Financial incentives related to switching banking providers have been well-publicised across the UK. However, new research suggests that for many UK consumers, a positive customer experience ranks as a higher priority, leaving many happy to simply stay put.
In fact, good customer service is the main reason that around 40 per cent of UK consumers stay with their current banking provider; European customer service software provider Odigo has revealed. The importance of feeling valued by their bank was also highlighted as it revealed that 47 per cent realise they miss out on better financial service deals by not switching.
The findings show that amid ongoing financial constraints, around 19.4 million UK adults consider good customer service at least as equally as important as financial savings.
This comes as financial expert and consumer champion Martin Lewis recently claimed that anyone with a bank account risks losing around £200 by not switching now. However, the Odigo research shows that 35 per cent of consumers believe they don’t lose money by staying with their current provider; while 40 per cent of consumers also cite strong reputation and trust as another key reason to stay with their banks.
At the other end of the spectrum, poor customer experience was named as one of the top reasons to swap providers by 35.7 per cent of consumers. Around 37.4 per cent named better interest rates as a reason to stay.
‘Good customer service is still king’
Vincent Lascoux, chief customer success officer at Odigo, offered his take on the findings: “The research has spoken – despite the financial challenges and difficulties faced by consumers, good customer service is still king when it comes to retention.
“Whilst banking providers should continue using financial benefits, such as cash incentives and better-saving rates, to encourage customers to switch, as part of their strategy, this must not come at the expense of a positive experience for their existing customers.”
As banks continue to focus on digitally innovating their offerings and processes, they cannot afford to let the quality of their customer service drop. Instead, they must look at investing in platforms such as chatbots, website updates, and social media reactivity to ensure they are meeting customer expectations.
Investing in customer service is especially important for incumbent banks that are facing increased competition from challengers, such as Monzo and Starling Bank who ranked at the top of the Competition and Markets Authority (CMA) and Which? customer satisfaction rankings.
