How financial service institutions can offer more value to their customers
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Rising expectations: Financial Institutions have been hit by a wave of rising consumer expectations
they have less loyalty
and are ready to switch for better service or a lower price. (Deloitte Consulting.)
Internet competition: The industry realizes comparable rates are easily available elsewhere.
Scandal: In the wake of recent corporate scandal and resulting consumer mistrust, financial services are all tarred to some extent by the same brush; each institution needs to convey trustworthiness to their customers.
Little one-to-one: Few companies have fully personalized dialogues with customers.
Fact: Customer service is more than ever a key component of client retention in the financial services industry.
Fact: Companies able to respond to their customers' individual needs are likely to be rewarded by greater loyalty.
Fact: Financial service web sites are just now going down the road seeking tools and applications to tie their customers to them portfolio managers, stock alerts, or other services
but results are uneven, and few have really developed a killer application.
Conclusion: Companies that focus now on customer-centric products now are in position to gain market share more rapidly than other institutions.