We consistently hear banks touting their commitment to being customer friendly and going the extra mile for their customers. Accordingly, branches are once again in vogue, and executives have declared that improving the customer experience is the priority for the organization. As mergers and acquisitions become less attractive, leading financial institutions look increasingly to their existing customer base for growth. Critical organic growth measures - cross-sell, retention and new customer acquisition - dominate nearly every retail bank's agenda. However, many banks have yet to identify the right mix of customers, 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 for organic growth: our research shows the majority of customers will be reluctant to commit to a deeper relationship as a consequence of their prior cumulative experience with the bank. In order for banks to fully achieve the benefits from organic growth, bank executives need to understand customer attitude and its impact on customer behavior. Customers who have a positive attitude toward the bank are advocates, while those whose experiences shape negative opinions become antagonists. As such, a bank's ability to effectively manage and influence customer attitude becomes paramount to achieving organic growth. In this study, we establish the link between advocacy and higher profitability, responsiveness and trust and explore three critical questions: - Are banks fully positioned to grow organically?
- Can a focus on improving advocacy unlock growth potential?
- How can banks capture the opportunity?
To read the full study, download the PDF file at the top of this page. |
