Retail banks continue to leak customers’ business to digital native companies that have customer-friendly products and pricing, as well as simpler, more appealing digital interfaces. Bain & Company’s latest survey of 131,930 consumers in 22 countries shows why, and how leading banks are fighting back.
Analysis of data from Bain’s NPS Prism℠ benchmarking tool—which compares consumer perceptions of competing banks at the detailed level of an individual episode—shows that certain episodes, such as disputing a fee, tend to annoy customers and often require human channels, making them more costly.
Loyalty-leading banks have dramatically fewer of these episodes, the NPS Prism survey finds. Moreover, customers of the loyalty leader in a market are more likely than those of the loyalty laggard to use digital channels first, more likely to resolve an issue at first contact, and less likely to have the digital channel fail to resolve the issue. All these conditions lead to higher loyalty and lower cost. Loyalty also helps to increase revenue: In the UK, for instance, banks with higher Net Promoter Score® attract more customers for current (checking) accounts, on net.
Net Promoter Score®, Net Promoter System®, Net Promoter® and NPS® are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
NPS Prism℠ is a service mark of Bain & Company, Inc.