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Apparently, the big green chairs really are quite comfortable. TD Canada Trust has been ranked the highest among the “Big Five” Canadian banks in terms of customer satisfaction, according to the J.D. Power and Associates 2007 Canadian Retail Banking Customer Satisfaction Study. But topping the Big Five list doesn’t make you tops overall.
This is the second recent customer service survey to rate TD the highest among its competitors. Earlier this week, Synovate Canada tapped the bank as tops in seven out of 11 categories — among the big banks.
“We put everything we have into being the bank that serves customers the best, so to achieve this ranking is very gratifying,” said Tim Hockey, group head, personal banking, and co-chair, TD Canada Trust.
This is the second year the survey has been conducted, and it marks a repeat for TD Canada Trust, which ranked highest last year as well. While it topped the big banks category, with its score of 775 out of a possible 1,000 points, it was not the highest ranked overall.
The J.D. Power survey named President’s Choice Financial as the top-rated mid-sized retail bank, with a score of 830. The upstart institution made a name for itself by eliminating banking fees, which was the motivating factor for 78% of its clients in choosing to bank there.
“By using an innovative model of providing banking services online and by phone, automated banking machines [ABMs] and pavilions located in supermarkets, President’s Choice Financial not only differentiates itself from other banks in its segment but also excels in providing highly satisfying service,” said Charles Schade, senior director of research at J.D. Power and Associates.
While fees — or the lack thereof — was a major driver of satisfaction, so was convenience. TD Canada Trust has the longest hours of operation of any of the Big Five, open from 8 a.m. to 8 p.m. Sixty-one per cent of its customers cited convenience as being “extremely important,” compared with 46% of customers overall.
“Rather than operating only during traditional banking hours, TD Canada Trust offers extended weekday and weekend hours, which is innovative in the banking industry,” said Schade. “TD Canada Trust has adopted other innovative approaches to banking, such as providing financial information geared toward college and university students on Facebook.com. As a result, its customers report that they perceive the bank as particularly innovative, which appears to contribute to its high level of overall satisfaction.”
So why should banks care about customer satisfaction? The survey found that customers who are happy with their deposit-taker are more likely to stay with that bank. Customer loyalty among depositors can pay big dividends for the banks when the customer needs a loan or starts to invest. Almost 80% of customers said they held credit products — lines of credit, credit cards and mortgages — from the same financial group with which they bank.
“Retail banking is a very personal experience for Canadians, who, in general, are in contact with their accounts more than 20 times each month,” says Schade. “Each transaction provides an opportunity to delight customers or, conversely, [for customers] to lose confidence in their financial institution’s ability to handle money. Those financial institutions that manage to delight their customers stand a greater chance of extending their relationship beyond the branch.”
The J.D. Power survey measured customer satisfaction in six areas:
- transaction experiences;
- facility;
- account setup/product offerings;
- account statements;
- fees; and
- problem resolution.
The 2007 Canadian Retail Banking Study includes the largest financial institutions — banks and credit unions — in Canada, and is based on responses from 11,325 customers who use a primary financial institution for personal banking. The study was fielded in February and July 2007.
Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com
(08/30/07)
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Apparently, the big green chairs really are quite comfortable. TD Canada Trust has been ranked the highest among the “Big Five” Canadian banks in terms of customer satisfaction, according to the J.D. Power and Associates 2007 Canadian Retail Banking Customer Satisfaction Study. But topping the Big Five list doesn’t make you tops overall.
This is the second recent customer service survey to rate TD the highest among its competitors. Earlier this week, Synovate Canada tapped the bank as tops in seven out of 11 categories — among the big banks.
“We put everything we have into being the bank that serves customers the best, so to achieve this ranking is very gratifying,” said Tim Hockey, group head, personal banking, and co-chair, TD Canada Trust.
This is the second year the survey has been conducted, and it marks a repeat for TD Canada Trust, which ranked highest last year as well. While it topped the big banks category, with its score of 775 out of a possible 1,000 points, it was not the highest ranked overall.
The J.D. Power survey named President’s Choice Financial as the top-rated mid-sized retail bank, with a score of 830. The upstart institution made a name for itself by eliminating banking fees, which was the motivating factor for 78% of its clients in choosing to bank there.
“By using an innovative model of providing banking services online and by phone, automated banking machines [ABMs] and pavilions located in supermarkets, President’s Choice Financial not only differentiates itself from other banks in its segment but also excels in providing highly satisfying service,” said Charles Schade, senior director of research at J.D. Power and Associates.
While fees — or the lack thereof — was a major driver of satisfaction, so was convenience. TD Canada Trust has the longest hours of operation of any of the Big Five, open from 8 a.m. to 8 p.m. Sixty-one per cent of its customers cited convenience as being “extremely important,” compared with 46% of customers overall.
“Rather than operating only during traditional banking hours, TD Canada Trust offers extended weekday and weekend hours, which is innovative in the banking industry,” said Schade. “TD Canada Trust has adopted other innovative approaches to banking, such as providing financial information geared toward college and university students on Facebook.com. As a result, its customers report that they perceive the bank as particularly innovative, which appears to contribute to its high level of overall satisfaction.”
So why should banks care about customer satisfaction? The survey found that customers who are happy with their deposit-taker are more likely to stay with that bank. Customer loyalty among depositors can pay big dividends for the banks when the customer needs a loan or starts to invest. Almost 80% of customers said they held credit products — lines of credit, credit cards and mortgages — from the same financial group with which they bank.
“Retail banking is a very personal experience for Canadians, who, in general, are in contact with their accounts more than 20 times each month,” says Schade. “Each transaction provides an opportunity to delight customers or, conversely, [for customers] to lose confidence in their financial institution’s ability to handle money. Those financial institutions that manage to delight their customers stand a greater chance of extending their relationship beyond the branch.”
The J.D. Power survey measured customer satisfaction in six areas:
- transaction experiences;
- facility;
- account setup/product offerings;
- account statements;
- fees; and
- problem resolution.
The 2007 Canadian Retail Banking Study includes the largest financial institutions — banks and credit unions — in Canada, and is based on responses from 11,325 customers who use a primary financial institution for personal banking. The study was fielded in February and July 2007.
Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com
(08/30/07)
