hnwi
Why the private bank has got to
keep the customer satisfied
Alan Shields says the key to success for any organisation lies in its customers. And it has never been more true
than in today’s uncertain and volatile economic environment.
W
e all know that customer
satisfaction is important
and that organisations
these days are all about exceeding
customer expectations. But what does
this really mean? Satisfied customers
are likely to share a good experience
with a handful of people who probably
won’t remember the conversation. On
the other hand, unsatisfied customers
will share a negative experience
with an average of 12 people, who in
turn will each share it with another
12 people. You can do the maths that’s a lot of negative word of mouth
stemming from just one dissatisfied
customer.
The ultimate objective of customer
satisfaction is customer loyalty and
customer retention. As we have just
said, a satisfied customer is likely
to share their good experience
with others, fostering a sense of
“repatronage” and loyalty towards
that organisation. However, a
business that focuses only on
meeting customer expectations
will remain undifferentiated from
its competitors in today’s economic
climate. Long-term customer loyalty
calls for organisations to go beyond
merely meeting expectations to
exceeding customer expectations.
An organisation needs to identify
the drivers of satisfaction and utilise
these to establish ties of loyalty that
will provide it with a competitive
advantage.
Loyal customers
Private banks ultimately depend
on satisfied, loyal customers; and
Australia’s private banking clients are
not all happy. RFi’s March 2012 survey
of 500 private banking clients found
that average overall satisfaction with
PROFESSIONAL PLANNER
How satisfied are you with your primary private bank/wealth management institution?
Source: RFi private banks had decreased to its
Shift into overdrive
lowest level since March 2011 and its
At the other end of the spectrum,
second-lowest level in three years. So
clients are feeling least satisfied with
We tested 21 attributes, and the results are in: clients feel lukewarm about their primary private bank.
how can a private bank strengthen
social aspects such as “invitations
On
reportedRFi
thehad
highest
provided by their
theaverage,
ties that clients
drive loyalty?
an satisfaction levels with theto“confidentiality”
events” and “opportunities
to
in-depth
look
at
client
satisfaction
network”
with
other
like-minded
private banks, followed by attributes such as “statements and reporting” and “having a dedicated point
and
identified the drivers that matter
people. So, does this mean that private
of
contact”.
in today’s private banking market.
banks should shift their marketing
We
tested
21
attributes,
and
the
into overdrive
and such
start as
organising
At the other end of the spectrum, clients are feeling least satisfied with
social aspects
results
are
in:
clients
feel
lukewarm
networking
events
for
their
“invitations to events” and “opportunities to network” with other like-minded people. So, does thisclients?
about their primary private bank.
Well, not quite.
mean that private banks should shift their marketing into overdrive and start organising networking
On average, clients reported the
It turns out that these attributes
events for their clients? Well, not quite.
highest satisfaction levels with the
are not all that important in the big
“confidentiality” provided by their
scheme of things because they don’t
It turns out that these attributes are not all that important in the big scheme of things because they
private banks, followed by attributes
drive overall satisfaction. And, perhaps
don’t drive overall satisfaction. And, perhaps surprisingly, neither do the attributes that received the
such as “statements and reporting”
surprisingly, neither do the attributes
highest
satisfaction
levels.point
RFi identified
“the level and responsiveness
of servicethe
received”
and “having
a dedicated
of
that received
highestand
satisfaction
“understanding
of financial needs” as the key drivers that really make
private
banking clients
excited.
contact”.
levels.
RFi identified
“the level
and
responsiveness
of
service
received”
This suggests that in a market where the products and services are less differentiated, the client
and “understanding of financial
experience is critical in driving overall satisfaction.
needs” as the key drivers that really
make private banking clients excited.
Alan Shields is …
This suggests that in a market where
the products and services are less
differentiated, the client experience is
critical in driving overall satisfaction.
“
The ultimate
objective of
customer
satisfaction
is customer
loyalty and
customer
retention
5.61
MAXIMUM SATISFACTION LEVEL,
OUT OF 7, ACHIEVED BY PRIVATE
BANKS - IN SEPTEMBER 2009
Alan Shields is a director of RFi www.rfintelligence.com.au