Jim S Miller

Thoughts on the Client Experience and Banking

Bank Loyalty on the Rise According to the 2012 Temkin Customer Loyalty Survey

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The 2012 Temkin Loyalty Ratings show loyalty at banks is on the rise. The Temkin Group report rates 206 companies across 18 industries. Loyalty is based on three dimensions; likely to recommend, reluctance to switch and willingness to repurchase. Sam’s Club (Retailer) and Aldi (Grocery Store) have the highest loyalty ratings, followed by USAA (Bank).

 

The overall score for the banking industry is 36, up 7 points from 2011. Thirteen of the 16 banks in the category increased from 2011, while the score at 3 banks declined.  Loyalty at PNC and USAA increased the most from 2011, while Bank of America and Regions’ scores had the greatest declines.

2012 Score

2011 Score

Change from 2011

USAA

63

39

+24

A credit union

61

43

+18

PNC

54

29

+25

ING Direct

44

33

+11

SunTrust

41

32

+9

Fifth Third

39

26

+13

TD Bank

37

33

+4

Bank Average

36

29

+7

Regions

34

42

-8

Chase

33

27

+6

US Bancorp

33

21

+12

Citizens

33

25

+8

Wells Fargo

31

30

+1

Capital One

27

22

+5

HSBC

19

17

+2

Bank of America

18

27

-9

Citibank

17

20

-3

 

Among the 18 industries included in the study, the loyalty score for banks is the 12th highest (see chart below).  In customer experience (based on a recent transaction), banks rank 5th out of 18 industries. While loyalty and customer experience scores at banks are both up from 2011 (with loyalty increasing faster), banks still have a way to go to regain their customers’ loyalty and trust.  The range of loyalty at banks is greater than any other industry.  Banks are well represented at the top and bottom of the loyalty rankings. This shows that banks with a strong customer focus can achieve high levels of loyalty.

The Temkin Loyalty Ratings are based on consumer feedback of their recent interactions with companies. Consumers were asked to rate three components of loyalty; likely to recommend, reluctance to switch and willingness to repurchase on a 7-point scale. For each component, the percentage of consumers that gave a rating of 1, 2, or 3 is subtracted from the percentage of consumers that gave a rating of 6 or 7. This results in a net score for each of the three components. The overall Temkin Loyalty Rating is an average of the three scores.  Additional details and complete rankings can be found at www.temkinratings.com.

 

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Written by Jim S Miller

April 4, 2012 at 7:04 pm

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