FeefoFeefoNovember 16, 2017
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4min308

88 percent of UK consumers aged between 16 and 34 say banks and lenders must do more to improve customer loyalty, research by global reviews and customer insights company Feefo has found.

A total of 61 percent of respondents also say they expect to switch banking provider more frequently in future. The findings were revealed in research examining attitudes to the financial services sector among 1,002 UK consumers.

With 12 percent of respondents describing themselves as “not loyal“, UK banks and lenders are now in danger of sustaining severe losses of more than £1 billion in the £8.7bn current account market, £156bn in the £1.3 trillion mortgage market, and more than £8bn in the £67bn credit card market.

There is a big storm brewing for UK banks and lenders unless they do far more to engage with the under-35s,” said Matt West, CMO at Feefo. Although it was a surprise that the vast majority of Millennials regard themselves as loyal, if banks, building societies and credit card companies want to turn them into life-time customers they need to ensure they are open and transparent and respond to their requirements. It’s not just about having the most competitive offers.”

While a surprising 88 percent of respondents said they are “very or quite loyal” to their banking provider, 77 percent said they would feel more loyal if they could see their bank or lender was listening to them.

And although more than half (54 percent) view competitive rates and charges as important, 85 percent are influenced in their choice of provider by positive customer reviews. Reviews are even more influential than word-of-mouth recommendations from friends and family (chosen by 82 percent of respondents).

Even 82 percent of customers who have never switched accounts so far, say positive customer reviews influence them. The survey also found that 81 percent of respondents would be persuaded to opt for a bank by a cash-back deal linked to a current account, while 79 percent said a cash bonus would tempt them.

Competitive rates and charges are important, but it would be very damaging for institutions to overlook customer feedback,” added Mr West. This is a hugely valuable tool for winning young new customers and keeping them loyal in a market that is only going to become vastly more competitive with the Open Banking revolution and the entry of challenger banks and fintechs.

Banks, lenders and mortgage providers need to use every tool at their disposal – especially the provision of transparent and authentic reviews – if they want to make impact among young customers whose loyalty will be essential to future revenues.”

All respondents in the survey had a bank account, while 68 percent had a savings account, 51 percent a credit card, and exactly a quarter had a mortgage.

Download the full report here.


FeefoFeefoMay 29, 2017
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5min364

75% of UK shoppers are worried about fake online reviews, research by global reviews and customer insights company Feefo has found. Feefo is a global company that requests genuine customer reviews on behalf of brands, and their outstanding initiative brought them The UK Complaint Handling Awards winner title. They were also among finalists in The UK Customer Experience Awards and The UK Digital Experience Awards.

The findings were revealed in a survey examining attitudes to online reviews among 2,000 UK consumers. Only seven per cent of those surveyed said they completely trust reviews even though 74% admit they are influenced by them.

“When it comes to online reviews, these findings reveal that consumers are increasingly sceptical about their authenticity, and too often left in the dark about what to trust,” said Matt West, CMO at Feefo.

“With more UK businesses making their products and services available online, it’s clear that there is a big trust deficit which businesses can do more to overcome through the deployment of advanced technologies such as sentiment analysis. If they don’t, they risk losing out on a valuable source of engagement and market insight, jeopardising their own reputations for customer service.”

The survey also confirmed the growing importance of reviews. 66% of respondents said online reviews were what they looked at first after comparing the prices of products and services. For a high-cost purchase such as a house or car, respondents said they will read an average of 55 reviews.

“Having reviews that customers can trust is a crucial commercial advantage for any business,” added West.

“Our research shows that 81% of customers start their product research online no matter where or how they end up buying. There is no need to leave customers adrift on a sea of unreliable reviews when we have solutions based on machine learning and natural language processing that accelerate customer-insight. This empowers businesses to cultivate higher levels of trust among consumers, generating very positive results on a company’s bottom line.”

The research found that in the absence of independent verification, shoppers have to fall back on a mixture of gut-feeling, common sense and experience when they look at reviews. 69% said they trust fellow shoppers’ recommendations and 76% said the tone of reviews is as important to them as the star ratings attributed by reviewers to a product or service. Another 60% said language and tone are among the top three factors likely to inspire trust in a review.

More than eight-out-of-ten (81%) said they read several negative reviews to see if there is a consistent thread or theme. The majority (54%) are suspicious if there are no negative reviews, while just less than half (49%) said they do not trust anonymous reviews.

Access the full report here: https://en.business.feefo.com/resources/whitepapers/consumer-report

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