Customers Want to ‘Experiment’ With Bank Products

It’s all about customer-centric banking these days, and many banks manage to successfully maintain positive relationships with consumers. So why are those banks still losing customers?

A recent study by Forrester, a business management consultancy, suggests that a significant sector of consumers may just be bored of the bank’s same-old offerings and ready for new products.

Forrester identifies five U.S. customer segments based on consumer technology adoption and buying behavior: Progressive Pioneers, Savvy Seekers, Convenience Conformers, Settled Survivors, and Reserved Resisters.

According to the study:

  • Convenience Conformers, Settled Survivors, and Reserved Resisters would fit the relationship assumptions baked into banks’ current business model.
  • Progressive Pioneers and Savvy Seekers would not. It’s important to note that Progressive Pioneers and Savvy Seekers represent an average of 38% of the surveyed population, and that percentage continues to grow.

In the US, the average age for Progressive Pioneers is 35 with an average salary of $87,000
(highest among the segments). The average age for Savvy Seekers is 39 with an average salary of
$66,000 (third highest across segments). Forrester surveyed 60,049 US online adults for the study.

Furthermore, among the surveyed:

  • Only 50% of bank customers are willing to keep their existing level of business with their bank.
  • Only 59% of bank customers are willing to purchase additional products or services, meaning 41% are not. ›
  • Almost half of Progressive Pioneers indicate they are likely to switch banks in the next year.
  • 21% of Progressive Pioneers have closed a bank account in the past three years

Emotional attachment, according to Forrester, is essential for a strong customer relationship with that 38% segment. More information is available here.

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