ST. LOUIS, Mo. — A recent NewGround white paper finds that the key for financial institutions creating a successful relationship experience is found in strategy and staff.
"Ninety-five percent of respondents admitted that they have a traditional retail delivery model, despite the fact that the market is shifting to an experiential paradigm. Consumers are experiencing a major disconnect between what they want and expect from their financial institution, and what the financial service industry is providing," said Kevin Blair, president/COO of design/build retail services firm NewGround.
Building on the findings of The Relationship Experience, a new BAI study launched in partnership with NewGround, SAP, Accenture, Unisys, ARGO Data Resources and Strategic Horizons, the NewGround paper reveals that more than 95% of participants have considerable misalignment in the perceptions of their retail delivery strategy across their organization.
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"Our survey revealed that many financial institutions lack a clear insight as to what kind of value proposition they currently offer their customers, and what their customers want from them. Understanding these views and expectations is a critical step in creating and providing a relationship experience," said Blair.
According to NewGround, a crucial factor in developing more effective relationships with customers is senior management and frontline staffers alike having a shared, cohesive vision of their retail delivery approach and how to go about delivering it. While the industry seems to agree with NewGround's assessment, few organizations are following it through with frontline staff.
Nearly all participants–more than 93%–indicated that frontline positions require a combination of customer relationship and sales skills to succeed, while only 33% say they currently incorporate formal training or relationship management. And 79% say that their frontline staff lacks the skills or the access to utilize the basic customer relationship information that would allow them to retain and grow relationships.
Findings show that 20% of customers are "loyal" or extremely satisfied with their primary bank relationship, while one in four are positive about it, and 55% of those customers would qualify as hesitant or at risk of leaving. The survey also found that customers who are the most loyal to their financial institutions are also the ones that are less sensitive to pricing, putting a premium instead on "excellent customer service" and "warm, enthusiastic and friendly employees."
"Financial institutions that can successfully align their goals for the organization's brand, place and culture and can articulate and deliver this vision to their customers will have a greater competitive advantage that will result in larger deposits and cross-sales, and more satisfied and loyal customers," said Blair.
Here is a look at other survey findings:
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