The study validates foundational knowledge that customer satisfaction and customer retention are strongly related. As either of these elements increases, customer lifetime value increases, through loyalty and increased account values.
CINCINNATI (PRWEB) March 10, 2021
Nearly one-third (31%) of mid-size bank customers are open or actively looking to switch banks, according to a new study by Vya. The Vya Mid-Size Bank Customer Retention Study reveals customer segments that are most at risk of attrition, the key drivers of their desire to switch, along with guidance for retention strategies.
“Mid-size banks face intense competition from fintechs and large banks that have been investing in innovative technology for over a decade,” said Kandi O’Connor, COO of Vya. “Customer retention is imperative, and we feel that this study, which focuses specifically on customers of mid-size banks, will be valuable to these institutions in helping them target retention strategies to their segments that are most at risk.”
The study reveals three key drivers that impact a customer’s desire to switch banks:
1. Recent life events: recently married, divorced, or widowed customers are among those who are more likely to consider switching banks, compared with those who have not experienced a major life event in the past year.
2. Time with bank: survey findings pinpoint a specific phase of a customer’s relationship with their bank when they are most at risk of switching.
3. Customer satisfaction: 23% of customers who are dissatisfied with their bank are actively looking to switch.
The Vya Mid-Size Bank Customer Retention Study examines these attrition drivers to help banks better understand and address their customers’ needs with the right mix of products, services and engagement strategies to successfully retain them.
“The study validates foundational knowledge that customer satisfaction and customer retention are strongly related,” said lead author of the study, Ashlie Ossege, VP of Analytic Services for Vya’s Direct Options division. “As either of these elements increases, customer lifetime value increases, through loyalty and increased account values.”
The more than 30-page report contains profiles of loyal and at-risk customers, identifies their specific customer needs and identifies specific retention strategies. The full report is available for download here.
The Vya Mid-Size Bank Customer Retention Study was administered in December 2020, via an online survey of 494 customers in the US, whose primary bank was a mid-size bank. For the purpose of this survey, mid-size bank is defined as one with roughly $10 billion to $50 billion in assets. Qualified participants were over 18 years of age, with at least one deposit account. To reduce bias, the customer could not work in the banking industry. The study included a statistically significant sample by age group, income level, length of residency, and education. The study represents banks that have branches in over 6,000 US zip codes.
Vya (@vya_systems) simplifies marketing execution with local customization to help distributed and multi-location businesses increase efficiency and maximize performance. With its combination of marketing resource management technology, data analytics expertise, and production services, Vya enables marketers to customize, localize, optimize and efficiently manage marketing campaigns, messaging and materials for greater relevance and impact. Marketers across a range of industries, including banking and financial services, franchising, insurance, manufacturing, and energy and utilities, choose Vya to elevate their marketing operations and advance overall business success. Learn more about Vya at vyasystems.com or contact Vya at 800-426-7921 or email@example.com.