Thursday, 12 January 2012

That’s not logical captain

In my youth I recall Spock talking about Vulcan logic on Star Trek. I do wonder what he would have made of consumer logic in the 21st century ?

Here’s ONE scenario, you’ve been on a good dual fuel tariff for gas and electricity for a number of years but decide you fancy a change.

Why ? You fancy a change . Your current provider hasn’t done anything wrong to you. You just fancy a change. There is no logical reason for changing.

Research shows that 7% of customer are natural floaters. So you’ll lose at least 7% of your customer base each year for no obvious reason.

In another scenario, customers seem very reluctant to change their current account provider. In fact research suggests we are more likely to change our partner than our bank.

In the UK in the1980s low switching rates fostered complacency amongst the big four banks. They mistook low turnover to be an indicator of high satisfaction, whereas it was in fact customer apathy based on the fact that the banks were all as bad as each other when it came to service.

However, when First Direct entered the market with a new model based on 24 hour telephone banking, some customers did take the plunge. I remember being told once that a definition of a loyal customer is someone who hasn’t yet found a better alternative.  This sums up the First Direct scenario.

Key learns     

1)You’ll lose 7% of your customers anyway. Anything  above that suggests you are doing something wrong     
2)Don’t confuse customer apathy for customer satisfaction

Monday, 9 January 2012

Santander Customer experience going the same way as health & safety ! What ever happened to common sense ?

Redhill Surrey, United Kingdom :11.50: 29 December – Santander Belfry Branch.

Two transactions made which involved using my debit card. Bummer, 3 hours later and a 150 miles West , realised I’d lost my debit card.

Ouch number 1 – no telephone number for Redhill branch on google – an 0845 number only. I’ll ring when I get home.

An hour later, ring 0845 number and am put through to branch. Doh ! I had left my card there. Yipee - I thought !

Ouch number 2 – Can you post it to my local branch in Cardiff. Our procedures  don’t allow us to do that ? The Santander Equivalent of computer says no. All you can do is report it as lost, and we will destroy the old Card.

Ouch number 3 – ten days without a debit card.

Am I being commercially naive (as one of my old managers in corporate life one described me) or were Santander right to be so risk averse in trying to prevent potential fraud, even though it was clearly inconveniencing a customer ? Why wouldn't they post my card to the Cardiff Branch ?

Would love to hear from you ?