Navigating the U.S. Banking Crisis Requires In-Depth Market Research

What happens when governments raise their central bank interest rates? One ripple effect may be the increased cost of lending for banks. We may also observe a reduction in bond prices, which could deplete the market value of bank capital reserves. Unfortunately, these aren’t speculative scenarios—it’s all happening now in 2023. 

1. Mar. 8, 2023: Silvergate Bank, a cryptocurrency-focused institution, was the first to fail due to significant losses in its loan portfolio. 
2. Mar. 10, 2023: Silicon Valley Bank, which focuses on lending to technology companies, was the next to collapse. 
3. Mar. 12, 2023: In a third blow, Signature Bank was closed over perceived systemic risks. 

To balance the effects of these events, U.S. banks should double down on their market research initiatives to understand the needs, wants, and perceptions. Utilizing market research tools on a regular basis allows you to make adjustments where necessary and maintain the trust and loyalty of clients.  

Quantitative Research Helps Banks Understand What Customers Think

Quantitative market research involves collecting numerical data that provides insight into consumer behaviors and habits, product or service preferences, and much more. It uncovers the broad picture of what your banking customers want and need and how they feel in the moment.

Quantitative research can often be carried out on much shorter timelines than qualitative, supplying quick turnaround on urgently needed insights.   

Some quantitative research tools that are particularly helpful in navigating the current crisis in the banking sector include: 

• Urgent Snapshots with Omnibus
  Omnibus surveys combine small numbers of questions from various organizations and present them as one survey to respondents. You only receive the results of your questions, but this approach lowers the cost and allows for quick delivery. This tool is beneficial if your organization needs a pulse check on general sentiment or perception – ideal during a crisis. Sago offers the Rapid Alert Omnibus to gather quantitative responses to questions efficiently. Urgent projects can receive full results in as little as 48 hours, with globally distributed respondents to help banks cultivate demographically and culturally diverse insights

• Online Research Communities for Ongoing Engagement and Insight
  For ongoing research, it makes sense to have access to a stable and consistent community of engaged respondents. This allows your bank to have a consistent pool of participants from which you can draw when you need to test a new product or campaign or better understand how your clients interact with your organization. Online communities also assist in building loyalty – a critical metric in difficult times – by engaging customers and making them feel heard. You can even offer special incentives for participation to enhance the experience further and create long-term, successful client relationships.Sago Communities enable financial institutions of all kinds to build and connect with a community panel. Your community can be as large or small as required, with member sourcing for greater targeted engagement. Banks can leverage an array of research events such as quick polls, journals, online discussion boards, or video chats to gather diverse insights.

Qualitative Research Allows Banks to Dig Deeper on Customer Needs

Qualitative research is exploratory and goes into why customers think, feel, or behave as they do.  It allows you to get more granular and, importantly, provides an empathetic approach to understanding your customers.

Those in the banking sector will find the following qualitative approaches helpful when aiming to maintain client trust during difficult times: 

• Explore Customer Emotions with Digital Discussions
  Why are customers anxious about the security of their deposits with you? How is your customer experience affecting customer loyalty? Why are current clients considering a competitor? Answer questions like these using digital discussions. Bringing your qual research online allows you to reach a more geographically diverse respondent pool without racking up travel costs. You are also less limited on timeframe than when conducting in-person discussions. You can choose to go back to certain participants to understand their responses better and, in turn, better solve their needs.To make the process simple, Sago offers QualBoard – a comprehensive digital discussions tool. It supports single or multi-phase qualitative research with multiple question types to allow your research to evolve with you. It provides greater flexibility and speed to meet your needs.

• Record and Observe Consumer Reactions with Video Interviews
  An important aspect of qualitative research is not just what respondents say, but how they say it. In fact, Mehrabians 7-38-55 model says that 7 percent of feelings and attitudes are revealed via words, 38 percent comes from tone of voice, and 55 percent comes from body language. You can get the full picture of what your banking clients think or feel while reaping the benefits of digital research with video interviews. Observe immediate visual cues from participants, such as vital body language or facial expressions, and follow up where needed.QualMeeting, Sago’s video insights platform, supports virtual focus groups and in-depth interviews, combining the benefits of in-person research with the cost savings of digital methods.

• Navigate the U.S. Banking Crisis with Market Research
  Both quantitative and qualitative research offer valuable opportunities to understand your financial institution’s customers better and respond to their fears and concerns around the current crisis. Receive data quickly, strengthen customer relationships, and build loyalty with quantitative tools such as omnibus surveys or online communities. Uncover deeper insights and understand why customers are feeling or acting as they are in response to the crisis with the help of qualitative options such as digital discussions or video interviews.

By understanding your customers, you can fine-tune and tailor products, services, and marketing strategies to their specific needs and preferences—a surefire way to mitigate the risk of becoming the next casualty of 2023. 

However you choose to learn about your clients, Sago has an option to suit your needs. Request a consultation with our team and protect your customer base during these uncertain times.