Only a third of Brits (39%) are loyal to their financial services providers, according to new research from Navigant Consulting.
Just 7% of the 2,277 UK adults polled by YouGov and Navigant said they felt a sense of loyalty to their financial services companies. Meanwhile, only 7% felt ‘very loyal’ and 32% felt ‘quite loyal’.
Andrew Veal, Navigant Consulting’s managing director for Financial Services, said: “These results demonstrate that on the critical issue of retaining customers, UK financial services providers still have a long way to go.
"The fact that nearly two thirds (61%) of those people that we interviewed feel no sense of loyalty to their financial services providers should make worrying reading for the financial services industry.”
The survey also found around half of those interviewed would recommend their financial services providers to friends, family and contacts. Only 5% recommend their providers to others ‘all the time’ while 45% do so occasionally. A fifth of the sample (20%) said they rarely or never recommend their provider.
A total of 31% feel the brand name of their financial services provider (either online or offline) is crucial and they would only do business with a brand they trust. However, 21% say customer service is more important than brand and 41% believe price is the key consideration.
Veal comments: “What we’re seeing here is that providers have two main paths to customer retention success. Either focus on brand and service – and accept that you will be more expensive than other players (but will benefit from enhanced loyalty and recommendations) – or focus on low-cost, commoditised solutions to appeal to the price-conscious consumer.”IFAonline
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