Customers prefer second-tier banks

The customers of second-tier banks are happier with their banks than those of the majors, according to a new report.

The 2010 edition of Brisbane consulting firm Engaged Marketing’s Australian Banking Consumer Recommendation & Loyalty Survey has revealed Bank of Queensland and Bendigo Bank were the most popular bank with consumers.

The survey ranks organisations based on more than 6690 consumer responses, and assigned a positive or negative score depending on customer experience. Out of the nine banks included in the survey, only three – BoQ, Bendigo and Suncorp – achieved positive ratings.

“For every one negative comment made about a bank, it takes around four or five positive referrals to negate the damage,” said Engaged Marketing founder and chief executive Chris Roberts. “Based on around 18 million banking relationships there may be as many as 30 million negative comments being made about banks by their customers every year. This makes achieving a positive customer experience, first time, more important than ever.”

He added that the relatively low scores scored by the banking sector in general means that many main bank customers continue to be disappointed with experiences provided by Australian banks.

“There has never been a more critical time to go back to basics and focus on the customer,” Roberts said. “The continued strong utilisation of social media injects an additional element of urgency because everyone knows word of mouth is the most effective marketing channel available to customers.”