Most retail banks spend a lot of time and money on maintaining and improving customer satisfaction. It makes intuitive sense that customer satisfaction is an important component of retention and that improving customer satisfaction will translate to an increase in revenue. However, most banks struggle to show a clear link between customer satisfaction and revenue or other key metrics.
A recent article in US Banker cited a study that found that “some of the nation’s worst-performing banks are among the best at delivering customer service.” If good customer satisfaction doesn’t translate to better performance, then why should you spend money on it? (more…)