LOSING CUSTOMERS - KEEPING CUSTOMERS

THE TYPICAL RETAIL BANK HAS A CONSTANT TURNOVER OF CUSTOMERS PRIMARILY DUE TO OUR MOBILE SOCIETY BUT ALSO DUE TO VARIOUS FORMS OF CUSTOMER DISSATISFACTION. IN A TYPICAL 20 MONTH PERIOD, THE AVERAGE BANK LOSES ANYWHERE FROM 30 TO 50 PERCENT OF ITS CUSTOMERS CREATING LOSSES FROM LOSS OF DEPOSITS, LOSS...

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Bibliographic Details
Published in:ABA banking journal 1975-10, Vol.67 (10), p.92
Main Author: Person, Robert J
Format: Magazinearticle
Language:English
Subjects:
Banks
Customer services
Customers
Retail
Turnover
Word of mouth advertising
Online Access:Get full text
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Summary:THE TYPICAL RETAIL BANK HAS A CONSTANT TURNOVER OF CUSTOMERS PRIMARILY DUE TO OUR MOBILE SOCIETY BUT ALSO DUE TO VARIOUS FORMS OF CUSTOMER DISSATISFACTION. IN A TYPICAL 20 MONTH PERIOD, THE AVERAGE BANK LOSES ANYWHERE FROM 30 TO 50 PERCENT OF ITS CUSTOMERS CREATING LOSSES FROM LOSS OF DEPOSITS, LOSS OF POSSIBLE CROSS-SALES, AND LOSS OF WORD OF MOUTH ADVERTISING. OBVIOUSLY IT IS TO THE ADVANTAGE OF ANY BANK TO KNOW THE REASONS WHY PEOPLE CHANGE BANKS. CONVENIENCE HAS LONG BEEN KNOWN TO BE THE GREATEST SINGLE FACTOR, BUT A RECENT STUDY SHOWS THAT A SIGNIFICANT NUMBER OF PEOPLE CONSIDERED OTHER THINGS BESIDES CONVENIENCE, INCLUDING REPUTATION AND LEVEL OF SERVICE CHARGES. IN SOME INSTANCES THESE OTHER FACTORS WERE JUDGED IMPORTANT ENOUGH TO OUT-WEIGH CONVENIENCE. OF THE REASONS LISTED WHY PEOPLE GREW DISSATISFIED WITH THEIR BANK, 35 PERCENT OF THE REASONS WERE AREAS UNDER THE CONTROL OF THE BANK INCLUDING 20 PERCENT FOR POOR SERVICE, 10 PERCENT FOR SERVICE-CHARGES, AND 5 PERCENT FOR LOAN RELATED PROBLEMS.
ISSN:0194-5947
0005-5492
2161-5101