With consumer confidence down, it pays more than ever to shop around.
A 2010 survey of major retail bank executives around the world shows that customer profitability has continued to be lower than before the financial crisis, and there's been an increase in both price sensitivity and the tendency to "shop around."
Accenture, a global management consulting, technology services and outsourcing company, interviewed 46 senior-level bank executives -- CEOs, retail division heads and senior vice presidents -- in 14 countries. The executives indicated that 46 percent of major retail banks have seen a drop in customer profitability by 5 to 15 percent since the crisis. The executives also reported the following:
- 59 percent said customer loyalty had decreased
- 63 percent reported their customers are more sensitive to price
- 63 percent said their customers shop around more often than before the crisis
Of the executives surveyed, 68 percent indicated that they expected these changes in consumer behavior to be long-term changes.
Banks working to win customers
- Strong customer analytics
- Integrated service channels
- Personalized offerings
- Innovative technologies
But many executives considered their banks to be weak in those areas, which means that new changes are coming to their business models.
The good news for banking customers is that with banks competing to attract and retain customers, it pays more than ever to shop around and compare savings rates. Banks will be working hard to build trust and lifetime loyalty.