We all make mistakes, and while most people believe that everyone deserves a second chance, financial institutions often find that a single foul-up can result in a lost customer. So how can your organization fight that response? We set out to answer that question, and, in particular, the role compensation plays in customer recovery.
Consumer compensation behaviors
It turns out, only 40 percent of FI customers receive compensation after a negative experience – a figure organizations should take note of, as 64 percent of FI customers are not likely to stay with a brand if they do not receive some sort of compensation.
But compensation is not a silver bullet. In some cases, when the compensation is deemed inadequate by the recipient, it can make a customer feel worse. And for 17 percent of financial services customers, they’re not looking for a financial response – they’d be happy with a simple apology.
Instead of playing the guessing game, we surveyed 1,500 Americans, with the help of Ipsos Public Affairs, to gain insight into consumer attitudes on brands’ customer mitigation process. Download the FI special edition of our service recovery whitepaper, “The Art of Keeping Customers,” to learn more about:
- The kinds of compensation customers favor
- Generational compensation preferences in the FI industry
- The role of social media in the customer mitigation process