Toward a winning value proposition.

• Author: Motley, L. Biff
• Position: Customer Satisfaction - Brief Article

Two ABA market research studies point the way for banks of all sizes toward the development of a winning competitive position vis-a-vis nonbanks and the emerging superpowers in the financial services business. While execution of a strategic vision is always paramount; the studies show that the game is ours to lose. And, we have a very strong likelihood of success if we understand our key competitive strengths and build on them.

The first is the Banking Industry Consumer Tracking Study completed last year. The other is the ongoing Customer Satisfaction Index Service www.clientsatisfaction.com which tracks consumer satisfaction among subscriber banks.

While the methodologies of the two studies are different, analysis of both enable a clear vision of banks' key strengths, weaknesses and opportunities. Among the key findings are:

ABA Client Satisfaction.com

"Personal attributes," such as professionalism, knowledge, effort are more important than products, pricing and delivery channels.

Banks compare favorably with all others in providing overall satisfaction.

Loans are not the most important product to most customers.

Customers will consider banks as a source for investment products.

Internet usage is growing but not yet "determinative."

ABA Consumer Tracking Study

"Trust" is more important than "value."

Customers will consider buying important nonbanking products from their bank.

Financial planning, retirement planning and other "advisory" services are more important than loans.

Mutual funds provide high "value" but low "trust."

People like the Internet to "track" stuff, but are just starting to trust it to "do" stuff.

As you pore over the detailed finding of these two tools, a picture begins to emerge of what banks should do to compete in the evolving financial services business. First and foremost, banks should know and build on their strengths. Second, they should bring out new services and products that wedge them further into the consciousness of their key customers.

While every bank should...