Are people more likely to switch banks to get a better deal, or because of poor customer service? That was the question asked by a YouGov survey for moneysupermarket.com back in October last year.
Over a quarter (29%) of people switched as a result of poor service or a bad experience, compared with a lowly 13% who deserted for a better rate on their credit balance.
Given the importance of the customer experience in banking, it's interesting to note that HSBC is moving to link executive bonuses to customer satisfaction levels. The new policy was revealed by CEO Michael Geoghegan at an investor meeting last week.
"My pay will be based on what customers say about me," Geoghegan
said. "We will publish customer satisfaction and we will be managed and rewarded on it."
HSBC is thought to be one of the first UK banks to institute such a policy, although the practice is common in other service industries.
It's a smart move, and one that all banks should consider.