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Drivers of Trust (by Brand) for Australian Banks.

Drivers of Trust (by Brand) for Australian Banks.



Analysis of Trust for Australian Banks. ...

Analysis of Trust for Australian Banks.

Firstly, why would you care? Don’t we all know that the banks are not trusted? All 4 major banks are, on average, not trusted or just straddle the trust threshold.

Trust is the link between customer behaviour and company performance.

If banks could shift their average trust rating by just 5-10%, they would double positive predisposition. A shift of 20% would increase positive predisposition by 400%.

On the company performance side, trust, satisfaction and propensity to recommend (NPS) always measure the same and the causality is obvious. So, if you can precisely build trust, you drive business results.

Considering that all banks say they are heavily investing into relationship building, they appear to miss the point and don’t understand what relationship customers actually want to trust them for.

On trust in a vision or purpose, none gets even close to the trust threshold. Vision is a curious one. Constituting one sixth of trust, it is totally overlooked as a driver of trust and customer engagement.

Analysis of the 6 drivers of Trust shows, for each bank, the Trust facet(s) that contributes most to over all trust. Or, what facets each bank should invest into to increase trust – and thereby its KPIs and positive customer behaviour.



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    Drivers of Trust (by Brand) for Australian Banks. Drivers of Trust (by Brand) for Australian Banks. Presentation Transcript

    • Bank trust So, your trust profile is the same as all the other bank’s – now what? HuTrust®Profile Identifying key drivers for Trust in financial services.A joint study by mext and Australia Online Research using HuTrust, the scientifically robust model toanalyse and build brand trust.
    • The results of our research showed that all major banks have an almost identical HuTrust Profile with little differentiation and the strongest inhibitor of trust is the lack of a clearly expressed vision. This was also found to be true for German Banks. To understand which HuTrust Facet drives which Bank’s trust the most standard driver analysis does not work due to high correlation of the factors. An issue common in customer research. To help clients determine which of their HuTrust Facets drive their trust the strongest – even if the HuTrust Profile looks the same – we use a special regression methodology to show clients which drivers to invest into. What HuTrust Facets banks should invest in to increase trust and drive customer value. In this example for the Big 4 Australian Banks, all competitors appear to focus on relationship building and/or benefit communication. The driver analysis, however, shows that trust in a vision is a top 3 trust driver for all banks. The analysis goes some way to explain why much of the bank’s market investment shows little impact on their KPIs, the indicators for growth. Analysis on data from of survey of 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 indepth research and strategies and may not be used, reproduced or stored in any medium unless expressly permitted by ifm. 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. All images copyright Istock and used under license by ifm & mext
    • But why should you care about Trust?Trust is the link between customer behaviour andcompany performance.If banks were to shift their average trust rating by just 5-10%,they would double positive predisposition. A shift of 20%would increase positive predisposition by up to 400%.On the company performance side, trust, satisfaction andpropensity to recommend (NPS) always measure the same andthe causality is obvious - Trust.If you precisely build trust, you drive business results.
    • What is Trust?Trust is what makes us want to be withone another, interact and transact.When customers trust a business: 82% will use its products frequently 78% will look to it first 78% will trial its new products/services 83% will recommend it to others 74% believe it will inform them of products or services they will like. 47% state they will pay more for its products or services Mext & Concerto, 2008/2009 Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
    • The level of trust yourcustomer has in you andyour brand determinesyour success.The more customerstrust you, thestronger theircommitment to you.When trust isimproved fromneutral (5 or 6) topositive 7+ customerengagementincreasesexponentially.
    • To examine brand trust inAustralian Banks we useHuTrust®, the psychologicalaccurate model of trust.HuTrust® enables you to analyse brandand organisational trust through its 6distinct facets. TrustIn every interaction with your brand andin every thought about your brand, yourcustomer unconsciously assesses his/hertrust in you against these 6 facets.By understanding the 6 drivers of trust,HuTrust® empowers you to build yourbrand trust and thus your personal andorganisational performance.HuTrust® is proven to fully explain trustpsychologically and statistically.(In Financial Services HuTrust statistically explains up to 88% oftrust. In stats 65% is considered very high. Hence the difference to
    • Trust profiles of the Big 4compared.Same, same but different! 7.2 7.2 Overall Trust 7.3 7.0 7.1 7.2 Competence 7.2 7.0 6.5 6.4 Vision 6.4 6.1 westpac 7.3 7.3 ANZ Benefit 7.4 7.0 NAB 7.0 7.0 CBA Relationship 6.9 6.8 7.6 7.7 Development 7.5 7.4 8.1 7.8 Stability 8.1 8.0 0 2 4 6 8 10
    • Top 3 Drivers of TrustVision, the weakest HuTrust Facet for all of the banks isa key driver of trust for them. ANZ CBA NAB Westpac 1st Competence Vision Vision Competence (20.4%) (20.3%) (22.6%) (21.7%) 2nd Vision (19.9%) Competence (19.8%) Competence (17.9%) Relationship (18.6%) Development Relationship Relationship Vision 3rd (17.5%) (18.2%) (17.3%) (18.3%)
    • HuTrust Drivers vs Advertising FocusFor ANZ the key trust drivers are competence, vision and development trust. Looking at their HuTrustProfile, Vision and Competence should be focused. This is not evident in their market output. ANZ HuTrust Profile Overall Trust 7.2 Competence 7.2 Vision 6.4 Benefit 7.3 Relationship 7.0 Development 7.7 Stability 7.8 0 1 2 3 4 5 6 7 8 9 10 ANZ Trust Driver 24% 22% 20% 20% 20% 18% 18% 16% Campaign focus hypothesis 14% 15% 15% Key trust drivers 12% 13%
    • HuTrust Drivers vs Advertising FocusFor CBA the key trust drivers are competence, vision and, to a lesser degree relationship. Considering the focus onrelationship improvement it is questionable if CBA has understood what customers want in a relationship. Theirmarket output recently also shows no focus on vision, but their competence focus is at least right. CBA HuTrust Profile Overall Trust 7.0 Competence 7.0 Vision 6.1 Benefit 7.0 Relationship 6.8 Development 7.4 Stability 8.0 0 1 2 3 4 5 6 7 8 9 10 CBA Trust Driver 24% Campaign focus hypothesis 22% 20% 20% 20% Key trust drivers 18% 18% 17% 16% 14% 12% 13% 10% 12%
    • HuTrust Drivers vs Advertising Focus For nab the single most powerful trust driver is trust in an appealing vision. This does not show in the output. The ‘break up’ campaign was (and is) benefit and relationship focused. But without an appealing vision of ‘why’ to break up, there is nowhere to go. NAB HuTrust ProfileOverall Trust 7.3Competence 7.2 Vision 6.4 Benefit 7.4Relationship 6.9Development 7.5 Stability 8.1 0 1 2 3 4 5 6 7 8 9 10 NAB Trust Driver 24% 23% 22% 20% 18% 17% Campaign focus hypothesis 18% Key trust drivers 16% 16% 14% 12% 14% 12% 10%
    • HuTrust Drivers vs Advertising FocusWestpac’s trust is most strongly driven by trust in the right competence. Westpac appears to getthat focus right. However, vision trust is the second strongest driver and their weakest HuTrustFacet and ought to be defined and emphasised. Westpac HuTrust Profile ‘Know How’ Overall Trust 7.2 Competence 7.1 Vision 6.5 Benefit 7.3 Relationship 7.0 Development 7.6 Stability 8.1 0 1 2 3 4 5 6 7 8 9 10 Westpac Trust Driver 24% 22% 22% 20% 18% 19% 18% 16% 14% 15% Campaign focus hypothesis 14% 12% 13% Key trust drivers 10%
    • HuTrust Drivers vs Advertising FocusBendigo Bank, a smaller regional bank, sets the benchmark in trust in Australia. However, their communicationsfocus appears to be wrong. We also have to point out that Bendigo Bank is not trusted in the 25-34 year oldsegment. In this segment Bendigo Bank scores well below 7, the trust threshold. That lack of trust in thissegment strongly inhibits their ability to acquire valuable customers. Bendigo HuTrust Profile Overall Trust 8.1 Competence 7.8 Vision 7.6 Benefit 8.2 Relationship 8.3 Development 8.3 Stability 8.3 0 1 2 3 4 5 6 7 8 9 10 Bendigo Trust Driver 24.0% 23.4% 22.0% 19.2% 19.7% 20.0% 18.0% 16.0% 14.0% 14.4% Campaign focus hypothesis 12.0% 13.1% Key trust drivers 10.0% 10.2%
    • SummaryHuTrust® is proven to fully explain trust(statistically up to 88% in Financial Services. 65% usually is usually consideredvery high. With anything above, the difference is statistical noise)The major Bank’s HuTrust Profiles® are almostidentical.The HuTrust® Driver analysis shows clear differences inwhat drives trust in the banks.With this knowledge the banks gain a clear focus fortheir market investment.The methodology is applicable in any other categoryand has helped clients achieve up to 36% brandgrowth without additional investment.www.hutrust.com
    • For more information about us & HuTrust® mext Stefan.grafe@mextconsulting.comMext is an international, multi-disciplinary www.mextconsulting.comconsultancy group. and consumer engagement consultancy. As Mext is a specialist customer pioneers in the HuTrust methodology, mext has applied HuTrust in brand and customer experience development, transformation, 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 quantitative research providers. AOR offers clients full service from inception to continuous analysis and advice. Their methodologies are cutting edge and provide the ability to gather and interrogate data in new and innovative ways.Australia Netherlands For Sales, BD and customer relations performance please contact athorp@huthwaite.com.au.Stefan Grafe, Managing Partner Singapore To contact other licensed and accredited HuTrust Partners in Asia, North165 Cremorne Street America and Europe, please go to http://www.hutrust.com/contact-usRichmond VIC 3122 Germany+61 3 9428 5417stefan.grafe@mext.com.au Canada