Customer Satisfaction with Online Financial Services Improves Despite Sagging Economy
Study from ForeSee Results and Forbes.com Shows New Promise for Bank, Credit Union, Credit Card, and Investment Websites
ANN ARBOR, Mich. (April 21, 2009) – Customer satisfaction with online financial services improved over the last year even as the financial sector of the economy deteriorated, according to a new report from ForeSee Results and Forbes.com released today. The 2009 Online Financial Services Study, the fifth report since the inaugural study in 2003, shows that despite a weak economy, bank bailouts, and tighter credit, financial institutions are using their websites to increase customer loyalty, account activity, and positive word of mouth. The study, which employs the methodology of the University of Michigan’s American Customer Satisfaction Index (ACSI), measured satisfaction with online banks and credit unions, credit card websites, and investment websites.
Banks continue to lead online financial services, improving 1 point to 83 on the ACSI’s 100-point scale. Very few service industries ever break the barrier of 80. Credit card websites made the largest jump, soaring 7 percent to 80, while investment websites climb 4 percent to 78.
“It’s not an easy environment for financial institutions to do business. Given all the problems that these companies are having, we might expect satisfaction to slip,” said Larry Freed, president and CEO of ForeSee Results. “But the basic blocking and tackling that these companies are doing online is proving effective. They don’t need to reinvent the wheel or their website strategy just because the economy is in crisis. Focusing on the right fundamentals makes a big difference to the customer experience over time. And it turns out that online satisfaction actually has huge implications for the whole industry.”
The improvement to online satisfaction is good news for financial institutions because websites have a fairly large impact on multichannel operations and future financial success. Satisfied online customers are more profitable, more loyal, and more likely to engage in positive word of mouth. Highly satisfied customers are significantly more likely than less satisfied customers to purchase additional services and open more accounts, increasing share of wallet. Also, highly satisfied customers are more likely to increase engagement with the website for information or transactions, introducing cost savings by establishing a user preference for the most efficient service channel.
Online financial services companies still have room for improvement. The research identified site performance and functionality as areas where banks and credit unions could maximize return on investment. Functionality and portfolio management are priority areas for investment websites to improve satisfaction, while improving transaction processes and bill payment features are top priorities for credit card websites.
Customer confidence remains a problem, and roughly one-third of survey respondents are less confident in the stability of their financial institution. Additionally, only one in five online banking customers and one in three online investors recall seeing any communication or reassurance about their institution’s financial stability, indicating that companies could do more to quell perceptions that these companies and industries may be in trouble.
The study explored mobile applications from financial institutions for the first time this year. Among online investors with mobile phones, 27 percent use them to access investment websites, compared to only 13 percent of online banking customers. The small pool of respondents who use mobile apps appear to be more satisfied than those who do not, indicating another opportunity for financial service companies to strengthen their relationships with customers.
“Consumers want control of their finances no matter where they are, adding yet another dimension to a 24-7 world, and mobile technology is transforming how consumers interact with financial institutions,” said Freed. “So it is incumbent upon banks, credit cards, and investment firms to optimize their websites for the mobile platform, as smart phones become the next frontier for providing online financial services.”
“We’re pleased to partner with ForeSee Results on this research for the fifth time,” said Forbes.com President & CEO Jim Spanfeller. “Forbes.com visitors are an important customer base for financial services companies, and as this research shows, the online channel has never been more critical to that relationship.”
Larry Freed will present the results of the survey today at the Net.Finance conference in Las Vegas, NV.
About ForeSee Results
As the leader in online customer satisfaction measurement, ForeSee Results captures and analyzes online voice of customer data to help organizations increase sales, loyalty, recommendations and website value. Using the methodology of the University of Michigan’s American Customer Satisfaction Index (ACSI), ForeSee Results identifies the improvements to websites and other online initiatives with the greatest ROI. With over 33 million survey responses collected to date and benchmarks across dozens of industries, ForeSee Results offers unparalleled expertise in customer satisfaction measurement and management. ForeSee Results works with clients across industries, including: retail, financial services, healthcare, hospitality, manufacturing and government.
ForeSee Results, a privately held company, is located in Ann Arbor, Michigan and on the web at www.ForeSeeResults.com.