Most bankers will admit to the fact that consumers hardly switch banks despite their bitterness to such institutions. However, that culture is starting to disappear as more consumers become aware of exploitation they undergo especially in hidden fees and charges. Financial marketers spend a lot of time, resources and effort trying to understand why people choose a bank over its competitors. Factors include a mix of both offline and online activities. Here are other customer related attributes that affect bank performance.
The offline channel is a more popular factor that led to an online banker in choosing their bank. The convenience location of an ATM is one factor that makes people choose their bank.Other attribute it to adverts the saw on TV.
Customer’s ability to attain information immediately is changing how consumers choose a bank and its products. Recommendation from friends and family member remain the key driver in checking and saving accounts. Consumers opt to research their credit card, mortgages need, and personal loan before deciding which product to purchase.
Give customers what they are used to
Customer expectation constitutes to rise with the banks investing in fast services.Banks continue to become more agile and delivering better customer services. The study shows that most customers prefer to conduct research online. However, on the complex matter, they prefer human interaction.
Make online information easy to find
With larger purchases e.g. personal loans and mortgages, interest rates matter a lot to consumers. Online tools help in comparing and contrast. For financial institutions that make information to find online, they get fewer customers. This demands optimizing digital channels for both social media and mobile users.
Why people switch banks
People move to other banks for the least expected reasons. Most bankers believe that it is formed service issues, but that is not true. Here are the top reasons.
Divorce, moving to a new town, unemployment makes people move around a lot. If a bank has limited branches, customers are bound to diminish. Other reasons include rates, followed by unmet expectation from the bank, poor customer service and last advertising.
How it works
For a customer evaluating a new bank, they are more likely to be compelled by advertising, branch convenience, promotional offers, recommendation, customer experience and past personal interactions.
Fees and interest rates carry little weight in influencing a customer purchase decision. This is despite high media coverage on such factors.