Financial services pays price for poor customer service
The failure of the financial services industry to effectively engage with its clients is leading to missed opportunities, according to a report commissioned by Thunderhead.
A survey of 1,520 consumers by PureProfile found that one-third of Australians would be willing to pay more for a product or service if they received excellent customer service.
In addition, 46 per cent of respondents said good customer service would make them more likely to recommend their provider - ahead of cash incentives at 35 per cent.
Fifty per cent of respondents felt their finance service provider did not know or understand them at all; and 53 per cent of those surveyed said communications from their provider were ill targeted and impersonal.
Thirty-nine per cent of Australian consumers are considering switching providers, and 31 per cent are unlikely to recommend their provider, according to the report.
Financial services providers are also using the wrong channels to contact their clients, according to the report.
"Seventy-nine per cent of consumers currently receive communications from their financial service provider through the post, yet over half of Australians stated they are more inclined to act on a communication if they are contacted directly by phone or email," said the report.
Email was the preferred channel of those surveyed, at 49 per cent.
"Financial service providers should look towards developing multi-channel communication engagement strategies, with the goal of providing improved customer engagement across all available channels," said the report.
AUTHOR
Staff Writer
Recommended for you
Following an extraordinary general meeting today, Dixon Advisory parent company E&P Financial Group’s shareholders have voted on its proposed delisting from the ASX.
While overall financial adviser numbers have dipped below 15,500 this week, Rhombus Advisory is experiencing growth and approaching 500 advisers in its ranks.
Iress’ Xplan continues to dominate the financial planning software market with a multitude of uses, according to Netwealth research, despite newer players battling for a piece of the pie.
ASIC has shared the percentage of breach reports related to financial advice in FY24, noting increased reporting by smaller AFSLs.
