Sales Leakage in Financial Services: Online Evidences

Report Summary

Sales Leakage in Financial Services: Online Evidences

Sales leakage is one the most pervasive customer management problems facing retail financial institutions in the United States today. In a recent survey of 195 financial institutions, Aite Group found that a staggering 26% could not be contacted effective

Gwenn Bézard
Research Officer/Chief Information Officer

Boston, MA, February 27, 2006 – In a new report, Sales Leakage in Financial Services: Online Evidences, Aite Group uses an online survey to measure financial institutions' ability to respond to inbound inquiries from prospects. The research highlights the pervasiveness of sales leakage across retail banking, retail brokerage, credit card issuing, property & casualty insurance, health insurance, and life insurance.

"Unlike other related phenomenon, such as customer attrition, sales leakage remains little studied, buried into the concept of customer service," points out Gwenn Bézard, a research director with Aite Group and co-author of the report. "The way financial institutions handle incoming Web-based or e-mail inquiries offers striking evidence of the scope of the problem," adds Bézard.

Among other findings, the report reveals that a staggering number of responses, 46%, did not address the questions. In addition, 37% of all respondents were unable to answer properly by e-mail, forcing prospects to use other channels such as call centers or branches. The report also notes that human communication is not a guarantee of "personal touch": Health insurers were the only institutions that were found not using automated responses. Yet, health insurers ended up having the highest percent of e-mails qualified as "rude" among all verticals. "If health insurers' ability to deal with individuals' online inquiries is a measure of the prospect of consumer-directed health care, there is cause for concern," notes Bézard.

This is a 24-page Impact Report. Clients of Aite Group's Retail Banking and Wealth Management services can download the report.

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