Conducted by research firm IDC, the study titled 'Understanding the Indian Retail Banking Customer' says push marketing is fast becoming obsolete and the thrust should be on creating brand advocates.
"An interesting finding describes that while multi-banking is picking up -- reflecting customers' desire to diversify deposits and associated risks -- private sector banks are at a higher risk of losing their customers to others as compared to PSU banks due to non-satisfactory customer services," it said.
Ensuring quality experience is critical for customer acquisition and retention, it added. The study is based on replies from over 5,000 customers spanning across 10 banks (5 public and 5 private) in the country.
Fifty per cent of the respondents said they acquire information about banks through word-of-mouth and 2.4 per cent churn is expected among primary bank customers within one year, it said.
Technology can help provide continuous enhancement and support for front-end process automation tools through analytics solutions and intuitive digital channels.
This will help in providing quality service through
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