customer relationship management infrastructure to support a consistent picture of clients across channels. In addition to having superior sales productivity, distributors are experts at optimizing a mix of channels and offer an unparalleled self-service experience.
Banks need to re-assess their core competencies and decide on one or two areas to focus on to differentiate themselves and evolve into one of these three new business models, either as a product leader, utility/processor or distributor. Following these steps will allow retail banks to achieve a more positive customer experience and cultivate stronger, long-term customer relationships.
Mobile Seen as Channel with Most
Potential
While mobile banking is still in a relatively nascent state
of maturity, it is a channel that will warrant more
investment by banks to improve the customer experience. By
2015, more than 60 percent of customers worldwide will likely
use mobile banking, according to the report. Although mobile
is currently offering the least positive customer experience,
it has also improved the most amongst all channels. To
succeed in this market, banks will need to align their mobile
strategies to better fit the size, profile and region of
their targeted customer segments.
About the Capgemini Customer Experience Index
(CEI)
The Capgemini Customer Experience Index (CEI), measures
customers' banking experiences across 80 different touch
points. The CEI addresses the disconnect between measures of
customer confidence, loyalty, and satisfaction by identifying
the factors that are most important to customers, and then
measuring satisfaction specifically along three dimensions:
products (including checking, savings and payments accounts;
credit cards; loans and mortgages); channels (including
branch; internet; mobile device; phone; and ATM), and
lifecycle stage (including information gathering;
transacting; problem resolution; and account status and
history). It is based on over 18,000 customer survey
responses across 35 countries.
About Capgemini
With more than 120,000 people in 40 countries, Capgemini is
one of the world's foremost providers of consulting,
technology and outsourcing services. The Group reported 2011
global revenues of EUR 9.7 billion. Together with its
clients, Capgemini creates and delivers business and
technology solutions that fit their needs and drive the
results they want. A deeply multicultural organization,
Capgemini has developed its own way of working, the
Collaborative Business Experience™, and draws on Rightshore®,
its worldwide delivery model.
About Capgemini's Financial Services Global
Business Unit
Capgemini's Global Financial Services Business Unit
brings deep industry experience, innovative service offerings
and next generation global delivery to serve the financial
services industry. With a network of 18,000 professionals
serving over 900 clients worldwide Capgemini collaborates
with leading banks, insurers and capital market companies to
deliver business and IT solutions and thought leadership
which create tangible value.
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