Retailers win credit card customers’ hearts and minds – and wallets

Uswitch.com research of over 7,000 credit card customers reveals that retail brands John Lewis, Tesco and Sainsbury’s are offering a real alternative to the big banks – with customers saying that they offer better customer service, better value for money and are more trustworthy. 

• Retailers run riot: John Lewis sweeps the board winning four of the 13 awards including Best Overall Satisfaction, while Tesco Bank, Sainsbury’s Bank and M&S Bank win a further four between them

• Banks at bottom: the high street banks fail to win a single award, but building society Nationwide claims a hat-trick, winning Best Branch Customer Service, Best Online Customer Service and Best Website

• Appy customers: credit card providers American Express and MBNA are the only other providers to break the retailers’ stranglehold, taking home awards for Best Mobile App Customer Service and Best Mobile App respectively

• Mind the gap: the research reveals a 47% difference in levels of customer satisfaction between the best and worst provider – the biggest gap ever[1].

   

With fewer payday lenders in the market following tougher regulation, demand for credit cards is soaring – as is competition. However, the 2015 Credit Card Awards from Uswitch.com, the price comparison and switching service, reveals the biggest ever gap in customer satisfaction (47%) between the best and worst providers[1], with the retail giants leaving the big banks in their wake when it comes to customer service and value for money.

Ethical superstore John Lewis shows it can bring its high street reputation to its banking offerings, winning four out of the 13 awards – including Best Overall Customer Satisfaction and Best Value for Money. Another retail favourite, M&S Bank, continues to perform well, scooping the awards for Best Overall Customer Service and Best Mobile Website. In the battle for the best supermarket credit card, Sainsbury’s and Tesco battle it out, taking a top spot each, but ASDA is snapping at their heels, coming second in one category and third in two.

Nationwide breaks up the retail stranglehold, winning awards for its branch and online customer service as well as its website. The building society has built on its top current account offering by ensuring that all customers – whether they bank online or in a branch – get the best customer service. Card providers American Express and MBNA are the only other winners, picking up awards for Best Mobile App Customer Service and Best Mobile App respectively.

The news is not so good for the big banks though – not a single one has managed to scoop an award, but instead, they find themselves at the wrong end of the tables for most categories. Customers are disappointed with nearly every aspect of their service including value for money, rewards and customer service.

With mobile payments threatening to make cash and cards a thing of the past, and people wanting to access their accounts on the go, the top providers have enjoyed a varying degree of success across the range of online and mobile awards. But even the winners of these have work to do – the levels of satisfaction for mobile-related categories are the lowest across the whole awards.

In a bid to boost bank balances, value for money is more important than ever. But so is the idea of getting money for nothing – putting reward credit cards front and centre for many customers. In this category American Express has fallen to fifth place since last year behind retailers John Lewis, Tesco Bank, ASDA and M&S Bank – who prove that loyalty points are the reward of choice rather than cashback. 

David Mann, Head of Money at Uswitch.com, says: “It’s great to see retailers keeping the big banks on their toes. With their huge presence on the high street, but without the tarnished reputations, they are best placed to win over the public’s hearts and minds.

“As families try to boost their bank balance with cashback or simply ensure their household budgets stay in the black, getting value for money may be more important than great customer service. But there’s no reason to sacrifice one for the other. The research shows there are credit cards that combine great rewards or cashback and top-notch customer service all in one.

“With more people turning to credit cards, it’s vital that families looking for a great deal don’t lose sight of their needs and realise that looking further afield from a traditional high street bank could help them get the best card for them.”

Winners: