HSBC TOPS RETAIL BANKS CUSTOMER EXPERIENCE LEAGUE

April 13, 2009 - London. HSBC offers the best retail banking customer experience in the UK, a report published by brand and innovation strategists Prophet will reveal. Out of ten leading financial services providers examined, HSBC topped scores for customer experience both in branches and online. HSBC also came joint top with Citi on speed and quality of service.

These findings, based on a mystery shopping exercise and analysis undertaken by Prophet, concluded that only two banks, HSBC and Citi, currently offer customers an experience that is ‘above expectations,’ with ‘the world’s local bank’ coming out just on top.

Of the eight remaining banks Lloyds TSB and the Post Office were judged to be offering the worst custumer experience. NatWest, Northern Rock, Halifax, Abbey, and Alliance & Leicester all offered a customer experience ‘below expectations’. Only Barclays met the ‘at expectations’ experience.

Complaints amongst the lowest rankings included; low staff morale, long queues, and unclear advice. In contrast, HSBC won praise for its friendly welcome and the personal, attentive and knowledgeable service, its pleasant branch environment, and its online banking service.

Vanessa Cohen, partner at Prophet, said, “The banking sector has been under severe scrutiny in recent months. With taxpayer money now keeping many of our banks alive, demands from customers have increased. Consistency is a problem in many banks and while some are performing well in areas they are not giving customers good quality service across the board. With customers searching for a safe home for their money, banks which seize the opportunity to up their customer experience game could see a great return.”

She continues: “Because banking is part of everyday life, customer experience is particularly influential in shaping brand reputation. Consequently an almost obsessive attention to delivering on customer expectations, and beyond, is required.”

More information, analysis and comment on the research project and results is available at prophet.com/customer.

Throughout February 2009 a group of mystery shoppers were asked to grade the ten organisations on four criteria; branch experience, website experience, service speed, and service quality.

On the selected criteria, shoppers were asked to grade each bank with a score between 1 and 5, with 1 meaning the experience or service was extremely below expectations and 5 being extremely above expectations.

All the banks were given an overall score of between 1 and 5. The field research was followed up by random visits and analysis from Prophet’s team of financial service sector experts.

This analysis of UK retail banking customer experience is the first part of an ongoing project undertaken by Prophet to examine customer experience across a number of sectors over the coming year.

The aim of the research is to understand how different brands and sectors are delivering against customer expectations, especially at a time when they are demanding better value for money. More information and results on the research project is available at prophet.com/customer.

Some Customer Comments

Below is a selection of comments from mystery shoppers that reflect the overall feedback.

Above Expectations

HSBC

“The physical environment of the branch is pleasant and user friendly.”

“In-branch the savings rates are considerably lower than online. It made me question whether I was getting a good deal - but at least I was told this by the woman who served me.”

Citi

“Their staff are professional and friendly making suggestions for me without being pushy.”

“The way I was being treated and having my questions answered made me realise that I was being treated as an individual customer and the products that were being recommended really did suit my needs.”

At Expectations

Barclays

“It doesn’t matter what time of day you go to Barclays the queues are always very long.”

“What impressed me the most was the service I received. Despite a lack of formality, the services provider was exceptionally helpful, taking the time to listen to my needs and making a very good recommendation. The clincher was that she gave me her card and told me that if I had any further questions to call her directly.”

Slightly Below Expectations

NatWest

“I have tended to find that the telephone banking is more helpful than in the branch where at times staff seem to have a lack of ownership.”

“I have yet to experience a waiting time of longer than 5 minutes but the service quality can be poor especially when dealing with more complicated matters.”

Northern Rock

“They have products that are suitable for my requirement but the advice I got was poor.”

Below Expectations

Halifax

“It felt like I was in a discount store with huge signs everywhere advertising rates, which as it happens, were not the best anyway!”

“There was no one around to serve at the dedicated (not so helpful) help point.”

Abbey

“Couches were old, worn, and stained. The service in the branch was almost non-existent.”

“The area to wait in was highly unpleasant due to the presence of litter on the floor and my refusal to sit on the couch as it was so dirty and very worn.”

Alliance & Leicester

“Staff at the branch seemingly found it impossible to answer the few queries I had about a transfer I wanted to make so I left. Remarkably their call centre answered my subsequent call quickly and gave me the information I needed.”

Lloyds TSB

“The branches generally seem outdated and my visit there was a highly unpleasant experience due to both the physical environment and the atrocious level of service I was given. My first experience of the service was to be told by the staff in a slightly aggressive tone, ‘Look I am just trying to help you here.’”

“I did not feel like my requests were treated compassionately at all. The overall impression I got was that the staff did not want to help me.”

Post Office

“Branches feel very low-end as a place to do your banking and it is rarely a good, or quick, experience when you visit.”

“The queues! There is always a queue and there are no dedicated staff to help with your banking needs.”

About Prophet

Prophet is a global consultancy that helps senior management more effectively use branding, design, marketing, and innovation to drive profitable growth.

Prophet has established a successful track record with a growing roster of global companies such as American Express, Cartier, Capital One, Charles Schwab, Diageo, GE, JP Morgan, Johnson & Johnson, Kellogg’s, NBC, Tata, United Airlines and Zurich Financial. www.prophet.com.

Prophet UK Contact

Vanessa Cohen, Partner
vcohen@prophet.com
T: +44 (0) 20 7420 3703
M: +44 (0) 78 1807 5831  

Media Enquiries

Conway Wigg, Propeller Group
conway.wigg@propellergroup.com
T: +44 (0) 20 7087 2732
M: +44(0) 79 1999 2965