A report from Forrester claims that for banks, customer experience is a more powerful loyalty driver than price- value perception.
For banks, customer experience is a more powerful customer loyalty driver than price- value perception, according to a new report from Forrester Research.
The report, authored by Forrester analyst Maxie Schmidt-Subramanian, said that customer experience accounts for the majority of loyalty among bank consumers. Price-value perception plays just a small additional part in driving loyalty, she wrote.
"Years of Forrester data across multiple industries confirms the strong relationship between the quality of a firm’s customer experience and the loyalty of its customers," reads a portion of the report. "But even we were surprised to see how much more important customer experience is than price-value perceptions when it comes to driving loyalty."
Schmidt-Subranian said banks need to take several factors into consideration in this regard. Firstly, she wrote that price becomes irrelevant if a product or service doesn't meet a customer's needs.
Also, Schmidt-Subramian notes that creating enjoyable interactions for customers also often outweighs pricing considerations. For example, she writes, one reason customers chose credit unions over banks is because of their helpfulness and trustworthiness...
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