Consumers 'heavily influenced by negative word of mouth'

Moneyfacts.co.uk June poll highlights:

• Over a third of consumers have moved their savings account, credit card, current account or business account due to poor levels of customer service.
• Over a third of consumers have avoided a particular provider for their savings account, personal loan, credit card, current account or business account based upon a friend's bad experience.

Emma Butler, moneyfacts.co.uk Editor, commented: "These results highlight that it is not all about interest rate, and that customer service is still a high priority for consumers. Although accessing our personal finances via the internet is becoming increasingly popular, there are still those who prefer to visit a branch or pick up the phone. Our finances are something we take very seriously and can potentially cause a lot of stress in our lives. Thus, whichever channel we choose to manage our money from, when we want to talk to someone or need some assistance, we want to be treated fairly and receive a good service.

"People moving their mortgage and personal loan due to bad customer service was a lot lower than other personal finance products at under 20 per cent. This is probably due to the fact that there are often costs involved in moving these products. Changing mortgage provider is also perceived to be a lot more hassle as well as involving the payment of additional fees. However, 18 per cent moving their mortgage due to bad customer service is still a figure that should make lenders sit up and take notice. After all, banks and building societies spend an enormous amount of money attracting new business, so perhaps they should budget to spend a similar sum to look after and retain these hard earned customers."