Banks Set the Customer Satisfaction Standard for Online Financial Services

Business Wire, April 15, 2008

Credit Card and Investment Websites Merely Average, According to Study by ForeSee Results and Forbes.com

ANN ARBOR, Mich. -- Customer satisfaction with online banking far surpasses other online financial services like credit cards and investment, according to a new study conducted by ForeSee Results and Forbes.com. According to the 2008 ForeSee Results/Forbes.com Online Financial Services Study, which employs the methodology of the University of Michigan's American Customer Satisfaction Index (ACSI), online banking scores 82 on ACSI's 100-point scale. Credit card websites and investment websites both score 75.

In banking, the online channel (up 12% from 2003) significantly outperforms overall retail banking in terms of customer satisfaction, which scored 78 when measured by ACSI in 2007. This is the first year the study surveyed credit card and investment website customers.

"Online banking is setting the bar for online financial services," said Larry Freed, president and CEO of ForeSee Results and author of the study. "Improving customer satisfaction is an effective way to move customers to the most cost-efficient channel. It's smart business."

Credit cards struggle to move beyond commodity status, and the low score for credit card websites indicates that credit card companies are not maximizing the value of the online channel to overall business operations. Credit card companies do not tend to have strong relationships with their customers, but the study suggests that investments in improving website performance and the site experience would improve loyalty.

For investment websites, customers are more likely to use the online channel than any other channel, so it is imperative that the website meet customer needs. Highly satisfied customers are 37% more likely to increase online transactions and 51% more likely to purchase more services than dissatisfied customers, which clearly demonstrates the value of online customer satisfaction.

"Financial services firms should resist the temptation to cut investment in the online channel in times of tight money," said Freed. "Our research suggests that, if anything, a commitment to improving satisfaction with the web channel can improve both overall loyalty and the bottom line by moving customers into the most cost-efficient service channel."

For a full copy of the 2008 ForeSee Results/Forbes.com Online Financial Services Study, including in-depth commentary of each of the three measured industries, please contact Sarah Allen-Short (sarah.allen-short@foreseeresults.com) or visit the website at www.ForeSeeResults.com.

About ForeSee Results

As the leader in online customer satisfaction measurement, ForeSee Results captures and analyzes online voice of customer data to help organizations increase sales, loyalty, recommendations and website value. Using the methodology of the University of Michigan's American Customer Satisfaction Index (ACSI), ForeSee Results identifies the improvements to websites and other online initiatives with the greatest ROI. With more than six years of experience measuring online customer satisfaction and benchmarks across dozens of industries, ForeSee Results offers unparalleled expertise in customer satisfaction measurement and management. ForeSee Results works with clients across industries, including: financial services, healthcare, hospitality, manufacturing and government. Some of our financial services clients include: Citi, Quicken Loans, TIAA-CREF, CUNA Mutual, Patelco Credit Union, Provident Bank, Nationwide Insurance, LowerMyBills and the World Bank.

ForeSee Results is headquartered in Ann Arbor, Michigan and can be found online at www.ForeSeeResults.com