Who said millennials are not brand-loyal?
A new study by J.D. Power, released yesterday, found that banks are currently enjoying strong advocacy and loyalty from their customer base. From the study:
Since the financial crisis, customer satisfaction with financial institutions has reached record highs. The improvement is visible across a variety of metrics that track customer loyalty, bank reputation and repeat usage. Even after widespread news about the Wells Fargo scandal, 82% of retail bank customers say they trust their bank to do the right thing and just 4% do not think their bank acts ethically.
The special report is based on insights and analyses of more than 83,000 consumer responses and interviews derived from J.D. Power syndicated studies.
The study utilized a variety of metrics that track customer loyalty, bank reputation, and repeat usage, and found that those measures of loyalty have been steadily increasing since 2012.
That trust wasn’t shaken by the recent events surrounding Wells Fargo, with only 4% of respondents saying that their bank does not act ethically.
The study also found that sales pressure from banks may increase customer loyalty in the short term, but harm the overall relationship in the long term.
“As we continued to dig deeper into the issue, it became clear that an intense sales culture at some banks may indeed be driving short-term growth, but it can erode loyalty and lead to a loss of future revenue. Banks must foster a customer-centered culture where they focus on meeting needs and providing relevant advice rather than just selling the next account,” said Jim Miller, senior director of retail banking services at J.D. Power.
Full report is available here.