Vietnam Retail Banking. Why Delighting Customers Matters

Transcription

1 Vietnam Retail Banking Why Delighting Customers Matters

2 Readers Notice Why Delighting Customers Matters is best presented by an experienced marketer. You are welcome to use all or parts of this presentation in your internal business presentations provided Cimigo is shown as the source. Please respect the Cimigo Use and Limitations of Use of Content as detailed at Should you wish to share this presentation outside of your organisation please do not forward it; simply direct the intended recipient to to register and download this presentation free of charge Copyright 2010 Cimigo Download this presentation for free:

3 Copyright Notice - Use and Limitations of Use of Content Permission to use content When you download any of our content in digital form or print on paper format, what you are accessing is the right to use it (or extracts from the same) for your own reference in connection with your business in the following ways only: to download a copy of that digital content in an available electronic format, to store that content in electronic format on the drive of one hardware device, to print out a copy of that digital content, to share that report internally within the legal entity that purchased it, provided that you keep intact all and any copyright and proprietary notices Restrictions for use of content Any rights not expressly granted in these Terms are reserved. This means that you may not use the content in any way not permitted above, in particular: You may not offer the content for resale. You may not scan, photocopy, fax, or in any other way reproduce or copy the content. You may not share the content with anybody else unless they are an employee of the legal entity that purchased or downloaded the report. You may not distribute the content whether by electronic mail, over any network or otherwise. You may not upload the content to any database or server. You may not display the content on any website or intranet. When you download any of our content in digital form or print on paper format you are permitted to use it in accordance with the copyright notice included with such content and in accordance with copyright laws. Copyright 2010 Cimigo Download this presentation for free: 3

4 Cimigo advise 4 of the top 5 advertisers in Vietnam on their brand and communication strategies.

5 Research Channels Telephone interviewing Street intercepts In-depth interviewing Focus groups Videographies Mystery shopping Online survey Online usability labs Copyright 2010 Cimigo Download this presentation for free:

6 Richard Burrage Richard Burrage has seventeen years of experience in market research and strategic consulting. Richard has worked across Asia Pacific consulting across a range of industries and business issues. Richard has spent the last ten years in Vietnam assisting in the development and building of numerous brands to achieve leadership positions. Richard is a UK national and resides in HCMC with his Vietnamese wife and their children. Richard is the Managing Director of Cimigo: Copyright 2010 Cimigo Download this presentation for free:

7 Cimigo Consumer Financial Services Monitor Cimigo has surveyed over 5,000 consumers on over 100 questions relating to personal banking and financial behaviour, attitudes and perceptions.

8 Delighting Customers

9 Contents Does Delighting Customers Matter? What Delights Them Right Now? Banking Behaviour And User Demographics Extending the Relationship

10 Does Delighting Customers Matter?

11 To answer this, let s compare what bank customers think about their bank relationship vs. what they actually do.

12 How Cimigo Measures Commitment Customer Satisfaction Comparison to Other Banks Attitudinal Loyalty Loyalty measured by how customers feel about doing business with your bank Likelihood to Recommend Likely Future Use Behavioral Loyalty Loyalty measured by what customers do

13 Comparing Attitudinal Loyalty Vs. Behavioural Loyalty % Likely to continue use 100% 80% 60% 40% 20% 0% Scores below 7 suggest higher likelihood of defection A rating of 8 results in a 20-point decrease in likelihood to stay with bank Satisfaction Rating Satisfaction Ratings of 9 and 10 most likely to indicate strong behavioural loyalty to bank

14 Even Steeper Drop For Likelihood To Recommend! % Likely to recommend bank to others 100% 80% 60% 40% 20% 0% A drop in satisfaction rating from 9 to 8 can mean a drop of 40 points in likelihood to recommend! Satisfaction Rating From 70% to 30%

15 Does delighting customers matter? Customers can rate their satisfaction level at 8 and still not be completely likely to continue using their bank or recommend it to others. Delighting customers (moving them from 7-8 to 9-10) has a direct impact on long-term growth.

16 What Delights Them Right Now?

17 Let s see what banking experiences stick in their minds

18 Positive And Negative Experiences Had any exceptionally positive experiences recently? Had any exceptionally negative experiences recently? 26% 4%

19 Top 5 Examples Of Positive Experiences 54% 24% 22% 10% 3% Staff interaction ATM network/services Quick banking service Convenient banking Call from bank sales Number 5

20 Top 5 Examples Of Positive Experiences 54% 24% 22% 10% 9% Staff interaction ATM network/services Quick banking service Convenient banking High interest rates Number 5

21 Top 5 Examples Of Positive Experiences 54% 24% 22% 10% 9% Staff interaction ATM network/services Quick banking service Convenient banking High interest rates Number 4

22 Top 5 Examples Of Positive Experiences 54% 24% 22% 10% 9% Staff interaction ATM network/services Quick banking service Convenient banking High interest rates Number 3

23 Top 5 Examples Of Positive Experiences 54% 24% 22% 10% 9% Staff interaction ATM network/services Quick banking service Convenient banking High interest rates Number 2

24 Top 5 Examples Of Positive Experiences 54% 24% 22% 10% 9% Staff interaction ATM network/services Quick banking service Convenient banking High interest rates Number 1

25 Staff interaction by far the most mentioned reason for positive experiences. ATMs also mentioned, but to a lesser extent.

26 Top 5 Examples Of Negative Experiences 3% Call from bank sales Number 5

27 Top 5 Examples Of Negative Experiences 44% 35% 11% 8% 5% ATM broke down ATM ran out of money Banking took too long Staff not nice and warm Poor ATM locations Number 5

28 Top 5 Examples Of Negative Experiences 44% 35% 11% 8% 5% ATM broke down ATM ran out of money Banking took too long Staff not nice and warm Poor ATM locations Number 4

29 Top 5 Examples Of Negative Experiences 44% 35% 11% 8% 5% ATM broke down ATM ran out of money Banking took too long Staff not nice and warm Poor ATM locations Number 3

30 Top 5 Examples Of Negative Experiences 44% 35% 11% 8% 5% ATM broke down ATM ran out of money Banking took too long Staff not nice and warm Poor ATM locations Number 2

31 Top 5 Examples Of Negative Experiences 44% 35% 11% 8% 5% ATM broke down ATM ran out of money Banking took too long Staff not nice and warm Poor ATM locations Number 1

32 Out of the top 5 negative experiences, 3 of them relate to ATM problems. Bank staff and service delivery mentioned far less.

33 There seems to be a direct relationship between satisfaction and staff interaction and an inverse relation between satisfaction and ATM usage

34 In Fact, The More Customers Visit A Branch 100% the more likely they are to have high overall satisfaction. % Delighted customers 80% 60% 40% 20% 34% 40% 48% 53% 0% Never Rarely Once a month More often Frequency of visiting branches

35 While The Same Cannot Be Said For ATM Usage % Delighted customers 100% 80% 60% 40% 20% ATMs don t cause dissatisfaction, but don t help boost loyalty either 49% 47% 40% 39% 0% Never Rarely Once a month More often Frequency of using ATMs

36 Modern banking technology and convenience is great, but human interaction still matters. Especially when technology hasn t been perfected yet. But is interaction of equal importance to everyone?

37 Banking Behaviour And User Demographics

38 ATMs Most Frequently Used Touch Point Touch points visited/contacted once a month or more HCMC & Hanoi 70% 34% 6% 5%

39 ATMs Popular Among Younger Segments ATM & Branch Visited Once a Month or More HCMC & Hanoi % 80% 58% 50% 25% 32% 41% 42%

40 Conclusions 1. Staff interaction is a leverage for delighting older customers and fostering long-term relationships. 2. As younger users grow in age, net worth, and financial sophistication, they too will begin to place higher value on staff quality. 3. However, for now, ATMs remain the primary touch point among younger users.

41 By trying to understand what creates a valuable experience for customers, we ve identified two key segments based on age, bahaviour and interaction with different bank touch points. How well do you understand Your customers? Your service levels? Across touch points?

42 Extending the Relationship

43 Touch-points are not only essential for managing customer relationships, they are also opportunities to transmit information and announce new products and promotions.

44 If your bank wanted to let you know about a new savings product that might interest you, how likely would each of the following methods be to convince you to sign up?

45 Most convincing ways to encourage sign-up 25% 20% 16% 12% 12% Preferential interest rate Face-to-face talk with bank representative Gift given upon sign-up Info sheet describing the new product Phone call from bank employee Number 5

46 Most convincing ways to encourage sign-up 25% 20% 16% 12% 12% Preferential interest rate Face-to-face talk with bank representative Gift given upon sign-up Info sheet describing the new product Phone call from bank employee Number 4

47 Most convincing ways to encourage sign-up 25% 20% 16% 12% 12% Preferential interest rate Face-to-face talk with bank representative Gift given upon sign-up Info sheet describing the new product Phone call from bank employee Number 3

48 Most convincing ways to encourage sign-up 25% 20% 16% 12% 12% Preferential interest rate Face-to-face talk with bank representative Gift given upon sign-up Info sheet describing the new product Phone call from bank employee Number 2

49 Most convincing ways to encourage sign-up 25% 20% 16% 12% 12% Preferential interest rate Face-to-face talk with bank representative Gift given upon sign-up Info sheet describing the new product Phone call from bank employee Number 1

50 Direct personal interaction is a key method of up- and cross-selling, almost as potent as rates. More remote methods of contacting customers are seen as less convincing. How can you leverage your staff for both maintaining and extending banking relationships?

51 Delighting Customers

52 Richard Burrage Cimigo 9 Nguyen Huu Canh Street, Binh Thanh District, HCMC, Vietnam T: (84) Ext 345 E: richardburrage@cimigo.com, W: