February 2024 UK Banking App Rankings and Insights Session
The performance rankings and insights for the banking apps in the UK market for February 2024.
March 2024 UK Banking App Rankings and Insights Session
Executive Summary:
In our recent Touchpoint Group Banking App Insights session we examined the March 2024 results for the UK market, focusing on the critical issue of customer attrition. Led by Yazad Karkaria, our Global Head of AI Analytics and Strategy we dissect the dynamics of customer churn and unveil actionable insights for organisations striving to fortify their customer base.
Understanding the Landscape: Overview of the UK Banking App Market
Surveying approximately 20 banks and financial institutions in the UK, our analysis centered on key players such as Lloyds, Santander UK, Capital One, Barclays, and Chase. Leveraging the Engaged Customer Score derived from online reviews on Google Play and the App Store we provide valuable insights into customer sentiment and preferences.
In March, Lloyds reclaimed its position as a leading player, displacing Chase, while Barclays demonstrated a robust performance, closely trailing behind. However, Capital One witnessed a decline in user experience, reaching its lowest point in 15 months. Santander, despite a marginal recovery after a dip in November, faced another setback in March due to dissatisfaction stemming from a new app version release.
Deciphering the Link: User Experience and Customer Retention
Our discussion revolved around the interplay between user experience with banking apps and customer decisions to remain with their service provider. Drawing correlations between the Engaged Customer Score and the likelihood of churn, we highlighted the significance of proactive attrition management.
Lloyds emerged as a beacon of success, maintaining a delicate balance between high app performance and low churn rates. Conversely, banks like Virgin and Monzo grappled with lower Engaged Customer Scores, indicative of a higher propensity for customer churn.
Key Insights and Analytical Solutions
We explored advanced analytics solutions, addressing pertinent queries surrounding organisations aiming to mitigate customer attrition:
1. Understanding Attrition Drivers: With advanced analytics platforms organisations can unravel critical insights into attrition rates, reasons for disengagement, and the financial repercussions of customer churn.
2. Navigating Challenges: The sheer volume of customer feedback, spanning online reviews and internal data sources, poses a formidable challenge for organisations. Without effective analytics mechanisms, deciphering and acting upon customer feedback becomes a daunting task.
3. Leveraging Ipiphany: Our proprietary analytics platform, Ipiphany, empowers organisations with actionable insights derived from comprehensive data analysis. By dissecting customer feedback and identifying key pain points Ipiphany facilitates informed decision-making and strategic planning.
Strategic Recommendations for Attrition Management
Building upon our insights, some simple strategic recommendations to bolster attrition management efforts are:
1. Identify and Understand Attrition Drivers: Proactively identify and understand the key drivers of customer attrition, leveraging advanced analytics to unveil underlying trends and patterns.
2. Swift Action and Customer Engagement: Act swiftly to address customer concerns and enhance engagement. Prioritise customer satisfaction, and swiftly resolve issues to prevent disengagement.
3. Aim for Consistent Improvement: Strive for consistent improvement in threatened churn rates, aiming for rates below 0.5%. Monitor customer feedback vigilantly and prioritise initiatives to enhance user experience and minimise attrition risk.
Our research into customer attrition in the UK banking market underscores the imperative of proactive management and strategic decision-making. Actionable insights derived from advanced analytics empower organisations to navigate the complex nature of customer retention with precision and efficacy.
If you would like to look at the risk profile of your customers through utilising this methodology please reach out, and we can run a free, short deep dive to give you insights to consider.
Video Transcript
00:00:05 - Glenn: Hello, everybody, and welcome to another Touchpoint Group Banking App Insights Session. We are looking at the March results for the UK market in this. And as usual, now, I have Yazad Karkaria, our global head of AI Analytics and Strategy, with us. Now, it's a known fact that the cost of acquiring new customers is significantly higher than retaining the customers you already have.
So, focus on keeping customers happy so they don't leave you, possibly recommend you to others is incredibly important, and understanding the drivers of customer attrition is critical. So today we have a special session to cover off one of the key topics that haunts any organisation, and that is customer attrition.