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CX in The Banking Industry
CX in The Banking Industry
CX in The Banking Industry
CX in the Banking
Industry
THE CURRENT STATE OF CUSTOMER EXPERIENCE FOR
BANKS
Moira Dorsey
XM Catalyst
January 2020
XM Institute INDUSTRY SNAPSHOT qualtrics.com/XM-Institute
EXECUTIVE SUMMARY
To evaluate the current state of customer experience (CX), the XM Institute surveyed
10,000 U.S. consumers about their experiences with 294 companies across 20 different
industries. In this Industry Snapshot, we analyze the quality of customers’ experiences
with the banking industry.
1
Data comes from the Qualtrics XM Institute Q2 2019 Consumer Benchmark Survey – an online study of 10,000 U.S.
consumers completed during May 2019. Survey respondents were representative of the U.S. Census based on quotas
for age, income, ethnicity, and geographic region.
2
See the XM Institute report, “2019 XMI Customer Ratings – Overall,” (September 2019). The XMI Customer Ratings
– Overall are a continuation of the Temkin Experience Ratings. The Ratings were renamed after Qualtrics purchased
Temkin Group in October 2018.
3
We developed ratings for each of the three components of an experience – success, effort, and emotion – by
subtracting the percentage of consumers who rated a company poorly from the percentage of consumers who rated
it highly.
4
Although consumers rated a number of companies for our survey, we only analyzed the ones that received at least
100 consumer responses. Ultimately, we examined data from 294 companies across 20 industries. For this Industry
Snapshot, data on banks comes from over 5,500 respondents evaluating their experiences with 15 large banks.
5
See the XM Institute report, “2019 XMI Customer Ratings – Consumer NPS,” (October 2019).
average for customers over the age of 65, trailing the overall average by five
percentage-points.
§ Inspire customer trust. While a customer’s experience with a company does impact
their likelihood to trust that company, the correlation is slightly weaker than it is for
their likelihood to recommend or repurchase (see Figure 4). While banks’ NPS and
likelihood to repurchase scores are fairly average, they significantly outperform the
cross-industry average when it comes to trust, with over two-thirds of customers
saying that they trust banks to take care of their needs. The difference between the
banking average and the overall average is particularly stark in the two youngest age
groups, where the percentage of customers who trust banks is over 7 percentage-
points higher than the 20-industry average.
§ Deliver few bad experiences. Only 6% of customers who interacted with a bank over
the previous six months say they had a bad experience (see Figure 5). However, of
those customers who did endure a poor experience, 42% of them say that they either
decreased or stopped spending after that poor interaction, which is fairly average
across industries. And while banks deliver fewer bad experiences compared to the
overall average across all age groups, the gap is particularly noticeable in the 45 to 54
age group.
§ Make it difficult for customers to find a convenient branch. Fifteen percent of
customers identified “finding a convenient branch location” as in need of significant
improvement (see Figure 6). However, customers who identified this journey as
broken only gave an NPS that was two points below the industry average, whereas
customers who selected “reviewing statements” as a problematic journey gave an
NPS that was 48 points the industry average.
In the decade since the financial crisis brought widespread attention to how the banking
industry treated its customers, many banks have made customer-experience transformation
– especially digital CX – a strategic priority. To thrive in this changing competitive landscape,
banks must establish Experience Management (XM) as an organizational discipline by
mastering six XM Competencies and 20 XM Skills (see Figure 7).6 These capabilities will help
banks succeed in the new environment by allowing them to:
§ Continuously learn. Banks with strong XM Competencies and Skills will be able to
continuously collect and analyze feedback and behavioral signals from the people who
interact with them – gathering the information necessary for understanding the
experiences, perceptions, and attitudes of their customers, employees, and
prospects. For example, banks with robust XM capabilities will be able to identify
which moments most affect the loyalty of key customer segments – such as finding a
local branch or reviewing statements – and then establish listening posts that collect
ongoing insights about the quality of those interactions. These insights will include
experience data (X-data) like NPS or satisfaction scores as well as operational data
(O-data) like products owned or demographic information. Banks who are capable of
combining these two types of data will be able to more accurately forecast the value
6
See the Qualtrics XM Institute report, “Operationalizing XM” (July 2019).
The 2019 XMI Customer Ratings - Overall ranks the customer experience of 294
companies across 20 industries and are a continuation of the Temkin Experience
Ratings, which have been published annually since 2010. Each company’s Rating is
calculated by averaging their score across success, effort, and emotion.
18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+
Figure 1
BANKS
Distribution of NPS* Likelihood to Recommend
Banks vs. 20-Industry Average Based on How Banking Customers Rate
Success, Effort, and Emotion
Banks Overall Average
Low Rating Neutral Rating High Rating
55% 54%
Success Effort Emotion
23% 23% 22% 23%
79% 88%
80%
27% 37%
(1 - 6) (7 & 8) (9 & 10) 16% 13% 23% 9%
Detractors Passives Promoters
18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+
*Net Promoter Score is a registered trademark of Bain & Company, Satmetrix Systems, and Fred Reichheld.
**These numbers represent the percentage of consumers that selected 8, 9, or 10 on a scale between 0 (“not
at at all likely”) to 10 (“extremely likely”).
Figure 2
BANKS
Distribution of Likelihood to Rebuy Likelihood to Rebuy
Banks vs. 20-Industry Average Based on How Banking Customers Rate
Success, Effort, and Emotion
Banks Overall Average Low Rating Neutral Rating High Rating
66% 67%
Success Effort Emotion
27% 27% 76% 78% 84%
7% 6%
37%
16% 26% 12%
22%
9%
(1 - 3) (4 & 5) (6 & 7)
Unlikely Neutral Likely
18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+
*These numbers represent the percentage of consumers that selected 6 or 7 on a scale
between 1 (“extremely unlikely”) to 7 (“very likely”).
Figure 3
BANKS
Distribution of Likelihood to Trust Likelihood to Trust
Banks vs. 20-Industry Average Based on How Banking Customers Rate
Success, Effort, and Emotion
Banks Overall Average Low Rating Neutral Rating High Rating
67% 61%
Success Effort Emotion
18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+
*These numbers represent the percentage of consumers that selected 6 or 7 on a scale
between 1 (“extremely unlikely”) to 7 (“very likely”).
Figure 4
18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+
Figure 5
Parking 6% 12
Figure 6
Figure 7