Your Members Don’t Care About Price
Loyalty is built on customer experience, not cost
Customer loyalty is a critical success factor for any business. And these days banks and credit unions face a huge question: Does it make more sense to invest in customer experience or in dropping your prices to improve customer loyalty? According to a new report from Forrester Research, bank customer experience is a more powerful loyalty driver than pricing.
The Forrester Report tested the relationship between banking customers’ perceptions of their experience, their perceptions of price-value, and their loyalty. The results shows how customer experience trumps price-value perception as a loyalty driver for both banks and retailers, and what this means for organizations that want to deepen their relationships with their customers.
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According to Forrester analyst and author of the report Maxie Schmidt-Subramanian, customer experience accounts for the majority of loyalty among bank consumers. “Years of Forrester data across multiple industries confirm the strong relationship between the quality of a firm’s customer experience and the loyalty of its customers,” says the report. “But even we were surprised to see how much more important customer experience is than price-value perceptions when it comes to driving loyalty.”
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