Australian Banking - Brand Trust.

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Trust is what makes us want to be with one another, interact and transact.

It is the proven link between customer behaviour and company performance.

Right ‘after’ the GFC a lot has been written about brand and organisational trust in financial services brands.

But what is the state of customer trust now? In Australia, one of the best performing economies in the world?

More importantly, what does this mean for financial services organisations and what can they do about it?

This brand trust study, although Australia centric, is applicable to many other markets.

It was conducted with 2400 Financial Services customers in late 2010 and April 2011.

To examine brand trust in Australian Banks we use HuTrust®, the correct psychological understanding of trust.

HuTrust® enables you to analyse brand and organisational trust through its 6 distinct facets. The ‘what you are (not) trusted for’.

In every interaction with your brand and in every thought about your brand, your customer unconsciously assesses his/her trust in you against these 6 facets.

By understanding the 6 drivers of trust, HuTrust® empowers you to build your brand trust and thus your personal and organisational performance.
For more information HuTrust® please visit www.hutrust.com.


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Australian Banking - Brand Trust.

  1. 1. Brand  Trust  in  Australian   Banking.     HuTrust®Profile   Customer  trust  in  Financial  Services  in   Australia   2010  2011     A  joint  study  by  mext  and  Australia  Online  Research   using  HuTrust,  the  scienBfically  robust  model  to  analyse  and  build   brand  trust.  
  2. 2. Right  ‘a:er’  the  GFC  a  lot  has  been  wriAen  about  brand  and   organisaBonal  trust  in  financial  services  brands.       But  what  is  the  state  of  customer  trust  now?  In  Australia,  one   of  the  best  performing  economies  in  the  world?     More  importantly,  what  does  this  mean  for  financial  services   organisaBons  and  what  can  they  do  about  it?     This  brand  trust  study,  although  Australia  centric,  is   applicable  to  many  other  markets.     It  was  conducted  with  2400  Financial  Services  customers  in   late  2010  and  April  2011.   HuTrust  is  trademark  of  ifm  in  depth  research  and  strategies  and  Stefan  Grafe.  The  HuTrust  Model,  its  facets,   descriptors  and  statements  are  copyright  ifm  in  depth  research  and  strategies  and  may  not  be  used,  reproduced  or   stored  in  any  medium  unless  expressly  permiJed  by  ifm.    HuTrust  is  applied  in  Brand  trust  development,  Customer  experience  &  value   proposiBon  development,  Sales  and  Business  Development  Performance  &  Training,   Employer  branding  &  Employee  engagement,    Manager  Coaching  &  Leadership  training,  transformaBon  and  change  management  and  corporate  affairs  &  PR.   All  images  copyright  Istock  and  used  under  license  by  ifm  &  mext   part  of  the  Asia  Pacific  mext/duxton  group  
  3. 3. Trust  is  what  makes  us  want  to   be  with  one  another,  interact   and  transact.     It  is  the  proven  link  between   customer  behaviour  and   company  performance.   part  of  the  Asia  Pacific  mext/duxton  group  
  4. 4. (just  think  of  your  NPS®)   Mext  &  Concerto,  2008/2009              Net  Promoter,  NPS,  and  Net   Promoter  Score  are  trademarks  of  Satmetrix  Systems,  Inc.,  Bain  &  Company,   and  Fred  Reichheld.   part  of  the  Asia  Pacific  mext/duxton  group   Trust  means  a  lot  to  your  customers.   If  customers  trust  your  brand…  
  5. 5. Trust  is  not  an  ‘on/off’  proposiBon.   We  have  different  levels  of  trust,  distrust  and  ‘neither  trusBng,  nor  distrusBng.’     0  to  4.99  equates  to  distrust.   5  and  6  represent  neither  trust,  nor  distrust  –  neutral.   7  to  10  is  slight  trust  to  strong  trust.     0 1 2 3 4 5 6 7 8 9 10 Distrust Neutral Trust If  your  organisaBon  uses  customer  saBsfacBon  or  the  NPS®:   •  Distrusters  &neutrals  =  detractors.     •  Low  trusters  =  neutrals     •  High  trusters  =  promoters.     •  The  NPS  and  Net  Trust  Score  tend  to  be  very  similar.   •  Trust,  saBsfacBon  and  likelihood  to  recommend  always  track  the  same,  with  a  correlaBon  of  between   0.96  and  0.98).     •  Considering  that  you  only  recommend  if  you  trust  –  a  irreversible  logic,  it  is  clear  that  trust  is  an  equal   performance  KPI  –  or  driver  of  performance.   part  of  the  Asia  Pacific  mext/duxton  group  
  6. 6. The  level  of  trust  your  customer  has  in  you  and  your   brand  determines  your  success.   The  more  customers  trust  you,  the   stronger  the  commitment  to  you.   part  of  the  Asia  Pacific  mext/duxton  group  
  7. 7. To  examine  brand  trust  in  Australian  Banks  we  use  HuTrust®,  the  correct   psychological  understanding  of  trust.   HuTrust®  enables  you  to  analyse  brand  and  organisaBonal  trust   through  its  6  disBnct  facets.  The  ‘what  you  are  (not)  trusted  for’.     In  every  interacBon  with  your  brand  and  in  every  thought  about   your  brand,  your  customer  unconsciously  assesses  his/her  trust  in   you  against  these  6  facets.       By  understanding  the  6  drivers  of  trust,  HuTrust®  empowers  you  to   build  your  brand  trust  and  thus  your  personal  and  organisaBonal   performance.   For  more  informaBon  HuTrust®  please  visit  www.hutrust.com.   Trust   part  of  the  Asia  Pacific  mext/duxton  group  
  8. 8. Now  what  do  Australian  customers  feel?     7.1 7.1 6.8 7.8 7.2 5 6 7 8 9 Westpac National Australia Bank Commonwealth Bank Bendigo Bank ANZ Personal Business 0= no trust at all, 10= high trust •  In  personal  Banking  only  a  smaller  regional  based  bank  achieves  a  solid  trusted  status.   •  The  4  major  banks  skirt  around  the  trust  threshold.     •  Among  business  banking  customers  they  are  not  trusted.   •  Business  customers  consistently  rate  their  financial  service  providers  lower.     part  of  the  Asia  Pacific  mext/duxton  group  
  9. 9. The  major  bank’s  HuTrust  profiles  are  almost  idenBcal.   •  The  major  banks  are  not  differenBated.   •  They  are  only  well  trusted  for  stability  and  at  a  low  level  trusted  to  develop  well  in  the  future.   •  Our  qualitaBve  research  showed  that  a  large  part  of  the  stability  trust  in  Australia  is  due  to  Bght   government  regulaBon    and  government  guarantees  rather  than  perceived  stability  of  the  brand  or   organisaBon  itself.   ‘If  the  government  had  not  kept  them  on  a  2ght  leash  they  would  have  done  the  same  as  all  the  failed  banks.’   Business  customer,  2010         5 6 7 8 9 Competence Vision Benefit Relationship Development Stability ANZ Bendigo Bank Commonwealth Bank NAB Westpac   When  it  comes  to  being  trusted  for  or  vision,   none    of  the  major  banks    is  trusted.     Even  trust  in  being  competent  and  able  to  relate   to  the  customer  is  ,  on  average,  non  existent.     Bendigo  Bank,  the  far  smaller  contender  with  a   community  banking  model,  is  the  notable   excepBon.     part  of  the  Asia  Pacific  mext/duxton  group  
  10. 10. Considering  that  all  6  HuTrust  facets  contribute  to  (or  inhibit)   brand  trust  equally,  ample  opportunity  exists  to  increase  trust   through  the  remaining  4  HuTrust  facets.     Considering  that  a  shig  from  6  to  7  on  the  Trust  Scale  results  in  a   doubling  of  customer  loyalty,  it  is  a  worthwhile  exercise.     Trust   ~  6  to  10   The  major  banks  are  only  well  trusted  for  two  of  their  six   facets  of  trust.   part  of  the  Asia  Pacific  mext/duxton  group  
  11. 11. Let’s  take  a  detailed  look  at   some  banks.   part  of  the  Asia  Pacific  mext/duxton  group  
  12. 12. Looking  at  brand  trust  in  the  different  age  brackets  reveals  further   opportuniBes.   •  Commonwealth  Bank  is  not  at  all  trusted  in  the  18-­‐34,  35-­‐44  and  45-­‐64  age  bracket.     •  The  key  issue  for  CBA  is  that  customers  in  the  25-­‐34  and  35-­‐64  age  brackets  transiBon  from  long  term  debt  repayment  to   wealth  building.     •  They  are  unlikely  to  carry  a  lot  of  their  wealth  building  business  back  to  CBA.     CBA part  of  the  Asia  Pacific  mext/duxton  group  
  13. 13. •  The  HuTrust  Profile  shows  that  the  factor  that  pulls  the  level  of  trust  down  the  most  with  the  25-­‐34  year  olds  is  lack  of  trust  in   an  appealing  vision.   •  However,  RelaBonship,  Benefit  and  Competence  are  also  well  off  reaching  the  trust  threshold.   A  focused  investment  into   understanding  what  vision  CBA   needs  to  be  trusted  for  is  likely  to   help  significantly  improve  brand   trust.     Understanding  the  role  the  trust  facets  play  in  building  trust  focuses  strategy.   CBA part  of  the  Asia  Pacific  mext/duxton  group  
  14. 14. For  Bendigo  Bank  the  picture  looks  very  different.   It  is  interesBng  that  the   youngest  age  bracket  has   the  highest  level  of  trust   in  Bendigo  Bank  –  likely  an   effect  of  the  community   based  banking  model.   •  While  outclassing  the  major  banks  in  trust  overall,  for  Bendigo  Bank  the  trust  weakness  lies  in  the  younger  age  group.     •  For  Bendigo  this  is  a  key  inhibitor  considering  it  this  age  group  that  gets  into  financial  commitments  and  lock  themselves  in  for   long  term.   BEN part  of  the  Asia  Pacific  mext/duxton  group  
  15. 15. Within  the  24-­‐35  age  bracket  the  lack  of  trust  in  stability  is  a  core  issue.  This  is  compounded  with  a  lack   of  trust  in  the  ability  to  relate  to  them  and  the  Bank’s  competence.     Bendigo  Bank  would  be  well  advised  to  understand  these  inhibitors  in  depth  to  make  inroads  with  this   criBcal  age  group.   And  someBmes  the  results  can  be  very  surprising.   BEN part  of  the  Asia  Pacific  mext/duxton  group  
  16. 16. With  HuTrust  you  can  substanBally  increase  the  brand  pull.     Using  HuTrust®  it  is  possible  to  analyse  and  opBmise  trust  on  an   overall  and  granular  level.   Because  trust  is  a  proven  driver  of  company  performance,  the   detailed  understanding  provides  a  different  perspecBve  and   reveals  new  opportuniBes  for  brand  trust  (and  performance)   building.     HuTrust  is  complementary  to  accepted  NPS  and  ‘customer   saBsfacBon’  measures,  but  provides  a  scienBfically,  staBsBcally   and  pracBcally  proven  framework  to  build  trust  from  the  boJom   up.   part  of  the  Asia  Pacific  mext/duxton  group  
  17. 17. For  more  detailed  results  download  the  study  at  www.hutrust.com   For  further  informaBon    and  HuTrust  ®usage,  please  contact       mext   Stefan.grafe@mextconsulBng.com   www.mextconsulBng.com   Mext  is  a  specialist  customer  and  consumer  engagement  consultancy.    As   pioneers  in  the  HuTrust  methodology,  mext  has  applied  HuTrust  in  brand    and   customer  experience  development,  transformaBon,  corporate  affairs  and  sales   performance  improvement.    Many  blue  chip  clients  experienced  brand  growth   of  up  to  36%.       AOR   Brian.fine@australiaonlineresearch.com   www.australiaonlineresearch.com   Australia  Online  Research  is  one  of  Australia’s  leading  quanBtaBve  research   providers.  AOR  offers  clients  full  service  from  incepBon  to  conBnuous  analysis   and  advice.  Their  methodologies  are  cunng  edge  and  provide  the  ability  to   gather  and  interrogate  data  in  new  and  innovaBve  ways.     For  Sales,  BD  and  customer  relaBons  performance  please  contact   athorp@huthwaite.com.au.     To  contact  other  licensed  and  accredited  HuTrust  Partners  in  Asia,  North   America  and  Europe,  please  go  to  hJp://www.hutrust.com/contact-­‐us      

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