Many of us, including myself, are fascinated by online ratings. If my vacuum cleaner breaks, I’ll run a Google search for “best vacuum cleaner,” and I’ll end up ordering whichever one has the most internet hype, the most stars out of five. Apart from price, customer reviews are really the only other factor in my decision.
It’s not purely irrational behavior. I know nothing about vacuum cleaners; all I can do is trust my digital peers who have already purchased them, and therefore, have more experience with the prospective vacuums than I do.
So, while it’s not surprising that many consumers look at ratings and reviews before making purchases, it’s interesting that they tend to skip this process on larger decisions. A new online survey conducted by The Harris Poll on behalf of Ally shows that nearly half of American adults (49 percent) say online reviews are extremely or very important in helping them decide which products and services to buy, while only 23 percent of adults have used online reviews when choosing a bank or other financial service provider in the past year.
This lack of research and complacency with banks means consumers are unlikely to consider whether or not they’re satisfied with the service of their current financial institution, quite unlike how consumers tend to be highly critical of other, smaller services or products in other sectors, such as retail or food. Ally has seized on this insight in its latest marketing campaign.
“People seek advice online for a number of daily purchases but accept the status quo when it comes to banking,” says Diane Morais, President of Consumer and Commercial Banking Products at Ally Bank. “They can and should expect more from their bank just like they do for other purchases. At Ally it’s our mission to do right by our customers and their money which has earned us praise from many customers and the media.”
Further results from the Ally survey show that among those with a bank or financial service provider, only 3 in 10 (31 percent) respondents looked at the institution’s online reviews when choosing their bank. In addition, 51 percent of Americans with a bank or financial service provider have never read online reviews of their bank.
Many banks aren’t highly rated and customers often express frustration with their current bank. E-Score Brand research shows that only 19 percent of customers love their “big bank,” while 75 percent of consumers have never even considered switching their current account.
The takeaway for loyalty marketers: strange as it seems, loyalty is strongest when the product or service on which the initial purchase (or sign-up or whatever) was a big decision. Low-cost items and services (sandwiches, carwashes, etc.) are where you’re more likely to encounter challenges with customer acquisition. It will be interesting to see whether the new Ally campaign will be successful in imploring consumers to reconsider this tendency.