According to research conducted by Capgemini, the lack of consumer analytics in commercial banks is proving to be a large impediment to their growth and success. The research shows that banks applying analytics to customer data have a four-percentage point lead in market share over banks that do not, and that banks investing in analytics to understand customer attrition have a 12-percentage point lead over their competitors.

Moreover, with only 37% of customers satisfied with their bank’s understanding of their needs and preferences, Capgemini’s research indicates how customer analytics could help banks increase their revenues and gain market share.

The global CEI index average (a score that measures customers’ banking experience across 80 different touch points) increased by 1.2% from 2012 to 2013, yet Capgemini noticed the following key findings in spite of this increase in customer satisfaction:

–       10% of customers globally say that they are likely to switch banks in the next six months, while 40% are not sure whether they will stay with their bank in the 6 months time.

–       The quality of overall service is the primary factor that determines whether a customer leaves their bank or not.

–       Positive customer experiences are strongly correlated with the trust customers place in their banks and with the customers’ belief that their banks have a good understanding of their needs

The research from Capgemini is based on a survey they conducted with more than 18,000 customers participating in 35 countries across six geographic locations. The results of the research, according to consulting firm, show that banks must invest much more money in customer analytics in order to retain their customers, or risk the chance of losing their customers to those banks investing in such activities.

Read a summary of the research paper here

Read the research paper here

(Image Credit: J J

 

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