NGDATA survey shows younger customers are driving even higher expectations; Banks must be ready to meet evolving customer needs for personalization and customer service
New York City—July 19, 2016 – Consumers do not believe their banks treat them as individuals and want their banks to understand them better, according to the results of a new consumer banking survey conducted by NGDATA™, the customer experience management solutions company. Millennials in particular have high expectations from their banks that are going unmet.
The in-depth survey of more than 1,000 U.S. consumers assessed their experiences with banks, examining their views on loyalty, channels through which they interact with financial institutions and their banks’ level of customer understanding.
Key Facts and Highlights
- Future Business Is At Risk – Younger Generation Wants More from their Banks: There is a significant correlation between age and satisfaction, with 51 percent of respondents aged 18-34 saying they’d be happier if their banks understood them better compared to just 27 percent of those aged 35+. As older customers continue to be replaced by younger ones, demand for individual understanding will only increase.
- Segmentation Isn’t Good Enough – Customers Want Individual Attention: Less than 30 percent of consumers believe that offers from their banks are customized for their individual needs.
- High Costs and Bad Customer Service Can Kill a Bank’s Bottom Line: Nothing will drive a banking customer away faster than high costs and fees, with 41 percent listing this as the primary reason they would leave their bank, but customer service is a close second at 33 percent.
- Customers Are Branching Out Beyond their Branch: Only one in five customers (and 14 percent of those aged 18-35) care about where their bank is located, but 32 percent cited easy-to-use online services as the most important factor when interacting with their bank.
- Banks Held the Pole Position: Banks have long been seen as a trusted advisor, but consumers no longer think their banks understand them. When asked which service provider understands them the best, only 15 percent of respondents said their bank while 17 percent said Google. 42 percent of respondents don’t believe that any service provider understands them, creating an opportunity for banks to distinguish themselves moving forward.
“This research demonstrates a clear trend – the world is moving toward more customized, personal interactions between businesses and their customers. Consumers are no longer content with being lumped in with demographic segments and receiving offers that don’t apply to them,” said Luc Burgelman, CEO of NGDATA. “Younger consumers – those who have grown up in a world where Netflix anticipates what they want to watch and Google knows what they want to find before they finish typing in a search term – represent a new and very real challenge to bankers, who will be tasked with generating a customized and personal experience for every customer. Banks have a massive amount of consumer data at their disposal. The time has come to use that data to create a better experience for their customers.”
The 2016 NGDATA Consumer Banking Survey outlines a clear path for banks to create happier and more loyal customers by developing a deeper understanding of customers at the individual level and creating tailored offers that reflect that knowledge.
NGDATA works with banks across the globe to help them deliver more relevant customer experiences with real-time, continuous insights from all customer behavior and activity. By providing actionable, real-time customer intelligence, NGDATA enables banks to improve customer satisfaction, reduce attrition and enhance retention.
To read the full Consumer Banking Survey research report, please click here.
For an infographic highlighting key findings, please click here.
NGDATA™ helps companies in data-driven industries, such as financial services, media/publishing and telecom, to operationalize their data analytics through its real-time, analytics-based solution for improved customer satisfaction, reduced attrition, enhanced retention and higher profit margins. NGDATA’s Lily Enterprise™ is the customer experience management solution that finds insights and executes on them, bridging the gap between the worlds of data and business, enabling companies to deliver timely, relevant, contextually-aware, and personalized offers and experiences that customers embrace. NGDATA is headquartered in Gent, Belgium and has offices in the United States, Europe and Asia-Pacific. Customers include AXA, Belfius, De Persgroep, Orange, Telenet, and Wells Fargo, among others. Visit www.NGDATA.com for more information.