Bank customers looking to switch cut in half

The survey from The Grass Roots Group, the employee and customer engagement solutions provider, of more than 2,300 UK consumers found that those looking to switch banks had fallen considerably from the 24% in 2012 despite the seven day switching legislation being introduced in 2013.

However, the research found that three quarters of customers felt their bank doesn’t know them as an individual.

There was only a 4% rise in customer engagement since 2012, based on an average scoring of satisfaction, loyalty and advocacy.

The survey highlighted those that have made strides in the right direction with customer engagement – Santander, First Direct and Nationwide all scored highly on customer service, trust and product offerings, which in turn meant they were voted the top choices for customers looking to migrate.

Adam Goran, divisional director for customer engagement at The Grass Roots Group said: “A seamless communication strategy can drastically improve the customer experience, as customers will feel personally recognised, no matter who they speak to and whatever channel they use to interact with the bank. Despite there now being a smaller group of potential new customers, the majority of banks are still failing to offer the right kind of joining and loyalty incentives that customers really want.”

He said more than 60% of consumers named cash-back rewards as the most desirable incentive, but cash-back alone does not create brand advocates and build lasting relationships.

The research was carried out by The Grass Roots Group from December 2014 to January 2015, with 2,371 UK consumers surveyed.