How to translate a good reputation into customers in consumer finance
Oct 2, 2023
U.S. Bank performs fairly consistently on our current customer metric…
but that doesn’t tell the whole story.
Beyond the quant, U.S. Bank current customers often mention some specific complaints:
Inconvenient banking procedures
Non-intuitive online platform
Difficulty navigating services for customers who only have loans and no account
Breaking these complaints down, there is a steady increase in dissatisfaction with age:
18-29 year olds: 0% expressed grievances
30-44 year olds: 8% expressed grievances
45-64 year olds: 14% expressed grievances
Digging deeper, we can compare US Bank to Chase, the top performer for our reputation metric.
Here, the model zeroed in on the specific selling points people care about in relation to both of these banks, finding that they have very different associations.
U.S. Bank is reputable because of:
Conservative lending practices
Support for social issues
While Chase is reputable for:
We can also see that women are more likely to talk about Chase as a reputable brand, while men are more likely to talk about U.S. Bank as a reputable brand:
Chase: 59% women, 41% men
U.S. Bank: 41% women, 59% men
We can see that U.S. Bank’s reputation metric outperforms its current customer metric, meaning that its good reputation isn’t translating into customers.
So how could it improve?
This all tells us that, while U.S. Bank is well-perceived by many, improving their online services is a clear area for improvement. Some customers are happy with their customer service, however, other have complaints. This is clearly an important factor based on the comparative analysis with Chase, meaning this should also be an area of focus.
Our demographic breakdown of grievances also tells us the bank should focus on appealing to older consumers, who we know care about customer service (24% of 45-64 year olds prioritise customer service in choosing a bank and 30% of 65+ year olds).