Best Practices and up to the minute news on Customer Experience Management and Service Excellence
Best Practices and up to the minute news on Customer Experience Management and Service Excellence
Last year, the BBC reported “US banks accused of failing public during Covid.” Lawmakers scolded retail bank executives for not providing financial relief to everyday Americans – drawing comparisons to corporate bailouts during the Great Recession.
Politicians aren’t the only Americans who claim big banks struggle to support customers in a rough economy.
J.D. Power polls hundreds of thousands of banking customers annually for its Retail Banking Satisfaction Study. This year, only 44 percent of respondents are pleased with the banking industry’s customer service.
“A customer’s definition of what support from their retail bank looks like is changing rapidly as we enter a new economic cycle,” said Jennifer White, J.D. Power spokeswoman. “The preeminent performance metric with the biggest influence on customer satisfaction is ‘supporting customer during challenging times,’ and that means customers are expecting a personalized mix of financial advice, hands-on help with problem resolution and guidance on how to grow their money.”
Conversely, more than 3 in 5 say “they will definitely not switch banks.” Meanwhile, more than 3 in 4 will “definitely reuse their bank when it delivers this support.”
Repeat business is the best kind. Here are tips on how to provide the best customer service in the banking industry…
Only 12 states in the union require financial literacy courses to graduate from public high schools. Implementing educational materials into the business model is a great way to fill this void. And, hey, it’s good for business.
In fact, customers are more likely to pay for “credit-driven and depository products” when they’re more financially-savvy consumers. Many banking institutions have adopted content teams to create online educational resources. In-house financial advisors and banking staff can teach customers and host open-house workshops and fairs. Open it up to the general public, and you may earn new customers.
During the peak of the global health crisis, many commercial banks provided financial relief programs ranging from waived late and overdraft fees to loan deferrals. That doesn’t mean their customers knew about it.
“Only 61% either do not know or are unsure whether their bank has made any changes to their overdraft fee policy,” J.D. Power’s study says. Community outreach has to be a focus for the business. Traditional marketing methods help get the message out.
But what happens when an unaware and panic-stricken customer calls or storms into a branch? It’s the banking staff that must guide them through the available resources to keep them from taking their business elsewhere.
Clear and concise communication is key. The entire team must be aware of all that can and can’t be done. This leads to the next point. Clear communication requires understanding.
Americans are facing 40-year-high inflation. Prices are rising faster than wages and soaring gas prices and supply chain issues are putting pressure on everyone from the wealthy to the poor. A stressed customer will react to the energy the banking staff puts into a conversation.
Cold and brash replies can be off-putting. Money is a sensitive topic. Bank staff needs to be prepared with the knowledge and resources to help their customers through tough times. As a leader provide your team with the know-how and ask them to show a little empathy and understanding.
Research shows financial stress is at an eight-year high and inflation is at the top of mind for many Americans. Stress from money can lead to physiological responses. When under stress, human beings release cortisol and adrenaline. Those hormones have been noted in academic research for causing higher rates of heart attack and stroke.
With financial stress at an overwhelming level for so many hard-working Americans, it’s important to alleviate conflicts – especially in-person. The best management companies put focus on conflict resolution. Knowing how to cool down heated situations can change the unruly into lifelong customers. Think back to steps No. 1 and No. 3 – show a little compassion, you don’t know what they’re going through.
Show customers they don’t need to jump switch to another bank. Prove dependability. Hear out all of their concerns and find the resources they’re looking for. Ensure every touch point of the bank provides customers a good experience: Hear them out and follow through. Any and every request should be followed through. Be prompt with their requests. Ensure even untimely tasks will be served. Respect is earned from reliability.
The greatest thing about this nation is its resilience. Tough economic times and high-inflationary periods always pass. And when they do, you want those customers who stayed with you through it all.
Copyright © 2025 The Gem - All Rights Reserved.