Article by Patrick Fiorenza, RMS Director of Research Analytics –
Proven market research strategies offer banks and credit unions the opportunity to understand the behaviors and unmet needs of customers and members. When working with banks and credit unions, the goal for Research and Marketing Strategies is to help organizations create data-driven programs to guide growth, customer engagement strategies, or effective outreach methods, all designed with an eye toward enhancing the customer/member experience and growth within desired markets.
Many of these projects fall within our Voice of the Customer/Member (VOM) services, which are customized market research projects designed to help financial institutions better understand their consumer/member needs and satisfaction with services. VOM can look different for each organization, but below are a few examples of the types of offerings for our VOM work in the banking and finance industry.
Understand Your Customer/Membership Needs with a Customer/Member Survey
Member surveys are an important part of any VOM program. With a customer/member survey, you can learn critical information about existing customer/member satisfaction, their unmet needs, and gather competitive intelligence (i.e., information like satisfaction at other financial institutions where they hold an account).
Gather critical experience of existing customers through brief Transaction Surveys
Asking participants about a transaction experience (either online or in-person) can create powerful insights. These surveys are short and used to quickly collect and analyze experiential data. Questions may be asked about wait time, satisfaction that needs were met, friendliness of staff, and other key metrics that can be used to improve the experience.
Improve new account enrollment through new Customer/Member Surveys
New member/account surveys offer important insights into the first impression your financial institution makes, providing vital details about the enrollment process. We know from existing research that once an individual opens a new account for their daily banking needs (savings and checking) they are very unlikely to move their finances. Also, new accounts offer a perfect time to explain existing services and possibly “up sell” on other banking needs offered by your organization.
Assess your culture with an Employee Survey
Conducting an employee survey is a critical part of any VOM program. Your employees are the face of the organization and interface directly with consumers. An employee survey will identify if staff have the proper tools and training to excel in their jobs, as well as offer staff an opportunity to share how processes and procedures can be improved.
Use “Mystery Shopping” to test protocols and procedures
Mystery shopping is often conducted in-person but can also be effectively conducted via phone or by making online inquiries. During a mystery shop, a trained researcher evaluates several factors that impact their experience. A mystery shopper may rate any number of variables such as staff interactions, extent to which protocol was followed, and ability to complete guided tasks.
RMS Industry Findings
Based on various studies conducted at RMS using the methods described above, we have developed a wealth of knowledge and insights on the banking and finance industry. Some trends that we have learned in our research include:
1) Banking and credit unions operate in a highly competitive landscape
In many of our studies, we ask consumers who else they use for their banking services. Often, we are presented with a large list of different institutions. Many use online mortgage companies, multiple banks, and various investment companies. The data is clear how competitive the landscape is for financial organizations. In addition, we have found that people do not like to move their daily banking services (deposits and savings) but tend to be savvy shoppers with rate-driven markets, like CDs, often looking for the best rates.
2) Members/customers desire a streamlined and easy-to-use mobile experience
Participants in our research also desire to have strong mobile experiences and want the ability to do basic banking procedures hassle-free (make a deposit, check account status, transfer, and/or review transactions). Most of our studies show that consumers desire their financial institutions invest in easy-to-use online services, optimized for simple mobile access.
3) Top of mind for consumers are cybersecurity and financial protections
Consumers want to know about the protections that have been put in place by the bank to protect their systems from cyber threats. In addition, consumers are looking for straight-forward policies related to fraud, improper access to accounts, and swift remedies for any fraud that might occur.
4) Need for exemplary customer service
Our studies often show that individuals have been customers or members of their financial institution for many years. Most have built strong relationships with banks, and consumers value the connections which they have built. Also, much of our data shows that improved communications and customer service training is essential to help resolve issues quickly. Many negative comments in our studies relate to very specific interactions where, often, the customer accepts the resolution, but wishes the situation was handled differently (swifter resolution, friendlier agent, empathetic to their needs).
5) There’s a place for brick and mortar
Our research shows there is a place for brick-and-mortar buildings. Although many services are moving to digital and online experiences, many of our survey participants shared that they enjoy going into the bank and prefer this for certain types of transactions. In some cases, respondents named specific bank tellers they see often.
6) People do not like to switch banks/financial institutions for daily banking needs, but will shop for the best rate for other needs (retirement, CDs)
Our data suggests that individuals do not like to move their daily banking accounts (savings and checking). Most often, people do not think it’s worth the hassle to move accounts for daily banking needs but are often very astute shoppers for investment accounts or rate-driven offerings (loans, mortgages), and will select the lowest rate they can find.
7) Many new accounts or banking activities revolve around life milestones
Life milestones and banking needs seem to go hand in hand. Often open-ended responses from survey participants say they opened a new joint account after getting married, or a savings account for a child. Other milestones include preparing for retirement, buying a house, or starting their own business. Finding ways to make connections with life “milestones” is one strategy to stay top of the minds of consumers in a competitive landscape.
Relational RMS Blogs & Information:
RMS Banking & Research Services
RMS Credit Unions & Financial Services
RMS CASE STUDY: Measuring Customer Experience & Brand Awareness in the Banking Industry
RMS CASE STUDY: Financial Institution Perception Surveys
About the Author – Patrick Fiorenza
Patrick brings years of market research experience to the RMS Research Analytics team. His preliminary focus encompasses designing, implementing, gathering, and analyzing results from proven research methods created to obtain credible data to help guide decision-making across a variety of industries.
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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.
“Great insights on leveraging market research to improve customer experiences in banking and finance! Your strategies for enhancing engagement are both practical and impactful. Thanks for sharing!”