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Banks can increase deposits 16.5 percent with improved CX, study shows

December 13, 2018

U.S. retail banks can increase deposits up to 16.5 percent by improving elements of their customer experience, according to new analysis conducted by Kantar.

According to a press release, the roadmap to growth is based on five indices: clarity of brand promise; empowered employees; empowered customers; creation of lasting memories; and exceptional delivery. An additional consideration is the bank's "experience gap," i.e., the difference between the brand promise and the customer experience.

Kantar's analysis ranked banks based on performance in the five CX+ indices and experience gap rating

USAA ranked No. 1 based on its ability to deliver superior customer experience in line with its brand promise. Regions Bank, Chase, BB&T and Citizens Bank rounded out the top five retail banks. 

Other findings from the Kantar analysis: 

• Banks that lead in the CX+ Index have a recommendation rate 1.9 times higher than banks at the lower end of the index. Additionally, their share of deposits is 1.9 times higher and their customers are 2.1 times more willing to use the bank's new products and services.
• Banks whose customer experience is allowed to decline risk losing up to 12.5 percent of their deposits.

• While 61 percent of female bank customers stay with their bank for more than five years, on the whole they are less satisfied than men;

• Women have a lower preference score for their bank than men, indicating that they may be more willing to switch if a better alternative presents itself.
• Women are also less willing than men to take up additional products or services with their bank (64.3 percent vs. 73 percent of men).

"Our analysis clearly shows retail banks can achieve exceptional financial growth through superior customer experience that is matched with a strong brand promise," Erika Pearson, Kantar executive vice president of customer experience, said in the release. "Focusing on customer experience is the single most important investment a bank can make in today's competitive business environment." 

The Kantar CX+ study analyzed 6,000 retail banking customers in the U.S. and was conducted in 2018.

Download the report.