One of the major reasons customers close an account or service is because of a poor customer experience. According to the Q4 2015 Nielsen Financial Track Survey, only 60% of customers said they would be very likely to positively recommend their primary financial service provider—leaving 40% of your customers at risk of switching to a competitor. This makes understanding your customers’ experience and interactions with your financial organization critical to your customer acquisition and retention strategy.
In the financial industry, migrating lower-value activities to lower-cost channels in order to improve profit margins remains a key operational trend. The basics of retrieving account information, transferring funds, and paying bills are all banking interactions moving toward digital channels. That’s because they don’t require the physical exchange of money and/or the confidence of a personal interaction.
That said, however, research shows that physical locations are still critical points of distribution for many financial interactions. Therefore, understanding the consumers and trends in each trade area is critical—for evaluating locations, the products/services offered at each location, and the type of support provided at each location—to be successful.
Physical locations, and the personal interaction they offer, provide the comfort that consumers need and help build loyalty for the brand/ financial institution. Activities such as opening deposit accounts, cashing and depositing checks, seeking financial advice, and even resolving problems/asking questions, are still heavily reliant on in-person interactions.