Study ranks Eastern Bank tops in N.E. in customer service

LYNN – Eastern Bank ranked highest in New England in the most recent bank customer satisfaction and brand image survey conducted by J.D. Power and Associates.Eastern earned a score of 787 points on a 1,000-point scale. The national average score for retail banks for 2010 is 748, a one-point decline from 2009.”This really affirms the importance we place on customer service,” said Richard E. Holbrook, chairman and CEO of Eastern Bank. “There’s very little difference in the products and services offered by banks, so the way to distinguish yourself is through superior customer service. That has been Eastern Bank’s area of focus and, as demonstrated by this recognition, our strategy is paying off.”The study, in its fifth year, analyzes customer satisfaction with the retail banking experience based on six factors: account activities; account information; facility; fees; problem resolution; and product offerings.Following Eastern Bank and ranked second in the New England Region is People’s United Bank (People’s Bank) with a score of 771, followed by Webster Bank in third with 761.The nation’s top-scoring bank for 2010 is Arvest Bank, which operates in 16 locally managed markets, each with its own president, management team and board of directors, in Arkansas, Oklahoma, southern Missouri and southeast Kansas.Nationally, the study reveals the gap in loyalty between customers of larger and smaller banks is considerable, with 41 percent of customers at smaller banks who say they “definitely will not” switch, compared with 32 percent at larger banks. Higher customer satisfaction with in-person service and attention is an important contributor to increased loyalty at smaller banks. Acquisition rates are also improving at smaller banks, with new customers accounting for 8 percent of the customer base, compared with an industry average of 6 percent.Poor customer service – the most common reason given for switching banks – is cited by 37 percent of customers who changed their primary bank in 2010. Performing simple service acts – such as greeting customers as they enter the branch, offering additional assistance and thanking them for their business – may increase overall satisfaction by nearly 50 index points, yet less than 60 percent of customers report experiencing them.”As retail banking customers become considerably less loyal, banks need to focus on getting the fundamentals right,” said Michael Beird, director of banking at J.D. Power and Associates. “Banks that get back to the basics – such as maintaining a clean branch and greeting customers upon entering – may help to alleviate some of the distress customers are experiencing and increase their overall satisfaction.”Fees continue to have a major impact on customer loyalty, as 29 percent of customers who switched banks in 2010 cite high fees for products or services as their reason for switching.”While fees have a significant impact on customer satisfaction, banks may mitigate this effect by giving customers choices,” said Beird. “Customers tend to be considerably less dissatisfied when they have different overdraft options, such as the ability to transfer funds from a savings account or receive a balance alert. Proactive communication may also help to lessen the negative impact of fees, as satisfaction is more than 100 points higher among customers who are aware of changes in fees ahead of time, compared with customers who are taken by surprise.”