Study Reveals Customer Service Becoming Increasingly Important
Sat. July 22, 2000 12:00 AM by Internet Wire
New York, NY -
Dow Jones Newswires announced recently the results of its third annual Investor Satisfaction Study, which examines investor satisfaction levels in several areas. As part of a number of findings, the 2000 Investor Satisfaction Study found customer service is becoming an increasingly important contributor to overall satisfaction, with investors ranking customer service at its highest point since the inception of the study.
The study, conducted by J.D Power and Associates for Dow Jones Newswires and The Wall Street Journal, asked investors about their satisfaction with customer service, information/education, fees/commissions and broker performance. The study found customer service is becoming a more important contributor to overall satisfaction (20%, 1998, 21% in 1999, 25% in 2000). The most important contributor to overall satisfaction remains information/education (50% in 1999, 47% in 2000); customer service ranked second; broker performance ranked third (15% in 1999 and 2000); and fees and commissions was the fourth contributor to overall satisfaction (14% in 1999, 13% in 2000).
“It’s not surprising that the J.D. Power and Associates study found that investors are placing more importance on customer service,” said Paul Ingrassia, President, Dow Jones Newswires. “Investors are interested in their broker’s performance and fees/commissions. However, they also want a comfort level, which can be reached only by customer service and education. This should send a strong message to financial service providers across the board.”
With the exception of discount firm investors, (-3% from 1999), the importance of customer service to overall satisfaction increased for each group surveyed in 2000: an increase of +12% for national brokerage firm investors, +18% for online investors, +12% for financial planning firm customers, +9% for mutual fund firm investors and +21% for bank investors.
The study described customer service based on the following factors: trustworthiness and honesty of broker, easy access to account information, prompt and friendly answers to calls and questions, and the understanding of the needs and goals of the investors.
As uncovered in the previous studies, information/education remains the most important contributor to overall satisfaction. Investors still consider factors such as education on new investment products, access to investment brochures, developments on major market changes and investment tips and recommendations to be essential to their overall satisfaction.
Financial service providers should rest assured; the study found that overall satisfaction was higher in 2000 for investors across all portfolio sizes.
The study was conducted in April and surveyed more than 2,000 investor households across America. Respondents, whose portfolio sizes ranged from less than $50,000 to over $2 million (excluding 401k investments), were asked to rate the services provided by their financial planners, national brokerage firms, banks, regional brokerage firms, discount brokers, online providers and mutual fund companies.
The study, conducted by J.D Power and Associates for Dow Jones Newswires and The Wall Street Journal, asked investors about their satisfaction with customer service, information/education, fees/commissions and broker performance. The study found customer service is becoming a more important contributor to overall satisfaction (20%, 1998, 21% in 1999, 25% in 2000). The most important contributor to overall satisfaction remains information/education (50% in 1999, 47% in 2000); customer service ranked second; broker performance ranked third (15% in 1999 and 2000); and fees and commissions was the fourth contributor to overall satisfaction (14% in 1999, 13% in 2000).
“It’s not surprising that the J.D. Power and Associates study found that investors are placing more importance on customer service,” said Paul Ingrassia, President, Dow Jones Newswires. “Investors are interested in their broker’s performance and fees/commissions. However, they also want a comfort level, which can be reached only by customer service and education. This should send a strong message to financial service providers across the board.”
With the exception of discount firm investors, (-3% from 1999), the importance of customer service to overall satisfaction increased for each group surveyed in 2000: an increase of +12% for national brokerage firm investors, +18% for online investors, +12% for financial planning firm customers, +9% for mutual fund firm investors and +21% for bank investors.
The study described customer service based on the following factors: trustworthiness and honesty of broker, easy access to account information, prompt and friendly answers to calls and questions, and the understanding of the needs and goals of the investors.
As uncovered in the previous studies, information/education remains the most important contributor to overall satisfaction. Investors still consider factors such as education on new investment products, access to investment brochures, developments on major market changes and investment tips and recommendations to be essential to their overall satisfaction.
Financial service providers should rest assured; the study found that overall satisfaction was higher in 2000 for investors across all portfolio sizes.
The study was conducted in April and surveyed more than 2,000 investor households across America. Respondents, whose portfolio sizes ranged from less than $50,000 to over $2 million (excluding 401k investments), were asked to rate the services provided by their financial planners, national brokerage firms, banks, regional brokerage firms, discount brokers, online providers and mutual fund companies.
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