accenture research june, 2009 2009 global consumer behavior study industry results life insurance...

Accenture Research

June, 2009

2009 Global Consumer Behavior StudyIndustry resultsLife Insurance

DRAFT

Accenture Research2009 Global Consumer Behavior Study - Life Insurance providers

Copyright © 2009 Accenture All Rights Reserved. 22

CRM Research Agenda – Planned and Proposed FY10

2

Changing Cultural Context• Impact of Globalization• Economic Risk/Uncertainty• Disruptive Technologies

Changing Customer Mindset• New Demographics• New Customer Expectations

and Behaviors

New Corporate Imperatives• New Business Imperatives• New Mastery Requirements

for High Performance

CAR Industry Points of View (inc. B2B)Social CRM – Point of View

Global Consumer Segmentation Model (e15)

Customer Experience Simulations (CHESS)

Primary Themes

Secondary Research/

Expert Interviews

*CSO Insights

Survey 2010

CMO Circle Interviews/

Roundtables

Primary Research and

R&D AssetsCustomer Behavior Research

*Co-Sponsored Research

CMO 1x1 Interviews

Proposed/Not Committed

Offe

rin

g G

roup

Search of Secondary Sources for Supporting Evidence/Examples (Synthesis Report)

*CIM Study V2

CMO Pulse Survey

Glo

ba

l Se

rvic

e L

ine

Customer Sat Survey V

Consumers Sales Pulse

Survey(Benelux)

Supporting Subject-Specific Points of View (Marketing, Sales, Service)

High Performance Diagnostic/Benchmarks

Marketing Sales Service

Global Brand/Branding Research

Customer Behavior Research – Industry Views (Gas and Electric Utilities, Wireless, Landline, Cable/Satellite, ISV, Retail Banking, Consumer Electronics Manufacturers, Consumer Goods Retailers)

CAR in the “New Normal” – Point of View

Vis

ion

Customer Sat Survey

V



FY10 CRM Research Agenda –End Consumer Research

3

Global Consumer Satisfaction Research Global Consumer

Behavior Research

Sample

• How consumer service expectations are changing over time; how well companies are meeting these expectations and the potential impact on business performance.

• End-consumers in 10 countries; • Cross-industry scope; some

industry-specific insights

Focus • How current economic conditions are affecting consumer behavior (e.g., loyalty, future purchase, selection)

• End-consumers in 14 Countries• 10 Consumer Industry Segments

Deliverables • Findings Report (ppt)• White Paper• Country-Specific 1 Pagers• Speaker Deck• News Release• Research Microsite• accenture.com presence• Key Word Sponsorship• News Release/Media Outreach

• Findings Report (ppt)• Industry-Specific Reports (ppt)• Select Media Outreach• CAR White Paper

Annual (FY06- FY10)

FY09-Q3Program



Objectives

The research focused on the following issues:

• How has the economic downturn affected consumer behavior?

• What is the current state of consumer satisfaction, loyalty and advocacy?

• What decisions have consumers made recently about staying with, leaving or adding new providers?

• How do specific aspects of the customer experience affect customer behavior? How well do consumers think their providers are performing in these areas?

• What decisions do consumers plan to make in the near future, and how much influence does price have on these decisions?



Methodology

• Accenture surveyed more than 5,900 end-consumers in 14 different countries via the Internet in April-May 2009.

• The survey asked respondents to evaluate ten industry sectors; each respondent could evaluate up to four industries. All respondents were decision makers in at least one industry.

• This report presents the findings along a given the industry category of the global sample:

Life Insurance providers = company/ies that provide you with a life insurance or related policy

Note: respondents that use the above providers also for ‘Retail Banking/Financial Services’ are included in the base (N=2478). In the last section, behavior variations for respondents using ‘same’ or ‘different’ providers are analyzed

• When insightful, countries with lower/higher average incidence of behavior are highlighted.

The sample size breakdown is as follows:

* Results represented at country level are based on stated sample size.

Country* N (total) N (industry)*

Australia 323 93

Brazil 329 64

Canada 332 156

China 301 92

France 344 126

Germany 300 114

India 301 132

Italy 331 121

Japan 352 249

Mexico 332 91

Singapore 331 177

Spain 339 227

UK 1026 363

USA 1050 473

TOTAL 5991 2478



Executive Summary

Question Finding

How has the economic downturn affected consumer behavior? How much influence does price have on this?Industry-specific

Nearly half (46%) of the consumers are likely to shop for better deals in this category as a result of current economic context. A fourth (25)% report they are likely to be stay with current providers. Very few are unwilling to give up product quality, product options or customer service quality for lower pricing.

What is the current state of consumer satisfaction, loyalty and advocacy ?Industry-specific

34% of consumers are satisfied with their life insurance providers. Trust, workforce skills and product range are main satisfaction drivers. Almost quarter describe themselves as loyal and just as many recommend to others; yet almost the same number of consumers disagree with this view.

What recent decisions have consumers made when it comes to remaining loyal, leaving or adding new providers? Industry-specific

Globally, 25% of consumers changed their mix of providers over the past 6-12 months: either stopping with current and switching to new provider, or adding new providers to current ones. Average switch behavior is highest in emerging markets. Pricing and value for money are by far the most-often-cited reasons. The stronger impact of advocacy over advertising is confirmed.

What decisions are consumers planning to make in the near future, and what factors will influence these decisions? Industry-specific

Nearly 10% are thinking about buying fewer products or services from their providers. Globally, one-fifth of consumers intend to change their mix of providers in the next 12 months: either stopping with current and switching to new providers, or adding new providers to current ones. Again, average switch behavior is highest in emerging markets and pricing is the most-often-cited reason. Future switch behavior is lower then recent one in most countries. 38% of consumer intending to switch in the future already switched in the past.

Does the fact to use same providers for Life insurance and Banking impact behavior?Industry-specific

14% of consumers used the same provider for Life insurance as well as Retail banking. Globally, using same provider, links to higher satisfaction and advocacy. Switch behavior differs a lot by country.



Section 1

How has the economic downturn affected consumer behavior?

Industry-specific results



Summary

• Globally, consumers are more engaged than passive. While 25% believe now is a time to retrench into tried-and-true relationships, twice as many (46%) see this as a time to shop for better deals.

• While this survey revealed significant price-sensitivity, the majority of respondents are also unwilling to trade off product quality, product options or customer service quality for lower pricing.

– Moderate number of consumers (26%) said that they are price sensitive but they would not compromise on anything that they are currently getting.

– Consumers are inclined to trade off frequency of communications for cheaper price.


Copyright © 2009 Accenture All Rights Reserved. 9Base = 2478

Lower average incidence of behaviour

Higher average incidence of behaviour

Country outliers*

Become volatile - Much more likely to shop around for the best deal—even if

it means leaving current provider

Stick to ‘tried & true’ - Now is not the time to

leave the companies I do business with

Stay the same - No real impact on the decisions I make about which

companies to do business with

25%

29%

46% Canada31%

Singapore60%

Australia14%

Japan44%

Italy23%

Germany43%

– Reaction to the current economic situation by consumers –Q 10. Which ONE of the following statements best describes your reaction to the current economic situation?

* Note: For all country outliers, see appendix

Globally, consumers are more engaged than passive. While 25% believe now is a time to retrench into tried-and-true relationships, twice as many (46%) see this as a time to shop for better deals.



26%25%

10%53%

16%41%

5%67%

30%32%

I care about price but I am not willing to give up anything I currently get today—even if it means paying a bit more

I am willing to accept lower frequency of communications if it ensures I get the cheapest price

I am willing to accept lower levels of product quality if it ensures I get the cheapest price

I am willing to accept lower levels of product options if it ensures I get the cheapest price

I am willing to accept lower levels of customer service if it ensures I get the cheapest price

Brazil33%

Mexico 53%

Mexico64%

Germnay68%

Mexico68%

Germany42%

Brazil81%

Mexico12%

Brazil72%

Mexico19%

Agree Disagree Country Outliers*

Disagree Agree

Top 3 boxes:

Higher average incidence of ‘Disagree’

Higher average incidence of ‘Agree’

While this survey revealed significant price-sensitivity, the majority of consumers are unwilling to trade off product quality, product options or customer service quality for lower pricing.

– Role of price in current economic situation –Q 11. How much do you agree or disagree with the following statements?

(Rating scale: 1 = not at all, 10 = strongly)




Section 2

What is the current state of consumer satisfaction, loyalty and advocacy?




Summary

• Though consumers care about the providers in this category, deep involvement/interest is limited. Almost 30% find the inconvenience of switching to be a disincentive, as many are open to shopping for better deals.

• Only about one-third of global consumers are satisfied with their insurance providers. Only about 25% feel loyal and will recommend providers, and almost as many do not share these opinions at all. Only 20% say they will buy more.

• Globally, more than half of consumers are neutral—neither satisfied nor dissatisfied—with their current Life insurance providers, suggesting room for improvement. Results largely vary by country.

• ‘Trustworthiness’ and ‘Front-line skills’ emerge as the top satisfaction drivers globally among Life insurance providers. ‘Offering range’, ‘Service’ and ‘Ease-of-doing-business’ complete the top five.



Though consumers care about providers, deep involvement/ interest is limited. Almost 30% perceive inconvenience in switching providers, yet as many are open to shopping for better deals.

Base = 2478



Agree

Country outliers*

Disagree

France25%

India69%

Australia33%

India40%

Germany63%

China64%

UK 59%

India39%

INV

OLV

EM

EN

TP

ER

CE

PT

ION

I know a lot about the providers in this category 22%22%

I care atleast somewhat about this category 49%13%

I have a real interest in/passion for this category 16%39%

Disagree Agree Top 3 boxes:

I consider shopping around for better deals 26%34%

It's too much of a hassle to switch providers 29%30% Spain45%

China,Singapore 40%

Companies are the same in terms of offerings and services 18%30% Germany

48%India29%

– Category involvement and perception –Q1. How much do you agree or disagree with the following statements?

(Rating scale: 1 = strongly disagree, 10 = strongly agree)




Higher average incidence of ‘Not at all’

Higher average incidence of ‘Extremely’

Feel loyal toward providers 27%25%

Overall satisfaction with providers 34%9%

Country outliers*

Will recommend providers to others 25%21%

Will buy more products and services from providers 20%25%

Mexico18%

France50%

UK40%

India50%

Germany37%

India, Brazil 47%

Germany54%

India39%

Top 3 boxes:

Not at all Extremely Extremely Not at all

Only about one-third of global consumers are satisfied with their insurance providers. Only about 25% feel loyal and will recommend providers, and almost as many do not share these opinions at all. Only 20% say they will buy more.

– Current state of consumer satisfaction, loyalty and advocacy –Q2. Rate the following for companies you do business with today?

(Rating scale: 1 = not at all, 10 = extremely)




Dissatisfied (score 1-3)

Neutral (score 4-7)

Satisfied (score 8-10)

Global

10%

18%

8%

9%

14%

8%

8%

12%

11%

8%

9%

5%

6%

70%

36%

45%

42%

73%

71%

66%

62%

58%

59%

57%

54%

46%

44%

21%

46%

47%

48%

14%

20%

26%

26%

26%

30%

35%

37%

49%

50%

16%

China

India

Japan

Italy

Germany

Spain

USA

9% 56% 34%

Mexico

Brazil

Singapore

Australia

UK

Canada

France

Mature markets

Emerging markets

– Current level of satisfaction –Q2. How satisfied are you with the companies you do business with today?


Globally, over half of consumers are neutral—neither satisfied nor dissatisfied—with their current Life insurance providers, suggesting room for improvement. Results largely vary by country.





16%Engaging communications

16%Sustainable business practices

18%Innovation

20%Good value for money

20%Informative communications

21%Competitive pricing

23%High quality products/services

25%Easy to do business with

26%High quality customer service

27%Broad products/services range

28%Skilled workforce aware of needs

32%Trustworthy

Country outliers *Japan19%

India52%

Japan10%

India48%

Japan4%

India37%

Japan5%

India45%

Japan12%

India 39%

Japan7%

India, Brazil 45%

UK6%

India 38%

Japan10%

India40%

Japan11%

India52%

Japan8%

India42%

Japan6%

India38%

Japan3%

India47%

Base = 2478Note: Responses scoring more than 7 have been considered


– Main drivers of satisfaction –Q3. Please tell us to what degree each of the following describes what you like about the companies you do business with in

these categories today? (Rating scale: 1 = not at all, 10 = extremely)

‘Trustworthiness’ and ‘Front-line skills’ emerge as the top satisfaction drivers globally among Life insurance providers. ‘Offering range’, ‘Service’ and ‘Ease-of-doing-business’ complete the top five.



Section 3

What decisions have consumers made recently regarding staying with, leaving or adding new providers?




Summary

• Globally, 25% of consumers have changed their provider mix in the past 6-12 months, most often by adding new providers to existing ones (partial switch). Overall, consumers in emerging markets switched more often.

• Consumers who recently switched their business completely were most likely to do so due to ‘Pricing’ and ‘Value for money’ – twice as likely compared to the number-three factor for complete switch (‘Trustworthiness’ of the life insurance provider).

• For customers who added new providers to their current ones—referred to here as a partial switch—‘Recommendations from others’, ‘Past experience’ and ‘Direct marketing’ appeared to have had the most influence over their choice of new providers.


Copyright © 2009 Accenture All Rights Reserved. 19Base = 2478* Complete switch = stopped doing business with a company and switched to other provider * * Partial switch = stayed with companies doing business with and added new providers

– Recent switching behavior (past 6-12 months) –Q7. In the past 6-12 months, please tell us what you have done?

(Please mark Yes/No)

Globally, 25% of consumers have changed their provider mix in the past 6-12 months; mostly by adding new providers to existing ones (partial switch). Consumers in emerging markets switched more often.

- Complete switch* - - Partial switch** - - Total -

25%19%6% Global

16%4% France

14%8% Italy

33%7% Singapore

24%12% Spain

20%6% UK

17%1% USA

16%2% Australia

17%1% Canada

12%4% Germany

4%2% Japan

34%15% India

27%18% Mexico

26%11% China

23%8% Brazil

Mature markets

Emergingmarkets

41%

36%

26%

22%

20%

18%

18%

18%

16%

6%

49%

45%

37%

31%





19%Trustworthy








5%Innovation


Base = 150

– Reasons for recent complete switch (past 6-12 months) –Q8. How much did each of the following reasons contribute to your decision to switch/stop doing business?

(Check up to top three reasons)

Consumers who recently switched their business completely were most likely to do so due to ‘Pricing’ and ‘Value for money’ – twice as likely compared to the number-three factor for complete switch (‘Trustworthiness’ of the life insurance provider).



For customers who added new providers to their current ones—referred to here as a partial switch—‘Recommendations from others’, ‘Past experience’ and ‘Direct marketing’ appeared to have had the most influence over their choice of new providers.

Base = 477

– Reasons for recent partial switch (past 6-12 months): advertising or company practices factors –Q9. Thinking about the companies you started doing business with in the past 6 - 12 months, which of the following factors

caused you to choose them? (Check all that apply)

12%

14%

19%

19%

30%They were recommended to me by someone I know

I used to use them in the past and decided to try them again

They contacted me with an offer and I decided to give them a try

I was actively looking around and came across information on them

I saw advertising that made me want to give them a try



Section 4

What decisions are consumers planning to make in the near future, and what factors will influence these decisions?




Summary

• Consumers expect companies to meet or exceed their expectations for ‘Competitive pricing’, ‘Value for money’ and ‘Trustworthiness’ in order to continue doing business with them during the next 12 months.

• Generally, consumers in mature markets anticipate no change in the level of business they do with their current insurance providers. In emerging markets, 20-50% intend to do more business with their current providers.

• Globally, nearly one-fifth of consumers are thinking of switching during the next 6-12 months, equally split on ‘complete’ and ‘partial’ switch. On average, more consumers plan to switch in emerging markets.

• ‘Pricing’ and ‘Value for money’ are the top reasons why consumers may switch in the future, followed by ‘High quality customer service’.

• Globally, fewer consumers intend to switch—partial and complete switching combined—compared to the recent past (except for Japan, Italy, Australia, Brazil). 40% of these ‘future’ switchers also switched in the recent past.



Consumers expect companies to meet or exceed their expectations for ‘Competitive pricing’, ‘Value for money’ and ‘Trustworthiness’ in order to continue doing business with them during the next 12 months.



Base = 2478



21%Trustworthy








4%Innovation


Singapore26%

Spain41%

Ger/UK14%

Brazil/Singapore

28%

NoneChina14%

Australia10%

Singapore25%

Canada19%

Germany43%

France8%

Brazil28%

NoneChina13%

NoneFrance

22%

Mexico11%

Singapore32%

Australia12%

Japan30%

None None

Italy4%

China16%

Country outliers*

– Expectations –Q4. In which of the following areas do companies need to meet or exceed your expectations in order for you to continue

doing business with them in the next 12 months? (Check up to top three reasons)




7% 10% 64%

15% 14% 41% 20%

11% 22% 42% 20%

3% 9% 51% 24%

5% 20% 39% 48%

9% 6% 71% 2%

29% 14% 51% 4%

5% 3% 80% 4%

7% 5% 70% 5%

1% 12% 74% 6%

4% 8% 75% 8%

4% 11% 67% 9%

11% 9% 61% 12%

12% 12% 46% 24%

12%

No Less Same More

Global

9% 15% 55% 17%

USA

UK

Spain

Singapore

Japan

Italy

France

Canada

Brazil

India

China

Mexico

Germany

Australia

Mature markets

Emergingmarkets

– Future level of business with current providers (next 6-12 months) –(more/same/less/stop using products/services)

Q5. Over the next 6-12 months, which of the following do you anticipate doing in each category? (Check all that apply)

Generally, consumers in mature markets anticipate no change in the level of business they do with their current insurance providers. In emerging markets, 20-50% intend to do more business with their current providers.


Copyright © 2009 Accenture All Rights Reserved. 26* Complete switch = stop doing business with a company and switch to other provider

** Partial switch = stay with companies doing business with and add new providers

Globally, nearly one-fifth of consumers are thinking of switching during the next 6-12 months, equally split on ‘complete’ and ‘partial’ switch. On average, more consumers plan to switch in emerging markets.

– Future switching behavior (next 6-12 months) –Q5. Over the next 6-12 months, which of the following do you anticipate doing in each category?

(Check all that apply)

17%

15%

15%

7%

13%

7%

8%

6%

6%

5%

18%

9%

8%

14%

10% Global

Spain

Singapore

Japan

France

Germany

India

Mexico

8%

5%

7%

7%

14%

5%

6%

3%

5%

4%

4%

20%

27%

28%

13%

Australia

Italy

UK

USA

Canada

Brazil

China

- Total -

26%

38%

36%

36%

22%

17%

10%

11%

21%

11%

29%

14%

22%

9%

18%

- Complete switch* - - Partial switch** -

Base = 2432(46 invalid responses have been deleted)

Mature markets

Emerging markets



4%

5%

6%

10%

11%

12%

12%

14%

19%

19%

37%


Good value for money

High quality customer service

Trustworthy

High quality products/services

Broad products/services range

Easy to do business with

Informative communications

Skilled workforce aware of needs

Engaging communications

Innovation

Sustainable business practices

– Reasons for future switch (next 6-12 months) –Q6. Why are you considering switching/stopping business in the next 6-12 months?


‘Pricing’ and ‘Value for money’ are the top reasons why consumers may switch in the future, followed by ‘High quality customer service’.



38%

47%

33%

45%

18%

18%

20%

17%

21%

6%

39%

36%

26%

18%

25%

36%

36%

38%

26%

23%

10%

11%

9%

22%

14%

21%

22%

17%

11%

18%

China

India

Brazil

Mexico

Australia

Canada

France

Germany

Italy

Japan

Singapore

Spain

UK

USA

Global

– Recent versus future switching behavior comparison (total switch) –Based on comparing combined partial and complete switch rates in Q5 and Q7

- Recent vs. future switching by country - - Past behavior of future switchers -

Mature markets

Emerging markets

Globally, fewer consumers intend to switch—partial and complete switching combined—compared to the recent past (except for Japan, Italy, Australia, Brazil). 40% of these ‘future’ switchers also switched in the recent past.

Recent switch (partial + complete)

Future switch (partial + complete)Base = 2432

(46 invalid responses have been deleted)

Did not switch in the past

62%

Did switch

already in the past

38% *

Base = 441 (future switchers)

* corresponds to 7% of total base (all respondents)



Section 5

How are consumers behaving when they use same/different provider for Life Insurance as well as Banking?



Copyright © 2009 Accenture All Rights Reserved. 30Base: Same = 336, Different = 2142

14%

86%

Differentproviders

Sameprovider

– Same or different Life insurance & Retail banking providers –

• Consumers who have the same service provider have a higher level (around 10 basis points) of satisfaction, loyalty and advocacy than those who have different companies for Life insurance and Retail banking.

• For both the consumer groups, there is no significant difference in the top 5 reasons for satisfaction.

• Globally, past switch behavior is very different by country depending on whether consumer as same or different providers; globally – on average – switch rates between both groups are similar

• This is the same for future switching trends,where again large country difference are observed.

Based on questions 1, 2, 3, 5 and 7 for both consumer groups – See also appendix-II for details

14% of consumers used the same provider for Life insurance & Retail banking. Globally, using same provider, links to higher satisfaction, loyalty and advocacy. Switch behavior differs a lot by country.



APPENDIX ISelected outlier tables



Australia Brazil Canada China France Germany India Italy Japan Mexico Singapore Spain UK USA

More conservative - Now is the time to stick to ‘tried and true’

14% 23% 28% 18% 29% 16% 36% 24% 44% 18% 15% 22% 20% 24%

Stay the same - No real impact on the decisions I make about which companies to do business with

31% 34% 40% 25% 40% 43% 29% 23% 24% 31% 25% 32% 23% 30%

Become volatile - Much more likely to shop around for the best deal—even if it means leaving current provider

55% 42% 31% 57% 32% 41% 35% 53% 32% 52% 60% 47% 57% 45%



– Reaction to the current economic situation by consumers –Q 10. Which ONE of the following statements best describes your reaction to the current economic situation?

APPENDIX I

Outlier table – Question 10

Base = 2478



Agree/Disagree Scale


Bottom3 (1-3) 57% 72% 50% 55% 64% 46% 65% 53% 38% 66% 45% 66% 52% 48%

Top3 (8-10) 4% 5% 6% 10% 6% 16% 11% 7% 11% 19% 14% 7% 9% 13%

Bottom3 (1-3) 31% 61% 37% 33% 58% 19% 61% 45% 37% 68% 32% 48% 35% 37%

Top3 (8-10) 13% 8% 12% 18% 10% 42% 11% 7% 10% 14% 16% 15% 17% 21%

Bottom3 (1-3) 77% 81% 67% 78% 77% 78% 70% 64% 51% 76% 62% 70% 60% 64%

Top3 (8-10) 3% 3% 3% 5% 2% 4% 11% 2% 4% 12% 7% 3% 4% 7%

Bottom3 (1-3) 34% 48% 30% 16% 44% 10% 48% 19% 28% 64% 24% 40% 25% 34%

Top3 (8-10) 26% 23% 26% 37% 25% 68% 20% 38% 14% 19% 29% 24% 35% 32%

Bottom3 (1-3) 24% 33% 19% 18% 31% 30% 15% 29% 18% 18% 24% 21% 27% 31%

Top3 (8-10) 20% 48% 27% 33% 29% 12% 48% 18% 16% 53% 25% 26% 22% 27%

I care about price but I am not w illing to give up anything I currently get today—even if it means paying a bit more

I am willing to accept lower levels of customer service if it ensures I get the cheapest price

I am willing to accept lower levels of product options if it ensures I get the cheapest price

I am willing to accept lower levels of product quality if it ensures I get the cheapest price

I am willing to accept lower frequency of communications if it ensures I get the cheapest price



APPENDIX I


– Role of price in current economic situation –Q 11. How much do you agree or disagree with the following statements?

(Rating scale: 1 = not at all, 10 = strongly)

Base = 2478





Bottom3 (1-3) 47% 50% 54% 59% 44% 37% 69% 47% 41% 56% 65% 41% 42% 49%

Top3 (8-10) 10% 17% 12% 10% 25% 21% 7% 16% 6% 15% 7% 18% 14% 14%

Bottom3 (1-3) 33% 13% 21% 25% 28% 22% 14% 30% 18% 22% 8% 19% 30% 22%

Top3 (8-10) 11% 34% 16% 29% 25% 18% 40% 18% 18% 22% 32% 22% 15% 23%

Bottom3 (1-3) 58% 44% 47% 23% 47% 54% 15% 24% 27% 35% 25% 22% 59% 47%

Top3 (8-10) 6% 20% 9% 28% 15% 12% 39% 21% 13% 16% 23% 22% 4% 14%

Bottom3 (1-3) 37% 11% 49% 10% 49% 63% 18% 28% 20% 13% 20% 24% 38% 48%

Top3 (8-10) 20% 63% 15% 64% 19% 13% 39% 31% 23% 48% 36% 30% 18% 16%

Bottom3 (1-3) 20% 36% 20% 22% 36% 32% 23% 31% 24% 36% 23% 45% 29% 32%

Top3 (8-10) 38% 36% 37% 40% 24% 33% 36% 26% 21% 27% 40% 7% 28% 31%

Bottom3 (1-3) 28% 45% 26% 34% 39% 48% 32% 30% 22% 41% 30% 29% 26% 29%

Top3 (8-10) 18% 22% 20% 23% 15% 4% 29% 22% 12% 20% 15% 15% 15% 23%

It’s too much of a hassle to switch from one provider to another in this category

All the companies in this category are the same in terms of offerings and services

This is a category I don’t care all that much about

I know a lot about the providers in this category

I have a real interest in/passion for this category

I often consider shopping around for better deals in this category




APPENDIX I



Base = 2478




China India Brazil Mexico Australia Canada France Germany Italy Japan Singapore Spain UK USA

Bottom3 (1-3) 16% 8% 17% 16% 23% 15% 15% 37% 17% 36% 16% 17% 31% 18%

Top3 (8-10) 28% 47% 47% 41% 18% 30% 29% 18% 17% 6% 25% 25% 12% 34%

Bottom3 (1-3) 9% 9% 20% 25% 30% 30% 33% 54% 27% 9% 18% 12% 36% 28%

Top3 (8-10) 32% 39% 36% 27% 12% 19% 16% 10% 16% 18% 22% 27% 10% 21%

Bottom3 (1-3) 8% 8% 25% 16% 33% 22% 15% 39% 34% 35% 12% 21% 40% 20%

Top3 (8-10) 27% 50% 44% 44% 16% 29% 49% 16% 12% 6% 31% 35% 16% 34%

Bottom3 (1-3) 10% 8% 9% 18% 12% 9% 6% 16% 8% 14% 8% 8% 11% 5%

Top3 (8-10) 21% 47% 48% 46% 26% 37% 50% 26% 26% 14% 20% 35% 30% 49%

Will recommened providers to others

Will buy more products & services from provders

Feel loyal towards providers

Overall satisfaction with providers

Higher average incidence of ‘Not at all’

Higher average incidence of ‘Extremely’


APPENDIX I



Base = 2478






Competitive Pricing Top3 (8-10) 13% 34% 23% 25% 20% 18% 45% 12% 5% 25% 19% 22% 16% 28%

Good value for money Top3 (8-10) 14% 39% 22% 22% 18% 18% 47% 14% 3% 30% 14% 17% 13% 27%

Broad product/services range Top3 (8-10) 12% 50% 29% 40% 26% 24% 52% 17% 11% 34% 34% 26% 18% 32%

High quality products/services Top3 (8-10) 17% 41% 21% 28% 17% 21% 42% 21% 8% 38% 24% 20% 14% 33%

Easy to do business w ith Top3 (8-10) 15% 45% 31% 28% 26% 23% 45% 16% 7% 35% 29% 26% 16% 34%

High-quality customer service Top3 (8-10) 16% 31% 29% 34% 25% 28% 48% 19% 10% 40% 27% 25% 14% 36%

Skilled workforce aware of needs Top3 (8-10) 16% 38% 37% 30% 34% 23% 39% 19% 12% 37% 29% 29% 17% 37%

Informative communications Top3 (8-10) 12% 39% 21% 15% 27% 19% 40% 17% 10% 27% 21% 17% 12% 25%

Engaging communications Top3 (8-10) 8% 28% 17% 20% 12% 13% 38% 10% 10% 23% 19% 15% 6% 20%

Trustworthy Top3 (8-10) 25% 47% 36% 26% 39% 26% 52% 23% 19% 43% 26% 31% 25% 41%

Innovation Top3 (8-10) 8% 34% 21% 28% 21% 18% 37% 17% 4% 27% 18% 14% 9% 22%

Sustainable business practices Top3 (8-10) 8% 33% 16% 24% 11% 9% 38% 12% 6% 33% 16% 17% 7% 18%


APPENDIX I

– Main drivers of satisfaction –Q3. Please tell us to what degree each of the following describes what you like about the companies you do business with in

these categories today? (Rating scale: 1 = not at all, 10 = extremely)

Base = 2478




Competitive Pricing 50% 40% 100% 40% 0% 0% 45% 40% 80% 50% 62% 61% 68% 57%

Good value for money 0% 80% 100% 30% 0% 20% 45% 40% 40% 25% 46% 46% 41% 57%

Broad product/services range 0% 20% 0% 20% 0% 0% 20% 10% 0% 13% 31% 14% 14% 0%

High quality products/services 50% 20% 50% 40% 0% 0% 15% 20% 20% 19% 8% 25% 14% 14%

Easy to do business with 0% 0% 0% 20% 20% 0% 20% 20% 20% 13% 0% 0% 9% 0%

High-quality customer service 0% 20% 0% 30% 20% 20% 20% 40% 0% 38% 8% 11% 14% 0%


0% 20% 0% 20% 20% 20% 5% 0% 20% 13% 15% 14% 5% 0%

Informative communications 0% 0% 0% 0% 0% 0% 15% 20% 20% 13% 31% 7% 14% 0%

Engaging communications 0% 0% 0% 0% 0% 0% 15% 10% 0% 13% 15% 11% 9% 0%

Trustworthy 0% 40% 0% 30% 40% 0% 10% 10% 20% 38% 15% 25% 9% 0%

Innovation 0% 0% 0% 10% 0% 0% 15% 0% 0% 6% 0% 7% 0% 0%

Sustainable business practices 0% 0% 0% 0% 0% 0% 10% 10% 0% 6% 0% 0% 0% 0%



APPENDIX I


– Reasons for recent complete switch (past 6-12 months) –Q8. How much did each of the following reasons contribute to your decision to switch/stop doing business?


Base = 150




APPENDIX I

– Reasons for recent partial switch (past 6-12 months): advertising or company practices factors –Q9. Thinking about the companies you started doing business with in the past 6 - 12 months, which of the following factors

caused you to choose them? (Check all that apply)


They were recommended to me by someone I know

7% 40% 23% 42% 15% 21% 56% 35% 10% 40% 51% 29% 17% 19%

I used to use them in the past and decided to try them again

47% 20% 23% 25% 25% 21% 24% 24% 0% 24% 24% 5% 11% 19%

They contacted me w ith an offer and I decided to give them a try

7% 27% 12% 17% 15% 14% 38% 24% 20% 20% 29% 24% 4% 15%

I was actively looking around and came across information on them

0% 7% 4% 25% 5% 7% 31% 6% 40% 20% 20% 9% 18% 5%

I saw advertising that made me want to give them a try

7% 0% 4% 4% 0% 14% 22% 18% 40% 20% 17% 5% 13% 10%



Base = 477





Good value for money 30% 31% 19% 25% 35% 43% 42% 34% 27% 31% 30% 36% 31% 29%

Broad product/services range 23% 28% 19% 21% 23% 14% 24% 22% 22% 20% 28% 19% 14% 16%


Easy to do business w ith 13% 14% 11% 10% 22% 9% 13% 13% 10% 13% 18% 14% 14% 13%



10% 16% 14% 11% 21% 17% 13% 21% 15% 18% 25% 17% 12% 11%


Engaging communications 4% 9% 4% 14% 2% 4% 8% 7% 8% 12% 7% 7% 2% 3%

Trustworthy 26% 13% 17% 21% 27% 21% 21% 28% 24% 11% 32% 15% 18% 21%

Innovation 1% 9% 4% 13% 4% 3% 6% 2% 2% 4% 5% 6% 1% 2%


5% 8% 3% 4% 2% 4% 5% 7% 2% 9% 1% 7% 3% 4%




APPENDIX I

– Expectations –Q4. In which of the following areas do companies need to meet or exceed your expectations in order for you to continue

doing business with them in the next 12 months? (Check up to top three reasons)

Base = 2478




APPENDIX I

– Reasons for future switch (next 6-12 months) –Q6. Why are you considering switching/stopping business in the next 6-12 months?




Good Value for the money 42% 55% 21% 42% 32% 28% 41% 30% 45% 34% 38% 37% 38% 35%


Trustworthy 13% 9% 26% 17% 27% 13% 17% 18% 14% 21% 30% 17% 21% 16%


Broad products/services range 8% 23% 16% 8% 5% 3% 21% 21% 9% 10% 16% 17% 6% 11%

Easy to do business with 29% 9% 26% 8% 18% 3% 10% 9% 9% 17% 8% 7% 10% 13%


Skilled workforce aware of needs 4% 5% 16% 42% 18% 5% 10% 12% 5% 10% 11% 13% 3% 10%

Engaging Communications 13% 9% 11% 0% 14% 3% 14% 3% 0% 3% 5% 4% 6% 8%

Innovation 0% 14% 5% 0% 0% 3% 14% 12% 5% 3% 3% 0% 1% 8%

Sustainable business practices 4% 23% 11% 0% 5% 0% 17% 6% 0% 0% 5% 2% 3% 0%



Base = 468



APPENDIX IISame/different provider analysis


Copyright © 2009 Accenture All Rights Reserved. 42Base: Same = 336, Different = 2142

14%

86%

Differentproviders

Sameprovider

• Consumers who have the same service provider have a higher level (around 10 basis points) of satisfaction, loyalty and advocacy than those who have different companies for Life insurance and Retail banking.

• For both the consumer groups, there is no significant difference in the top 5 reasons for satisfaction.

• Globally, past switch behavior is very different by country depending on whether consumer as same or different providers; globally – on average – switch rates between both groups are similar

• This is the same for future switching trends,where again large country difference are observed.

Based on questions 1, 2, 3, 5 and 7 for both consumer groups – See also appendix-II for details

– Same or different Life insurance & Retail banking providers –

14% of consumers used the same provider for Life insurance & Retail banking. Globally, using same provider, links to higher satisfaction, loyalty and advocacy. Switch behavior differs a lot by country.

APPENDIX II



Involvement is lower for consumers using different providers with 41% saying that they do not have a real interest for this category.

Copyright © 2009 Accenture All Rights Reserved.

Same providerDifferent providerBase: Same = 336, Different = 2142

28%19%

21%22%

I know a lot about the providers in this category

15% 52%

13% 48%I care atleast somewhat about this category

22%28%

15%41%

I have a real interest in/passion for this category

30%28%

25%35%I consider shopping around for better deals

27%32%

29%29%It's too much of a hassle to switch providers

17%35%

18%30%

Companies are the same in terms of offerings and services

INV

OLV

EM

EN

TP

ER

CE

PT

ION

Disagree Agree Top 3 boxes:

APPENDIX II




Copyright © 2009 Accenture All Rights Reserved. 44Same providerDifferent providerBase: Same = 336, Different = 2142

26%26%

39%17%

33%9%

41%10%

19%25%

28%21%Will buy more products and services from providers

23%23%

37%14%Will recommend providers

to others

Overall satisfaction with providers

Feel loyal toward providers

Top 3 boxes:

Not at all Extremely

Consumers using the same provider have higher level of satisfaction, loyalty & advocacy than those who use different providers for Life insurance and Retail banking.

APPENDIX II





Comparatively, consumers using the same provider for Life insurance and Retail banking are more satisfied than consumers using different providers.

Base: Same = 336, Different = 2142

APPENDIX II

– Current level of satisfaction –Q2. How satisfied are you with the companies you do business with today?


Dissatisfied (score 1-3)

Neutral (score 4-7)

Satisfied (score 8-10)

SAME PROVIDER DIFFERENT PROVIDER

36% 64% China

11% 33% 55% India

14% 27% 59% Brazil

18% 41% 41% Mexico

14% 57% 28% Australia

10% 53% 37% Canada

6% 55% 38% France

64% 36% Germany

4% 52% 43% Italy

15% 67% 18% Japan

7% 71% 21% Singapore

13% 54% 32% Spain

18% 44% 38% UK

4% 34% 62% USA

Mat

ure

mar

kets

Em

erg

ing

m

arke

ts

18%

8%

7%

11%

14%

9%

12%

7%

17%

9%

10%

6%

9%

5%

35%

46%

50%

74%

73%

71%

63%

58%

57%

54%

60%

37%

69%

47%

47%

46%

43%

15%

13%

20%

26%

35%

25%

37%

29%

57%

21%

48%

10% 49% 41% Global 9% 57% 33%



– Main drivers of satisfaction –

Same providerDifferent provider

‘Trustworthiness’, ‘Skilled workforce’ and ‘Ease-of-doing-business’ emerged as the key reasons that drove satisfaction in consumers of both kinds in this category.


31%42%

Trustworthy

26%40%


24%37%

Easy to do business with

25%36%

Broad products/services range

25%35%

High quality customer service

18%32%

Informative communications

16%31%

Innovation

22%31%

High quality products/services

20%29%

Competitive pricing

14%28%

Engaging communications

19%28%

Good value for money

14%27%


APPENDIX II


Copyright © 2009 Accenture All Rights Reserved. 47Same provider Different providerCopyright © 2009 Accenture All Rights Reserved.

Globally, consumers having the same service provider have switched more in the past 6-12 months in majority of the countries.


- Recent complete switch - - Recent partial switch - - Same Total - - Different Total -

19%

26%

28%

33%

4%

18%

16%

14%

20%

12%

14%

15%

24%

33%

32%

27%

24%

44%

4%

10%

14%

13%

12%

18%

19%

32%

27%

36%

21%

Brazil

China

Mexico

India

Japan

Canada

Australia

Italy

UK

Germany

France

USA

Spain

Singapore

Global

12%

11%

16%

15%

2%

2%

2%

9%

6%

5%

4%

1%

13%

7%

6%

0%

9%

24%

22%

4%

0%

0%

4%

6%

0%

4%

2%

11%

7%

6%

Mature markets

Emergingmarkets

10%20%

45%

7%

18%

14%

23%

26%

17%

19%

36%

17%

23%

18%

43%40%

38%

34%

18%

17%

6%

67%48%

47%

36%37%

32%31%

27%25%

19%

APPENDIX II


Copyright © 2009 Accenture All Rights Reserved. 48Same providerBase: Same = 333, Different = 2099

(46 invalid responses have been deleted)

APPENDIX II

29%

13%

20%

26%

8%

6%

3%

6%

3%

6%

2%

4%

14%

3%

8%

18%

12%

20%

38%

0%

7%

9%

2%

7%

9%

18%

9%

14%

29%

9%

China

Mexico

Brazil

India

Spain

Japan

USA

France

Canada

Italy

Germany

UK

Singapore

Australia

Global

- Future complete switch - - Future partial switch - - Same Total - - Different Total -

-9%

-14%

-18%

-9%

-16%

-7%

-8%

-3%

-6%

-16%

-6%

-13%

-6%

-17%

-10%

0%

-12%

-20%

-13%

-14%

-7%

-6%

-13%

-10%

-9%

0%

-12%

-14%

-14%

-11%

17%

17%

15%

21%

29%

15%

18%

15%

43%

14%

50%

40%

18%

24%

20%

23%

9%

14%

17%

20%

9%

8%

11%

21%

24%

35%

38%

38%

27%

18%

The future trends for switching are in line with the past behaviour where customers with the same provider are more likely to switch with Italy, Spain, Mexico and China being the only exceptions.

Different provider

Mature markets

Emergingmarkets

0%

0%

accenture research june, 2009 2009 global consumer behavior study industry results life insurance...

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