Cultivating highly satisfied bank customers has a profoundly positive effect on financial performance, according to a study from J.D. Power and Associates, a global marketing information services provider.
Based on a customer satisfaction survey at 20 leading banks operating in China, the study found that banks with the highest levels of customer satisfaction experienced a growth in profit margins of 129 percent on an annual basis between 2006 and 2008.
That growth rate was nearly three times the growth rate for banks with medium levels of customer satisfaction and more than 21 times that for banks with low customer satisfaction levels, the survey reported.
China Merchants Bank, the nation's sixth-largest commercial lender, ranked highest in overall customer satisfaction and performed particularly well in account handling and production offerings, according to the survey.
Shanghai Pudong Development Bank, China CITIC Bank and China Everbright Bank followed in the rankings.
"These top performers have a common strength in delivering a consistent and satisfactory experience to individual bank users, which distinguishes them from other banks and is more likely to bring them long-term success," said Rockwell Clancy, executive director of financial services for J.D. Power and Associates.