research shows good customer service is the match point for customers choosing a current account bank

As Wimbledon approaches its second week, tennis fever sweeps the country and the talk of the courts is the importance of a good service game in modern day tennis.

Customers, meanwhile, are saying the same applies to switching bank accounts, naming good service as the number one reason for both joining and leaving a current account bank.

Research by BMRB for first direct* this week reveals that more than one in five people (21%) cited customer service as the most important consideration when thinking about switching bank account. This is 50% higher than the number of people who stated the credit interest rate is their priority (14%).

Convenient opening hours and telephone or internet banking are also key, named as the most important consideration for 19% and 13% of people respectively.

Conversely, 32% of the current account customers who switched bank in the last year said poor customer service was the reason why. Again, this was 50% more likely to convince people to move than low credit interest rates - the next most important factor - prompting 20% to switch.

Looking ahead, a quarter of current account customers said poor service would be the main reason for considering leaving their existing current account bank.

Alan Hughes, first direct’s chief executive says: “Anyone who finds managing their current account a hassle should consider switching bank because good customer service can make a real difference. At first direct we help customers to quickly and conveniently sort out their money, so they can spend their time doing more interesting things.

“We know our customers value the service they receive from first direct because they talk about it. In fact, nearly half of first direct’s new customers join us following a personal recommendation.”**

Harriet Young, a 27 year-old from Surbiton, Surrey, who works in human resources says customer service was behind her switch:

“I was fed up with Barclays. I spent too many lunch-hours queuing in the branch and I wasn’t happy with the service I received. I moved to first direct on a friend’s recommendation and found switching to them really easy.

“That was a year ago and it was so worthwhile. I now do lots of my banking online but can also phone first direct, which I often do in the evening if I want to know my balance or make a payment. But the most important difference is that the customer service couldn’t be better. In fact I now recommend first direct to other people.”

ENDS

*Research was carried out by telephone among a sample of 1,007 adults aged 16+ on the 11-13 June 2004 by BMRB.

**First impressions Q4 2003.

Notes to Editors:

• The Which? website offers information about many banks and rates them according to their products and service. first direct and Smile come out tops while Barclays, Lloyds TSB and NatWest are at the bottom
• In May 2004 first direct pulled off a hat-trick by winning the Personal Finance magazine award for best customer service for the third year running
• According to MORI research, first direct has been the most recommended UK bank, and has had the most satisfied customers (of any UK bank), for the past 12 years
• In February 2004 Research International found that more ABC1s would want to switch to first direct than any other bank.