Do you feel loyal to your bank? There’s a good chance that you do. Retail banks score a 53% on the Temkin Loyalty Index, which is near the average for all industries. Temkin research also shows that banks score pretty well on customer experience, too. That’s not a coincidence. CX influences retail banking loyalty in several ways.
The Temkin Loyalty Index measures five kinds of customer activities that show customer loyalty, and how those activities are influenced by great customer experience.
Buy more. Compared to consumers with a very bad experience, consumers who have a very good experience with their bank are 12.7 times more likely to spend more money there.
Recommend. Word of mouth is a powerful thing. Customers are 16.8 times more likely to recommend a bank that provides great CX—which is also reflected in higher NPS® scores.
Forgive. Loyal customers forgive mistakes. And if their bank generally gives them a good experience, they are 7.8 times more likely to forgive the bank.
Trust. Customers won’t trust a bank that doesn’t treat them well. But if they do feel like they are cared for, they’re 9.1 times more likely to say the bank trustworthy.
Try new offerings. If banks serve customers well in every interaction, customers are more open to trying other things. In fact, customers who have a very good experience are 12.2 times more likely to try something new from their bank.
All of this adds up. A leading Canadian bank has shown NPS gains across the board by implementing CX improvements.
- +43% personal relationship NPS
- +25% small business relationship NPS
- +15% Year over year transactional NPS
And the impact is not just on scores. For typical banks, CX improvements can generate $854M of additional revenues over three years for every $1 billion in revenues. That’s enough to make investing in customer experience worthwhile.
If you are interested in more information about retail banking loyalty, CX, and ROI, check out the full Temkin Report: Industry Spotlight: Banking.
Lisa Sigler is Senior Manager, Content Marketing at Clarabridge. For over 16 years, Lisa has used her writing and editorial skills to bring the value of technology to life. Today, she works to demonstrate Clarabridge’s position as thought leader and trailblazer in the Customer Experience Management market. Lisa holds a B.A. in English from Kent State University. Read more from Lisa on Twitter @siglerLis.