Vietnam Retail Banking
Why Delighting Customers Matters
Copyright © 2010 Cimigo Download this presentation for free: www.cimigo.vn
Readers Notice
‘Why Delighting Customers Matter...
Copyright © 2010 Cimigo Download this presentation for free: www.cimigo.vn 3
Copyright Notice - Use and Limitations of Use...
Cimigo advise 4 of the top 5 advertisers in
Vietnam on their brand and communication
strategies.
Copyright © 2010 Cimigo Download this presentation for free: www.cimigo.vn
Research Channels
Telephone interviewing In-dep...
Copyright © 2010 Cimigo Download this presentation for free: www.cimigo.vn
Richard Burrage
Richard Burrage has seventeen
y...
Cimigo has surveyed
over 5,000 consumers on over 100
questions relating to personal banking and
financial behaviour, attit...
Delighting Customers
Contents
Does Delighting Customers Matter?
What Delights Them Right Now?
Banking Behaviour And User Demographics
Extending...
Does Delighting Customers Matter?
To answer this, let’s compare what bank
customers think about their bank
relationship vs. what they actually do.
How Cimigo Measures Commitment
Customer Satisfaction
Likelihood to Recommend
Comparison to Other Banks
Likely Future Use
B...
Comparing Attitudinal Loyalty Vs. Behavioural Loyalty
0%
20%
40%
60%
80%
100%
5 6 7 8 9 10
Satisfaction Rating
%Likelytoco...
Even Steeper Drop For Likelihood To Recommend!
0%
20%
40%
60%
80%
100%
5 6 7 8 9 10
Satisfaction Rating
%Likelytorecommend...
Customers can rate their satisfaction level at
8 and still not be completely likely to
continue using their bank or recomm...
What Delights Them Right Now?
Let’s see what banking experiences stick in
their minds…
Positive And Negative Experiences
Had any exceptionally positive
experiences recently?
26%
Had any exceptionally negative
...
Top 5 Examples Of Positive Experiences
Call from bank sales3%
Convenient banking10%
Quick banking service22%
ATM network/s...
Top 5 Examples Of Positive Experiences
High interest rates9%
Convenient banking10%
Quick banking service22%
ATM network/se...
Top 5 Examples Of Positive Experiences
High interest rates9%
Convenient banking10%
Quick banking service22%
ATM network/se...
Top 5 Examples Of Positive Experiences
High interest rates9%
Convenient banking10%
Quick banking service22%
ATM network/se...
Top 5 Examples Of Positive Experiences
High interest rates9%
Convenient banking10%
Quick banking service22%
ATM network/se...
Top 5 Examples Of Positive Experiences
High interest rates9%
Convenient banking10%
Quick banking service22%
ATM network/se...
Staff interaction by far the most
mentioned reason for positive
experiences.
ATMs also mentioned, but to a lesser
extent.
Top 5 Examples Of Negative Experiences
Call from bank sales3%
Number 5
Top 5 Examples Of Negative Experiences
Poor ATM locations5%
Staff not nice and warm8%
Banking took too long11%
ATM ran out...
Top 5 Examples Of Negative Experiences
Poor ATM locations5%
Staff not nice and warm8%
Banking took too long11%
ATM ran out...
Top 5 Examples Of Negative Experiences
Poor ATM locations5%
Staff not nice and warm8%
Banking took too long11%
ATM ran out...
Top 5 Examples Of Negative Experiences
Poor ATM locations5%
Staff not nice and warm8%
Banking took too long11%
ATM ran out...
Top 5 Examples Of Negative Experiences
Poor ATM locations5%
Staff not nice and warm8%
Banking took too long11%
ATM ran out...
Out of the top 5 negative experiences,
3 of them relate to ATM problems.
Bank staff and service delivery
mentioned far les...
There seems to be a direct relationship
between satisfaction and staff
interaction…
and an inverse relation between
satisf...
In Fact, The More Customers Visit A Branch…
34%
40%
48%
53%
0%
20%
40%
60%
80%
100%
Never Rarely Once a month More often
F...
While The Same Cannot Be Said For ATM Usage
49% 47%
40% 39%
0%
20%
40%
60%
80%
100%
Never Rarely Once a month More often
F...
Modern banking technology and
convenience is great, but human interaction
still matters.
Especially when technology hasn’t...
Banking Behaviour
And User Demographics
ATMs Most Frequently Used Touch Point
70% 34%
6% 5%
Touch points visited/contacted once a month or more – HCMC & Hanoi
ATMs Popular Among Younger Segments
84% 80% 58% 50%
25% 32% 41% 42%
18-24 25-34 35-44 45-54
ATM & Branch Visited Once a Mo...
1. Staff interaction is a leverage for delighting older customers
and fostering long-term relationships.
2. As younger use...
By trying to understand what creates a
valuable experience for customers, we’ve
identified two key segments based on age,
...
Extending the Relationship
Touch-points are not only essential for
managing customer relationships, they are
also opportunities to transmit informati...
If your bank wanted to let you know about a
new savings product that might interest you,
how likely would each of the foll...
Most “convincing” ways to encourage sign-up
Phone call from bank employee12%
Info sheet describing the new product12%
Gift...
Most “convincing” ways to encourage sign-up
Phone call from bank employee12%
Info sheet describing the new product12%
Gift...
Most “convincing” ways to encourage sign-up
Phone call from bank employee12%
Info sheet describing the new product12%
Gift...
Most “convincing” ways to encourage sign-up
Phone call from bank employee12%
Info sheet describing the new product12%
Gift...
Most “convincing” ways to encourage sign-up
Phone call from bank employee12%
Info sheet describing the new product12%
Gift...
Direct personal interaction is a key method
of up- and cross-selling, almost as potent as
rates.
More remote methods of co...
Delighting Customers
Richard Burrage
Cimigo
9 Nguyen Huu Canh Street, Binh Thanh District, HCMC, Vietnam
T: (84) 8 3822 7727 Ext 345
E: richard...
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Vietnam Retail Banking - Why Delighting Customers Matters?

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A Cimigo 2010 report on insights of Vietnam banking behaviours and user demographics

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Vietnam Retail Banking - Why Delighting Customers Matters?

  1. 1. Vietnam Retail Banking Why Delighting Customers Matters
  2. 2. Copyright © 2010 Cimigo Download this presentation for free: www.cimigo.vn Readers Notice ‘Why Delighting Customers Matters’ is best presented by an experienced marketer. You are welcome to use all or parts of this presentation in your internal business presentations provided Cimigo is shown as the source. Please respect the Cimigo Use and Limitations of Use of Content as detailed at www.cimigo.vn. Should you wish to share this presentation outside of your organisation please do not forward it; simply direct the intended recipient to www.cimigo.vn to register and download this presentation free of charge
  3. 3. Copyright © 2010 Cimigo Download this presentation for free: www.cimigo.vn 3 Copyright Notice - Use and Limitations of Use of Content Permission to use content When you download any of our content in digital form or print on paper format, what you are accessing is the right to use it (or extracts from the same) for your own reference in connection with your business in the following ways only: – to download a copy of that digital content in an available electronic format, – to store that content in electronic format on the drive of one hardware device, – to print out a copy of that digital content, – to share that report internally within the legal entity that purchased it, provided that you keep intact all and any copyright and proprietary notices Restrictions for use of content Any rights not expressly granted in these Terms are reserved. This means that you may not use the content in any way not permitted above, in particular: – You may not offer the content for resale. – You may not scan, photocopy, fax, or in any other way reproduce or copy the content. – You may not share the content with anybody else unless they are an employee of the legal entity that purchased or downloaded the report. – You may not distribute the content whether by electronic mail, over any network or otherwise. – You may not upload the content to any database or server. – You may not display the content on any website or intranet. When you download any of our content in digital form or print on paper format you are permitted to use it in accordance with the copyright notice included with such content and in accordance with copyright laws.
  4. 4. Cimigo advise 4 of the top 5 advertisers in Vietnam on their brand and communication strategies.
  5. 5. Copyright © 2010 Cimigo Download this presentation for free: www.cimigo.vn Research Channels Telephone interviewing In-depth interviewingStreet intercepts Focus groups Videographies Mystery shopping Online survey Online usability labs
  6. 6. Copyright © 2010 Cimigo Download this presentation for free: www.cimigo.vn Richard Burrage Richard Burrage has seventeen years of experience in market research and strategic consulting. Richard has worked across Asia Pacific consulting across a range of industries and business issues. Richard has spent the last ten years in Vietnam assisting in the development and building of numerous brands to achieve leadership positions. Richard is a UK national and resides in HCMC with his Vietnamese wife and their children. Richard is the Managing Director of Cimigo: www.cimigo.com
  7. 7. Cimigo has surveyed over 5,000 consumers on over 100 questions relating to personal banking and financial behaviour, attitudes and perceptions. Cimigo Consumer Financial Services Monitor
  8. 8. Delighting Customers
  9. 9. Contents Does Delighting Customers Matter? What Delights Them Right Now? Banking Behaviour And User Demographics Extending the Relationship
  10. 10. Does Delighting Customers Matter?
  11. 11. To answer this, let’s compare what bank customers think about their bank relationship vs. what they actually do.
  12. 12. How Cimigo Measures Commitment Customer Satisfaction Likelihood to Recommend Comparison to Other Banks Likely Future Use Behavioral Loyalty Loyalty measured by what customers do Attitudinal Loyalty Loyalty measured by how customers feel about doing business with your bank
  13. 13. Comparing Attitudinal Loyalty Vs. Behavioural Loyalty 0% 20% 40% 60% 80% 100% 5 6 7 8 9 10 Satisfaction Rating %Likelytocontinueuse Scores below 7 suggest higher likelihood of defection A rating of 8 results in a 20-point decrease in likelihood to stay with bank Satisfaction Ratings of 9 and 10 most likely to indicate strong behavioural loyalty to bank
  14. 14. Even Steeper Drop For Likelihood To Recommend! 0% 20% 40% 60% 80% 100% 5 6 7 8 9 10 Satisfaction Rating %Likelytorecommendbanktoothers A drop in satisfaction rating from 9 to 8 can mean a drop of 40 points in likelihood to recommend! From 70% to 30%
  15. 15. Customers can rate their satisfaction level at 8 and still not be completely likely to continue using their bank or recommend it to others. Delighting customers (moving them from 7-8 to 9-10) has a direct impact on long-term growth. Does delighting customers matter?
  16. 16. What Delights Them Right Now?
  17. 17. Let’s see what banking experiences stick in their minds…
  18. 18. Positive And Negative Experiences Had any exceptionally positive experiences recently? 26% Had any exceptionally negative experiences recently? 4%
  19. 19. Top 5 Examples Of Positive Experiences Call from bank sales3% Convenient banking10% Quick banking service22% ATM network/services24% Staff interaction54% Number 5
  20. 20. Top 5 Examples Of Positive Experiences High interest rates9% Convenient banking10% Quick banking service22% ATM network/services24% Staff interaction54% Number 5
  21. 21. Top 5 Examples Of Positive Experiences High interest rates9% Convenient banking10% Quick banking service22% ATM network/services24% Staff interaction54% Number 4
  22. 22. Top 5 Examples Of Positive Experiences High interest rates9% Convenient banking10% Quick banking service22% ATM network/services24% Staff interaction54% Number 3
  23. 23. Top 5 Examples Of Positive Experiences High interest rates9% Convenient banking10% Quick banking service22% ATM network/services24% Staff interaction54% Number 2
  24. 24. Top 5 Examples Of Positive Experiences High interest rates9% Convenient banking10% Quick banking service22% ATM network/services24% Staff interaction54% Number 1
  25. 25. Staff interaction by far the most mentioned reason for positive experiences. ATMs also mentioned, but to a lesser extent.
  26. 26. Top 5 Examples Of Negative Experiences Call from bank sales3% Number 5
  27. 27. Top 5 Examples Of Negative Experiences Poor ATM locations5% Staff not nice and warm8% Banking took too long11% ATM ran out of money35% ATM broke down44% Number 5
  28. 28. Top 5 Examples Of Negative Experiences Poor ATM locations5% Staff not nice and warm8% Banking took too long11% ATM ran out of money35% ATM broke down44% Number 4
  29. 29. Top 5 Examples Of Negative Experiences Poor ATM locations5% Staff not nice and warm8% Banking took too long11% ATM ran out of money35% ATM broke down44% Number 3
  30. 30. Top 5 Examples Of Negative Experiences Poor ATM locations5% Staff not nice and warm8% Banking took too long11% ATM ran out of money35% ATM broke down44% Number 2
  31. 31. Top 5 Examples Of Negative Experiences Poor ATM locations5% Staff not nice and warm8% Banking took too long11% ATM ran out of money35% ATM broke down44% Number 1
  32. 32. Out of the top 5 negative experiences, 3 of them relate to ATM problems. Bank staff and service delivery mentioned far less.
  33. 33. There seems to be a direct relationship between satisfaction and staff interaction… and an inverse relation between satisfaction and ATM usage…
  34. 34. In Fact, The More Customers Visit A Branch… 34% 40% 48% 53% 0% 20% 40% 60% 80% 100% Never Rarely Once a month More often Frequency of visiting branches %Delightedcustomers …the more likely they are to have high overall satisfaction.
  35. 35. While The Same Cannot Be Said For ATM Usage 49% 47% 40% 39% 0% 20% 40% 60% 80% 100% Never Rarely Once a month More often Frequency of using ATMs %Delightedcustomers ATMs don’t “cause” dissatisfaction, but don’t help boost loyalty either
  36. 36. Modern banking technology and convenience is great, but human interaction still matters. Especially when technology hasn’t been perfected yet. But is interaction of equal importance to everyone?
  37. 37. Banking Behaviour And User Demographics
  38. 38. ATMs Most Frequently Used Touch Point 70% 34% 6% 5% Touch points visited/contacted once a month or more – HCMC & Hanoi
  39. 39. ATMs Popular Among Younger Segments 84% 80% 58% 50% 25% 32% 41% 42% 18-24 25-34 35-44 45-54 ATM & Branch Visited Once a Month or More – HCMC & Hanoi
  40. 40. 1. Staff interaction is a leverage for delighting older customers and fostering long-term relationships. 2. As younger users grow in age, net worth, and financial sophistication, they too will begin to place higher value on staff quality. 3. However, for now, ATMs remain the primary touch point among younger users. Conclusions
  41. 41. By trying to understand what creates a valuable experience for customers, we’ve identified two key segments based on age, bahaviour and interaction with different bank touch points. How well do you understand… Your customers? Your service levels? Across touch points?
  42. 42. Extending the Relationship
  43. 43. Touch-points are not only essential for managing customer relationships, they are also opportunities to transmit information and announce new products and promotions.
  44. 44. If your bank wanted to let you know about a new savings product that might interest you, how likely would each of the following methods be to convince you to sign up?
  45. 45. Most “convincing” ways to encourage sign-up Phone call from bank employee12% Info sheet describing the new product12% Gift given upon sign-up16% Face-to-face talk with bank representative20% Preferential interest rate25% Number 5
  46. 46. Most “convincing” ways to encourage sign-up Phone call from bank employee12% Info sheet describing the new product12% Gift given upon sign-up16% Face-to-face talk with bank representative20% Preferential interest rate25% Number 4
  47. 47. Most “convincing” ways to encourage sign-up Phone call from bank employee12% Info sheet describing the new product12% Gift given upon sign-up16% Face-to-face talk with bank representative20% Preferential interest rate25% Number 3
  48. 48. Most “convincing” ways to encourage sign-up Phone call from bank employee12% Info sheet describing the new product12% Gift given upon sign-up16% Face-to-face talk with bank representative20% Preferential interest rate25% Number 2
  49. 49. Most “convincing” ways to encourage sign-up Phone call from bank employee12% Info sheet describing the new product12% Gift given upon sign-up16% Face-to-face talk with bank representative20% Preferential interest rate25% Number 1
  50. 50. Direct personal interaction is a key method of up- and cross-selling, almost as potent as rates. More remote methods of contacting customers are seen as less convincing. How can you leverage your staff for both maintaining and extending banking relationships?
  51. 51. Delighting Customers
  52. 52. Richard Burrage Cimigo 9 Nguyen Huu Canh Street, Binh Thanh District, HCMC, Vietnam T: (84) 8 3822 7727 Ext 345 E: richardburrage@cimigo.com, W: www.cimigo.vn

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