Research conducted by YouGov on behalf of Deloitte, the business advisory firm, has found that almost one in two adults in Great Britain (48%) who moves product provider from one retail bank to another, does so because of poor customer service. Some 45% of the 2172 people surveyed have voted with their feet and moved an account or product, suggesting that banks cannot afford to rest on their laurels.

The research findings also show that when it comes to choosing a bank, reliable service (17%) ranks behind pricing (34%) and security (27%). However, when it comes to the crunch, only one in five people switch to get better interest rates – it’s quality of service, or rather lack of, that can doom a relationship.

Nick Sandall, Head of Retail Banking at Deloitte, commented: “While innovative products and competitive rates are important, it’s service quality that makes or breaks the customer relationship. As the retail banks strive to become more cost-effective, service-related initiatives are often the first to go. This could be a short-sighted approach. All the banks are competing for the same customers and loyalty is key if they are to grow their market share. To achieve this, banks must differentiate themselves by providing a better customer experience. This can only be done if they fully understand what the consumer wants.”

Similar research by Deloitte in the US found one key difference in attitudes to bank loyalty. Excessive fees (24%) are the prime cause of dissatisfaction across the Atlantic, followed by poor service (17%), suggesting that perceived lack of value from the relationship is the fastest way to lose a customer in the United States.

Key YouGov survey findings:

• 45% surveyed have switched financial products from one bank to another and, of those, 48% did so because of poor service;
• Only one in five of those who have switched did so to get better interest rates, and only 6% because they felt it was poor value;
• However, 34% surveyed cite competitive fees and rates as the most important factor when choosing which bank to take a product with;
• But, it’s the young who are more inclined to seek the best rates – 45% of 18-29 year olds compared to 26% of the over 50s;
• Whereas for the over 50s a convenient location is more important than to the younger generation (17% and 7% respectively).

Ends

Notes to Editor
Research was conducted on 13 January 2005. YouGov interviewed a representative sample of 2172 18+ adults. Results were weighted to be representative of the Great Britain population.

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. Known as an employer of choice for innovative human resources programmes, it is dedicated to helping its clients and people excel. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press.