The financial services sector has been investing heavily into improving its customer experience. However, by taking a closer look at advocacy and satisfaction scores, there is a deeper emotional disconnect with how customers want to experience their main bank.
The latest research by Maru Group shows that various customer metrics reveal a deeper disconnect with how customers want to experience their main bank. By using their unique System 1 software capabilities rooted in behavioural science, the results came out saying that only 1% of unhappily loyal customers would definitely switch their bank in the next 12 months, while 62% would choose a different bank if they were able to start over again. The figures highlight the disconnect between stated loyalty and the true feelings driving behaviour.
The say/do gap
Unhappily loyal customers are only staying in their main bank because of fear or general inertia. This poses a major risk for retail banks as disengaged customers are not looking to purchase any wider financial products, which leads to loosing numbers in their customer base and low profit.
The 6 out of 10 unhappily loyal customers hold significantly fewer additional products. They were also 24% less likely to consider their current bank for future financial products. Without this additional revenue, the ‘zombie’ customers will be costing the banks more to service their current account needs.
Loyalty metrics fail to measure the difference between happy and unhappy
The Net Promoter Score, a popular CX metric used to monitor CX performance, can contain hidden subsets of unhappily loyal customers. Between the happy and unhappily loyal customers, the results revealed a 42-point gap. This signals an apparent need to re-engage with a significant portion of the customer base or have a pool of dormant customers acquired by competitors.
While all banks see some movement in a customer reset, only two manage to achieve a net gain, thanks to the most behaviourally loyal customers. The significant loss of customers is seen with banks of unhappily loyal customers, including some major high street brands.
Building a positive emotional connection
The emotional signature of unhappily loyal customers differs immensely from loyalists. Their actual and intended uptake of additional products is lower, with only inertia preventing them from switching banks. Unhappily loyal customers characterise the basic day-to-day relationship with their bank as one-sided, dominant, or co-operative at best. On the contrary, loyal customers feel they have a closer partnership with their banks, perceiving it as stimulating and actively improving.
Now more than ever, brands have to look past stated attitudes of what customers think, and look for the deeper emotional drivers of how customers really feel. Understanding these hidden feelings can serve as a vital tool in both protecting the customer base and growing the portfolio being used.
