January 23, 2012
Customer Service Levels Improve but Banks Have a Long Way to Go to Rebuild Relationships, According to Accenture Survey in UK and Ireland
Customer switching declines from 16 percent to 11 percent in the last year
LONDON; Jan. 23, 2012 - Customer satisfaction with service levels in retail banking has improved over the past year but customers are less likely to recommend their provider, according to a new Accenture (NYSE:ACN) survey of nearly 4,000 current account customers in the UK and Ireland.
In Great Britain in particular, the survey showed that the number of current account customers that are satisfied with their bank has risen from 56 percent to 60 percent in the last year. At the same time, the number of customers complaining about their bank was down from 17 percent to 13 percent, and more customers were satisfied with the complaint handling process (up from 34 percent to 39 percent).
Despite these improvements, the survey showed that the number of British customers who would recommend their bank to family and friends has fallen over the past year from 61 percent to 47 percent. Moreover, less than half of the customers surveyed believe their bank to be transparent and fair (43 percent) or providing good value for money (43 percent).
“These results show that the banks’ efforts to fix underlying service issues and engage better with their customers are working,” said Peter Kirk, author of the research, and head of Accenture Banking Distribution and Marketing Services in the UK and Ireland. “However, while customers may think their own bank is doing a decent job, the banking industry as a whole still has a long way to go to rebuild its reputation and win back the advocacy of its customers.
“In order to rebuild relationships, banks need to invest more in improving customer service, including meeting the demands of the changing consumer – especially young people, who want to be able to do their banking when it suits them by using digital channels, such as online, mobile and social media. They should also look at rewarding customers through loyalty schemes.”
Customer Switching Declines
The survey showed that switching levels among banking customers declined in 2011. Only 11 percent of respondents across the UK and Ireland said they had recently switched one or more products from their existing bank, compared with 16 percent a year ago.
Six percent switched their current account - a key issue identified by the Independent Commission on Banking. Of those customers, 23 percent experienced problems with the process but a large majority said switching was worth it, and 75 percent said they were pleased to have switched. Of those who did not switch their main current account, 90 percent had no desire to change providers; and of the remaining 10 percent who wanted to switch but did not do so, half thought the process would be too risky and more than one-third thought it would take too long.
“With nearly a quarter of those switching their current account still experiencing problems, the industry certainly needs to tackle the shortcomings in the system to create fluidity in the market,” Kirk said. “However, there is also a clear problem that customers perceive the switching process to be overly cumbersome, which does not necessarily match reality, and this needs to be addressed.”
Accenture Banking Distribution and Marketing Services, a business service within Accenture’s Financial Services operating group, serves more than 100 banks worldwide.
Accenture commissioned an online survey of 3,873 current account customers in Great Britain, Northern Ireland the Republic of Ireland completed in October 2011. Among the respondents, 2,537 were from England, 171 from Northern Ireland, 662 from the Republic of Ireland, 301 from Scotland and 202 from Wales. Accenture’s 2010 survey, also conducted online in October, was of 2,524 current account customers in Great Britain, Northern Ireland the Republic of Ireland. Among the respondents, 1,806 were from England, 350 from Northern Ireland and Republic of Ireland, 193 from Scotland and 175 from Wales.
Accenture is a global management consulting, technology services and outsourcing company, with more than 244,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com.
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