Prime Performance: 2010 Customer Experience With Bank Call Centers

Customer Experience With Call Center Representatives

2010 Bank & Credit Union Satisfaction Survey

Jim S MillerPresident, Prime Performance

www.primeperformance.net

Table of Contents

2

Map of Survey Respondents .......................................................................................................... 3

Survey Methodology ....................................................................................................................... 3

Executive Summary ........................................................................................................................ 4

Overall Satisfaction With Service .................................................................................................. 5

Likelihood to Recommend ............................................................................................................. 6

Effective at Meeting Your Needs.. ................................................................................................. 7

Business is Important to the Bank................................................................................................ 8

Does What’s Best for You, Not the Bank’s Bottom Line................................................................ 9

Offers Competitive Prices, Rates and Fees .................................................................................. 10

Likelihood to Switch Banks in Next 12 Months ............................................................................ 11

Was Your Inquiry Resolved to Your Satisfaction During This Contact .......................................... 12

Representative Explained Things in a Way that was Easy to Understand.................................... 13

Representative Seemed Genuinely Interested in Helping You..................................................... 14

Representative Appeared Knowledgeable About Products/Services........................................... 15

Friendliness of Representative ...................................................................................................... 16

Representative Values Your Time .................................................................................................. 17

Representative Seemed to Enjoy His or Her Job .......................................................................... 18

Wait Time is Acceptable.................................................................................................................. 19

Representative Spoke Clearly......................................................................................................... 20

Representative Thanked You for Your Business............................................................................ 21

Representative Asked “Is There Anything Else I Can Help You With?”........................................ 22

Representative Used Your Name ................................................................................................... 23

Representative Introduced Himself/Herself by Name................................................................... 24

Implications ..................................................................................................................................... 25

About Prime Performance .............................................................................................................. 25

About the Author/Jim S Miller ........................................................................................................ 25

3

Map of Survey Respondents

DATA COLLECTION: May 2010

METHOD: Online survey

SAMPLE SIZE: 1,781 adults who spoke with a call center representative within the last two weeks.

SAMPLE: A total of 1,781 interviews were conducted in the U.S. Sampling error cannot be calculatedfor surveys that use a self-selected online panel of respondents. If this sample had beenconducted among a fully random sample, the estimated margin of error for sample wouldbe ±1.9 percentage points at the 95% confidence level.

SCORING: Depending on the question, consumers selected responses along a seven-point scale orselected “yes”, “no” or “don’t remember”. For questions on a seven-point scale, positiveresponses are the percent of individuals selecting one of the top two boxes (6 or 7).Negative responses are the percent of individuals selecting one of the bottom three boxes(1, 2 or 3). For “yes”, “no”, “don’t remember” questions, positive responses are the percentof individuals selecting “yes”.

BANK CATEGORIES: For analysis purposes, Banks were put into categories to reflect the size and nature of theinstitutions. Credit Unions are their own category. Banks with less than 300 branches weregrouped together as Small Banks. Banks with 300-4,000 branches are included in LargeBanks. Bank of America, Chase and Wells Fargo are each included as separate categoriessince they have the largest number of branches, and because most banks compete with atleast one of them.

Survey Methodology

4

Executive Summary

Seventy-three percent of customers are satisfied with the service they received on their recent interactionwith a call center representative at a bank or credit union, while 6% are dissatisfied. Credit unions and smallbanks consistently outperform their larger competitors on overall satisfaction, likely to recommend andmeeting their customers’ needs

The BasicsCustomers call with a purpose and if their inquiry is not resolved during the call, satisfaction plummets.Overall, 91% of customers said their inquiry was resolved satisfactorily during the call and when this is thecase, 79% are satisfied with the experience and only 1% dissatisfied. For the 9% of calls where the inquirywas not resolved satisfactorily, only 11% were satisfied and 49% dissatisfied. Customers expect their needswill be met on a single call. Customers are not satisfied if they have to call back or are told to go to a branchto get help. Likewise, customers expect that call center representatives will explain things in a way that iseasy to understand which occurs on 91% of calls. When the call center representative explains things in away that is easy to understand, 78% are satisfied with the call and 3% are dissatisfied, but when this doesnot occur only 17% of customers claim they are satisfied and 40% are dissatisfied.

Value Customer’s TimeCustomers clearly value their time and expect the bank to do the same. Overall, 85% believe representativesvalue their time. When their time is valued, 79% of customers are satisfied with their experience and 3% aredissatisfied. When customers feel their time is not valued, only 20% are satisfied and 33% are dissatisfied (a10 times increase in dissatisfied customers). It is hard to recover from an unacceptable wait time. When thewait time is acceptable, 77% of customers are satisfied with their overall experience and 4% are dissatisfied.When wait time is not acceptable, 24% are satisfied and 31% are dissatisfied with the service received.

FriendlyFriendly representatives lead to satisfied customers. When the representative was friendly, 77% ofcustomers were satisfied and only 4% dissatisfied, resulting in a net score of 73%. When the representativewas not friendly, the net score dropped 90 points to -17%, with 19% of customers satisfied and 36%dissatisfied. How do representatives show they are friendly? Simply thanking the customer for their businessis vital. The net satisfaction score is 73% when the customer is thanked, but drops to 5% when they are notthanked. Seventy-six percent of customers were satisfied and 4% dissatisfied when the representative asked“Is there anything else I can help you with?” When the question was not asked, only 38% were satisfied and28% dissatisfied. Other factors that show “friendliness” and drive satisfaction include; the call centerrepresentative introducing himself/herself by name, and using the customer's name.

GenuineOf course, all the behaviors must be genuine. Eighty-seven percent of customers claimed the representativewas genuinely interested in helping them. When this occurred, 81% of customers were satisfied with theexperience and 2% were dissatisfied. When they felt the representative was not genuinely interested inhelping, 18% of customers were satisfied and 35% dissatisfied. The difference in the net score of 96 pointsshows that it is not enough to go through the motions. Customers must feel that bankers care about theirbusiness and are genuinely interested in helping them.

5

*Net Score: % of Positive Responses (6&7) Minus % of Negative Responses (1,2&3)

Net Score*

< 300 Branches

300‐4,000 Branches

Overall Satisfaction with the ServiceYou Received

Credit union members are most satisfied with their call center experience, followed by small banks, whileBank of America customers are the least satisfied.

% Positive Responses(% Satisfied)

% Negative Responses(% Dissatisfied)

83%

79%

68%

72%

65%

70%

73%

2%

4%

7%

8%

7%

7%

6%

Credit Unions: 81%

Small Banks: 75%

Large Banks: 61%

Chase: 63%

Bank of America: 58%

Wells Fargo: 63%

Industry Average: 67%

6


Net Score*

< 300 Branches


Likely to Recommend

Credit union members and small bank customers are much more likely to recommend their bank aftertalking to a call center representative than customers at large banks and mega‐banks.

% Positive Responses(% Likely)

% Negative Responses(% Unlikely)

82%

77%

65%

62%

58%

63%

69%

2%

6%

10%

13%

13%

11%

9%

Credit Unions: 80%

Small Banks: 71%

Large Banks: 55%

Chase: 48%


Wells Fargo: 52%


7


Net Score*

< 300 Branches


How Effective was the Representative at Meeting Your Needs?

Customers believe credit unions and small banks are most effective at meeting their needs. Chaseoutscored large banks, Wells Fargo and Bank of America on percent of customers who thought therepresentative was effective at meeting their needs, but also had more customers who felt therepresentative was not effective at meeting their needs.

% Positive Responses(% Effective)

% Negative Responses(% Not Effective)

85%

83%

71%

74%

68%

69%

75%

2%

4%

7%

11%

8%

9%

7%

Credit Unions: 83%

Small Banks: 80%

Large Banks: 63%

Chase: 63%


Wells Fargo: 60%


8


Net Score*

< 300 Branches


How Important is Your Business to the Bank?

Less than half of customers at large banks, Chase, Bank of America and Wells Fargo believe their business isimportant to the bank.

% Positive Responses(% Important)

% Negative Responses(% Not Important)

67%

64%

49%

42%

43%

47%

53%

7%

10%

18%

22%

22%

20%

16%

Credit Unions: 60%

Small Banks: 54%

Large Banks: 32%

Chase: 20%


Wells Fargo: 27%


9


Net Score*

< 300 Branches


Does What’s Best for You, Not the Bank’s Bottom Line

Other than at credit unions, most customers do not believe their bank does what is best for the customer.

% Positive Responses% Negative Responses

58%

46%

38%

34%

39%

33%

42%

6%

15%

20%

26%

29%

21%

19%

Credit Unions: 52%

Small Banks: 31%

Large Banks: 17%

Chase: 8%


Wells Fargo: 12%


10


Net Score*

< 300 Branches


Offers Competitive Prices, Rates and Fees

43% of customers feel their bank offers competitive prices, rates and fees and 15% feel that they are notcompetitive. Customers rated credit unions highest and Chase the lowest.

% Positive Responses(% Competitive)

% Negative Responses(% Not Competitive)

65%

50%

38%

31%

33%

35%

43%

7%

9%

17%

21%

19%

23%

15%

Credit Unions: 58%

Small Banks: 42%

Large Banks: 21%

Chase: 10%


Wells Fargo: 12%


11

% Positive Responses(Unlikely to Switch)

% Negative Responses(Likely to Switch)

*Net Score: % of Positive Responses Minus % of Negative Responses

Net Score*

< 300 Branches


Likelihood to Switch Banks in Next 12 Months

After speaking with a call center representative, 68% of all customers claim they are unlikely to switchbanks in the next 12 months, while 16% say they are likely to switch. At Bank of America, 60% of customersare unlikely to switch banks and 19% believe they are likely to do so.

82%

76%

63%

64%

60%

63%

68%

9%

9%

21%

21%

19%

18%

16%

Credit Unions: 73%

Small Banks: 67%

Large Banks: 42%

Chase: 43%


Wells Fargo: 45%


12

Net Score*

% Positive Responses (% Yes)

< 300 Branches



79%

11%

1%

49%

Yes: 78%

No: ‐38%

Overall Satisfaction Based On: Was Your Inquiry Resolved to Your Satisfaction During this Contact?

Customers expect their inquiry to be resolved by a single phone call. 9% of customers claim their inquirywas not resolved to their satisfaction on the call. When the inquiry is resolved to the customer’ssatisfaction, 79% are satisfied and only 1% are dissatisfied. When the inquiry is not resolved satisfactorily,11% are satisfied and 49% are not satisfied.

+68%+48%+116%

Was Your Inquiry Resolved to Your Satisfaction During this Contact?



95%

93%

92%

87%

89%

88%

91%

Credit Unions

Small Banks

Large Banks

Chase

Bank of America

Wells Fargo

Industry Average

13

Net Score*


< 300 Branches



78%

17%

3%

40%

Yes: 75%

No: ‐24%

Overall Satisfaction Based On: Did the Representative Explain Things in a Way that was Easy to Understand?

In order for customers to be satisfied with their call, they need the representative to explain things in a waythat is easy to understand. When representatives explain things in a way that was easy to understand, thenet satisfaction score is 75%, but falls to ‐24% when this is not the case.

+61%+38%+99%

Did the Representative Explain Thingsin a Way that was Easy to Understand?



96%

91%

91%

88%

88%

92%

91%

Credit Unions

Small Banks

Large Banks

Chase

Bank of America

Wells Fargo

Industry Average

14

Net Score*


< 300 Branches



81%

18%

2%

35%

Yes: 79%

No: ‐17%

Overall Satisfaction Based On: Was the Representative Genuinely Interested in Helping You?

While customers care about having their call handled properly, they also care about how they are treated. Arepresentative may say and do the right things, but if it is not genuine, customers notice. Whenrepresentatives are genuinely interested in helping, 81% of customers are satisfied, when that is not thecase, satisfaction drops to only 18%.

+62%+33%+96%

Was the Representative Genuinely Interested in Helping You?



95%

92%

85%

83%

80%

86%

87%

Credit Unions

Small Banks

Large Banks

Chase

Bank of America

Wells Fargo

Industry Average

15

Net Score*


< 300 Branches



77%

19%

3%

39%

Yes: 74%

No: ‐19%

Overall Satisfaction Based On: Did the Representative Appear Knowledgeable About Products/Services?

Knowledgeable call center representatives are vital to customer satisfaction. Overall, 91% of customersthought the representative was knowledgeable, with credit unions scoring the highest at 95%. Netsatisfaction scores drop by 93 points when the representative is not knowledgeable.

+58%+36%+93%

Did the Representative Appear Knowledgeable About Products/Services?



95%

93%

92%

87%

88%

89%

91%

Credit Unions

Small Banks

Large Banks

Chase

Bank of America

Wells Fargo

Industry Average

16

Net Score*


< 300 Branches



77%

19%

4%

36%

Yes: 73%

No: ‐17%

Was the Representative Friendly?

Overall Satisfaction Based On: Was the Representative Friendly?

Customers report that 93% of the representatives they dealt with were friendly. This is fortunate since anunfriendly representative causes satisfaction to plummet from a net score of 73% down to a net score of‐17%, a drop of 90 points!

+58%+32%+90%



98%

94%

92%

89%

90%

92%

93%

Credit Unions

Small Banks

Large Banks

Chase

Bank of America

Wells Fargo

Industry Average

17

Net Score*


< 300 Branches



79%

20%

3%

33%

Yes: 77%

No: ‐12%

Did the Representative Value Your Time?

Overall Satisfaction Based On: Did the Representative Value Your Time?

Customers clearly value their time and expect the bank to do the same. They expect call centerrepresentatives to handle their call quickly and not put them on hold for excessive amounts of time. Overall,85% believe representatives value their time, but when they do not, the net satisfaction scores drops by 89points.

+59%+30%+89%



91%

89%

84%

80%

80%

83%

85%

Credit Unions

Small Banks

Large Banks

Chase

Bank of America

Wells Fargo

Industry Average

18

Net Score*


< 300 Branches



81%

20%

3%

30%

Yes: 78%

No: ‐10%

Overall Satisfaction Based On: The Representative Seemed to Enjoy His or Her Job

Attitude matters! Satisfaction is much higher when customers think the representative enjoys his or her job.Overall, 80% of customers believe the representative seemed to enjoy his or her job and when that is thecase, satisfaction scores are high with a net score of 78%, compared to ‐10% when the customer perceivesthe representative as not enjoying his or her job.

+61%+28%+88%

The Representative Seemed to Enjoy His or Her Job



87%

86%

78%

76%

71%

80%

80%

Credit Unions

Small Banks

Large Banks

Chase

Bank of America

Wells Fargo

Industry Average

19

Net Score*


< 300 Branches



77%

24%

4%

31%

Yes: 73%

No: ‐7%

Was the Wait Time Acceptable?

Overall Satisfaction Based On: Was the Wait Time Acceptable?

92% of customers reported that the time they had to wait to speak with a representative was acceptable.Credit unions scored the highest at 96% and Bank of America the lowest at 88%. When wait time is notacceptable, only 24% of customers are satisfied with their experience, while 31% are dissatisfied.

+53%+27%+80%



96%

92%

91%

92%

88%

89%

92%

Credit Unions

Small Banks

Large Banks

Chase

Bank of America

Wells Fargo

Industry Average

20

Net Score*


< 300 Branches



75%

22%

4%

30%

Yes: 71%

No: ‐8%

Overall Satisfaction Based On: Did the Representative Speak Clearly?

Speaking clearly is vital on the phone. 95% of customers said the representative spoke clearly on their call.When the representative does not speak clearly, the net satisfaction score falls from 71% to ‐8%.

+53%+25%+79%

Did the Representative Speak Clearly?



99%

97%

94%

89%

95%

95%

95%

Credit Unions

Small Banks

Large Banks

Chase

Bank of America

Wells Fargo

Industry Average

21

Net Score*


< 300 Branches



77%

34%

3%

28%

Yes: 73%

No: 5%

Overall Satisfaction Based On: Did the Representative Thank You for Your Business?

Two words, “thank you”, make a 68% difference in the net satisfaction score. When representatives thanktheir customers, the net satisfaction score is 73%, but when they don’t, the net score drops to only 5%.With such a difference, it is surprising that only 87% of customers recall receiving a thank you.

+43%+25%+68%

Did the Representative Thank You for Your Business?



86%

87%

89%

88%

87%

86%

87%

Credit Unions

Small Banks

Large Banks

Chase

Bank of America

Wells Fargo

Industry Average

22

Net Score*


< 300 Branches



76%

38%

4%

28%

Yes: 72%

No: 10%

Overall Satisfaction Based On: Did the Representative ask “Is There Anything Else I Can Help You With?”

People tend to remember the beginning and end of an experience. Along with thanking the customer everytime, the interaction should also end with the representative asking “Is there anything else I can help youwith?” In the 92% of phone calls when this takes place, net satisfaction is 72%, compared to only 10% whenthis does not take place.

+38%+24%+62%

Did the Representative ask “Is There Anything Else I Can Help You With?”



91%

90%

93%

93%

91%

93%

92%

Credit Unions

Small Banks

Large Banks

Chase

Bank of America

Wells Fargo

Industry Average

23

Net Score*


< 300 Branches



77%

52%

4%

14%

Yes: 73%

No: 38%

Overall Satisfaction Based On: Did the Representative Use Your Name?

23% of customers do not recall their name being used while speaking with a call center representative.Satisfaction drops significantly when this simple behavior does not take place. Representatives at largebanks are most likely to use their customer’s names.

+25%+10%+35%

Did the Representative Use Your Name?



77%

75%

80%

75%

76%

77%

77%

Credit Unions

Small Banks

Large Banks

Chase

Bank of America

Wells Fargo

Industry Average

24

Net Score*


< 300 Branches



74%

65%

5%

9%

Yes: 69%

No: 56%

Did the Representative Introduce Himself/Herself by Name?

Overall Satisfaction Based On: Did the Representative Introduce Himself/Herself by Name?

21% of customers don’t remember the call center representative introducing themselves by name. It is hardto provide personal service when the customer does not even know the representative’s name. This smallbehavior makes a 13% difference in the net satisfaction score.

+9%+4%+13%



78%

75%

79%

77%

84%

82%

79%

Credit Unions

Small Banks

Large Banks

Chase

Bank of America

Wells Fargo

Industry Average

25

ImplicationsA review of data suggests banks and credit unions should focus on the customer service basics. First call resolution isvital, as is explaining things in a way that is easy to understand. Other simple behaviors such as introducing yourself,using the customer’s name, thanking the customer and showing a helpful attitude drive customer satisfaction, loyaltyand retention. The institutions which do not manage the basic, and controllable, behaviors will see their customerslooking for service elsewhere. While quickly and accurately handling a transaction is crucial, most banks excel at thisand it does not lead to a competitive advantage. Customers are also looking for a positive emotional experience andare disappointed when their emotional needs are not met.

We Can HelpFinancial institutions that deliver a superior client experience enjoy higher profits, stronger growth and better clientloyalty than institutions that don’t.

To learn how we can assist you, contact: Jim S Miller:[email protected]

About Prime PerformancePrime Performance works with bank leaders to grow share of wallet, reduce churn and increase profitability bydeveloping and implementing a superior client experience. Since 1989, we’ve been pioneers in measuring clientsatisfaction and converting that data into comprehensive, actionable plans for improving client experience.

We know that service—not rates and products—creates loyal clients. We also know that loyal clients are more profitableclients. How do we know this? Because we’ve spent over 20 years talking to millions of people about what they wantfrom their bank and what keeps them coming back. If you’re looking to improve your bank’s bottom line, let PrimePerformance put this knowledge to work for you.

About the AuthorJim S Miller is the President of Prime Performance. Jim has worked with some of the nation’s largest financialinstitutions, including SunTrust Bank, Bank One and NationsBank. Through senior roles in marketing, finance andretail administration, Jim has acquired a broad understanding of the many challenges faced by bankers.

While developing and managing sales incentive programs for retail bankers, Jim grew a passionate interest inunderstanding how behavior change among front-line branch employees affects an organization’s bottom line. It is hispersonal mission to empower banks and credit unions to realize their full potential.

Jim majored in Finance at The College of William and Mary and earned his MBA from The University of Virginia’sDarden Graduate School of Business Administration. Jim now calls Boulder, CO home.

How’s your client experience? Not sure, Prime Performance can help.