Thursday, February 15, 2007

Young People Disloyal To Banks? or Just In General

So its official, Young people have no loyalty? The Wise Marketer reports on the Claritas 2006 market audit's results, which (broken down by age) showed that 12.6% of the so-called Generation Y (under 30 years old) households said they had no primary banking institution. Other age groups, such as Generation X (age 30-39) came out at 11.4% while Seniors (70+ years old) came out at 11.1%, Baby Boomers (aged 40-59) came out at 10.4%, and Empty-Nesters (aged 60-69) came out at 8.6%. It is interesting to consider this piece of research the day after Vanson Bourne for Irish IT firm CA, found that 60% of Irish people now solely dealt with their bank on-line, and 30% dealt solely with their credit card company on-line. They find it more convienent, and less costly than calling a 1850 number were contributing factors, as was the fact that:
A worryingly low 8 percent of people found getting information from call centres on additional products and services a snap. Meanwhile, 69 percent of people have been asked to call back because the (in this example, telecom providers) provider systems have been slow or have gone down. With more than half of consumers willing to jump ship to telecoms rivals for bad service, companies would do well to keep an eye on the quality of customer service.
I think the on-line environment is a ripe space for customer migration. Once customers can compare and migrate with little or no barriers, you as a company are competing on the quality of your customer data, what you do with it, and how you use it to invite customers into conversations.

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