Building societies are failing to make the most of mutual values to differentiate their offer in the marketplace, a new report has revealed.

The report into customer experience, Mutual Appreciation: Who Stands out in the Building Society Crowd, found only the internet matched up to customer expectations.

Overall, the most positive experiences were in areas which required no human interface. The report showed little attempt was made to follow up with prospective customers or develop a relationship leading to an enhanced and differentiated experience.

Mark Hollyoake, director at Springboard Commercial Solutions and author of the report, said: “Customer experience is one area where mutual building societies can differentiate themselves from their private sector competitors. But they fall short, both individually and collectively, in the creation of customer expectations that set them apart from other providers of financial solutions, and seem to operate a product as opposed to a customer-centric approach to business.”

In terms of a tactical response, Hollyoake recommended that societies develop an understanding of what the most profitable customers expect and clearly identify the aspects of customer care that would benefit from extra work.

Commenting, Yvonne White, media relations manager at the Coventry Building Society, said: “The unique selling point of mutuals is about relationships. We are always trying to exceed expectations.