The customer is king (again)

Submitted on 10/04/2008 09:10

A recent seminar in San Francisco had the title “customer service is the new marketing”. Or, as one of their speakers put it, marketing is a tax business pay for being unremarkable.

With so many competitors out there in every sector, true customer service is certainly a real selling point. So why is bank-bashing still such a popular Australian pastime?

You only have to Google “bank customer service blogs”, narrow it down to Australian entries in the last 6 months, and you’ll find over 6000 people whingeing about their bad experiences with various banks.

I wonder how many bank executives actually look through these, as they are a goldmine of information about what people actually want from their bank. The new “listing and switching” requirement will soon make it much easier for Australians to change banks: your old bank will have to provide a list of all direct debits and credits over the last year, so you will have a simple transfer checklist. And they are also supposed to help you avoid those hefty exit fees.

The main triggers for changing banks will probably be better interest rates and convenience. Like any other product or service out there, we all want value for money. And from the sound of the blogs out there, we aren’t necessarily getting that.

Here are just a few gripes I came across recently:

Sam de Brito asked why his bank charged him for using any ATM, paid him such a low interest rate on his account, and then also whacked excessive charges for every service possible: “Banks are sneaky: they place very perceivable obstacle in front of the public to prevent them getting value for their money, and then they grasp and claw fees the average person is too busy to sniff out, or too financially illiterate to understand.”

Munir Kotadia reported in his blog on a bank that couldn’t be bothered reuniting one of its customers with his wallet; a golden customer service opportunity lost.

And Sean Adams pondered whether online and phone banking, even though they are faceless, offer better opportunities for customer service than his woeful experience with his bank branch. Although many banks are focusing on the retail experience: “shorter queues, bigger smiles, comfier sofas, fresher coffee”, the reality can easily fall short of expectations when a bank teller, or “valued customer personal banker” lacks the people skills (and knowledge) to deliver basic service.

Adams concluded that “excellent personal service can be delivered through various channels, but must be based on two central foundations – first, a detailed knowledge of your customers and their history of interactions with you, and second, a service culture that empowers your staff to do whatever it takes to solve their problems.”

Does that sound like your bank?

When it comes to convenience, online banking is certainly a winner. All the students moaning on their Facebook “Banks suck – a let’s start a consumer backlash to get a better deal” group were mostly put out that their bank branch closed at 4pm (or at any other random and inappropriate time). But online banking means you can transact on your account, 24 hours a day, 7 days a week. Whenever it suits you.

And the new online and phone banking accounts often seem to be the ones offering the best value for money, if it’s high interest on savings accounts and low (or no) fees that you are looking for.

So, if you really are fed up with your bank, remember you do have a choice. Vote with your feet and move to a bank that offers the customer service you deserve.

Let me know what you think – is online banking the solution? Or are there banking needs that can only be met face to face? Have you had any truly outstanding (or awful) customer experiences at any bank? Here’s your chance to let the world know!

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