The experiential brand is the most important aspect of retention
and key to word-of-mouth. Here is a summary of one family’s
experience with a major financial institution that is riddled with
failures that undermine its business operations, and service fundamentals
that go into creating a successful brand.
Featured Example: Financial Institution X
The family in this story has a multi- year relationship with this
large financial institution where they have personal, business,
private banking, pension and other investment accounts. Despite
being assigned for personal banking services, there are different
staff responsible for each type of relationship, with no
effective single address for managing this client relationship.
A sampling of customer service failures:
- ATM activation renewals resulted in disrupted access to accounts
online and at the ATM
- Investment accounts turned over to four different providers
over 4 years
- Intra bank account transfers failed to arrive either on time or
- Business bankers and mortgage bankers left phone calls unreturned
resulting in scrambles to find alternative financial
resources and experts
In short, the bank made no effort to provide customer-responsive
service for this important customer, resulting in a seemingly-
endless series of errors – some minor and some with major
financial impact. Divisions and experts did not talk to each
other or collaborate and did not take responsibility for follow
through to ensure that a customer’s needs had been addressed to
the customer’s satisfaction.
With so many service failures over the past few years, it is remarkable
that this institution manages to retain its enormous
customer base. All of the advertising and promotional offers
cannot counter a groundswell of customer discontent or worse.
If you have guessed by now which financial institution we are
referring to, it would not be surprising. What is also concerning,
and a critical lesson for the banking industry, is that it is likely
that many of you named a brand other than the specific one involved
in this tale of woe.