We
recently undertook a research to get to better understand the opinions of the
banking public about their respective banks. This was the second year we have
run this survey – the first survey was in 2012.
Between
November 2013 and March 2014, 872 bank account holders were asked 15 questions
related to their bank. The questions ranged from their customer service
experience to product offerings amongst others.
96.90%
of the respondents were currently employed, 3.10% were unemployed. 67.00% of
the respondents were males and 33.00% were females. 19.00% were non-managerial
employees, 23.70% were part of junior management, 29.10% were in middle
management, 16.00% were senior managers and 10.50% were executives. 7.40% of
the respondents earn an income of US$ 500.00 and below per month; 27.90% earn
US$ 501.00 – 1000.00; 44.90% earn US$ 1001.00 – 2999.00; 11.10% earn US$
3000.00 – 4999.00 and 8.70% earn over US$ 5000.00 a month.
The
aim of the study was to establish the level of engagement that customers
currently have with their banks. Customer engagement is defined as the degree
of customer connection with a respective company. It is measured by the degree
of satisfaction that customers have with the company’s various touch points, be
it, the internet, phone, staff, and transaction services. Many
of the challenges that banks are currently facing can
be addressed through a defined focus on customer engagement.
Our research revealed very interesting
findings:
·
The
next engagement score of 11 out of 12 participating banks increased by over 50%
from what we observed in 2012.
·
Interestingly,
although customer engagement is increasing, 74% of the respondents want to move
from their current banks. This finding is similar to what we observed in 2012
where a similar 74% of the respondents wanted to move banks. The key variance
we noted was that of preferred banks, that is, the banks that the respondents
want to move to. As per the current survey, the top 3 banks that the
respondents would want to move to are international banks. This is as compared
to 2012 where 1 international and 2 local banks were the most preferred.
·
65%
of the respondent say their customer service expectations are significantly higher
than they were in 2009 (when the economy was dollarized).
·
Most
banking sector customers (44%) view courteous bank tellers as what they like
most about the service at their bank. This was followed by 35% of the
respondents who say they appreciate the efficient service provided by their
banks (that is, fast moving queues, quick response and resolution of queries).
·
Inasmuch
as efficient service is what 35% of the respondents appreciate the most about
their bank’s customer service; the same issue appeared the most when we asked
the respondents what they dislike about their current banks. 31% said their
bank was inefficient (that is, queues are long and move slowly and their banks
take long to respond to and address their queries).
Research has revealed that fully
engaged customers spend more, stay with you longer, and are more profitable
than average customers. It is not surprising to know that organisations that
have placed customer engagement at the foundation of their marketing strategy
tend to win in the market. These organisations understand a simple fact:
organizations that engage their customers outperform those that do not. To
achieve customer engagement, organizations need to align themselves around the
idea of building a base of high-value, committed customers. Engaged customers
are less likely to jump ship when competition comes.
Our findings also show that although
many of the expectations that customers have of their banks are really
realistic and achievable, very few banks are living up to them. The
consequences for those banks that that continue to ignore customer needs will
be disastrous. The era of traditional banking has passed. Traditional banking
players have an urgent need to overhaul their current approaches to customer
engagement. Customer engagement interventions need to be immediately
implemented or risk a mass exodus of your banks’ clientele.
To
receive the full Banking Sector Customer Engagement Report outlining detailed
bank specific results, contact me on the details below.
