Posts Tagged Market Research for Banks

5 Metrics Banks and Credit Unions Should Be Tracking

Posted in Financial Services, tagged 5 Metrics Banks and Credit Unions Should Be Tracking, Market Research for
Banks, Market Research for Credit Unions on May 20, 2014 | Leave a Comment

Banks and credit unions work with numbers every minute, of every day, from opening until
closing. The financial industry is in essence a numbers game. So metrics and measurements
should not scare the vast majority of professionals working in financial industry. As a result, many
banks and credit unions employ market research to aid their decision-making. Market research,
much like the financial industry, is all about numbers and digging into why numbers go up and
down. Market research provides financial firms with the data and consultation necessary to help
drive bottom-line numbers. Its much like un-peeling an onion.

Below are 5 metrics that banks and credit unions should be tracking on a continual basis. These
metrics help guide banks and credit unions to improved customer loyalty, greater share of wallet,
a stronger employee culture, and a superior bottom-line.

Net Promoter Score (NPS)

Who am I? NPS is one of the most popular loyalty statistics in not only banking and finance but
across all industries. It is calculated by asking the respondent how likely he/she would be to
recommend the bank using a scale of 0 to 10. Scores are categorized into three groups
(promoters = 9 and 10, passives = 7 and 8, and detractors = 0 to 6). The percentage of
detractors is subtracted from the promoters to arrive at an NPS.
How do you track me? A full-scale quantitative study (400 completes or more) is needed to
confidently predict NPS. It is recommended that a telephone survey to a random set
of customers be conducted to calculate NPS (it can also be done online if the team is willing to
accept sample bias). An image and awareness non-customer study can give you insight into
competitive NPS ratings as well. Here is a blog post which provides more information on NPS.

Closed Account Drivers

Who am I? This metric is calculated and tallied to help banks and credit unions understand why
customers and members are closing particular accounts. From there, banks and credit unions
can create talking points and language for front-line tellers to handle the most popular reasons
for closures in order to reduce terminations.

How do you track me? Using a quick pulse survey (approximately 100 completes) will give your
financial institution a strong grasp on popular reasons for account closures. Ideally, this study
should be a monthly tracker, comparing drivers from month-to-month and testing new initiatives
to counter-act closures. Here is a case study on account closures completed at a large bank.

Cross Selling Frequency

Who am I? This metric is the percentage of time that customer service reps (CSRs), member
service reps (MSRs), or other platform personnel discuss or cross-sell other types of accounts
during the time of sit-down. For example, if a customer comes in to discuss questions regarding
free checking, the CSR should take the time to discuss the benefits of paid checking accounts,
savings accounts, or other services in order to increase the number of customer accounts at the
bank.
How do you track me? Exploratory research using mystery shopping can track this metric to
some degree and be compared wave-to-wave. It is recommended that the financial institution
pursue a follow-up phone call methodology. Banks or credit unions pass a list of members that
recently had a CSR or MSR experience in the last 24 to 48 hours to a market research, and the
research firm uses its data center to follow-up and ask questions about cross-selling among
other items. Here is a case study on mystery shopping completed by RMS.

Primary Financial Institution (PFI) Share

Who am I? PFI share is defined as the percentage of customers that name your financial
institution as their primary one. This is typically the institution where the customer holds their
primary checking account.
How do you track me? All banks and credit unions know what PFI is, but very little actually
know what percentage of their customers use them as their PFI. So is the fact that you have
175,000 checking accounts good or bad? Are 90% of those checking accounts non-primary
accounts for users? If so, how does that change your deposit account marketing and strategies?
This PFI metric will answer those questions for you. A strategy that many financial institutions
employ is bringing in new customers through rate promotions and cross-selling them on other
products and services in hopes to convert them to a PFI user down the road. Here is a case
study for an image and awareness study.

EmPulse Score
Who am I? The EmPulse is a proprietary score created by Research & Marketing Strategies
(RMS) to define overall employee satisfaction and loyalty within a bank or credit union. The
EmPulse score is calculated by using a combination of importance and satisfaction ratings in a
series of 52 branded questions.
How do you track me? EmPulse studies are done completely online using invitations and
follow-up emails sent directly to employees. Scores are tallied and the bank or credit union is

provided with a question-by-question breakdown of scores which can be compared to all

financial institutions across the United States. Here is a blog post which discusses the EmPulse
process.
Are you a bank or credit union interested in learning more about any of these 5 metrics? Contact
Sandy Baker, our Business Development Director at Research & Marketing Strategies (RMS)
at SandyB@RMSresults.com or by calling 1-866-567-5422.

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Bank and Credit Union Market Research | 2014 Options

Posted in Financial Services, tagged Bank and Credit Union Market Research, Market Research for Banks, Market
Research for Credit Unions on November 25, 2013 | Leave a Comment

This blog post was written by our guest blogger Marc Bovenzi, Business Development Associate
at Research & Marketing Strategies (RMS) a bank and credit union market research firm.

Get your questions answered for 2014.

RMS partners with banks and credit unions to improve marketing and management agendas
through market research. Are you ready for 2014? Use research to reach full market potential
next year.

Satisfaction Levels: Where do we stand? Is understanding your customer or

member a top priority? Conducting satisfaction surveys with RMS will give you insight into
how you can improve operations and attract new business. Bad experiences and lackluster
offerings can add up to declining profits and ultimately a failing business. Read this RMS
case study on a bank investigating its customer experiences when (1) opening a new
account and (2) opening/refinancing a loan.

Whats Our Current Image and Awareness Levels? If particular branch locations
are under performing; it should not be accepted as the norm. RMS has several ways to
analyze and research key contributing factors driving image and awareness. Read this
RMS case studyregarding this topic solved through a telephone survey. RMS can quantify
the awareness of your branch location; measure impressions of recent advertising;
understand knowledge level of offerings; and identify key drivers for becoming a customer
or member of your financial institution.

What New Channels are Financial Industries Acting On? Besides the core
business of loans and mortgages, banks and credit unions are seeking other viable ways
to meet the needs of its customers or members. Mobile banking is becoming increasingly
popular. RMS can conduct website usability surveys using heat mapping or focus groups.
Determine the ease of use to navigate your website and test appeal of specific content. If
your bank or credit union has not taken the next step into offering a mobile banking app or
is thinking about offering other services; conduct a study with RMS to determine the level of
interest to support your next steps.