Article by Katya Dashkevich, RMS Research Associate –
RMS recently partnered with a bank to conduct a community awareness and financial need survey. The overall goal of this study was to understand its customers’ rate of satisfaction, loyalty, and needs as well as the community’s general awareness and perceptions of its image and brand equity. This information better focused the Financial Institution’s marketing towards individuals and businesses who are most likely to open new accounts with the bank.
Research Objectives
The key questions that were addressed in this study were:
- How do current customers rate the Financial Institution on selected financial service-provider (FSP) attributes?
- What is the Financial Institution doing well?
- What could the Financial Institution improve?
- What is the level of customer loyalty towards the Financial Institution and other primary FSPs (Financial Service Providers)?
- What is the current Net Promoter Score (NPS) (likelihood of recommending the Financial Institution)?
Approach and Incentives
RMS designed and programed an online survey script in consultation with the client (Institution). Based on information from the client, the survey took 7-10 minutes to complete. Answers to specific questions routed the respondent to the appropriate follow-up questions. The survey included a mix of rating, open end, and multiple-choice style questions.
Results
Participants were asked to share the first word or phrase that comes to mind when thinking about the Financial Institution. Terms like “family,” “awesome,” and “great customer service” were used. Loyalty to primary financial institutions was high, with most individuals remaining with their institution for over a decade. Key selection criteria for a financial institution included mobile banking, access to live representatives, and proximity to one’s residence.
Mobile banking was increasingly favored, while in-person branch visits are declining. Business owners expressed satisfaction with their financial partners, prioritizing security. Despite high satisfaction levels, awareness of the Institution was low, although the Institution boasted a strong Net Promoter Score. Top factors considered when choosing a financial institution included access, customer service, rates and fees, and location.
Age and employment type influenced preferences, with younger individuals valuing mobile banking more and retirees emphasizing local connections. Despite considerations for switching financial institutions, the majority expressed loyalty to their current institution due to satisfaction and a perceived effort-reward imbalance (too much effort to change financial institutions with little reward).
Banking behaviors varied by age, with online banking prevalent across all demographics, and mobile banking more popular among younger customers. The Institution was considered for various financial needs, particularly among life changes (i.e., marriage, college, etc.), although some cited reasons for not considering the Institution.
Business-owner members were satisfied with the Institution, with most opting to remain loyal customers. Suggestions for improvement included enhancements to mobile and online services, better rates, and expanded branch hours and locations.
Participants had higher incomes, with the majority being white and employed either full-time or part-time, with a considerable proportion retired. A notable percentage held bachelor’s or graduate degrees.
Important Takeaways
Loyalty and Satisfaction: Customers exhibit great loyalty and satisfaction towards their primary financial institution, often remaining with the same institution for many years.
Preference for Convenience: Convenience, especially through mobile banking and access to live representatives, is crucial in customers’ choice of a financial institution. This highlights the need for them to prioritize digital and customer-service channels.
Changing Banking Behaviors: There is a notable shift towards online and mobile banking, particularly among younger demographics, signaling the necessity for financial institutions to adapt their services to evolving customer preferences.
Retention Challenges: While satisfaction is high, considerations for switching financial institutions are driven by factors such as better rates and significant life events/changes. Financial institutions must address these concerns to retain customers.
Opportunities for Improvement: Enhancing mobile and online banking functionality, offering competitive rates, and expanding branch accessibility present opportunities for financial institutions to better meet customer needs.
Understanding Customer Demographics: Tailoring offerings and marketing strategies to different demographics, such as age and employment type, is crucial for effective customer targeting and service delivery.
Importance of Customer Experience: Positive customer experiences, including personalized service and quality support, foster satisfaction and loyalty. Financial institutions should prioritize delivering exceptional experiences to attract and retain customers.
What RMS can provide to banking and credit union clients:
- Providing insights into customer preferences, behaviors, and satisfaction levels.
- Conducting competitive analysis to identify areas for improvement and differentiation.
- Helping develop new products or services based on customer needs.
- Developing targeted marketing strategies to engage customers effectively.
- Assessing and optimizing the overall customer experience.
- Monitoring industry trends and technological advancements.
- Utilizing data analytics to extract actionable insights for decision-making.
Relational RMS Blog & Information:
RMS Banking & Research Services
RMS Credit Unions & Financial Services
RMS CASE STUDY: Financial Institution Perception Surveys
About the Author – Katya Dashkevich
Katya brings years of market research experience to the RMS Analytics Department, programming surveys, coordinating recruitment, and cleaning, analyzing, and reporting survey data. Katya also supports many other divisions at RMS, including helping with phone recruitment in our call center or research needs within our healthcare division.
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About RMS
Research & Marketing Strategies, Inc. (RMS) is a full-service market research firm in Central New York. Formed in 2002, RMS helps organizations that are looking to know more about their customers and/or potential customers. We conduct surveys, focus groups, mystery shopping, studies, and analyses. Each project is customized and gets personal attention so that actionable, data-driven findings are delivered. RMS has a reputation for getting results. We offer an independent, professional means to conduct telephone, on-line, and mail surveying, as well as in-depth interviews, intercept interviews, and participant recruitment. We also host discussion groups through QualiSight, our onsite call center and focus group facility. We have a proven reputation for successfully recruiting and moderating focus groups, community forums, and town meetings.
