Keeping customers onside is not easy and the likelihood of defections is high when two businesses combine. Research by JD Power found that the probability of customers changing banks increases by up to 3X following a merger. The challenge is to unify the experience of two groups with often different demands, expectations, values and behaviours. Different emotional connections even. Take the CYBG / Virgin Money tie-in. Yorkshire and Clydesdale customers have a strong regional bond with their bank. Its more than just a brand to some: Not happy about you being rebranded to Virgin Money, been a customer for 40yrs. Clydesdale name iconic. Research from the Deloitte Center for Banking Solutions found that emotional reasons were the number one factor why customers switched accounts after a merger. It was cited by 37% of respondents. The second biggest reason was competitive offer at 17%.
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