30 Percent of Consumers Don’t Feel Loyal to Their Bank and are Willing to Switch
LIVONIA, Mich., Jan. 17, 2019: Valassis, a leader in activating consumers through intelligent media delivery, today released new research financial institutions can utilize to attract and maintain satisfied customers. With today’s dynamic consumers having access to in-person, online and mobile app banking options, marketing campaigns centered on what banking customers value is more important than ever.
Based on data from more than 1,700 respondents, Valassis found that 30 percent of consumers don’t feel much loyalty to their bank and can be readily influenced to switch. In fact, nearly 10 percent of consumers plan to switch in the next year, with this number nearly doubling among millennials at 19 percent, and even higher for millennial parents, with 26 percent planning to switch banks in the next year. This presents a prime opportunity for banks to attract these on-the-fence customers and inspire loyalty.
The top factors that would make consumers consider switching from their primary bank include better rates (45 percent); a major life change (29 percent); better promotional offers (27 percent); more conveniently located branches (24 percent); and better customer service (23 percent).
Research plays a crucial role in consumers’ decision-making process of selecting a bank and/or financial services. Nearly 80 percent of consumers conduct some research when making banking decisions and one of the top researched decisions is when switching banks (91 percent). When it comes to opening a checking or savings account, 39 percent conduct quick research, spanning just a few days. However, when taking out a mortgage/home improvement loan, 75 percent conduct lengthy research – lasting several weeks or months – while 67 percent do the same when considering switching banks.
As such, it is imperative that banks use in-market signals to identify consumers conducting banking research and then deploy a balanced print and digital marketing strategy to acquire new customers. Reinforcing the need for a cross-channel approach, 50 percent of consumers search for financial information online, with 78 percent of millennial parents doing so. Also, 30 percent of consumers are prompted to visit a bank’s website for more information when they receive print ads. Among bank switchers, 30 percent say online ads and 21 percent say print ads serve as their most valuable resources. Additionally, print ads help 32 percent of consumers select a financial provider for a loan or when opening a new account.
“For an industry founded on trust and relying on the loyalty of its customer base – there appears to be both great risk and opportunity for financial institutions,” said Curtis Tingle, Chief Marketing Officer, Valassis. “Our data shows that banks utilizing a cross-channel marketing approach fueled by strong consumer insight – of both their current and prospective customers – can create a market advantage for themselves. It is critical that banks listen to feedback and make a concentrated effort to build loyalty through competitive rates, regular promotions and excellent service.”
Banks and financial providers should keep the following data points in mind when developing their marketing campaigns:
- Consumers consider many factors when choosing a bank where they will take out a loan:
- The top five factors when choosing a loan are:
- Lowest rates;
- Customer service;
- Promotional offers; and
- Convenient locations.
- Technology also plays a critical role, with 32 percent preferring a bank with the best innovative services and technology (49 percent of millennial parents).
- Lastly, personalized offers and messages matter to customers seeking loans – 18 percent are likely to choose a bank based on personalized offers in the mail (35 percent of millennial parents).
- The top five factors when choosing a loan are:
About the Study
The Valassis Awareness-to-Activation Study is an ongoing study fielded in conjunction with The NPD Group, Inc., a global market research company. The sample was derived via an online survey, and all participants were at least 18 years of age and living in the contiguous United States. Approximately 10,000 respondents are surveyed annually. The specific data included in this report is from the research wave fielded July 27, 2018 to Sept. 28, 2018 to more than 1,700 respondents, and is balanced by age and gender to U.S. Census demographic profiles. All respondents do some form of personal banking.
Valassis helps thousands of local and national brands tap the potential of industry-leading data through intelligent media delivery – understanding, engaging and inspiring millions of consumers to action with smarter cross-channel campaigns. We’ve been a part of consumers’ lives for decades, introducing new ways to deliver offers and messages that activate them — whether via mail, digital, in-store or the newspaper. NCH Marketing Services, Inc. and Clipper Magazine are Valassis subsidiaries, and RetailMeNot Everyday™ is its consumer brand. Its signature Have You Seen Me?® program delivers hope to missing children and their families. Valassis and RetailMeNot are wholly owned subsidiaries of Harland Clarke Holdings.