Author: David Lithwick

INTRODUCTION The financial sector (for the purpose of this article covers banks, credit unions, insurance firms, and pay day loan companies) is a very intricate, competitive, and ever-evolving industry. And the extensive use of market research in banking reflects the complexity of this sector. With this in mind, I want to share some practical tips for bank mystery shopping from lessons I’ve learned over the past 35 years. TIPS  Recruiting 1. Make sure that some shoppers have previous financial work experience, such as being a financial planner, insurance agent, or mortgage broker. They will be able to provide additional insights based on knowledge gained through work experience. 2. Recruit shoppers… Read More

Introduction: Credit unions often differentiate themselves from banks as being non-for-profit institutions that offer lower fees, contribute generously to local communities and share profits with their “members” (i.e., customers). These advantages certainly make for appealing messaging. But what about the in-branch experience that often determines how much business a member ends up giving their credit union? No doubt, those branches that surpass customer expectations will generate greater loyalty and business. So what are these best practices we can learn from? To answer this question we completed, over the past 3 years, a series of mystery shops (with our own budget), assessing 25 credit unions. Five Shopper Scenarios Inquiring about joining… Read More

Introduction: Capturing millennial banking business requires carefully crafted strategies to meet the unique needs these audience has and pressures they face. If current research does not go deep enough to gauge how well your financial institution delivers on meeting millennial banking needs, a mystery shop will help pinpoint critical gaps to address and opportunities to capitalize on. Tip: Come up with 5 to 10 assumptions about millennial banking customers to form a base point for your survey. For example, millennials: Rely on technology (e.g., their bank’s mobile app) to help them carry out their banking activities with minimal fuss. Pursue app-based payments (e.g., PayPal, Venmo, Apple Pay, etc.) as alternatives… Read More

HIGHLIGHTS FROM A THREE-YEAR MYSTERY SHOP Introduction Over the past 3 years we mystery shopped 24 credit unions (on our own initiative) to dig deeper into branch and contact centre staff performance. We looked at appointment scheduling, needs assessment, providing information (e.g. products, services), sales delivery (e.g. encouraging shoppers to join), discussing digital banking services and professionalism (e.g. friendliness, patience, knowledge). We then bench-marked their performance against RBC.   What We Found –  Among The Credit Unions Overall, three levels of performance: Acting professionally and scheduling an appointment were done well. Providing information and completing a Needs Assessment were mediocre at best. Selling and discussing/promoting digital banking services were poorly… Read More

Introduction Understandably, credit unions put their best foot forward in creating customer promises. Expressions of expert advice, great service and making the customer’s financial well being the # 1 priority permeate throughout their value propositions: “You can expect expert advice, great service and a full range of financial services.” “Our experts focus on building a trusting relationship with you that leads to your improved financial health. The simple acts of listening and discussing help us help you.” “We’re all about our members—ensuring their financial well-being drives everything we do. And that’s not just something we say on our website, it’s a promise.” Reality Can Be Different While many readers are… Read More

Introduction With the ongoing drive to digital banking, how are banks performing on the basics such as making it easy for customers to apply online for a savings or chequing account? To find out, we shopped the 5 major banks, HSBC and National Bank.  Each was rated on 7 assessment points (see table below). Best practices and pain points were also noted. Best Practices/Pain Points Some banks excel by creating compelling sales messages, making applying a fun experience or going the extra step by informing the applicant where the closest branch is for them to go to. Others, on the other hand make applying complicated and unnecessarily time consuming .… Read More