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Private Banks fare best on Customer Effort Index: Study

Private Banks fared best on CES, which typically meant the customer had to put in less time and effort in solving their problems.

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According to the Ipsos Customer Effort Index (CEI) Study, done for the Banking Sector, customers find it quite difficult to perform common tasks with the banks. Ipsos used the metric of Customer Effort Score (CES), which looked at how easy or difficult it was for the customer to interact with the banks. Private Banks fared best on CES. Which typically meant the customer had to put in less time and effort in solving their problems. Lesser the effort put in by the customer the more desirable the bank became.

A plethora of PSU, MNC and Private banks were assessed on their Customer Effort Index, for common transactions like Account Opening, Loan Application and Address Change. And customer effort was captured at different levels of cognitive effort, time effort, emotional effort, and physical effort.

Amit Adarkar, CEO, Ipsos India, explains why banks should pay heed to Customer Effort Scores (CES): “Reduced customer effort induces customer loyalty as basic transactional processes are carried out with ease. Also, our study and many other studies (like the one published by the Harvard Business Review) show, customers who have unhelpful and frustrating customer service interactions are likely to take their business elsewhere. CES has ramifications on future purchase behavior and disposition.”

The CES was derived by dividing the sum of all individual customer effort scores by the number of customers who provided a response. This method resulted in a score from 1 to 5. Lower score was considered better. 

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