LONDON--(BUSINESS WIRE)--Customer satisfaction is up for the third quarter of 2011, according to the National Customer Satisfaction Index (NCSI-UK), produced in partnership with the American Customer Satisfaction Index (ACSI) and CFI Group. After falling in Q2 – the first decline in two years – the index is up 0.3% to 74.7 on a 0-100 scale.
The gain is the result of small improvements in customer satisfaction across Retail Banks, Mortgage Lenders, Home and Motor Insurance, and Credit Cards. Among 22 financial services companies, 55% improve while only 32% decline and another 13% are unchanged from a year ago.
Customer satisfaction with retail banks increases (1%) to 72. At 75, smaller banks and building societies continue to outperform the industry average.
“In the United States, smaller banks and credit unions also do better in customer satisfaction,” said Claes Fornell, founder of the ACSI and author of The Satisfied Customer: Winners and Losers in the Battle for Buyer Preference. “Personalised service and highly satisfied customers have led to a large influx of new customers who are leaving the large banks. Irritation with large banks’ service fees culminated on November 5, the so-called “Bank Transfer Day”, which originated with a Facebook user and has already cost large banks millions of customers across the country. These banks have since retracted some fees, but it does not seem to have helped much. The customer exodus to smaller financial institutions continues.”
“Will the same thing happen in Great Britain? It is certainly possible. If the larger banks push for more fees and fail to satisfy their customers, somebody else will. Building societies and other smaller financial institutions stand ready – and may well be handed an opportunity, the size of which they have never experienced before.”
HSBC still has the highest customer satisfaction score among the major banks, but weakens this year (-5% to 74) as Lloyds TSB narrows the gap (+ 4% to 73). Barclays (+1%) and RBS Group (+6%) both improve to tie at 72. At the bottom of the industry are Santander (+1%) and HBOS (+5) at 69.
As mortgage rates reached record lows, customer satisfaction with mortgage lenders improved 1% to 71, but remains weaker than other financial services. Among the major lenders, Nationwide has the highest customer satisfaction score for the fourth year, up 1% to 77. Barclays (including Woolwich) improves (1%) and Lloyds TSB declines (-1%) to tie at 73. RBS Group gains 3% to match HBOS at 70, and Santander remains at the bottom, despite a 1% improvement to 68.
Credit Card customer satisfaction is up 1% to 75, a record high for the industry. Smaller credit card issuers lead the category again with an NCSI score of 79. Among the major banks, HSBC takes the lead with a 6% improvement to 76. RBS and HBOS both score 72. At 70, Barclays now scores better than Lloyds TSB, which falls to 69.
Customer satisfaction with Home & Motor Insurance improves to a score of 76, highest among the financial services. The improvement is due to an increase among smaller insurance provides, up 1% to 77, leading the industry in customer satisfaction. Among the larger insurers, Churchill maintains the lead at 76. RSA (-3%), Direct Line (-3%), Aviva (-1%) and Zurich (unchanged) all score at 73.
About NCSI-UK (http://www.ncsiuk.com/)
The National Customer Satisfaction Index applies the technology and methodology of CFI Group and the American Customer Satisfaction Index (ACSI). Indexes are reported on a 0 to 100 scale. The causal model determines which drivers of satisfaction, if improved, would have the most effect on customer loyalty and profitability. This methodology was developed at the University of Michigan and has been adopted worldwide as a leading macro- and micro-level indicator by universities, governments, and countries including the United States (www.theacsi.org), the United Kingdom, Sweden, Singapore, Korea, Turkey, South Africa, Mexico, Colombia, Dominican Republic, Indonesia, and Barbados. As a financial indicator, ACSI data have proven to predict corporate revenue and earnings growth, stock market performance, consumer spending and GDP.
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