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Drivers of Trust (by Brand) for Australian Banks.

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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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  • Analysis of the 6 drivers of Trust shows, for each bank, the Trust facet(s) that contributes most to overall trust. Or, what facets should each bank invest into to increase its customer trust – and thereby its KPIs and positive customer behaviour.
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  • 1. October 2012 2012 Australian Bank HuTrust® Report Big changes in the drivers of trust for financial services 2012 BankenHuTrust® Report –die TreiberfürVertrauen, Kundenzufriedenheitund Empfehlung(Net Promoter Score) verstehen, 2012 HuTrust® report en Banqueconfiance-Comprend les facteurs de confiance, la satisfaction et la recommandation pour les banques Understanding and delivering the changing drivers for trust, satisfaction and recommendation (NPS)
  • 2. Background mextis a specialist customer and consumer engagement consultancy that helps you create greater customer value by building trust in your organisation, brand, products and people. With strong international experience, rigorous processes and world best tools we work with many of the foremost organisations to significantly improve their performance. This study is part of the global series analysing trust in brands and organisations. It was conducted with 654 respondents in July 2012 focusing on the 4 major banks and Bendigo Bank. It is the follow up study to the 2010/11 joint study with AORwith 1200 respondents. The full study is available through mext. 2 3 5 42 www.hutrust.comwww.mextconsulting.commelissa.wraith@mextconsulting.com Stefan.grafe@mextconsulting.com+ 61 3 9428 5417 The methodology HuTrust® drivers 2012 HuTrust® Bank Profile – General Insights Summary & Conclusion 39
  • 3. 6.9 7.2 7.3 7.1 7.3 7.2 7.2 7.4 7.3 7.2 6.9 7 7 7.1 7.2 4 4.5 5 5.5 6 6.5 7 7.5 8 Bendigo Westpac NAB CBA ANZ Trust Satisfaction Recommendation Trust, Satisfaction and propensity to recommend increased slightly in the last 18 months. However. Trust in Bendigo Bank appears to have diminished. 3 2012 HuTrust® Bank Profile –General Insights distrust neutral Low trust
  • 4. 7.2 7.7 6.5 6.7 4 5 6 7 8 Sparkasse Genossenschaftsbank Commerzbank Deutsche Bank Average Trust Score German commercial banks fare only little lower. Community and locally focused banks score as high or higher than any Australian bank. 4 2012 HuTrust® Bank Profile –General Insights Psyma, Sept 2011 distrust neutral Low trust
  • 5. The HuTrust® Profiles What are the banks (not) trusted for? HuTrust® drivers
  • 6. The trust/sat/recommendations scores can be analysed using HuTrust®. HuTrust® examines the 6 components of trust –psychologically correct, statistically and practically proven. 6 HuTrust® Profile
  • 7. 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 Bendigo Westpac NAB CBA ANZ 2010/11 HuTrust® Profiles Stability Development Relationship Benefit Vision Competence In 2010/11 the bank profiles looked almost identical, showing a weakness in the relationship, vision and competence trust facets. 7 2012 HuTrust® Bank Profile –General Insights Trust threshold Distrust threshold Primary customers 2010/11 n=1,230, 2012 n= 657 distrust neutral Low trust
  • 8. 8 2012 HuTrust® Bank Profile –General Insights Trust threshold Distrust threshold 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 Bendigo Westpac NAB CBA ANZ 2012 HuTrust® Profiles Stability Development Relationship Benefit Vision Competence distrust neutral Low trust The slight increase in trust is mostly due to customer’s trusting more for a benefit. However, these gains are partly offset by a slightly lower trust in their stability and competence.
  • 9. Overall trust in the banks’ stability and competence appears to have decreased slightly. 9 2012 HuTrust® Bank Profile –General Insights Most score slightly lower in Stability and Competence trust and higher in Benefit trust. 8.0 7.4 6.8 7.0 6.1 7.0 7.8 7.5 6.7 7.3 6.5 6.7 4 5 6 7 8 Stability Development Relationship Benefit Vision Competence Average Score CBA HuTrust®Profile 2010 2012 Example CBA
  • 10. 4.0 5.0 6.0 7.0 8.0 9.0 Bendigo Westpac NAB CBA ANZ 2012 HuTrustProfiles Stability Development Relationship Benefit Vision Competence distrust neutral Low trust On average, the major banks are only trusted for 3 of the 6 HuTrust® Facets, leaving ample space for improvement. 10 2012 HuTrust® Bank Profile –General Insights No major bank reaches the trust threshold of 7 when it comes to 3 of the 6 HuTrust® Facets. Their trust is mostly carried by trust in Stability and Development.
  • 11. 4 4.5 5 5.5 6 6.5 7 7.5 8 Trust in Banks Trust inAdvisor/Banker Trust Comparison Bank vsBanker/Advisor 6.5 Personal Bankers and advisors are, on average, not trusted. The banks as organizations just reach the trust threshold. 11 7.2 2012 HuTrust® Bank Profile –General Insights
  • 12. The drivers of trust: What do customers want to trust for most? What would make them more satisfied? What would make them recommend? HuTrust® drivers
  • 13. The Facets of the HuTrust® model are equally important. Each facet contributes 16.67%. Depending on brand and context the drivers of trust can differ. The driver analysis tells us which of the HuTrust® Facets are more important than others in the brand and social/economic context. The HuTrust® Facets are proven to account for 70% of satisfaction and propensity to recommend (NPS). We can therefore use HuTrust® to examine these KPIs. 13 HuTrust® drivers
  • 14. 14 HuTrust® drivers
  • 15. Trust in ANZ bank is driven mostly by trust in Competence 9% 11% 13% 15% 17% 19% 21% 23% 25% Stability Development Relationship Benefit Vision Competence ANZ HuTrust® Drivers 2012 17% 10% 18% 26% 15% 16% 1 5 HuTrust® drivers
  • 16. 17% 10% 18% 26% 15% 16% Compared to 2010/11 this is a significant shift. 9% 11% 13% 15% 17% 19% 21% 23% 25% Stability Development Relationship Benefit Vision Competence 2010 2012 ANZ HuTrust® Drivers 2010/11 vs2012 1 6 HuTrust® drivers
  • 17. Trust, Satisfaction and Advocacy drivers –The same with a slightly different emphasis For ANZ the drivers of trust, satisfaction and advocacy (NPS) differ only slightly. ANZ HuTrust® Drivers ANZ Satisfaction Drivers ANZRecommendation Drivers Competence (25.5%) Relationship (27%) Relationship (31.7%) Development (17.7%) Competence (20.2%) Vision (15.9%) Relationship (16.5%) Vision (16.7%) Development (15.3%) 1 7 HuTrust® drivers
  • 18. The drivers of advocacy (NPS) and satisfaction for ANZ are very different depending on age group. An appealing vision is very important to younger customers to recommend and to be satisfied. 1 8 HuTrust® drivers 7% 11% 15% 19% 23% 27% 31% 35% 39% <35 yo >35 yo 7% 11% 15% 19% 23% 27% 31% 35% 39% <35 yo >35 yo HuTrust® Facets driving ‘recommendation’ HuTrust® Facets driving ‘satisfaction’
  • 19. 19 HuTrust® drivers
  • 20. 9% 11% 13% 15% 17% 19% 21% 23% Stability Development Relationship Benefit Vision Competence Commonwealth Bank HuTrust® Drivers 2012 19% 13% 20% 20% 16% 12% Competence, Development and Relationship trust are most important for CBA. 2 0 HuTrust® drivers
  • 21. 19% 13% 20% 20% 16% 12% 9% 11% 13% 15% 17% 19% 21% 23% Stability Development Relationship Benefit Vision Competence 2010 2012 CBA HuTrust® Drivers 2010/11 vs2012 Development trust has increased in importance significantly while Vision trust has diminished in importance. 2 1 HuTrust® drivers
  • 22. CBA HuTrust® Drivers CBA Satisfaction Drivers CBA Recommendation Drivers Competence (20.1%) Relationship (21.9%) Relationship (24.7%) Development (19.7%) Development (20.1%) Competence (18.5%) Relationship (18.5%) Competence (18.3%) Stability (16.6%) Competence, Development and Relationship trust are also the top drivers for satisfaction and advocacy (NPS). 2 2 HuTrust® drivers
  • 23. The drivers of trust for CBA are different depending on age group. This is also true for the drivers of satisfaction & recommendation. 2 3 HuTrust® drivers 9% 13% 17% 21% 25% 29% 33% Stability Development Relationship Benefit Vision Competence <35 yo >35 yo HuTrust® Facets driving trust
  • 24. 24 HuTrust® drivers
  • 25. Trust in Stability and Benefit drive NAB trust most. 9% 11% 13% 15% 17% 19% 21% 23% Stability Development Relationship Benefit Vision Competence NAB HuTrust® Drivers 2012 16% 12% 15% 14% 22% 21% 2 5 HuTrust® drivers
  • 26. 16% 12% 15% 14% 22% 21% Vision and Competence trust have diminished in importance. Benefit and Stability trust has increased significantly. 9% 11% 13% 15% 17% 19% 21% 23% Stability Development Relationship Benefit Vision Competence 2010 2012 NAB HuTrust® Drivers 2010/11 vs2012 2 6 HuTrust® drivers
  • 27. Trust, satisfaction and advocacy (NPS) are driven by the same HuTrust®Facets. NAB HuTrust® Drivers NAB Satisfaction Drivers NAB Recommendation Drivers Benefit (22.1%) Stability (21.6%) Stability (21.8%) Stability (21%) Benefit (18.1%) Relationship (18.5%) Relationship (16%) Relationship (16.5%) Competence (16.3%) 2 7 HuTrust® drivers
  • 28. In the under 35 group, Stability and Benefit trust are most important for driving trust. But Competence trust is important in addition to drive recommendation (NPS) and satisfaction. For the 35+ group, Relationship and Development trust are most important to drive recommendation (NPS) and satisfaction with NAB. 2 8 HuTrust® drivers 7% 11% 15% 19% 23% 27% 31% Stability Development Relationship Benefit Vision Competence <35 yo >35 yo HuTrust® Facets driving satisfaction
  • 29. 29 HuTrust® drivers
  • 30. For Westpac trust in Competence is key to building trust. 9% 13% 17% 21% 25% 29% 33% Stability Development Relationship Benefit Vision Competence Westpac HuTrust® Drivers 2012 13% 12% 13% 31% 18% 13% 3 0 HuTrust® drivers
  • 31. 13% 12% 13% 31% 18% 13% For Westpac the importance of Competence trust has increased substantially in the last 18 months. 9% 13% 17% 21% 25% 29% 33% Stability Development Relationship Benefit Vision Competence 2010 2012 3 1 Westpac HuTrust® Drivers 2010/11 vs2012 HuTrust® drivers
  • 32. Competence, Benefit and Vision trust are most important for Westpac. Relationship trust is also important if the NPS is to be focused. Westpac HuTrust® Drivers Westpac Satisfaction Drivers Westpac Recommendation Drivers Competence (31%) Benefit (21.1%) Relationship (25.3%) Benefit (17.9%) Vision (18.7%) Vision (21.1%) Development (13.3%) Competence (18%) Benefit (18.3%) 3 2 HuTrust® drivers
  • 33. Competence trust is almost equally important for both age groups to drive trust. But to drive recommendation (NPS), the under 35 age group needs to be able to trust in Stability and Relationship, while the 35+ group needs to be able to trust in Relationship, Benefit and an appealing Vision. 3 3 HuTrust® drivers 5% 9% 13% 17% 21% 25% 29% 33% Stability Development Relationship Benefit Vision Competence <35 yo >35 yo HuTrust® Facets driving ‘recommendation’
  • 34. 34 HuTrust® drivers
  • 35. Bendigo’skey HuTrust®Facet is Competence trust. 7% 11% 15% 19% 23% 27% 31% Stability Development Relationship Benefit Vision Competence Bendigo Bank HuTrust® Drivers 2012 16% 9% 13% 29% 17% 17% 3 5 HuTrust® drivers
  • 36. 16% 9% 13% 29% 17% 17% Competence trust increased significantly in importance, Vision trust decreased the most. 7% 11% 15% 19% 23% 27% 31% Stability Development Relationship Benefit Vision Competence 2010 2012 Bendigo Bank HuTrust® Drivers 2010/11 vs2012 3 6 HuTrust® drivers
  • 37. BendigoBank HuTrust® Drivers BendigoBank Satisfaction Drivers BendigoBank Recommendation Drivers Competence (28.8%) Competence (29.8%) Competence (24.9%) Benefit (17.2%) Relationship (17.1%) Relationship (21.8%) Stability (16.7%) Benefit (15.8%) Stability (15.4%) Competence trust is the HuTrust® Facet that drives all of BendigoBank’s KPIS the most. 37 HuTrust® drivers
  • 38. Competence trust is overall the strongest driver for all KPIs. But when it comes to recommendation (NPS), younger customers need to be able to also trust in Bendigo’sDevelopment, while the 35+ need to be able to trust in the Relationship. 38 HuTrust® drivers 5% 9% 13% 17% 21% 25% 29% 33% Stability Development Relationship Benefit Vision Competence <35 yo >35 yo HuTrust® Facets driving ‘recommendation’
  • 39. In the last 18 months bank trust and their HuTrust® Profiles have improved slightly. The increases are mostly due to a slightly increased trust in Benefit. The bank’s trust levels and what they are (not) trusted for are still almost identical. However, while their HuTrust® Profiles look the same, the drivers of trust, satisfaction and advocacy (NPS) are very different for each bank. These drivers have changed significantly for each bank in the last 18 months. 39 Summary & Conclusion
  • 40. As trust is equal to the average of the HuTrust® Facets, it will be important to build the underperforming HuTrust® Facets. To effectively improve their KPIs, financial services institutions need to focus on their (typically 2-3) key drivers. In most cases the key drivers are also the underperforming HuTrust® Facets. Understanding what these mean to customers and focusing them will more effectively drive the bank’s KPIs. 40 Summary & Conclusion
  • 41. Download this version free at www.mextconsulting.comor www.hutrust.com Buy the full report at www.mextconsulting.comor contact melissa.wraith@mextconsulting.com+61 3 9428 5417 to discuss how the HuTrust® results can help you.
  • 42. The methodology
  • 43. Trust is the most powerful driver of customer engagement. 43 The methodology Trust drives at least 70%of your reputation, satisfaction and advocacy (NPS) Trust, satisfaction and advocacy (NPS) are correlated by a factor of 0.96 Trust is the root cause of satisfaction and advocacy (NPS)
  • 44. 44 The more your customer can trust you, the more business they do with you. A 20% improvement in trust can mean 400% improved customer predisposition. ‘Ka-ching!’ The methodology Bank avg
  • 45. HuTrust® dimensionalisestrust into its 6 drivers. Psychologically correct Statistically proven Practically proven to help increase trust and actual performance typically by over 30% www.hutrust.com 4 5 HuTrust® is trademark of ifmin depth research and strategies and Stefan Grafe. The HuTrust® Model, its facets, descriptors and statements are copyright ifmin depth 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 Istockphotosand used under license by ifm& mext. The methodology Whenever customers interact with you or think of you, they assess you against the 6 drivers of trust.
  • 46. What can I do? •Download a more detailed presentation at www.hutrust.com/2012bankor www.mextconsulting.com •Purchase the full study by contacting melissa.wraith@mextconsulting.com, +61 3 9428 5417 Who do I contact? www.mextconsulting.com mextis a specialist customer and consumer engagement consultancy. As pioneers in the HuTrust® methodology, mexthas applied HuTrust® in brand and customer experience development, transformation, corporate affairs and sales & service performance improvement. Many blue chip clients experienced significant performance improvements of up to 50%. 46 Stefan.grafe@mextconsulting.com Stefan has extensive experience working with financial services organisationslike HSBC, Allianz, AXA, Postbank and ANZ globally. Melissa.wraith@mextconsulting.com Melissa worked in some of Australia’s foremost consulting and design firms, advising clients including BendigoBank and many other services organisations.
  • 47. Mextis an international, multi-disciplinary consultancy group. grow with vision, precision and certainty® Christina Eisenschmid Email: christina.eisenschmid@ psyma.com Address: Nymphenburger Str. 1480335 Munich Phone+49 (0)89 20209610 HuTrust® is trademark of ifmin depth research and strategies and Stefan Grafe. The HuTrust® Model, its facets, descriptors and statements are copyright ifmin depth 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 Istockphotosand used under license by ifm& mext TredInternational Adam Thorp, Director Mobile: 0417 584 599 Phone: 02 9300 6439 www.tredinternational.com Email: info@tredinternational.com

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