We’re masters of the Customer Decision Journey. It’s why we exist, and it’s the data trends of customer behavior that drives our ongoing innovation. As consumers continue to progress forward, many institutions find it hard to keep up, particularly financial institutions. Regulations keep innovation from happening as quickly as it should. However, we’ve managed to create something groundbreaking for financial institutions. The following article underscores the importance that financial institutions listen to customers and investigate the technologies that were created for increased customer engagement and decreased time and money.
Original article published by The Financial Brand
According to a study by management consultancy cg42, the 10 largest retail banks in the U.S. are in trouble. Based on a survey encompassing more than 3,000 of their current customers, cg42 ranked banks based on projected customer attrition and potential revenue loss. The study, which is an update of research cg42 repeated in 2011 and 2013, found that up to 23% of current bank customers are ready to change banking providers. cg42 says 8% will actually follow through and make the switch.
The firm uses data to calculate its own proprietary Brand Vulnerability Index (BVI), which measures consumer frustrations along four variables:
- The frequency with which customers experience frustrations
- How customers express their frustrations (such as sharing grievances in social media channels)
- The magnitude of impact that these frustrations have on customers’ likelihood to leave
- The uniqueness of a particular source of frustration to a specific bank