In Search of Customers Who In Love With A Bank
- Super User
- Industry insights
It’s no secret that banks are under attack from many quarters. Insurgents have been attacking the weak points—picking off individual aspects of the banking experience and delivering better value propositions. In payments, for instance, nonbank providers have become strong and even dominant in many countries, including Brazil, Hong Kong, Germany and India. Unless banks sharply improve the convenience and quality of the experience, insurgent competitors will continue to gain converts and win new customers.
Loyalty stems from how well banks deliver value as perceived by consumers, which companies can measure through 30 Elements of Value®. The elements that have the greatest impact on loyalty in banking are quality, followed by saves time, reduces anxiety, simplifies and heirloom (a good investment for future generations). As the number and clout of challenger banks and technology firms grow, traditional banks find their interactions and engagement with customers diminishing. When disruptors nibble away at payments-related products, for instance, banks lose not only direct profits, but also frequent customer engagement and valuable transaction data.