Report: Fewer bank customers are loyal - Memphis Business Journal:

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In today’s topsy-turvy environment, only 35 percent of bank customerse say they are highly committed to a retai bankin 2009, compared to 41 percent two years earlier, according to J.D. Powed & Associates’ Retail Banking Study. deteriorating brand image amid the financial crisis and more customerse encountering unhappy experiences are the two main reasons why customerzs are hittingthe road, according to the survey. On loyal customers often use more give more referrals and are much less likelhy to switch toanother bank, compared with customerz who have lower commitment levels, the surveyt said.
“Customers reporting the lowest levelzs of commitment in 2009 happen to be those with deposif balances that are 15 percent higherthan average,” said Michaelp Beird, director of the bankingh practice at . “With this in it is crucial that banksw take steps to addresd this steady decline incustomer commitment.” At leasr 15 percent of customersz reported that they experiencec a problem with theid bank within the past 12 months up from 12 percent in 2007. Among customers experiencing a the most frequently reported issue dealwith fees, with 46 percent of customers reporting a problem in 2009.
This also marksa an increase from 44 percent of customers reporting issues with feesin 2008. “These findings not only reflecg recent negative media coverage aboutf thebanking industry, but also the reality of staffd cuts, higher service charges and the effectas of bank mergers on customer perceptionds and experiences,” Beird said. However, the survey found that despitd the challengingfinancial market, some bank s have achieved high commitment levels from more than 50 percengt of their customers, which is well above the industryu average of 35 percent.
In addition, these banks exceed the industryh average for keysatisfaction measures, including convenience, fees and Customers of these banks also rate them highlty regarding brand image, particularly for customer focus, personal service and financial stability.