banking on your happy customers - sap infographic
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In a recent retail customer survey sponsored by SAP, IDC Financial Insights looked into the state of happiness among banking customers across seven Asia/Pacific markets: Australia, China, India, Indonesia, Malaysia, New Zealand and Singapore. This IDC Infographic shows our findings and what they mean for banking executives eager to impress and delight their customers. Download the white paper here https://global12.sap.com/india/host.epx?kNtBzmUK9zUTRANSCRIPT
In a recent retail customer survey sponsored by SAP, IDC Financial Insights looked into the state of happiness among banking customers across seven Asia/Pacific markets: Australia, China, India, Indonesia,
Malaysia, New Zealand and Singapore. This IDC Infographic shows our findings and what they mean for banking executives eager to impress
and delight their customers.
Asia/Pacific Customers are Generally Happy
A Breakdown Further Reveals the Differences in Happiness
Breakdown of Happiness Scores
1-3 = Unhappy 4-6 = Dissatisfied 7-9 = Satisfied 10 = Very Happy
On a scale of 1-10, where 1 is “very unhappy” and 10 is “very happy”, how happy are you with your current primary banking relationship?
Happ
ines
s Sc
ores
9
8.5
8
7.5
7
AVerAge
8.07
The 3 factors most likely causing happiness in the Asia/Pacific markets (apart from price)
But there are Different Drivers of their Happiness
10%cited security as a priority due to
the large scale of phishing activities in the country.
ChinaLocationOnline ServiceSecurity
77% reported online as being the
most convenient channel for transactions, an area that Australian banks have been regional leaders in.
AustraliaOnline ServiceTransaction Efficiency Security
79% used online banking as bank
branches are often located in busy areas with limited parking.
MalaysiaOnline ServiceLocationTransaction Efficiency
10%said locations of banks were
still important – a reflection of Indonesia’s lower Internet penetration of 22%.
IndonesiaLocationShort Waiting Times Online Service
89% said online was the most
convenient channel, which is not surprising considering the spread out population of New Zealand.
New ZealandOnline ServiceTransaction Efficiency Security
30% were phone banking users in
a country where online still remains an important channel – the highest among all countries researched.
IndiaOnline ServiceTransaction EfficiencyLocation
25% said long queues at ATMs
were a major pain point, underpinning the importance of location.
SingaporeLocationOnline ServiceTransaction Efficiency
80%
70%
60%
50%
40%
30%
20%
10%
0%
ON AVerAge
16%
72%
10%
2%
very happy
satisfied
dissatisfied
unhappy
What are these Customers Like?
Customers’ Preferred Channels
0.2% Social
56.6%Online
25.9%ATM
10.7%
Branch
5.4%
Mobile
1.2%Phone
With a relationship
manager how do happiness scores differ?
vs
of customers still keep
other banking relationships
92%
Happiness by Length of Banking Relationship
The happiest customers were those with a 5-10 year relationship with their bank
<1 Year 1-3 Years 3-5 Years 5-10 Years >10 Years
Happ
ines
s Sc
ores
The average user interacts with their bank
times/month
Online ATM Branch Mobile Phone Social
4.9 times3.8 times 1.9 times1.1 times 0.6 times 0.2 times
Why Making Your Customers Happy Matters
More Happy Customers = Better Deposit Growth
Top 5 Banks by Happiness Scores
Lowest 5 Banks by Happiness Scores
Axis BankIndian Overseas Bank
10
9
8
7
6
5
Happ
ines
s Sc
ores
Citi (India) Bank Mandiri
National Australia Bank
Bank A (China)
Bank D (Indonesia)
Bank B (Singapore)
Bank C (Indonesia)
Bank e (Australia)
10 20 30 40
18%Average
for top 5 banksAverage
for lowest 5 banks
12%
% Growth in Deposits 2011/2010
Small Banks are Generally Better
at Customer Satisfaction
Tier 1 Tier 2 Tier 3
8.03 8.13
8.60
Happiness Scores
Small banks can leverage their resources to
provide focused services but with
higher cost to revenue ratios
Use data and statistics intelligently to create value for customers and the bank
LeadersOCBC Commonwealth Bank of Australia DBS National Australia BankWestpacUBankICICI Bank
10 Technology Imperatives to Enhance Customer Happiness
1 Single Customer ViewLeverage integrated backend database for a holistic view of customers’ banking relationship to promote cross selling and enhance personalized services
LeadersOCBC Commonwealth Bank of Australia
6 Social BankingProvide financial services and conduct transactions on social media platforms
LeadersCIMBMaybankCommonwealth Bank of Australia ICICI Bank
8 Differentiated PricingOffer optimal products and deals to customers based on data history
Leader OCBC
9 Customer-Centric Corporate BankingBring consumer banking type initiatives to corporate clientsLeadersANZ Bank CitiHSBCStandard Chartered BankDeutsche Bank
10 GamificationAdd play-like elements such as rewards systems to increase customer engagement
LeadersCommonwealth Bank of Australia Standard Chartered Bank
Allow customers new options for how they purchase items and open up new markets with new payment types for untapped population segments
LeadersYES BankCIMBCiti
7 New Payments2 Big Data Analytics
Upgrade existing branches and ATMs to better service customers
LeadersANZ BankDBSStandard Chartered BankCiti
3 Expanding Traditional Channels
Launch new branch formats and “bank in briefcase” programs to extend reach beyond existing branches
LeadersCIMBRHB BankDutch-Bangla Bank
4 New Channels
Leverage and automate channels to service customers better, especially when and how they wish to be served
LeadersStandard Chartered BankNational Australia Bank
5 Omni-Channel Strategy
Research Team: Michael Araneta and Michael Yeo
Source: IDC Financial Insights Asia/Pacific Survey on Banking Customer Happiness, 2013, Sponsored by SAP
IDC Financial Insights White Paper, The Path to Banking Happiness, July 2013 (http://to.idc.asia/the-path-to-banking-happiness)
Note: N=100 retail customers in each market except for Australia (N=50) and New Zealand (N=50)
Copyright 2013 IDC Financial Insights. Reproduction without written permission is completely forbidden.
This IDC Infographic was produced by IDC Asia/Pacific Go-to-Market Services. The opinion, analysis, and research results presented herein are drawn from more detailed research and analysis independently conducted and published by IDC Financial Insights. Any IDC Financial Insights information or reference to IDC Financial Insights that is to be used in advertising, press releases, or promotional materials requires prior written approval from IDC. For more information, visit: www.ap.idc.asia or contact: [email protected]
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