Banks need to go beyond satisfaction to earn loyalty

A recent study by Capgemini and Efma revealed that even when banks are leaving customers satisfied, they aren't necessarily earning loyalty.

A recent study by Capgemini and Efma revealed that even when banks are leaving customers satisfied, they aren't necessarily earning loyalty. The 2012 World Retail Bank Survey revealed that 65 percent of banking customers say they are satisfied with the services they are receiving, but only half say they are confident they won't switch to another company within the year.

Surveyed customers indicated they were generally satisfied with their banks, but loyalty and trust were reported at much lower levels.

Some of the triggers banking customers cited as reasons for leaving their bank included:

- Poor service (53 percent)
- Fees (50 percent)
- Banking convenience (49 percent)
- Interest rates (49 percent)
- Personal relationships (34 percent)
- Brand image/reputation (29 percent)
- Reward and loyalty programs (28 percent)

A separate study by KPMG revealed customers might be less loyal when they feel their bank doesn't understand their needs or provide them with the banking methods they desire. For example, many younger consumers are demanding mobile banking for greater convenience.

"The lack of differentiation between products and services on offer, coupled with low levels of innovation in the banking marketplace, means that customers may begin to question where they put their money," Mark Guinibert, customer and channel partner at KPMG, said.

"Expectations have been set by the growth of mobile apps, but it seems that banks have yet to catch up," Guinibert continued.

Companies might also need to offer customers convenience and service they can't get anywhere else to differentiate themselves from competitors, said D. Scott Andrick, industry principal for retail banking at Pegasystems, a business process management company that also surveyed banking consumers. When banks can extend the same quality of service they provide in stores across a number of channels including mobile, they might recognize an increase in both customer satisfaction and loyalty