Navigating How To Win With US Banking Customers

Recently, Forrester released a report entitled “What Drives Retention and Sales In US Banking?” that tackles this question from the consumer point of view. Using regression analysis, we uncover how these drivers vary for acquisition, retention, and cross-selling in US retail banking.

What did we find? For one thing, consumers value trustworthiness from a bank above all else for both sales and retention. This comes as no surprise to us; with so many financial institutions to choose from, consumers want to do business with a bank that they trust. This finding also supports the key theme that Harley Manning and Kerry Bodine focus on in their recent book, Outside In: Treating your customers well and providing them with a positive customer experience pays off.

The graphic below shows the drivers of retention for the US retail banking customers: The perception of trustworthiness is off the charts as a driver of retention, and offering good customer service is the second-most influential driver. What our analysis shows to not impact retention — and even shows a negative relationship with retention — is having low APR and many locations.

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For Consumers, ”Being Online” Is Becoming A Fluid Concept

Consumer behavior is changing even more rapidly than you might think. In the past couple of weeks, my colleague Samantha Jaddou and I have been analyzing the data for the US version of our annual global series, “Understanding The Changing Needs Of Consumers.” We are seeing not only a decline in the number of US consumers with a computing device (a PC, laptop, or netbook) but also a drop in the amount of time that consumers spend on traditional media like watching TV (on a TV) or reading newspapers or magazines.

One of the biggest revelations in this year’s data was the change in attitude of consumers — particularly younger ones — toward the Internet. Since we started tracking this information in 1997, we have only seen the amount of time spent online increasing. But Forrester’s 2012 data shows that US online adults are now reporting a decline in the amount of time they spend using the Internet compared with 2011 and 2010.

What’s going on? Our analysis revealed that “being online” is becoming a fluid concept. Consumers no longer consider some of the online activities they perform to be activities related to “using the Internet.” In fact, given the various types of connected devices that US consumers own, many people are connected and logged on (automatically) at all times. The Internet has become such a normal part of their lives that consumers don’t register that they are using the Internet when they’re on Facebook, for example. It’s only when they are actively doing a specific task, like search, that they consider this to be time that they’re spending online.

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