vietnam retail banking - why delighting customers matters?

Vietnam Retail Banking

Why Delighting Customers Matters

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

strategies.

Copyright © 2010 Cimigo Download this presentation for free: www.cimigo.vn

Research Channels

Telephone interviewing In-depth interviewingStreet intercepts Focus groups

Videographies Mystery shopping Online survey Online usability labs

Copyright © 2010 Cimigo Download this presentation for free: www.cimigo.vn

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: www.cimigo.com

Cimigo has surveyedover 5,000 consumers on over 100

questions relating to personal banking and financial behaviour, attitudes and

perceptions.

Cimigo Consumer Financial Services Monitor

Delighting Customers

Contents

Does Delighting Customers Matter?

What Delights Them Right Now?

Banking Behaviour And User Demographics

Extending the Relationship

Does Delighting Customers Matter?

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

How Cimigo Measures Commitment

Customer Satisfaction

Likelihood to Recommend

Comparison to Other Banks

Likely Future Use

Behavioral LoyaltyLoyalty measured by what

customers do

Attitudinal LoyaltyLoyalty measured by how

customers feel about doing business with your bank

Comparing Attitudinal Loyalty Vs. Behavioural Loyalty

0%

20%

40%

60%

80%

100%

5 6 7 8 9 10

Satisfaction Rating

% L

ikel

y to

con

tinue

use

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 Ratings of 9 and 10 most

likely to indicate strong

behavioural loyalty to

bank

Even Steeper Drop For Likelihood To Recommend!

0%

20%

40%

60%

80%

100%

5 6 7 8 9 10

Satisfaction Rating

% L

ikel

y to

rec

omm

end

bank

to

othe

rs

A drop in satisfaction rating from 9 to 8 can mean a drop of 40 points in

likelihood to recommend!

From 70%to 30%

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.

Does delighting customers matter?

What Delights Them Right Now?

Let’s see what banking experiences stick in their minds…

Positive And Negative Experiences

Had any exceptionally positive experiences recently?

26%

Had any exceptionally negative experiences recently?

4%

Top 5 Examples Of Positive Experiences

Call from bank sales3%

Convenient banking10%

Quick banking service22%

ATM network/services24%

Staff interaction54%

Number 5

Top 5 Examples Of Positive Experiences

High interest rates9%

Convenient banking10%

Quick banking service22%

ATM network/services24%

Staff interaction54%

Number 5

Top 5 Examples Of Positive Experiences

High interest rates9%

Convenient banking10%

Quick banking service22%

ATM network/services24%

Staff interaction54%

Number 4

Top 5 Examples Of Positive Experiences

High interest rates9%

Convenient banking10%

Quick banking service22%

ATM network/services24%

Staff interaction54%

Number 3

Top 5 Examples Of Positive Experiences

High interest rates9%

Convenient banking10%

Quick banking service22%

ATM network/services24%

Staff interaction54%

Number 2

Top 5 Examples Of Positive Experiences

High interest rates9%

Convenient banking10%

Quick banking service22%

ATM network/services24%

Staff interaction54%

Number 1

Staff interaction by far the most mentioned reason for positive experiences.

ATMs also mentioned, but to a lesser extent.

Top 5 Examples Of Negative Experiences

Call from bank sales3%

Number 5

Top 5 Examples Of Negative Experiences

Poor ATM locations5%

Staff not nice and warm8%

Banking took too long11%

ATM ran out of money35%

ATM broke down44%

Number 5

Top 5 Examples Of Negative Experiences

Poor ATM locations5%

Staff not nice and warm8%

Banking took too long11%

ATM ran out of money35%

ATM broke down44%

Number 4

Top 5 Examples Of Negative Experiences

Poor ATM locations5%

Staff not nice and warm8%

Banking took too long11%

ATM ran out of money35%

ATM broke down44%

Number 3

Top 5 Examples Of Negative Experiences

Poor ATM locations5%

Staff not nice and warm8%

Banking took too long11%

ATM ran out of money35%

ATM broke down44%

Number 2

Top 5 Examples Of Negative Experiences

Poor ATM locations5%

Staff not nice and warm8%

Banking took too long11%

ATM ran out of money35%

ATM broke down44%

Number 1

Out of the top 5 negative experiences, 3 of them relate to ATM problems.

Bank staff and service delivery mentioned far less.

There seems to be a direct relationship between satisfaction and staff interaction…

and an inverse relation between satisfaction and ATM usage…

In Fact, The More Customers Visit A Branch…

34%40%

48%53%

0%

20%

40%

60%

80%

100%

Never Rarely Once a month More often

Frequency of visiting branches

% D

elig

hted

cus

tom

ers

…the more likely they are to have high overall satisfaction.

While The Same Cannot Be Said For ATM Usage

49% 47%40% 39%

0%

20%

40%

60%

80%

100%

Never Rarely Once a month More often

Frequency of using ATMs

% D

elig

hted

cus

tom

ers

ATMs don’t “cause” dissatisfaction, but don’t help boost loyalty either

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?

Banking Behaviour And User Demographics

ATMs Most Frequently Used Touch Point

70% 34%

6% 5%

Touch points visited/contacted once a month or more – HCMC & Hanoi

ATMs Popular Among Younger Segments

84% 80% 58% 50%

25% 32% 41% 42%

18-24 25-34 35-44 45-54

ATM & Branch Visited Once a Month or More – HCMC & H anoi

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.

Conclusions

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?

Extending the Relationship

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

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?

Most “convincing” ways to encourage sign-up

Phone call from bank employee12%

Info sheet describing the new product12%

Gift given upon sign-up16%

Face-to-face talk with bank representative20%

Preferential interest rate25%

Number 5

Most “convincing” ways to encourage sign-up

Phone call from bank employee12%

Info sheet describing the new product12%

Gift given upon sign-up16%

Face-to-face talk with bank representative20%

Preferential interest rate25%

Number 4

Most “convincing” ways to encourage sign-up

Phone call from bank employee12%

Info sheet describing the new product12%

Gift given upon sign-up16%

Face-to-face talk with bank representative20%

Preferential interest rate25%

Number 3

Most “convincing” ways to encourage sign-up

Phone call from bank employee12%

Info sheet describing the new product12%

Gift given upon sign-up16%

Face-to-face talk with bank representative20%

Preferential interest rate25%

Number 2

Most “convincing” ways to encourage sign-up

Phone call from bank employee12%

Info sheet describing the new product12%

Gift given upon sign-up16%

Face-to-face talk with bank representative20%

Preferential interest rate25%

Number 1

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?

Delighting Customers

Richard Burrage

Cimigo

9 Nguyen Huu Canh Street, Binh Thanh District, HCMC, Vietnam

T: (84) 8 3822 7727 Ext 345

E: richardburrage@cimigo.com, W: www.cimigo.vn