4 reasons why more financial businesses should collect public-facing feedback

Customer feedback plays an important role within the finance industry. The Financial Conduct Authority (FCA), notes that ‘all firms must show consistently that fair treatment is at the heart of their business model’ and that customer feedback is one such way to measure whether your customers feel they’re treated fairly.

However, while private surveys and verbal feedback may be collected behind the scenes, just how many financial firms can prove they put the customer first? As we covered in our fintech reports, a quick Google shows that many financial businesses don’t collect public-facing reviews. Why do so many seem to shy away from this valuable form of social proof?

There are so many benefits to collecting and displaying your customer feedback publicly – here are the top four.

1. Stand out from the competition

72% of Brits believe ‘all banks are basically the same’, so financial firms clearly need to do more to demonstrate what makes them different from their competition. Customers are great at highlighting your best qualities; after all, they know why they’re loyal to you! Whether it’s your forward-thinking tech, excellent service during a difficult time or your exceptional customer experience, displaying genuine customer feedback highlighting what makes your business great within your marketing can really help you stand out.

Think about your website too – 90% of loan and mortgage consumers, 72% of accounting consumers and 61% of banking consumers start their journeys with an online search before converting. Your ratings, reviews and testimonials can play a huge role in building trust in your brand and converting website visitors.

Feefo client Premierline does an excellent job of using feedback on their website. Their Trusted Service Award is placed directly underneath the call to action on their homepage and they have an entire page dedicated to testimonials and reviews.

premierline homepage

2. Reduce the impact of negative reviews on your brand reputation

Some businesses worry about collecting public-facing feedback in case they get negative reviews, but the truth is, consumers are writing reviews about your business anyway, thanks largely to the existence of ‘open’ review platforms. Unfortunately, when you’re not actively collecting feedback on these sites, there’s a risk the reviews, and your rating, can become skewed – and not in your favour. Unprompted feedback tends to be more negative, and while there’s no way to completely control the situation, the best way to restore some balance and ensure there’s a source of trusted customer opinions out there is to collect public-facing feedback.

You may choose to use an open reviews platform, or an invite-only platform with a focus on verified feedback, but whatever you choose, it’s vital to not let negative feedback about your brand run rampant online, especially if you’re a smaller business who’s still building its reputation.

36% of Feefo Trusted Service Award winners, which is given to businesses rated highly by their customers, say the award helps to negate the impact of negative reviews.

3. Build trust in your brand

Trust in financial services is lacking; in fact, the industry has sat at the bottom of the Edelman Trust Barometer since 2012 and while it may no longer be rated as ‘distrusted’, it’s clear there’s still a lot of work to do when it comes to building trust. Research from YouGov found that 34% of Brits think banks ‘try to trick people out of their money’.

Transparency is the key to building trust. If you can show you’re working hard to listen to your customers and take their feedback on board, both good and bad, that will go some way to earning their trust. Private feedback surveys can be a great way to get specific information from your customers, but it won’t build trust, which is why having public-facing reviews is so important.

4. Prove you’re as good as you say you are

Any business can say they’re great at what they do, but how can you prove it? Your customers are your best asset when it comes to convincing others to use your services, as they are proof that you deliver what you say you’re going to deliver and, hopefully, even exceed their expectations.

While the likes of Lloyds Bank and Nationwide have had hundreds of years to build up their reputations, digital-only fintechs still need to prove they’re just as reliable as their traditional counterparts. Just 17% of Brits believe challenger banks are as trustworthy as traditional banks. So, if you want to compete against the big names, you need to prove yourself.

“When prospecting for new business, we always told our prospects how good our service was, with very little proof, so essentially it was just words in our sales pitch,” Oliver Leyens, Director at Heath Crawford explains. “Since using Feefo it has allowed us to show the physical evidence and proof of how strong our customer service is. We share this evidence with our prospects to help win more business.” Read the full case study here.

Start collecting trusted customer feedback

From AXA to Zurich, we help a wide range of finance businesses build trust in their services, better understand their customers and improve their customer experiences. Whether you’re a start-up fintech or an established provider, we have a package to suit you. Find out more about our price plans and packages here.

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