Report: CUs rank second in customer advocacy

May 27, 2009 – Research and consulting firm Forrester Research, Inc. unveiled its sixth annual customer advocacy rankings on Tuesday, and credit unions came in second on the list.

The rankings include over 40 financial services firms. Only eight of the firms or independent representatives were rated highly on customer advocacy by over half of their customers:

1. USAA
2. Credit unions
3. Independent financial advisors
4. State Farm Insurance
5. Independent insurance agents
6. Progressive Casualty Insurance Company
7. Regional or local banks
8. GEICO

In releasing the rankings, Forrester noted that many consumers have become upset with financial services companies as a result of the financial crisis and the latest rankings reflect those feelings. While USAA and State Farm Insurance remained highly rated, other companies that had previously ranked highly, such as Vanguard and Edward Jones, slipped. Brokerage firm Morgan Stanley skidded toward the bottom of the rankings.

The results were based on a survey of more than 5,000 households conducted in the second half of 2008.

According to Forrester, customer advocacy is “the perception on the part of customers that financial services firms do what’s best for them, not just the firm’s own bottom line.” The group maintains that consumers who give high customer advocacy marks to a financial entity “are more likely to save more, borrow more, and buy other products from that firm and are less likely to switch to another financial services company.”