The Bankwatch

Tracking the consumer evolution of financial services

IBM – Unlocking client advocacy in Canadian retail banking

 New piece of research and analysis from IBM, that may be an update on an earlier one, if I recall.  It talks about the lack of advocacy within Canadian Banks’ customers.

Only 27% of Canadian customers are advocates of their banks, compared to 34% for Credit Unions.  That’s a massive gap.

Building the base one client at a time through cross-sell, retention and new customer acquisition is a top priority in nearly every retail bank’s agenda. However, many banks have yet to identify the right segment-based strategies, marketing and sales programs, employee incentives, and process and technology improvements to produce higher returns.

Despite significant investment, the largest banks are not well positioned to grow their client bases: our research shows the majority of clients will be reluctant to commit to a deeper relationship as a consequence of their cumulative experience with the bank.

Source: IBM – Unlocking client advocacy in Canadian retail banking: The client focused enterprise – Executive briefs

Full report (pdf)

What intrigued me in particular, is their analysis that Banks’ ignore the emotive aspect of customer relationships.

This is particularly interesting in that this gap could be (partially) addressed with online, and online social initiatives.  The more customers select the convenience of online banking, the more they are dis-connected from the human side of the Bank.  Banks choose to address this gap with Branch based initiatives, yet customers online don’t want to be in a branch, and are not in the branch.

Relevance to Bankwatch:

Online service, and customer relationship management for online customers cannot be addressed successfully where customers are not – in the branch.

 

Written by Colin Henderson

March 22, 2007 at 14:29

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