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Another customer survey ranks CUs above banks
ANDOVER, Mass. (4/14/10)--Members/customers at credit unions and community banks continue to show much more satisfaction and better advocacy rates than customers of larger regional or national banks, according to a recent study. ath Power Consulting’s Ideal Banking Study 2010 indicates that 50% of credit union members surveyed are highly satisfied with their financial institution, compared to 31% at large regional or national banks and 46% at small local or regional banks. About 61% said they were likely to recommend credit unions, compared with 51% who were likely would recommend small local or regional banks and 36% who were likely to recommend large regional or national banks. “The largest financial institutions are trying to replicate the positive experience most customers enjoy in smaller institutions,” said Frank Aloi, president of the Andover, Mass.-based banking market research firm. “Customers are most interested in strong service, personal relationships and personal advice. This is where the smaller institutions have an edge.” Consumers surveyed by ath said the most important thing they want in a banking relationship is customer service, followed by convenience, rates and fees, and trust and respect. The survey also found that problem resolution is not being adequately addressed by most financial institutions. Only 25% of customers who experienced a problem felt it was resolved to their satisfaction. Customers whose problems were resolved satisfactorily were likely to remain satisfied with their banking relationship. More than half said those who did not receive an adequate resolution to their problems were likely to change banks. “When customer service expectations are met or exceeded, the outcome is a substantial increase in advocacy/referrals, additional product sales and long-term loyalty,” Aloi said. “This study shows that banks need to do a better job of meeting and exceeding customer expectations.”
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