Online-Service Satisfaction Is Up

CU360
July 27, 2009 | COMMENTS

Consumer satisfaction with online financial services improved over the past year even as the financial sector of the economy deteriorated, according to a recent report from ForeSee Results and Forbes.com.

Despite a weak economy, bank bailouts, and tighter credit, financial institutions are using their Web sites to increase customer loyalty, account activity, and positive word of mouth, according to the 2009 Online Financial Services Study. The study measured satisfaction with online banks and credit unions, credit card Web sites, and investment Web sites.

Credit unions and banks continue to lead online financial services in online satisfaction, improving one point over last year to 83 on a 100-point scale. Very few service industries ever break the 80 barrier. Credit card Web sites made the largest jump, soaring seven points to 80, while investment Web sites climbed four points to 78.

The improvement in online satisfaction is good news for financial institutions because Web sites have a fairly large impact on multi-channel operations and future financial success. Satisfied online customers are more profitable, more loyal, and more likely to engage in positive word of mouth.

Highly satisfied customers are significantly more likely than less satisfied customers to purchase additional services and open more accounts, increasing share of wallet. Also, highly satisfied customers are more likely to increase engagement with the Web site for information or transactions, introducing cost savings by establishing a user preference for the most efficient service channel.

Consumer confidence remains a problem, and roughly one-third of respondents are less confident in the stability of their financial institutions. Additionally, only one in five online banking customers and one in three online investors recall seeing any communication or reassurance about their institution's financial stability in the past year, indicating that companies could do more to quell perceptions that they might be in trouble.