Customer engagement has never been more important for banks.
A recent study showed that Washington Mutual (failed and acquired) and Wachovia (acquired with assistance from the FDIC) shared more poor financial performance common: their customer engagement declined throughout 2008. During this time, customers perceived reductions in service reliability and customer care, and they felt more stress and worry about the future. Together, their poor financial performance and declining customer engagement turned into a snowball rolling down the hill.
Few banks are engaging their customers. Last week, 0% of the top 10 global banks were using their Websites to engage customers. Here’s what the top 20 global banks are saying about the market crisis this week:
- 90% – Are saying nothing about the crisis. Most are not addressing the crisis at all, and instead are promoting checking accounts, loyalty programs, etc. This “head in the sand” approach is not good for banks or their customers.
- 10% – Are inviting customer engagement. For example: “Protect your financial future,” and “Facing financial hardships? We may be able to help.” These are steps in the right direction.
Banks don’t need anymore headwinds than they already have. Engage your customers, or risk becoming a snowball rolling down the hill. If your bank doesn’t engage your customers, someone else will.
2 responses so far ↓
1 Mary Knox // Oct 22, 2008 at 1:57 pm
The firm I’ve used to manage investments is using their web site to reach out, offering to help their customers through troubled times — but since they themselves have failed and been acquired by another firm, their credibiity in terms of investment advice is not too good. Every time I access their web site and see their banner offering to help me, I have a negative, cynical reaction. I don’t know the answer of how they can go about this, but banks need to re-establish credibility
2 Rick DeLotto // Oct 23, 2008 at 10:00 am
Kristin and Mary—
Rick DeLotto here, logging in from the road on a day off. Concur your analyses—my “personal bank” has a nice article from Barrons saying how strong they are, and a reminder that their deposit customers get a free credit watch service. I think adding a nice little section on “What is FDIC Insurance?” explaining the new, expanded coverage would be quite soothing—even if it raises an issue that banks don’t want their customers to think too much about.
As it is, one needs a magnifying glass and a good monitor to see it.
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