By: Nancy Steadman
Consumers have not kept their dissatisfaction with banks' renewed reliance on service fees a secret. Recent months have demonstrated that many fed-up customers are more than willing to switch banks for more affordable and consumer-friendly products. However, the results of a new study show that many customers who are less than happy about bank fees are willing to put up with them if banks offer competitive features and services.
The 2012 U.S. Retail Banking Satisfaction Survey conducted by J.D. Power and Associates reveals that banks have been offsetting consumers' frustration over higher service fees by paying closer attention and making improvements to several other areas of their operations, including conflict resolution, account activities and the banking facilities themselves.
The survey reveals customer satisfaction with retail banks increased by one index point to a national average of 753 on a scale of 1,000 between 2011 and 2012. Satisfaction with bank fees experienced a large decline in 2012, falling from 656 in 2010 and 625 in 2011 to 609 this year. Account maintenance fees were listed as the expense that elicited the most negative response.
"The negative reaction to fees reflects customers' irritation about paying for something they didn't have to pay for in the past," said Michael Beird, director of banking services at J.D. Power and Associates. "It also reflects a lack of their complete understanding about what they're getting for those fees. Customers understand why they're being charged for ATM and debit card use, but are not clear on what they're getting for monthly account maintenance fees, which drives the bigger drop in satisfaction with those fees."
However, other factors relating to customer satisfaction improved, especially regarding bank facilities. Satisfaction in bank branches themselves, including ATMs, bank hours and the appearance of branches increased from 765 in 2010 and 771 in 2011 to 779 in 2012. Customers' feelings about the reliability of ATMs and ease at using them also rose from 795 in 2011 to 815 in 2012.
Lastly, customers listed intangible factors that also boosted their satisfaction. One significant behavior that was listed as improving customer satisfaction was being greeted at the door by a representative, a scenario that increased from 68 percent in 2012 to 76 percent in 2012.