Jim S Miller

Thoughts on the Client Experience and Banking

Satisfaction with Branches Offsets Decreasing Satisfaction with Bank Fees

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JD Power and Associates 2012 US Retail Banking Satisfaction Study

Despite increasing dissatisfaction with fees, overall customer satisfaction is up slightly from 2011, according to the J.D. Power and Associates 2012 U.S. Retail Banking Satisfaction Study. A one point increase in the J.D. Power satisfaction score is primarily due to higher satisfaction in areas such as banking facilities, account activates, and problem resolution.

Chase in Florida achieved the greatest increase in the J.D. Power study with an improvement of 56 points over 2011, followed by Prosperity Bank in Texas, up 53 points. TCF Bank in the Midwest Region had the steepest decline, dropping 52 points this year, followed by Citibank in Texas, down 41 points. The survey shows customer satisfaction heading in different directions at some of the largest banks. Bank of America is in last place in six of eleven regions and their scores declined from 2011 in ten out of eleven regions. Meanwhile, Chase’s scores improved in all ten regions in which they are included, with scores going up between 9 and 56 points. Satisfaction with PNC also increased in all four of their regions, with scores improving by between 11 and 27 points. PNC is also the winner in Florida.

2012 Winners and Losers by Region

California

Winner: Rabobank

Last Place: Bank of America

Florida

Winner: PNC Bank

Last Place: Bank of America

Mid-Atlantic

Winner: Northwest Savings Bank

Last Place: Bank of America

Midwest

Winner: Commerce Bank

Last Place: TCF National Bank

New England

Winner: Rockland Trust Co.

Last Place: Citibank

North Central

Winner: Independent Bank

Last Place: Bank of America

Northwest

Winner: Banner Bank

Last Place: Bank of America

South Central

Winner: Arvest Bank

Last Place: BBVA Compass

Southeast

Winner: First Federal

Last Place: Bank of America 

Southwest

Winner: Arvest Bank

Last Place: BBVA Compass

Texas

Winner: Frost National Bank

Last Place: Citibank

Ten Most Improved Banks (vs. 2011)

Bank Name                                         Region                     Change

Chase Bank                                         Florida                                 +56

Prosperity Bank                                 Texas                                    +53

US Bank                                               South Central                    +38

New York Community Bank           Mid-Atlantic                       +38

First Niagara Bank                            Mid-Atlantic                      +36

TD Bank                                              Florida                                +35

Fifth Third Bank                                Southeast                           +32

Regions Bank                                     Texas                                   +31

Webster Bank                                     New England                     +31

Arvest Bank                                        South Central                    +28

 

Ten Banks with Steepest Declines in Customer Satisfaction (vs. 2011) 

Bank Name                                         Region                       Change

TCF Bank                                              Midwest                             -52

Citibank                                                Texas                                   -41

United Community Bank                  Southeast                           -38

Marshall & Ilsley Bank (M&I)          Midwest                             -38

Regions Bank                                       Southeast                           -37

Citibank                                                New England                    -30

Comerica Bank                                   Texas                                   -28

First Financial Bank (OH)               North Central                    -27

Zions Bank                                          Southwest                          -26

FirstMerit Bank                                 North Central                    -26

 

A little background on the J.D. Power methodology. The score is not based on how satisfied customers claim to be with their bank (i.e. how customers respond to a single question about their overall satisfaction), but instead the satisfaction score is based on the scores for six factors (each of which are weighted based on its importance as calculated by the J.D. Power regression model).

The six factors, as defined from jdpower.com, are:

Product Offerings: This score is based on how customers rate the variety of services available, ease of making account changes, effectiveness of communication regarding products/services and competitiveness of interest rates for their primary financial institution.

 Facility: This score is based on how customers rate the hours of branch operation, number of branches, and ease of access for their current primary financial institution.

 Account Information: This score is based on how customers rate the ease of understanding and clarity of account information provided from their current primary financial institution.

 Fees: This score is based on how customers rate experiences with their primary institution’s fee structures.

 Account Activities: This score is based on how customers rate the various transaction methods used (as applicable) including in-person, ATM, online, automated phone, and phone transactions with a live representative for their current primary financial institution.

 Problem Resolution: This score is based on how customers rate their problem resolution experience with their current primary financial institution.

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Written by Jim S Miller

May 1, 2012 at 9:08 am

One Response

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  1. Great article! I would be interested to read your thoughts, Jim, on how the multi-point JD Power methodology compares with what you yourself feel is the best way to judge the customer experience

    oasiscdblog

    May 2, 2012 at 10:20 am


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