New Convergys Relationship Management Survey Highlights Key Internal Customer Experience Challenges and Opportunities for Banks

Cincinnati—Many companies are struggling to weather the turbulent economy and global recession, with financial institutions finding themselves especially challenged in the current environment. Convergys Corporation (NYSE: CVG), a global leader in relationship management, recently surveyed 5,000 customers on their attitudes towards their primary bank, both before and after last summer’s downturn.

The Convergys research report, summarizing specific opportunities for retail banks to increase their understanding of today’s customers, focuses on what customers consider important in their relationships with banks, which contact channels they use to interact with banks, key drivers of loyalty, and customer interest in emerging services. It also offers banks a better understanding of what customers want and expect from their financial institutions.

Based on survey results, Convergys’ Recent Trends in Retail Banking report, available today, finds that while nearly 22 percent of respondents hold banks responsible for current economic conditions, this attitude is not having a significant impact on customer loyalty. The important factor driving loyalty is good customer service.

Key findings from the research include the following points:

• Customer Service is Key – Nearly half of customers’ loyalty to their primary bank is driven by two service-related factors: bank employees and issue resolution.
• One and Done – Resolving customer issues the first time was cited as the most important factor in the primary bank relationship by 29 percent of respondents. Nearly half of all calls into the contact center involve an issue or dispute. 
• Anytime, Anywhere Access – Retail banking is truly a multi-channel experience as 4 in 10 customers contacted the bank through the web, the phone, and by visiting a branch in the last year. 
• Bank Branches Remain Vital – 89% of customers who contacted their bank online in the last 12 months were satisfied with the experience, yet 72% of all banking activity reported occurs in the branch. 
• Loyalty Focus – Slightly over half, or 55%, said they would stay with their bank if another bank offered an incentive to switch. 
• Up-sell Opportunity – Approximately 40 percent of bank customers would consider new products and services, with financial/estate planning and online brokerage services generating the most interest.

“Banks face turbulent economic times, stiffer competition, and increasing legislation. At the same time, they have to balance cost of service, an increasing focus on customer satisfaction, building loyalty and profitability. In order to do this, banks need to be nimble in supporting their customers regardless of service channel while also providing their customers with the highest level of security and identify theft protection,” said Jim Boyce, President, Global Business Units for Convergys.

“Convergys is uniquely positioned to support these areas of focus through strategic alignment of business objectives, technology enablement, operational experience with a wide variety of financial services programs and industry leading analytic capabilities. When the economy begins to flourish again, banks with the right combination of customer-driven customer care, technologies, and processes in place will be poised to increase their wallet and market share. Relationship management is critical to emerging from the economic environment in a position of strength,” said Boyce.

About the Convergys Recent Trends in Retail Banking Report:
Convergys collected survey results across two time periods from a random sampling of 5,000 individuals in an online survey panel. We conducted the first wave of surveys at the beginning of the steepest economic period of decline in September 2008, and the second wave in January 2009. More information on the Convergys Recent Trends in Retail Banking report is available at http://www.convergys.com/bankreport/

About Convergys
Convergys Corporation (NYSE: CVG) is a global leader in relationship management. We provide solutions that drive more value from the relationships our clients have with their customers and employees. Convergys turns these everyday interactions into a source of profit and strategic advantage for our clients.

For more than 30 years, our unique combination of domain expertise, operational excellence, and innovative technologies has delivered process improvement and actionable business insight to clients that now span more than 70 countries and 35 languages.

Convergys is a member of the S&P 500 and has been voted a Fortune Most Admired Company for nine consecutive years. We have approximately 75,000 employees in 86 customer contact centers and other facilities in the United States, Canada, Latin America, Europe, the Middle East, and Asia, and our global headquarters in Cincinnati, Ohio. For more information, visit www.convergys.com