A study by IBM has indicated that private sector banks in India are at a greater risk of losing their customers on account of non-satisfactory services as compared to public sector banks. Conducted by research firm IDC, the study titled ‘Understanding the Indian Retail Banking Customer’ says push marketing is fast becoming obsolete and the thrust should be on creating brand advocates. “An interesting finding describes that while multi-banking is picking up – reflecting customers’ desire to diversify deposits and associated risks – private sector banks are at a higher risk of losing their customers to others as compared to PSU banks due to non-satisfactory customer services,” it said. Ensuring quality experience is critical for customer acquisition and retention, it added. The study is based on replies from over 5,000 customers spanning across 10 banks (5 public and 5 private) in the country.The study said 50% of the respondents said they acquire information about banks through word-of-mouth and 2.4% churn is expected among primary bank customers within one year. As much as 41% of private banks customers transact with more than one bank, versus 24% of PSU bank customers. Also, 86% of the 41% customers of private banks possess accounts at PSU banks as well, it added.
“Banks are increasingly realising the need to give their customers a more holistic, seamless experience throughout the value chain. The need of the hour is to understand individual consumer’s transactions and nuances of their unique investment behaviour,” IBM ISA Leader and VP (BFSI) Venkatramani Subramanian said.
