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Strong customer experience can pay off big for banks, reveals study

January 10, 2019

U.S. retail banks can see a big boost in deposits if they can boost their customer experience, according to a Kantar analysis.

The firm reports the deposit share boost can be as high as 16.5 percent, according to a press release on the study, and said growth is based on five key factors: clarity of brand promise, empowered employees, empowered customers, creating lasting memories and exceptional delivery.

Retail bank USAA topped the study’s rankings based on its ability to deliver superior customer experience in line with its brand promise. Regions Bank, Chase, BB&T and Citizens Bank made up the remainder of the top five performing retail banks. 

"Our analysis clearly shows retail banks can achieve exceptional financial growth through superior customer experience that is matched with a strong brand promise.  This requires a deft combination of human empathy and personalization, to engage consumers and meet their needs and expectations. Focusing on customer experience is the single most important investment a bank can make in today’s competitive business environment," said Erika Pearson, executive vice president, customer experience at Kantar, in the release.

Other findings include:  

• Banks that lead in the CX+ Index have a recommendation rate that is 1.9 times higher than banks at the lower end of the index.
• Banks that let their customer experience decline risk losing up to 12.5 percent of their share of deposits.

The Kantar CX+ study analyzed 6,000 retail banking customers in the U.S. and was conducted in 2018.