1 ImageTrac Customer Satisfaction and Loyalty Index 2013 Average Industry Results Seek Opportunities www.crossfinancial.com
2 2013 ImageTrac Industry Results Overview The ImageTrac Customer Satisfaction Survey is a standardized survey designed by Cross Financial Group for use by financial institutions to assess customer satisfaction and loyalty ratings. ImageTrac has been utilized to evaluate customer perceptions and attitudes at participating institutions since 1999. ImageTrac surveys are collected using both mail and online survey instruments. Annually the results of all customer responses collected by participating institutions are compiled and tabulated to produce index scores used as an industry average for comparison and assessment with individual institution results. Customer ratings are tabulated in three key categories. The first is satisfaction; tied to perceptions of the organization s current performance. The second is importance; to determine what attributes in banking are most relevant to meeting existing customer expectations. The same relationship attributes are used to produce index scores for both assessments. The resulting comparison of these index scores provides insight into consumer preferences, competencies delivered by the organization and potential areas for improvement. The final evaluation categories are customer loyalty, related to recommendation of the organization and repurchase propensity. Several relationship questions are utilized to measure emotional connections customers develop when assessing their overall experience with the organization. Combined into a sub-set index score, the relationship question scores produce an ImageTrac Customer Experience Index. Satisfaction and Importance Scores The core ImageTrac Customer Satisfaction Survey measures 22 attributes of a banking relationship. The average satisfaction scores for 2013 fell in a range from 75.5 to 93.9, with an average of 87.1. This range is higher than it was in 2012 that produced an average index score of 84.3. The largest satisfaction score changes from 2012 to 2013 were in the following categories, all were positive changes: The bank cares about me and my financial future... + 4.5 Employees use my name during my transactions at the bank... + 4.4 Employees at the bank make me feel like I am their number one priority... + 4.2 The bank provides the best customer service... + 4.0 My interactions with the bank are always a pleasant experience... - 1.3 The bank cares about me and my financial future... - 1.4 Employees use my name during my transactions at the bank... - 2.1
3 Satisfaction and Importance Index Scores Sorted by Importance 2013 Industry Satisfaction Rating 2013 Industry Importance Rating 0 20 40 60 80 100 Employees handle my business accurately. My business at the bank is handled confidentially. My questions and concerns are handled promptly and efficiently. The bank's employees are knowledgeable. Employees give me their undivided attention. The bank provides the best customer service. Employees take time to answer my questions thoroughly. The bank's employees make a difference in where I choose to bank. The bank makes banking easy. The bank listens to me and offers solutions based on my needs. My interactions with the bank are always a pleasant experience. When I call the bank, it is easy to reach the person or area I'm trying to contact. Employees smile and establish eye contact when greeting me. I find real value in the services provided by the bank. The bank provides competitive interest rates. The bank cares about me and my financial future. The bank's hours are convenient for me. The bank offers all the financial products and services I need. Employees at the bank make me feel like I am their number one priority. The bank's fees and service charges are fair and competitive. Bank representatives thank me for my business. Employees use my name during my transactions at the bank. ImageTrac Index
4 Satisfaction 3 Year Moving Average 86.0 85.5 85.0 84.5 84.0 83.5 83.0 82.5 84.5 83.6 83.4 84.2 84.5 85.2 84.5 84.1 85.1 84.3 87.1 Satisfaction and Importance Trends A historical look at the average ImageTrac satisfaction and importance scores provides an interesting trend comparison. While the average satisfaction scores have varied slightly but remained within a fairly tight range since 2003, the average importance ratings have displayed considerable decline since the beginning of the recent recession. The three-year moving average for both index scores, presented in the charts to the left, suggests a clear adjustment in consumer mindsets regarding the value proposition experienced prior to the recession. 82.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013 ImageTrac Overall Importance Comparison Importance 3 Year Moving Average 94.0 92.0 90.0 Significant change in customer engagement. 88.0 92.2 92.1 91.8 91.8 92.0 92.4 86.0 90.6 87.8 84.0 86.8 86.1 86.8 82.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
5 Customer Perceptual Gap The variance between the customers index scores for importance and satisfaction are referred to as the Customer Perceptual Gap. The size of the gap provides a mathematical representation of how effectively the bank is at satisfying customer needs, relative to the importance of each attribute. A high importance rating combined with a large Perceptual Gap highlights a potential area of weakness for the institution. The average customer perceptual gap narrowed again in 2013 to 0.3 from -1.8 in 2012 and -2.7 in 2011. The largest negative perceptual gaps were produced in the areas of confidentiality, interest rates and service charges. Positive gaps were generated for the attributes related to usage of customers names during transactions, thanking customers for their business and establishing eye contact. 100 2013 Industry Satisfaction Rating 2013 Industry Importance Rating 95 90 85 80 75 70 65 Employees handle my business accurately. My business at the bank is handled confidentially. My questions and concerns are handled promptly and efficiently. The bank's employees are knowledgeable. Employees give me their undivided attention. The bank provides the best customer service. Employees take time to answer my questions thoroughly. The bank's employees make a difference in where I choose to bank. The bank makes banking easy. The bank listens to me and offers solutions based on my needs. My interactions with the bank are always a pleasant experience. When I call the bank, it is easy to reach the person or area I'm trying to contact. Employees smile and establish eye contact when greeting me. I find real value in the services provided by the bank. The bank provides competitive interest rates. The bank cares about me and my financial future. The bank's hours are convenient for me. The bank offers all the financial products and services I need. Employees at the bank make me feel like I am their number one priority. The bank's fees and service charges are fair and competitive. Bank representatives thank me for my business. Employees use my name during my transactions at the bank.
6 Customer Loyalty Assessment Customer loyalty is examined in the ImageTrac survey using two relationship questions utilizing a 0 to 10 rating scale. The first question rates the likelihood of the customer to refer the bank to friends or family members. The second question examines the customer s propensity to use the bank again for financial services. The most consistent assessment of loyalty comes from the question rating the likelihood of a customer referring family or friends to the bank. The Loyalty Index, referred to here as the Net Promoter Score, is calculated by subtracting the response group of Detractors from the Promoters. The results for 2013 are illustrated below. The Net Promoter Score (NPS) remained stable from 2011 to 2012, at 52.1% to 52.3% respectively but rose greatly in 2013 to 67.59%. The increased Net Promoter Score came back to it s similar level of 67.53% in 2010. The lowest Net Promoter Scores occurred in two demographic categories. The first was customers ages 55-64 with a Net Promoter Score of 61.9%. The other was customers with a relationship tenure of 6-10 years where the NPS was 63.1%. Promoters 74.31% Less: Detractors 6.72% Loyalty Index 67.59% 80% 67.6% 70% 60% 52.1% 52.3% 50% 40% 30% 2011 Industry NPS 2012 Industry NPS 2013 Industry NPS 20%
7 Future Utilization Index The Future Utilization Index rose to it s highest level in three years to 74.53% in 2013. Lowest Future Utilization Index scores were generated in the 35 to 44 age group at 65.4% and the relationship tenure group of 6-10 years at 65%. 80% 74.5% 70% 62.0% 57.5% 60% 50% 40% 30% 2011 Future Utilization Index 2012 Future Utilization Index 2013 Future Utilization Index 20% Customer Experience Index A group of eight evaluation questions have been included in the ImageTrac Customer Satisfaction Survey instrument to help focus on dimensions of the customer experience. We have found that a customer s emotional connection to their banking relationship have a direct influence on the ability to generate higher scores across all facets of the banking relationship. The following table compares the Customer Experience Index scores from 2012 and 2013. Question 2013 Industry Satisfaction Rating 2012 Industry Satisfaction Rating Change The bank listens to me and offers solutions based on my needs. 86.8 84.3 2.5 My questions and concerns are handled promptly and efficiently. 85.3 83.2 2.0 Employees at the bank make me feel like I am their number one priority. 87.4 83.2 4.2 The bank cares about me and my financial future. 81.9 77.4 4.5 My interactions with the bank are always a pleasant experience. 90.0 86.5 3.5 The bank makes banking easy. 88.7 85.8 2.8 I find real value in the services provided by the bank. 85.9 83.3 2.5 The bank's employees make a difference in where I choose to bank. 87.3 84.1 3.2 ImageTrac Customer Experience Average 87.2 86.8 0.4
8 ImageTrac Historical Index Scores Since 1999, financial institutions (predominantly community banks) have been using the ImageTrac Customer Satisfaction Survey to examine customer perceptions. The following chart shows the average industry index scores and their changes over the last decade. The significant change in index scores in 2004 occurred as a result of adjustments in the survey instrument to include questions evaluating both satisfaction and loyalty attributes. The index score now reflects a comprehensive balance between functional attributes and emotional connections to the organization. Traditional Satisfaction Assessment Expanded Satisfaction and Loyalty Assessment 88 87 86 85 84 83 82 81 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
9 Cross Financial Group is a highly specialized consulting firm providing professional marketing services to support financial institution relationship building and corporate communication programs. Business Planning Marketing Planning Product Assessments Market Demographic Analysis Competitive Advantage Assessments Management Surveys Director Surveys Employee Surveys Brand Management Advertising Newsletters Sales Literature Product Brochures Corporate Communications Direct Marketing Staff Development Staff Motivation Presentations Referral Programs Sales and Service Training Coaching and Supervision Training Customer Satisfaction Surveys Online Surveys Focus Groups Mystery Shopping Programs Market Research 6940 O Street, Suite 310 Lincoln, NE 68510 www.crossfinancial.com 800-566-3491