Customer experience beats price when it comes to loyalty

Recent research has found that customer service is more important than price.

Recent research by Aspect found that the standard of customer service is the highest influencing factor for almost four in ten (38 per cent) consumers when choosing a bank. Price came in second with a quarter (25 per cent) of people.

Mark King, Senior VP Northern Europe & Africa at Aspect, says: “Consumers regard customer service to be a more important influencing factor when choosing a bank rather than a retailer or insurer. This is due to the tendency for consumers to have a closer and more personal relationship with their bank, making them more loyal and less likely to switch to a competitor like they may do with an insurer or retailer. However, aggregators such as MoneySupermarket.com, which offer price comparisons, are making it easier for consumers to make the switch.”

Previous research from Accenture found that more than a fifth of shoppers had swapped their regular retailer for a rival in the past twelve months and 14 per cent had swapped banks. In a similar study, Aspect’s research asked UK consumers how satisfied they were with the customer service from their banks and insurers. Almost half (48 per cent) claimed to be dissatisfied with their banks, with 43 per cent having considered switching. Of these, 8 per cent actually moved banks.

Aspect also discovered that poor customer service from banks and insurers affects cross-selling and up-selling opportunities, resulting in loss of customers.

King continues: “When consumers were irritated with banks, these irritations originate from the contact centre. However, despite misgivings in some areas for banks and insurers, this was more likely to affect insurers in customers switching providers. Firms need to adopt more efficient technologies, processes and training in order to improve customer service. Whilst many firms already embrace these measures, further progressions must be made to improve customer loyalty.”