Many (including myself) have prematurely predicted that consumers would express their anger at big banks with their feet – by fleeing to smaller banks and credit unions less inclined to gouge them. Having been wrong before, I won’t make another prediction. But the number of market and industry watchers making the prediction is rapidly swelling.
So I’ll ask for sage opinions from all reading – “Have increased debit card fees, mortgage fraud and other customer abuses finally brought U.S. consumers at least to the tipping point? And what’s the future of big bank – consumer relations?”
Dick, your blog is especially timely since many of the banks are even starting to charge consumers for depositing large sums of cash in their accounts. I think the answer is that banks, as in any business, need to develop personal relationships with their customers. Banks need to understand the individual consumer’s needs and ultimately direct them to more profitable services, when appropriate and applicable. And many of these fees will become the "tipping point” or "straw that breaks the camel's back.” As technology increases, those organizations that don’t welcome, appreciate and treat their customers as important assets will eventually become vulnerable to their competition. Today’s headline about Netflix losing 800,000 subscribers in one quarter should be a wake-up call for every business; large and small. Social media has definitely put consumers in control and businesses need to take notice. Richard Shapiro, The Center For Client Retention @richardrshapiro