engaged or divorced - understanding retail banking relationships
DESCRIPTION
For the past two years, we have been conducting market research activity to monitor relationships between retail banks and their consumer customers. This study captures feedback from around 3,000 UK adults aged 18+ and covers ten individual banks. It is now easier than ever before for a customer to switch between banks. Understanding your relationship strengths and weaknesses in an increasingly competitive landscape is critical. View this short, topical and informative webcast and gain an understanding of: • The importance of rational, emotional and intentional factors in relationships • The spectrum of fully connected to at risk customers at individual banks & how this impacts NPS • Awareness of the new account switching service and its impact • Potential winners and losers from increased switching; focussing on traditional banks, mutuals and retailers • Channel preference and the role of omni-channel • How banks could better use social media to strengthen relationships • How banks should differentiate between existing customers and switching customers. The results disclosed in these reports may not be used for advertising, marketing, or promotional purposes without the prior written consent of Harris Interactive. Products, logos and brand names are trademarks or registered trademarks of their respective owners.TRANSCRIPT
‘Engaged or Divorced?’
Understanding retail banking relationships
© Harris Interactive
Intentional Emotional
Likelihood to continue using Preferred banking provider Gives something different
Rational Value you as a customer Relationship based on trust
Satisfaction Likelihood to recommend/NPS
Elements of a customer relationship
Intentional EmotionalFully connected
RationalEmotionally & rationally
connected
Rationally
connected
Emotionally
connected
Indifferent Disconnected
Customer relationship segmentation
© Harris Interactive
Fully Connected24%
Emotionally & Ra-tionally Connected
11%
Rationally Connected
12%Emotionally Connected
9%
Indifferent34%
Disconnected 10%
Relationship Score 4.7
Relationship Score 3.8
Relationship Score 3.7
Relationship Score 3.0
Relationship Score 2.0
Relationship Score 4.0
Current accountmarket
© Harris Interactive© Harris Interactive
Fully Connected
Emotionally & Ra-tionally Connected
Rationally Connected
Emotionally Connected
Indifferent
Disconnected
Likelihood to Switch 6%
NPS +85
Likelihood to Switch 6%
NPS +28
Likelihood to Switch 4%
NPS +39
Likelihood to Switch 9%
NPS -27
Likelihood to Switch 11%
NPS -70
Likelihood to Switch 32%
NPS -98
Current accountmarket -Switching &NPS
© Harris Interactive
Life insurance
Car/motor insurance
Home Insurance
Credit cards
Mortgages
Loans
Savings/Cash
Investments, stock, shares
Fully connected
Emotional & rational
connected
Rational connected
Emotional connected
Indifferent Disconnected
Likelihood to consider other products with bank
© Harris Interactive
0
10
20
30
40
50
60
70
80
90
100 Disconnected
Indifferent
Emotionally connected
Rationally connected
Emotionally & Ra-tionally Con-nected
Fully connected
NPS % +48 +29 +34
First Direct
Nation-wide
Co-operative
-6
A
-7
B
-6
C
-16
D
-15
E
-8
F
-27
GMainstream banks
Current account brand - Segmentation
© Harris Interactive
Relevancy of products
General service they provide
Amount & clarity of communication
Ease of contacting/communicating
Staff professionalism
Value for money
Competitive charges and fees
Ability to solve problems/requests
Staff knowledge
44%
44%
46%
46%
46%
47%
48%
49%
55%
Gap between First Direct and mainstream banks
© Harris Interactive
Bank
s
Car i
nsur
ance
Hom
e in
sura
nce
Cred
it ca
rd
Mob
ile p
hone
Subs
crip
tion
TV
Ener
gy
0
10
20
30
40
50
60
70
80
90
100 Disconnected
Indifferent
Emotionally connected
Rationally connected
Emotionally & Rationally Connected
Fully con-nected
Customer relationship segmentation – Other markets
© Harris Interactive
0
10
20
30
40
50
60
70
80
90
100 Disconnected
Indifferent
Emotionally connected
Rationally connected
Emotionally & Rationally Connected
Fully connected
© Harris Interactive
Segment size
15% 8% 22% 26% 29%
Online App Online & Telephone
Online & Branch
Branch
Usage of channels and customer relationships
Apps
Online
Telephone banking
ATM
Social media
Branch
Mean no. Transactions per week
4.2 7.7 3.6 3.7 2.4
Online AppOnline
& TelephoneOnline
& BranchBranch
Usage of channels and transactions
Fully Connected
Emotionally & Ra-tionally Connected
Rationally Connected
Emotionally Connected
Indifferent
Disconnected
© Harris Interactive
Complained 14%
Fully resolved90%
Complained 23%
Fully resolved70%
Complained 16%
Fully resolved92%
Complained 28%
Fully resolved78%
Complained 40%
Fully resolved52%
Complained 50%
Fully resolved15%
Complaints
Better offer elsewhere
Product not meeting needs
Poor customer service
Problems getting issues resolved
Didn’t feel valued
© Harris Interactive
Why customers have already switched...
© Harris Interactive
Current bank
Future bank
1.1
1.0
0.8
0.8
0.7
0.7
0.5
0.5
0.5
Uplift in perception of
new bankRewards you for your loyalty
Ability to offer new & innovative products & services
Relevancy of products to me
Value for money
Competitive charges/fees
Range of products/services they offer
The service they provide
Their ability to solve your problems/requests
Understanding, empathy of staff
Difference in perception – Current vs new bank
Consideration Set Most Considered
Rejection Set
Post OfficeSainsbury's
M&S
NationwideNatwest
Lloyds TSBThe Co-operative/Smile
HSBCHBoS
First DirectVirgin Money
SantanderBarclays
TescoRBS
John LewisMetro Bank
Asda
N & P BSWest Bromwich BS
Think MoneyPrincipality BS
Consideration of brands
Before awareness After being informed
DefinitelyVery likelyFairly likelyProbably notDefinitely notUnsure
© Harris Interactive
11% 14%
Significant decrease
Significant increase
Switch service - Uplift in likelihood to switch
© Harris Interactive
Overall service
Clarity of communications
Ability to solve my issues
Innovative productsCompetitive charges/
fees
Reward me for my loyalty
Understanding/ empathy of staff
Responsiveness/speed of dealing with my
issues/requests
Treating me as an individual
Value for money
Relevancy of products
Existing customer priorities
Staff professionalism
What banks can do to address relationship issues
© Harris Interactive
What potential switchers are
looking for
Overall service
Clarity of communications
Ability to solve my issues
Innovative productsCompetitive charges/
fees
Reward me for my loyalty
Understanding/ empathy of staff
Responsiveness/speed of dealing with my
issues/requests
Treating me as an individual
Value for money
Relevancy of products
Existing customer priorities
Staff professionalism
What banks can do to address relationship issues
© Harris Interactive
What potential switchers are
looking for
How to drive differentiation
Overall service
Clarity of communications
Ability to solve my issues
Reward me for my loyalty
Understanding/ empathy of staff
Responsiveness/speed of dealing with my
issues/requests
Treating me as an individual
Value for money
Relevancy of products
Existing customer priorities
Staff professionalism
Innovative productsCompetitive charges/
fees
What banks can do to address relationship issues
© Harris Interactive
Thank you
Very light social media
usage
use social media
Least likely to:RecommendFeel valuedHave trustFeel their bank is uniqueBe retired
Very heavy social media
usage
Most likely to:Recommend
Feel valuedHave trust
Feel their bank is uniqueBe fully employed
Have more productsConnect via more channels
Next for
Social Lifethe definitive survey
of social media usage in the UK
19th November – 2pm