With public approval of the financial sector seemingly in a free-fall, should banks still care about customer satisfaction? Absolutely, concludes a recent study from J.D. Power and Associates and Novantas. Over 80 percent of the public agrees that the current state of the housing markets can be laid at the doorstep of the financial services sector, yet “customer satisfaction alone appears to drive 15-20 percent of growth performance for bank branches,” according to the study, with the “growth differential worth $50,000 to $90,000 of additional annual earnings per branch for above average satisfaction branches.”
This is real money in this time of strained balance sheets. When all the metrics are level—branches offering identical products at the same prices under the same brand, “the growth performance differential ranged from 2 to 5 percentage points. The average annual impact of this differential is approximately $90,000 per branch,” the study found.