A new study shows that people are shopping and switching banks more often than in the past. You might think it has to do with the negative press banks received at the start of the recession, but it is not. And we all need to pay attention. 
JD Power & Associates conducted a 2011 U.S. Retail Bank New Account Study which found that the number one reason people switch banks has nothing to do with giveaways, press, rates or price. It has to do a more fundamental reason. The number one reason was because of “life circumstances.” Nearly 9% of people changed banks last year.
The top reasons are:
- Life circumstances 28%
- Fees/rates 17%
- Unmet expectations 13%
- Better customer service 8%
- Advertising 7%
The reason we all need to pay attention is that life changes (people moving, changing jobs, marriages and divorces) cause people to make changes in other parts of their lives as well. It is an opportunity for new customers, but also a reason to make sure you are taking care of your current customers. There is a natural churn in all businesses and organizations. It is estimated that 17% of the population moves each year. How are you driving awareness and decisions for people in life changes?
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