And according to the Current Account Switching Service, the number of customers switching may exceed a million for the year.
Switching bonuses, reduced fees and interest-paying current accounts may all be contributing factors.
But in an increasingly competitive and commoditised sector, where product and price are no longer differentiating factors (and increased regulation has created a more level playing field) what is it that’s making some banks stand out from the crowd and capture a greater share of customers?
The Rise of Customer Experience Management
Traditionally, it’s been customer service ― an emotional connection to a local branch. But branches are closing and today’s customers are demanding a positive ‘experience’ at every stage and every level of interaction across a myriad of channels, touchpoints and technologies.
To succeed, therefore, banks need to respond with outstanding and truly differentiated, omni-channel customer engagement that builds loyalty, improves retention and strengthens barriers to market entry. In other words, they need to embrace Customer Experience Management (CXM).
The CXM journey ― still a long way to go
When RR Donnelley commissioned research to discover the importance of CXM in business today, more than two-thirds of senior executives in large B2C organisations (including retail banks and credit card companies) described it as a key strategic tool to increase loyalty, advocacy and lifetime value.
However, only 10% said they had achieved their CXM goals.
The insight that followed helped explain why ― cultural challenges, ever-increasing customer expectations, and legacy systems and processes. But it also helped us recommend a roadmap for the successful design and implementation of a coherent CXM strategy.
It included active leadership, a clearly articulated CXM vision that crosses departments and disciplines (and embraces people, processes and technology) and has intelligent omni-channel communications at its core.
To find out more, and discover how some of the most successful customer-centric enterprises are rising to the challenges of Customer Experience Management, download our whitepaper, The rise in Customer Experience Management.
[i] Bacs Account Switching Service, October 2016