Boston-based Eastern Bank has ranked highest in customer satisfaction in New England for its performance in account information, activities and fee factors.
The J.D. Power and Assoc. 2010 U.S. Retail Banking Satisfaction Study released today found customer loyalty and perceptions of brand image among retail banking customers continue to decline, while satisfaction has leveled off.
The study found overall satisfaction of retail banking customers averages 748 on 1,000-point scale in 2010–a slight decrease from 749 in 2009. Eastern Bank received a score of 787 out of 1,000 for performing well in the account information, account activities and fees factors.
Connecticut-based People’s United Bank and Webster Bank also ranked high in the New England Region, with scores of 771 and 761, respectively.
The percentage of customers who said they "definitely will not" switch banks during the next year has decreased significantly during the past three years to 34 percent in 2010, compared with 46 percent three years ago in the 2007 study.
Poor customer service – the most common reason given for switching banks – is cited by 37 percent of customers who changed their primary bank in 2010. Performing simple service acts, such as such as greeting customers as they enter the branch, offering additional assistance, and thanking them for their business, may increase overall satisfaction by nearly 50 index points, yet less than 60 percent of customers report experiencing them.
"As retail banking customers become considerably less loyal, banks need to focus on getting the fundamentals right," said Michael Beird, director of banking at J.D. Power and Assoc. "Banks that get back to the basics – such as maintaining a clean branch and greeting customers upon entering – may help to alleviate some of the distress customers are experiencing and increase their overall satisfaction."
Fees continue to have a major impact on customer loyalty, as 29 percent of customers who switched banks in 2010 cite high fees for products or services as their reason for switching.
Use of remote banking options is becoming increasingly common, with 51 percent of customers in 2010 indicating a preference for online banking, an increase from 45 percent in 2008. In addition, 7 percent of customers report using a mobile device to execute such transactions as checking balances, transferring funds and paying bills.
The study analyzed customer satisfaction with the retail banking experience based on six factors: account activities; account information; facility; fees; problem resolution; and product offerings. The study is based on responses from nearly 48,000 respondents regarding their experiences with their banking provider. The study was fielded in January and February.
