Poll – Customers balk at thought of Bank of America Corp (NYSE:BAC)
Poor customer service is a sure-shot way of waving goodbye to customers. Well at least that’s how it is in customer-driven industries. A business might just get by if it provides below-par customer service but it will not flourish. Then what is it that provides large banks with immunity from the customers’ ire?
The poll says it all
As per a Gallup poll that was conducted recently, a paltry 26% of people actually have a “great deal” or “quite a lot” of confidence in their respective banking institutions. As a matter of fact, the country’s biggest banks turned out top the list on the ones that provide the worst customer service. Earlier this year, J.D. Power & Associates ran a customer satisfaction survey and Bank of America Corp (NYSE:BAC) and Wells Fargo were the worst offenders.
They ranked at the very bottom rung of the industry in every single geographical region that was examined. As if to validate what these polls indicated, they were the worst performers in the 2013 Survey of Bank reputations that was carried out by American Banker, an industry publication. Despite this, the profitability of BAC has gone unscathed.
What’s their secret?
There really is no secret formula at all. The fact of the matter is that not only is switching banks a time-consuming and troublesome affair, it is an expensive proposition as well. Banks will very vociferously promote automatic bill pay and direct deposit. These are the exact things that make it difficult for customers to navigate away from them. At least 40-50% checking account owners at many of the largest banks in the country, live from one paycheck to the next.
They cannot risk switching banks as either of the accounts may move into negative balance if the switch is not timed perfectly. On the other hand, the red carpet is always rolled-out for larger customers and they have no inclination to switch banks. And so, Bank of America Corp (NYSE:BAC) and other large banks don’t really have too much to lose and poll or no poll- their reputation stays intact.