Nov 11
29
Financial institutions and their customers took a hit during the recession and many are still struggling to overcome economic hardship. However, the results of a new study show that despite harsh financial times, the relationship between banks and their customers remains strong.
The annual Customer Satisfaction with Retail Banks survey, conducted by J.D. Power and Associates, found positive sentiment among banking customers rose for the first time in three years, despite being charged slightly higher fees. On a 1,000 point scale, customer satisfaction increased four index points to 752 between 2010 and 2011. The study shows an improvement in customer sentiment in certain areas, such as problem resolution, facility and product offerings. Satisfaction in other areas, such as account activities, remained consistent from 2010 data.
However, the study did not find a decline in satisfaction when it came to fees, as some banks have been forced to impose higher charges for certain transactions to recoup profit losses. Analysts say that despite dissatisfaction in this area, customers are still happy in their banking relationships on an overall scale.
“Being charged a fee does not necessarily have to result in dissatisfaction,” said J.D. Power and Associates banking services director Michael Beird. “Customers who completely understand their bank’s fee structure and value the products and services they receive tend to have higher levels of overall satisfaction, despite paying fees.”
In addition, Beird says other services and benefits, such as rewards programs, mobile and online banking have overshadowed fee increases and provided customers with more gains and control over their accounts. According to the survey data, the percentage of Generation X and Y customers who utilize mobile banking applications increased from 11 percent in 2010 to 23 percent in 2011. Additionally, 75 percent of Generation X customers report using social media applications. The number of Generation Y customers who report the same activity is higher at 87 percent.
Additionally, banks that offer quick and efficient customer service were given higher overall ratings of customer satisfaction, whether representatives provided service in person, online or through social media platforms. Those will lower ratings lost points due to a lack of consistent correspondence with customers who requested help with their accounts.
“Among customers who post customer service inquiries on sites such as Facebook or Twitter and receive a reply, 47 percent say they would definitely reuse the bank for future products and services. This drops to just 27 percent if the bank provides no response,” Beird reports.
It has been three years and Wells Fargo is finally rebranding Wachovia, whom they purchased for $15.1 billion dollars at the beginning of the financial crisis. Their methods range from changing signage on Wachovia branches to rolling the Wells Fargo stagecoach down Pennsylvania Ave in D.C. In addition, customers (especially those in the D.C. area where Wachovia had a larger footprint than any other financial institution in the state) can expect to see advertisements on public transportation, billboards and television.
One of the hardest elements of a rebranding campaign is retaining customers and assuring them that service will not only be as good, but get even better. This can be done through in-branch advertisements, direct mail, email, etc., but a strong branding campaign triggers emotions (hopefully positive) in the hearts and minds of customers that can establish loyalty and assuage fears.
According to Lori Kolbert, Wells Fargo’s mid-Atlantic sales and marketing director, the bank will continue pushing their stagecoach image because it “inspires confidence in our nation’s growth [and] it signals progress.”
For Wells Fargo, the notion of guiding clients through their financial journey – like a stagecoach making the journey westward – is also strong, but it remains to be seen whether or not the gold-rush image of the stagecoach will gain traction with east coast consumer and commercial clients.
Sep 11
21
Google Wallet is officially here, and already the technology is showing a lot of promise. Check out this article from Mashable for some great insight into using Google Wallet, issues with privacy, and, of course, what comes next.
Sep 11
20
If you’ve ever worried about hackers making huge charges on your credit card or emptying your checking account, Visa® has good news. It plans to introduce microchip authentication for U.S. debit and credit cards, making it harder for unscrupulous scoundrels to access your account.
These “Chip-and-PIN” cards will feature an embedded microchip and require a four digit PIN, so they are expected to provide enhanced security through a process called “dynamic authentication.” According to the Visa® press release, “Chip technology greatly reduces a criminal’s ability to use stolen payment card data by introducing dynamic values for each transaction. Even if payment card data is compromised, a counterfeit card would be unusable at the point-of-sale without the presence of the card’s unique elements. By eliminating static authentication, we reduce the value of stolen cardholder data, benefiting all stakeholders.”
Chip-and-PIN cards look like regular credit and debit cards, except for an added metallic chip. For consumers, day-to-day usage shouldn’t change. Just swipe and enter a PIN as always.
Despite the increased cost of replacing lost, stolen, and expired cards, the greatly enhanced level of security makes the new technology an attractive bargain.
An obstacle to adoption of Chip-and-PIN cards in the U.S. is merchants who aren’t terribly excited at the prospect of having to purchase chip-compatible terminals. To overcome this, Visa® will use a “carrot-and-stick” approach. The carrot: merchants who reach a certain adoption level can skip the annual security validation process, saving substantial compliance costs. The stick: liability for fraudulent use of the old cards will shift from card issuers to merchants who do not upgrade.
MasterCard has already introduced a similar card in Canada, so we can expect something from them in the U.S. soon. Visa® expects the new technology to be in stores and operational by April 2013.