Stability enhances loyalty
Bank of America Securities LLC and Merrill Lynch & Co. Inc., both of New York, and Wachovia Corp. of Charlotte, N.C., are among the leading financial firms that have suffered the greatest losses in loyalty over the past two years.
Bank of America Securities LLC and Merrill Lynch & Co. Inc., both of New York, and Wachovia Corp. of Charlotte, N.C., are among the leading financial firms that have suffered the greatest losses in loyalty over the past two years.
According to the results of a study to be released this month by Cogent Research LLC of Cambridge, Mass., more than half the nation’s top 23 financial services firms suffered losses in loyalty among their affluent clients.
Financial stability is now a key determinant of loyalty, the study of 4,000 affluent Americans found.
“Performance is still important, but in the current climate, people’s perceptions of the financial stability of the firms is equally important,” said Christy White, a principal and founder of Cogent Research.
Her firm’s “Investor Brandscape 2009” survey, conducted in mid-October, compared customer loyalty scores earned by large financial providers with those received in October 2006.
While the average loyalty score for all companies remained consistent, individual firm scores changed dramatically, with some firms moving up sharply.
USAA Investment Management Co. of San Antonio maintained the top spot in terms of customer loyalty, while Scottrade Inc. of St. Louis moved to second place, from 17th.
ING Groep NV of Amsterdam, Netherlands, Raymond James & Associates Inc. of St. Petersburg, Fla., and TIAA-CREF of New York, also boasted double-digit gains, according to the study.
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