Billions at stake if banks and insurers could make customers feel valued
More than 50 per cent of the customers of UK financial services brands would be willing to spend more – potentially equating to billions – if only they felt more valued by them, according to new research from Jacob Bailey Group.
Missing Billions is a new report from Jacob Bailey Group, the creative business services agency, based on a survey of 1,200 UK consumers in Spring 2017, to better understand the concerns of financial services customers today.
Key findings include:
- Brands are missing out on billions:
- More than 50 per cent of financial services institutions’ existing customers would be willing to spend more money on multiple products with the same provider if only they received better communications
- This would equate to: £2.6 billion spent on debit cards, £2.3 billion on credit cards, £2.3 billion on car insurance, £1.9 billion on home insurance, £1.7 billion on mortgage lenders, and finally £1.6 billion on life insurance
- 15 per cent of people would spend more than £100 extra per year
- Customers do not feel valued:
- More than one third of people (37 per cent) do not feel valued by their current bank; while one in ten (12 per cent) do not feel valued at all by bank brands
- Nearly a third of people (31 per cent) do not feel valued by their credit card provider
- Just over a third (35 per cent) do not feel valued by their home insurance company
- 22 per cent do not feel valued by their life insurance company
- Communication is poor:
- Almost one fifth of people believe their financial services provider does not communicate with them enough. This figure is higher for people who earn between £45,000 to £55,000 (22 per cent), as well as people with an income above that bracket (21 per cent)
The study uncovered a number of issues around how financial services brands communicate with their customers, including lack of timely, relevant, personalised and helpful information, and general misunderstanding of financial circumstances.
The Missing Billions report also ranks financial services companies according to how valued their customers feel. Out of 20 brands examined, Bank of Ireland was the top performing company with the fewest customers feeling undervalued (22 per cent), followed by Nationwide (31 per cent) and RBS (33 per cent).
Rob Manning, Strategy Director, Jacob Bailey Group, said: “In an age dominated by digitisation, convenience and personalisation, the financial services sector has never been under so much pressure to evolve.
“We set out to understand why these brands are failing, losing out to savvier, more agile new market entrants, finding that how financial services brands communicate with their customers is potentially costing them billions every year. To unlock these missing billions, these brands need to connect relevance through microtargeting, based on the best use of data, technology and creativity, leading to brilliant customer experiences.”