By: Nancy Steadman
Recent studies show that a lot of thought goes into finding and sticking with the right bank, and many consumers are being more choosy about where they place their money. With more large institutions looking to bolster their profits by imposing new fees, most are trying overcome the negative response from cash-strapped customers by focusing on providing better customer service to retain their customer base.
Many banks now offer chat sessions to address immediate customer service needs, while others, such as Fifth Third Bank, are building customer service into their marketing campaigns. The institution recently developed a tagline - "the curious bank" - to define itself as a bank that was focused on listening to customers. Some banks that have been involved in large takeovers and acquisitions, such as PNC Bank, which recently took over the Royal Bank of Scotland, are even hiring local residents to improve customer service, the Sun Sentinel reports.
Banks' renewed interest in customer service comes on the heels of recent surveys and mystery shopping data that demonstrates a customer's experience plays a pivotal role in which banks they choose and how often they switch institutions. A recent J.D. Power and Associates study revealed that while fees played a leading role in consumers' decisions to switch banks, one half of those also said that their previous banks' poor customer service was also a contributing factor.
A separate report that employed the use of mystery shoppers also revealed the disparities in customer satisfaction between banks that actively explained different products, sparked non-banking conversations and followed up with customers vs. institutions that provided individuals with basic services and product information.