Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

BANKING BUCKS THE TREND TO IMPROVE CUSTOMER SATISFACTION IN 2013 BY USING CUSTOMER SERVICE TO REBUILD LOST TRUST

  • Banks and Building Societies the only sector to improve customer satisfaction during 2013
  • ‘Professionalism’ and ‘problem solving’ metrics higher in this sector than any other
  • First Direct has the highest customer satisfaction score in the sector – 86.6
  • Satisfaction closely correlated to loyalty and recommendation
  • 60 percent want a balance of good service at a reasonable cost
  • Customer service identified as a key way of rebuilding trust

The Banking sector, despite dominating the headlines throughout 2013 for a litany of customer service crises, was revealed as the only sector to record an increase in customer satisfaction in the UK Customer Satisfaction Index (UKCSI), scoring 0.2 points higher than it did in 2012.

Jo Causon, CEO, Institute Of Customer Service
Jo Causon, CEO, Institute Of Customer Service

The research, carried out by the Institute of Customer Service, involved more than 12,000 interviews with consumers about their customer experiences. During these interviews customers gave insight into 181 of the UK’s leading brands across 13 different sectors. First Direct was awarded the best customer satisfaction score of 86.6 for the sector in 2013, followed by the Co-operative Bank (86.4) and Tesco Bank (83.0).

But despite the slight improvement in its score, banking and Building societies was only eighthbest sector for customer satisfaction and with an overall UKCSI score of 78.1, currently just one point above the average (77.1). It scored higher than the all-sector average for professionalism and problem solving, demonstrating how the skills of customer facing bank and building society staff are at the front line of the battle to improve the reputation of the sector.

Jo Causon, CEO, Institute of Customer Service, comments:

“The banking sector has some way to go to regain customers’ trust, which has been eroded in recent years. Focusing on serving customer needs and improving the customer experience are tangible steps banks can make to rebuild trust.

“There are big differences in the satisfaction ratings of individual banks and building societies. Our research shows that the organisations that score highest in UKCSI achieve the highest levels of trust, customer retention and recommendations to others – very important aspects for a sector that expects customers to entrust it with their life savings and mortgages.

Eight organisations from the banking sector scored below 80 points, with Bank of Scotland receiving 74.2 points, the lowest score in the sector. Four organisations increased their score by more than one point, Halifax, Lloyds, Santander and relatively new entrant to the index, Tesco, whereas five registered a drop of more than one point.

For the first time since UKCSI began in 2008 each interview included questions about the balance of price and service. When asked whether they would prefer good customer service or a good price, 60 percent revealed they would not be prepared to sacrifice customer service for a better price and preferred there to be a balance of the two. Just under a quarter of people (24 percent) are looking specifically for excellent service and are prepared to pay a premium for it, leaving around 16 percent of people who would sacrifice service for a lower price.

More than three quarters of people who had a problem (76 percent) reported it to the organisation in question. Also, surprisingly considering the increase in the use of social media, only 0.4 percent of people contacting a bank or building society about a problem used social media, the lowest proportion of any sector, compared to 59 percent who did so via telephone. Satisfaction with the handling and final outcome of these complaints fell slightly between 2013 and 2014 to 4.9 out of 10 from 5.4.

Jo Causon adds:

“In an era of increasing regulation and competition in the banking sector, organisations which focus on building long-term relationships with their customers are well placed to achieve sustainable business success, which will benefit them and the economy as a whole.