February 28, 2006
J.D. Power and Associates Reports: Banking Customers Prefer to Bank Online More Than Interacting With Branch Tellers
WESTLAKE VILLAGE, Calif., Feb. 28 /PRNewswire/ -- With transaction times of nearly three times faster than interacting with a branch teller, online banking is the preferred transaction method among banking customers, according to the J.D. Power and Associates 2006 Retail Banking Satisfaction Study(SM) released today.
The inaugural study, which focuses on performance among the nation's
largest banks, analyzes the retail banking experience from two points of
view -- customer satisfaction and customer commitment.
The study finds that transactions have the greatest impact on a customer's
overall satisfaction with their bank. The average online transaction takes
just 2.8 minutes to complete, compared to 7.7 minutes of combined wait and
transaction time with a branch teller. Overall, in-person branch transactions
are conducted most frequently and are next highest in satisfaction, followed
by ATM and online transactions.
"Banks certainly face a challenge in today's extremely competitive market
in that customers crave the convenience of banking online, yet still also
require a personal touch," said Jeff Taylor, director of the banking practice
at J.D. Power and Associates. While customers appreciate the convenience of
banking online, those who visit the branch less often tend to demonstrate
lower satisfaction levels.
The study also finds that while bank products are viewed as a commodity to
many customers, products that once helped attract new customers, such as free
checking, are now widely offered and expected from customers. Currently
90 percent of banking customers indicate having free checking, and 94 percent
of banks offer free online banking and free debit cards.
"As it becomes increasingly difficult for banks to differentiate
themselves from their competitors, they constantly have to find opportunities
to be innovative in attracting the attention of potential customers," said
Taylor. "Online products and services represent a clear opportunity for banks
to differentiate themselves to potential customers."
The second dimension of the study, which analyzes customer commitment,
gives the industry a more complete picture of a customer's revenue potential
to the bank. Customer satisfaction is a major aspect influencing customer
commitment to the bank, in addition to brand image and a customer's propensity
toward loyalty.
The study finds a strong positive relationship between customer commitment
levels and the number of revenue-generating banking products a customer
utilizes, as well as the number of times a customer recommends the bank to
others. Customers with commitment levels in the top 25 percent use an average
of 3.3 banking services, compared to 2.5 for those in the bottom 25 percent.
Fifty-five percent of highly committed customers also have loans with their
primary bank and make 6.6 recommendations of the bank to others. Among those
with low commitment, just 31 percent have loans with the bank, and they
average fewer than one recommendation. Overall, the retail banking industry
enjoys a commitment level of 28 percent, compared to 13 percent, on average,
in other industries measured by J.D. Power and Associates.
Commerce Bank, Downey Savings and Loan and USAA are among banks that
record particularly high levels of both customer satisfaction and customer
commitment.
"We find that banks with strong brand image can have highly committed
customers, despite lower satisfaction scores, and vice versa," said Taylor.
"But overall, customer satisfaction and commitment are closely entwined.
Satisfaction is what banks can control, while brand image and commitment is
developed over time. Banks that understand and analyze this relationship are
better equipped to develop strategies to attract and retain customers."
The 2006 Retail Banking Satisfaction Study is based on responses from
12,904 households regarding their experiences with their primary banking
provider. The study was fielded in October 2005. Complete customer
satisfaction rankings of banks in the New York Metro area and the state of
California will be released in late March and late April, respectively.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is an
ISO 9001-registered global marketing information services firm operating in
key business sectors including market research, forecasting, consulting,
training and customer satisfaction. The firm's quality and satisfaction
measurements are based on responses from millions of consumers annually.
J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global information
services provider meeting worldwide needs in the financial services, education
and business information markets through leading brands such as Standard &
Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates.
The Corporation has more than 290 offices in 38 countries. Sales in 2005 were
$6.0 billion. Additional information is available at
http://www.mcgraw-hill.com.
J.D. Power and Associates Media Relations Contacts:
John Tews Peter Dadlani
Director, Media Relations Supervisor, Media Relations
Troy, Mich. Westlake Village, Calif.
(248) 312-4119 (805) 418-8103
john.tews@jdpa.com peter.dadlani@jdpa.com
No advertising or other promotional use can be made of the information in
this release without the express prior written consent of J.D. Power and
Associates. http://www.jdpower.com
February 28, 2006 at 11:01 AM in Education | Permalink | TrackBack (531) | Top of page | Blog Home
August 10, 2004
Conversational Terrorism
Conversational Terrorism: How NOT to Talk!
All of the techniques listed in this document have actually been witnessed, told to us by someone else, or dreamed up. They are described in first person for clarity of motive.
The intent of detailing and naming these insidious tactics is so that the reader may AVOID USING THEM, to quickly recognize if someone else is using them, and for fun. There is much humor in the way people (consciously or unconsciously) conversationally cheat.
The intent of detailing and naming these insidious tactics is so that the reader may AVOID USING THEM, to quickly recognize if someone else is using them, and for fun. There is much humor in the way people (consciously or unconsciously) conversationally cheat.
It is hoped that exposing these tactics will help muzzle the growing abuse in our conversational landscape. Give copies to both perpetrators and victims (only NOT for profit use).
The examples are overblown in an attempt to be both clear and funny. Use your imagination to think of how you (perish the thought) and others have used these techniques in the past.
They have been grouped by major category, with the best (worst!) saved for last.
First, we have the Ad Hominem Variants where you attack the person as a way to avoid truth, science, or logic which might otherwise prove you wrong. Next are the Sleight of Mind Fallacies, which act as "mental magic" to make sure the unwanted subject disappears. Then, we move on to Delay Tactics, which are subtle means to buy time when put on the spot. Then, the ever popular Question as Opportunity ploys, where any question can be deftly averted. Finally, we have the Cheap Shot Tactics and Irritants, which are basically "below the belt" punches.
Ad Hominem Variants
August 10, 2004 at 08:37 PM in Education | Permalink | TrackBack (23) | Top of page | Blog Home
February 21, 2004
Blogs in the classroom
This fascinating article is surprisingly written in 2002! Unfortunately the blog he refers to is no longer there, and the link at Kellogg is dead. I am curious if he was successful, and how this blog supplemented the course.
Some requests for comments on my experience mandating blogs as part of TEC924 have been popping up lately. The timing is good since I'm in the midst of reviewing and updating the course for the next time it will be offered come January.
Weblogs as part of a course design
In another course I teach on technology management and electronic commerce, I had already experimented with using a weblog as a one-way communications tool from teacher to students. A course specific weblog turns out to be an excellent tool for supplementing classroom time.
For the design of the knowledge management course, one central perspective was that of the individual knowledge worker. I wanted students to explore knowledge management and knowledge sharing issues not only from the organizaiton's perspective but from their own perspective as knowledge workers with their own knowledge to be managed and shared. I wanted to avoid the notion that knowledge management was some sort of problem that belonged to someone else in the organization.
Given that perspective, it was natural to include the topic of k-logs as an important development in the knowledge management field. If you happen to prefer "learning by doing" it was a straightforward step to build maintaining a weblog into the course design.
It's also possible to take learn-by-doing to extremes and some of that happened during the conduct of the course.
Choosing a blogging tool
I selected Radio as the blogging tool for several reasons. Most importantly, I already used it and knew where its warts were. Beyond that immensely practical reason, I also had some other logic for my choice. Chief among those was that Radio stores weblog entries locally. Other important elements included Radio's news aggregator and subscription mechanism.
Although I could have set up a Radio Community Server, I opted instead to rely on Radio's out of the box setup of providing a hosted account to users. As a first-time experiment, I did not want to involve Kellogg's excellent IT group. It would have introduced additional problems of support and learning curves for a group that already has plenty on its own plate. Moreover, it would have required proposals and permission. With Radio, I could run the experiment within the confines of what I could directly control.
The one significant technical problem I encountered with Radio was that some students in the evening MBA program have limited access to computers that they are free to install software on. Students in the full-time program are expected to invest in a laptop for the duration of the program and campus net access (both wired and wi-fi) is excellent. For the evening students we had to work through a handful of problems with firewalls in work envrionments or the limits of dial-up access. Eventually all but one student succeeded in getting Radio installed and operational.
For the upcoming second run through this course, I expect to stay with Radio. For me the locally maintained database is an advantage. While I can see Seb's point about a central server-based architecture in an educational setting, I also believe that a distributed architecture is more likely to be the case outside the educational environment. Given that MBAs are my audience I prefer an architecture that is more likely to be what they will encounter later, even if it might create support problems.
February 21, 2004 at 10:19 AM in Blogging & feeds, Education | Permalink | TrackBack (28) | Top of page | Blog Home
