Research conducted by Censuswide, commissioned by customer service software provider Odigo has identified significant benefits of customer services. The research polled 2,000 people and asked about the reasons for staying and leaving people’s current banking and insurance providers.
The research found three main reasons why customers stayed with their existing banks: good customer service (42%), familiarity and convenience (41%) and trust and reputation (40%). This is despite 47% believing they miss out on better financial service deals by not switching.
The fourth most popular reason for not switching is the hassle factor (28%). With consumer champion Martin Lewis recently claimed that anyone with a bank account risks losing around £200 by not switching now, 35% believe they don’t lose money by staying with their current provider. Does this mean that there are savings out there for many, yet the desire to shift is lacking?
Vincent Lascoux, Chief Customer Success Officer at Odigo, comments, “The research has spoken – despite the financial challenges and difficulties faced by consumers, good customer service is still king when it comes to retention. Whilst banking providers should continue using financial benefits, such as cash incentives and better-saving rates, to encourage customers to switch, as part of their strategy, this must not come at the expense of a positive experience for their existing customers.”
Banks cannot get complacent
Even as banks look to digitally transform operations they must invest wisely. The research pulls out areas in which financial services providers can improve their customer services. These include:
- Easier to navigate websites (28%)
- More obvious phone numbers on websites (26%)
- Quicker responses to messages on social media platforms (18%)
- Easier to use chatbots (18%)
It appears as though many consumers still want to talk to their banks. From the answer set provided the research did not delve into whether the auto-attendants on the call centres were friendly enough.
The incumbent banks must look to invest to catch up with the disrupter banks, such as Monzo and Starling Bank, who ranked at the top of the Competition and Markets Authority (CMA) and Which? Customer satisfaction rankings. Poor customer service (36% was cited as the second highest reason for switching banks, beaten only by higher interest rates (37%). Lower fees (25%) were third.
Despite nearly half believing there are better deals elsewhere, 67% are satisfied with their current service provider.
Insurance consumers are less happy than banking customers
The research also looked at satisfaction with different types of Insurance. Consumers’ opinions were mixed about these services. What would have been interesting is if a comparison to previous years had been published as well. The following indicated where consumers were very or somewhat satisfied with customer service from their insurer.
- Car Insurance – 49%
- Health Insurance – 24%
- Holiday Insurance – 30%
- Home Insurance – 50%
- Life Insurance – 32%
- Pet insurance – 28%
- Renter’s Insurance – 16%
However, for insurance companies, good customer service is critical. 71% agree or strongly agree that poor customer service reduces trust in their provider. Consumers are more likely to switch when prices are increased by their insurance company. Oddly, though a small increase <£50 may cause 29% to switch, an increase of £50-£100 will cause 38% to switch, but a higher increase of over £100 will only cause 25% to switch. However, poor customer service will cause 31% to switch policy.
Enterprise Times: What does this mean
There are some interesting insights within this survey that both banks and insurers should note. The clear message from this survey of 2,000 people is a message that Odigo will be pleased with. Customer Service is critical to retain and perhaps entice, through referral, new customers. Having a good reputation around customer service is vital for growth.
Odigo has a strong pedigree working with companies in Utilities and clearly hopes to expand its presence in financial services. Customers include EDF, Luminous and Malikoff Humanis (a French insurance firm).
