Canadian Retail Banking Survey 2013
Putting the “personal” in personal banking
Customers today see their individual needs as unique and expect their financial institutions to cater to them on a personal level through custom pricing for products and services that take into account their loyalty, as well as personalized advice and service.
Nearly two-thirds (61%) of respondents would be likely to switch banks if a competitor offered the option to bundle multiple products to receive additional discounts.
Today, customers feel that their loyalty is often not rewarded when they are considered for new products. This sentiment is reported particularly highly by respondents between the ages of 25 and 34, who are building up their wealth and purchasing their first home, as well as those between 45 and 54 years old, who are at the peak of their career and may have substantial investments with their banks.
To retain customers and maintain satisfaction, banks should seek opportunities to establish programs to reward loyal customers and increase cross-selling opportunities. The challenge is in understanding customers’ relationships with the bank and orchestrating product and pricing strategies across multiple business lines and product groups.
Canadians have emphasized the importance of the provision of personalized service and advice and are likely to switch their business to a bank that they believe provides that service.
Over 65% of respondents said it was important to have a personal banking representative who understands their unique needs, is aware of their existing relationship with the bank and is familiar with previous interactions they’ve had with the bank. And 67% of respondents said that other banking representatives should also be aware of customers’ existing product portfolios and previous conversations with the bank, as long as it leads to better advice and service.
Over 40% of respondents stated that they would switch their main financial institution if another bank offered a personal banking representative and if representatives were knowledgeable about previous interactions with the bank.
It’s critical that banks understand their customer base if they’re going to be able to create personalized tactics that cater to individual customers’ needs.
Segmentation analysis will need to evolve from using traditional age, income and geographic information to capturing customer behaviour, lifestyles, attitudes, networks and influences.
With deep understanding of customers and their profitability financial institutions will be able to create personalized advice and service offerings that could lead to a highly differentiated customer experience while keeping costs under control.