Download - Bank: Trust, Loyalty, Satisfaction, Growth
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About the study
Executive summary
Why do we look at trust?
How do we look at trust?
Demographics
Consumer Bank Trust 2014
Trust Distribution
HuTrust Analysis
Qualitative focus on relationship trust
About mext
Key Contacts
Distrust
This study was conducted in May 2014 with a general
population sample of almost 1200.
It is part of the annual brand trust tracking initiated by
mext.
The methodology uses HuTrust, a psychological tool to
assess the drivers of trust, NPS and satisfaction to help
brand owners build more trust, achieve clearly connected
bottom line improvements and manage their brands more
effectively
Mext are brand and customer experience specialists
based in Melbourne and Singapore and working with
clients globally.
The HuTrust methodology is used by HuTrust Partners
globally. Clients and service suppliers can integrate the
methodology into any of their surveys to better
understand the key drivers of their KPIs.
For more information please contact:
Stefan Grafe
Managing Director
Mext
Consumer banking trust:
The Big 4 banks have recovered
from a slight fall in trust among
their customers in 2012.
Bendigo Bank, as the regional
bank tracked in this study has
regained previous trust levels –
well ahead of the big 4 banks at
an average of 8/10.
0
1
2
3
4
5
6
7
8
9
10
2011 2012 2013 2014
Axi
s Ti
tle
Bank Trust Comparison 2011 - 2014
ANZ
CBA
NAB
Westpac
Bendigo
Customers vs non-Customers
Non-Customers continue to distrust the other banks. CBA’s trust among non-
customers is lowest and appears to have been hit by the protracted financial
planning scandals. Only Bendigo Bank, is, on average, not distrusted by non-
customers. Because of customer’s distrust of other banks, despite low trust in
their own bank, switching is very unlikely.
The bank that can increase it’s trust with non-customers will gain a significant
acquisition advantage.
The ability to build more trust with own customers will be key determinant of
customer product holding, especially wealth and super products.
The study shows that the opportunity in consumer
banking lies in understanding what ‘trust in an
appealing relationship’ means. Through our
qualitative work we shed some light on this.
Unlike previous years, the Big 4 bank’s trust is now
driven most by the same driver, Relationship trust.
While trust increases over the last years have been
marginal, the banks have done well retaining their
trust levels despite many public challenges.
distrust
neutral trust
trust
high trust
Trust is the most powerful human
motivator.
A 20% improvement in trust can
mean a 400% improved customer
attitude and behaviour.
Trust makes up over 70% of the NPS
and over 2/3 of customer
satisfaction, the most common KPIs
of financial services organisations.
Therefore, if we understand trust, we
understand what drives (or inhibits)
the vast majority of these KPIs.
Further, if we understand trust,
these KPIs can be more effectively
built and managed.
1. Trust is the prerequisite for purchase.
In most studies, trust and product performance are equal drivers or purchase and sign up.
2. Trust in itself is not enough. More trust is the key – and every little more has a huge impact on customer behaviour.
3. Trust is not a competitive advantage unless you are more trusted than your competitors.
A note on NPS and customer
satisfaction:
Both NPS and satisfaction measures
are primarily directed at one’s own
customers. While they can be
benchmarked against competitors,
they are less applicable for potential
customers and their propensity to
choose a provider.
Trust doesn’t have these inhibitions.
Trust by own customers is a clear
indicator of loyalty and willingness to
buy more.
With potential customers it provides
a direct understanding of their
likelihood to choose one provider
over another.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0 1 2 3 4 5 6 7 8 9 10
Trust Score
Likelihood to recommend
Feel connected to
Go out of my way to buy aspecific brand/product
0 1 2 3 4 5 6 7 8 9 10
Distrust No trust Low trust High trust
Trust is the root cause of your customer’s behaviour.
The more your customer can trust you, the more
business they want do with you. A 20% improvement
in trust can mean 400% improved customer
predisposition.
Score Meaning Behaviour examples
0-4 Distrust Will recommend against,
complain a lot, actively work
against
5-6 Neutral (don’t trust
& don’t
distrust)
Sit on the fence. Would switch
readily if there is an alternative.
Spread products. Don’t commit.
Question, are critical, but
somewhat open to listen.
7-8 Low level
of trust
Functionally satisfied. Open to
listen and slightly positive in their
outlook. Still look around and
compare. Still spread products.
9-10 High trust Committed. Don’t look around,
have most products with one
provider. Very open to contact
and suggestions. Will proactively
ask.
The Trust Effect
HuTrust® is trademark of ifm/mext and Stefan Grafe. The HuTrust® Model, its facets, descriptors and statements are copyright ifm/mext and may not be used, reproduced or stored in any medium unless expressly permitted by ifm/mext. HuTrust® is applied in Brand trust development, Customer experience & value proposition development, Sales and Business Development Performance & Training, Employer branding & Employee engagement, Manager Coaching & Leadership training, transformation and change management and corporate affairs & PR., and Research & Tracking. www.hutrust.com
ANZ CBA
NAB Westpac
Bendigo
The sample comprised :
1166 Consumer respondents
Consumer
customers
Consumer
Non-customers
7.36
7.48
7.57
7.47
8.04
4.95
4.76
4.96
4.86
5.31
4 5 6 7 8
ANZ
CBA
NAB
Westpac
Bendigo
Average trust score
Customers
Non-customers
Based on the general population, no bank reaches
trusted status
But customers, on average, trust their own bank.
However, non-customers distrust the Big 4 banks, while they
are just trust neutral towards Bendigo Bank.
Compared to other service industries such as Telco and
Energy, this is a strongly polarised image.
Bank Trust 2014
Base: customers vs. non-customers
5.25
5.39
5.27
5.17
5.47
4 5 6 7 8
ANZ
CBA
NAB
Westpac
Bendigo
Average trust score
Bank Trust 2014 Base: All respondents
ANZ have slightly increased their trust level – even
compared to 2011.
CBA had made good trust gains in the last years, but this
year lost ground. The reason is likely to be the handling of
the financial planning issues. Considering the protracted
coverage of the issues, trust is probably propped up by
the sustained CAN advertising campaign.
While nab’s break up campaign didn’t show a lot of effect
to start with, now nab appears to gain trust ground
rapidly. This is likely due to significant systems changes
and revamped products that now positively impact
customers.
Westpac lost ground last year, but has regained that
ground and added more trust.
While Bendigo Bank dipped in 2012, among its own
customers, Bendigo Bank has made up all ground and
continue to be most trusted (please note, that this is
typical for smaller, tightly positioned players).
Customer’s trust in their own bank has slowly increased
over the last 4 years. There are some interesting
developments for each brand.
Bank Trust Comparison 2011-2014 Consumers
Base: each bank own customers
Except for Bendigo Bank, non-customers
score just within the distrust threshold.
However, the level of distrust is slowly
decreasing.
Bank Trust Comparison 2013 – 2014
Base: each bank non-customers
The Big 4 show a ‘bracket’ pattern with younger and older
people showing more trust than the 35-54 year olds.
Bendigo Bank’s Profile differs significantly, with trust
increasing with age.
Importantly, younger people trust Bendigo Bank less than
the other banks, strongly limiting Bendigo Bank’s ability to
attract younger customers.
Despite being overall most trusted, the trust age profiles
are likely to be a significant inhibitor.
Bank Trust 2014 Non Customers
Base: each bank non-customers by age
Bank Trust 2014
Base: each bank customers by age
28% 29% 28% 30% 23%
39% 32% 37% 39% 44%
21% 24%
22% 20% 22%
12% 15% 13% 12% 12%
0%
20%
40%
60%
80%
100%
120%
ANZ CBA NAB WestpacBendigo
Trust Distribution Base: all respondents
Highly trust (9-10)
Trust (7-8)
Neutral (5-6)
Distrust (0-4)
Overall distrust and neutral trust range between
61% (CBA) and 79% ( Westpac), however trust
neutral percentages are significantly higher than
distrust percentages. This puts the banks in a
promising position to turn neutrals into trusters
which is easier than turning distrusters into trusters.
All banks are well trusted by
their own customers. Especially
Bendigo Bank performed very
well in this study with over 80%
of its customers trusting.
Non-customer trust is very
much aligned with the trend in
this study to distrust banks you
don’t bank with.
10% 31% 18%
42% 31%
19% 40%
8%
Customers Non-customers
ANZ Trust Distribution Base: customers vs. non-
customers
8%
35% 17%
37% 38%
19% 36%
9%
Customers Non-customers
CBA Trust Distribution Base: customers vs. non-
customers
9% 31% 14%
40% 32%
21% 45%
8%
Customers Non-customers
NAB Trust Distribution Base: customers vs. non-
customers
8% 33% 20%
41% 31%
18% 41%
8%
Customers Non-customers
Westpac Trust Distribution Base: customers vs. non-
customers
7% 24% 11%
46% 31%
21% 51%
9%
Customers Non-customers
Bendigo Trust Distribution Base: customers vs. non-customers
Highly trust(9-10)
Trust (7-8)
NeutralTrust (5-6)
Distrust (0-4)
1) Trust is the prerequisite for purchase.
Non customers don’t trust the other banks, making a purchase unlikely.
2) Trust in itself is not enough. More trust is the key.
With own customers, on average, the Big 4 just reach the trust threshold. There is a lot more
opportunity in building trust with customers
3) Trust is not a competitive advantage unless you are more trusted.
When it comes to potential customers, none of the banks has a trust advantage.
Bendigo Bank should be best placed for
growth through high customer trust and
less non-customer distrust. But the lack
of trust from non-customers is still too
high a barrier.
The Big 4 are likely to retain their
customers, but mostly due to their peers
being distrusted.
While the banks found it hard to increase
trust and advocacy after an initial clean
up, more trust will be critical in customer
product uptake
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0 1 2 3 4 5 6 7 8 9 10
Trust Score
Likelihood torecommend
Feel connected to
Go out of my wayto buy a specificbrand/product
0 1 2 3 4 5 6 7 8 9 10
Distrust No trust Low trust High trust
ANZ CBA CBA NAB NAB Westpac Westpac Bendigo Bendigo
4.95 4.76 4.96 4.86 5.31 7.47 7.57 7.48
ANZ
7.36 8.04
Customers Non - Customers
Trust is made up of 6 clear psychological facets that are statistically
and practically validated.
Whenever we interact or think of a person or organisation, our mind
assesses in milliseconds:
- What that person or brand can or can’t be trusted for
- How appealing or unappealing that is
- How strongly one can trust for those things
These trust principles are captured in the HuTrust® Model and allow
us to analyse:
- The strengths of each trust facet (HuTrust Profile)
- Which trust facet drives trust best (HuTrust Drivers)
- Which trust signals (attributes and proof points) best build each
HuTrust Facet (HuTrust Attributes)
HuTrust is psychologically correct, statistically sound and practically
proven.
For more information please visit www.hutrust.com or contact one of
the global HuTrust Partners.
HuTrust® is trademark of ifm/mext and Stefan Grafe. The HuTrust® Model, its facets, descriptors and statements are copyright ifm/mext and may not be used, reproduced or stored in any medium unless expressly permitted by ifm/mext. HuTrust® is applied in Brand trust development, Customer experience & value proposition development, Sales and Business Development Performance & Training, Employer branding & Employee engagement, Manager Coaching & Leadership training, transformation and change management and corporate affairs & PR., and Research & Tracking. www.hutrust.com
• The HuTrust framework drives 75% of trust.
• Trust drives up to 8% of reputation, satisfaction and
NPS.
• HuTrust also drives 75% of Reputation and NPS
(Advocacy) and 65% of Satisfaction.
• If you are measuring and reporting on these key
metrics, then HuTrust provides the steering
framework to drive improvement.
HuTrust Profile HuTrust Drivers
The colour of each HuTrust Facet
points out how well the brand
performs. The number shows the
average score for the HuTrust
Facet on the 11 point trust scale.
Distrust
No trust/neutral
Trust
High trust
The arrows show which
HuTrust Facets are most
important in trusting the
brand.
most important
secondary
In this study we look at the brand’s strengths and weaknesses through the HuTrust Profile. We
also examine which HuTrust Facets are most important to trusting for each brand and show
how each brand’s trust has developed over the last 4 years. In this study we have omitted the
HuTrust Attribute Analysis. Instead some qualitative work has been done.
HuTrust Attributes (not
included in this study)
The HuTrust Attribute Analysis
determines specific proof points
like attributes, behaviours and
facts that best build the priority
trust facets. To get beyond
generic category attributes,
typically qualitative research is
conducted. This ensures category
attributes are covered and brand
specific opportunities uncovered.
23% Inspire & support with new ideas
19% Are honest even if it’s not pleasant
17% Understand how I want to use the services
15% Are consistent in dealing with me over time
HuTrust Tracking
Tracking of trust, other KPIs
and the 6 HuTrust Facets
over time. – including shifts in
the trust drivers.
Direction and inner colour show
whether it is a positive or
negative development.
The outline shows if the score
lies in distrust, non trust/trust
neutral, trust or high trust
17%
Customer HuTrust Profile
ANZ’s trust is carried only by trust in its
stability and future development
Customer HuTrust Drivers
ANZ’s strongest driver of trust is trust in the bank’s
ability to relate well to the customer.
The secondary drivers of trust for ANZ lie in its ability to
demonstrate the building of a strong foundation and
conferring an appealing benefit to their customers.
20%
25%
17%
Non-Customer HuTrust Drivers
Relationship aspects would build trust most
with non-customers.
17% 28%
Non Customer HuTrust Profile
A similar pattern emerges with non-customers,
but at a lower level.
4.9 4.6
6.2 6.4
4.5 5.2
After a dip in the last 2 years, ANZ is
recovering its stability, development
and relationship trust.
Customer‘s trust in ANZ being of
benefit to them declined strongly in
2012 and 2013. In 2014 ANZ has
recovered parts of that trust, but
still doesn’t reach the trust
threshold again.
Trust in an appealing vision saw a
decline in the last two years and the
2014 recovery is only slight.
ANZ has been treading water in
competence trust
ANZ appears to be recovering in at
least 3 HuTrust Facets from losses in
the last two years.
18%
27%
6.6 7
8 7.6
6.9 7
Customer HuTrust Profile
Compared to 2013, CBA has lost ground in
relationship trust and a little in competence trust.
Customers currently don’t trust CBA for having an
appealing vision and the relevant competences to
pursue it.
Customer HuTrust Drivers
Trust in the bank to relate well to them
and demonstrate a strong foundation
drive trust with CBA customers most.
Non-Customer HuTrust Profile
Non CBA customers distrust CBA for its vision,
benefits and ability to offer an appealing
relationship.
17% 27%
Non-Customer HuTrust Drivers
Trust with non-customers would be most
driven through relationship and vision
aspects.
6.3 6.2
4.9
4.4
4.6
5.2
CBA improved in two HuTrust
Facets, held their score in 2,
but declined in relationship
trust.
Customer HuTrust Profile
Nab’s HuTrust Profile has developed well,
reaching trusted status now in 5 out of 6 facets
– even if only just.
8.1 7.6
7
7.1
6.6
7.1
17% 25%
17%
Customer HuTrust Drivers
For nab trust in an appealing relationship is also
most important, but trust in an appealing vision
and the corresponding competences also
uniquely drive nab’s trust.
20%
27%
Non-Customer HuTrust Profile
Nab’s HuTrust profile with non-customers is
similar to that of the other Big 4.
Non-Customer HuTrust Drivers
Nab’s trust with non-customers would also be
most driven through trust in an appealing kind
of relationship.
6.3 6.2
4.9
4.4
4.6
5.2
Nab has had steady gains
in all HuTrust facets in the
last 3 years.
Customer HuTrust Profile
Westpac is trusted for half of the trust qualities it
needs to be trusted for
8 7.5
6.9
6.9
6.6
7.1
20%
26%
Customer HuTrust Drivers
For Westpac, trust in an appealing relationship
and trust in the corresponding benefits drive
trust most with customers.
6.3 6.1
4.8
4.4
4.5
5.1
27%
Non-Customer HuTrust Profile
Westpac’s HuTrust profile with non-customers the
same as the other Big 4.
Non-Customer HuTrust Drivers
Trust in an appealing relationship would rive
trust most.
After a significant dip in
trust in the last 2 years,
Westpac is rebuilding trust
with customers and has
almost reached 2011 levels
again.
7.8 7.7
7.9
7.3
7.4
7.3
18%
21%
Customers HuTrust Profile
Bendigo Bank customers trust the bank in all 6
HuTrust Facets.
Customer HuTrust Drivers
For Bendigo Bank customers trust in their vision and
the provision of an appealing benefit are most
important to trusting.
Non-Customer HuTrust Drivers
Trust in Bendigo’s strong foundation and an appealing
relationship would drive trust most.
Non-Customer HuTrust Profile
Bendigo Bank is only distrusted by non-customers
for their vision and benefit.
5.8 6.2
5.3
4.7
4.9
5.3
25%
21%
After a deep dip in trust in the
wake of the GFC, Bendigo
Bank’s trust surged again, but
in 2014 stays a marginally
lower level than 2013.
The loss has been strongest in
development and benefit trust.
All of the Big 4 lack in trust in their vision. Except for ANZ all banks are trusted at least for 3 of their 6 HuTrust Facets, something out studies
show to be important for a string brand.
ANZ CBA nab Westpac Bendigo
HuTrust Drivers– Own Customer
With all Big 4 banks, own customer trust is mostly driven by trust in an appealing relationship. Of the Big 4 nab now achieves trusted status in that
critical HuTrust Facet. Apart from the similarity in the importance of relationship trust, each bank brand has a unique set of trust drivers.
Distrust in the bank’s vision and in the customer benefit drag down the bank’s trust most – shortly followed by distrust in the
ability to offer a good relationship.
With non-customers that relationship distrust is important as it would also be the biggest driver of trust. The uniform drivers (as opposed to own
bank customers) suggest that non-customers see the banks as undifferentiated.
HuTrust Drivers – Non Customer
ANZ CBA nab Westpac Bendigo
Considering the importance of trust in the relationship aspects, we conducted qualitative
work to gain further insight into what ‘relationship trust’ means for banks.
Personal contact is not the driver
Relationship trust doesn’t mean having a relationship to a specific
banker. Constant people rating and reminders in the branches
don’t appear to enhance relationship trust. Customers feel the
friendliness is enforced rather than driven by the person they deal
with. The branch manager or personal banker as a person doesn’t
appear to be as a big draw card as:
- personal contact it is less and less needed and desired
- when needed, the personal contact turned out to be useless in
the face of the overriding systems
‘I want as little personal contact with them as possible. What I want
is for them to make my other interactions as great as possible.’
Changes in the way we transact
Customers want to see banks better understand how their way
of interacting and transacting changes – and could change.
Specifically in the areas of mobile interaction, international
offers and alternative financing banks are still seen as reluctant
followers and not innovative enough (with CBA’s recent
advances being positively noted).
‘The mobile apps still don’t allow you to do enough and they are
too fragmented. I also think they are not flexible enough when it
comes to new ways of paying and getting money or borrowing it.
When you compare it to how innovative others work with
technology…”
About face
With regards to home loans, even high and stable earners complain
about the bank’s about face in terms of willingness to lend and
being helpful. A typical complaint is that when it suited the banks,
they threw money at them, just to turn 180 degrees without reason
– causing some significant difficulties.
‘Before the GFC they pushed me and pushed me to buy property,
despite my income not being very high and stable yet. Now that I
earn a lot more and consistently, they don’t even want to lend me
much less than they did before. I had to find different ways of
financing. I won’t forget that.’
Number gaming
Customers understand that data can greatly help their
experience – and in some interactions it does. However, on the
flip side, customers feel they are now just number gamed – and
in a crude manner at that. In our interviews this included debt as
well as badly targeted product offers. This perception of relying
on complex systems (that ‘even employees don’t understand and
can’t explain’ anymore) diminished relationship trust ability.
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