By: Joe Gillen
There are several factors that may drive consumers to one bank over another. Fees, reward programs, investment and retail products and customer service are only a few of the characteristics most people explore when comparing different financial institutions. However, there is another resource individuals may rely upon to narrow down their choices and size up a bank: customer reviews.
Several studies have demonstrated that word-of-mouth referrals, forums and message boards and customer reviews have a large influence in consumers' decisions, and this is no different when it comes to choosing a bank. This is largely because consumers trust other consumers' experiences more so than bank marketing and advertising campaigns. According to the results of a new study conducted by Kelton Research and Bazaarvoice, 26 percent of respondents said they would never choose a bank without reading at least one customer review. Another 83 percent of consumers said it's also important to them to review user-generated content before making making a decision about a bank or other financial services.
Finally, the study shows that most consumers check an average of 10 sources before committing to an institution.
Using customer reviews to improve your customer acquisition numbers
The results of the study have large implications for financial institutions that are trying to improve their customer acquisition numbers. It may be prudent for banks and credit unions to first determine what is being said about their services by scouring review websites, blogs, message boards and forums. Customers may be more honest on these mediums than in customer service surveys, which can give institutions a good idea of their strengths and weaknesses. In addition to reviewing these portals, participating in a mystery shopping trial may be another way banks and credit unions can garner feedback about their services and determine if changes needs to be made to improve the customer experience. Once banks have a better idea of where they stand, they can begin to correct aspects of their operations that may be hindering their customer acquisition numbers.
It's also important to increase the amount of good customer information that exists about a bank. Financial institutions may greatly benefit from asking loyal customers to mention them on review websites or satisfaction surveys that will reach a larger group of people. This scenario may also help drown out any negative reviews that exist.