Forrester’s CX Index benchmarks the CX quality of brands and is based on a survey of more than 5,000 Australian adult customers, including more than 1,400 customers of five banks: ANZ, Commonwealth Bank of Australia, NAB, Suncorp, and Westpac. The analyst says in 2021 the quality of customer experience in the banking sector has improved, with the industry average up by two points.
“As a result of the pandemic, most banks are racing to elevate the digital experience of their websites and mobile apps but often neglect the importance of human interactions,” said Riccardo Pasto, principal analyst at Forrester.
He commented that with strict social distancing and lockdown orders in play, banks have shifted to using video chat and other digitally-enabled human interactions to get closer to customers and connect with them on a deeper emotional level.
“Our research shows that CX leaders grow revenue faster than CX laggards, drive higher brand preference, and retain more customers, who are more inclined to forgive stumbles made by brands with good CX. Brands with the best customer experiences during the pandemic shutdown will benefit the most from pent-up demand on the other side,” he continued.
According to Forrester’s CX Index methodology, how an experience makes customers feel has a bigger influence on their loyalty to a brand than effectiveness or ease.
Among customers of Australian banks who felt valued, 62% plan to stay with the bank, 77% plan to spend more with it, and 84% will advocate for the bank.
In contrast, of customers who feel frustrated, only 21% plan to stay with the bank and to spend more with it, and a mere 13% will advocate for the bank.
The report also reveals that good communication with customers has the greatest impact on a bank’s CX Index score. Communicating in plain language is one of the top three drivers of CX quality; just 58% of customers say that banks are successful at this.
Having transparent interest rates and fees is one of the top four drivers for retaining customers, but just over one-third of banking customers report that banks do a good job with prices and fees (36%), indicating room for improvement.
