Retail Banking Reputation Research


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Retail Banking Reputation Research

  1. 1. Precise Brand InsightCategory AnalysisDrivers of satisfaction &dissatisfaction in retail bankingContact:James WitheyHead of Brand 7264
  2. 2. Contents Objective & approach 3 Findings 4 Key drivers of satisfaction & dissatisfaction 5 Sector benchmarking 6 Key insights 72
  3. 3. Objective & approachObjective ApproachTo use social media to provide insight into the key drivers In order to capture in-the-moment opinions we focusedof satisfaction and dissatisfaction in the retail banking on analysing Twitter conversations from the UK in whichcategory. any of the following retail banks were mentioned: HSBC, Barclays, Lloyds TSB, Natwest, Santander and Halifax. We excluded any neutral tweets in which people were sharing news without comment or mentioning a bank in passing and focused our analysis on conversations in which an opinion was expressed. We categorised the content by sentiment and theme in order to establish the key drivers of satisfaction and dissatisfaction. In addition, we looked at sentiment towards the retail banking sector as a whole and compared this with sentiment towards the UK supermarket sector.3
  4. 4. Findings Time was at the heart of conversations about retail  The two themes of satisfaction were around apps banks. The focus of complaints was the time wasted by and customer service. The launch of new apps led to frustrations and inconvenience caused by being held on some expressions of genuine delight. Barclays’ Pingit in the phone, having a card blocked or being unable to log part drove these conversations, but banking apps from into an online account. In contrast, it was time-saving HSBC, Lloyds, NatWest and Santander also generated apps or surprise at receiving speedy and efficient favourable mentions. Positive mentions of customer customer service that drove satisfaction. service experiences tended to arise from surprise that the issue had been handled efficiently. Within both favourable and unfavourable discussions, the conversation was almost entirely  Complaints about customer service and issues with emotionally driven by an experience that had just logging into online accounts were the two dominant taken place. Rational discussions about which banks drivers of dissatisfaction. Customer service complaints offered the best interest rates on accounts or mortgages nearly all focused on problems with call centres, whilst were almost non-existent. dissatisfaction with branches centred around inconvenient opening hours; restricted Saturday hours and waiting for late-opening banks to open their doors at 9 during the week. Preventing fraud rarely resulted in tweets of gratitude, but the inconvenience of using card key devices caused frustration, as did cards being blocked abroad.4
  5. 5. Key drivers of satisfaction & dissatisfaction Share of opinion-based sentiment Drivers of satisfaction by share of opinion-based conversation* 25% New apps Customer services 75% 0% 2% 4% 6% 8% 10% 12% 14% Drivers of dissatisfaction by share of opinion-based conversation* Customer service complaints Online banking problems Security frustrations (inc. blocked cards) Disputes over charges and transfers Branch opening hours ATM problems 0% 2% 4% 6% 8% 10% 12% 14%* A further 7% of opinion-based tweets conveyed satisfaction with a bank and 23% expressed dissatisfaction. In both cases, this content wasmade up of a number of smaller themes of conversation.5
  6. 6. Sector benchmarking People generally took to Twitter to complain, other than  By way of a benchmark, conversations about brands when they were pleasantly surprised by service, or when within the supermarket sector (Tesco, Asda, Sainsbury’s, something new was launched. This is partially a function Morrisons, Waitrose) were much more positive. This of how Twitter is used, but the financial services sector demonstrates that Twitter (which accounts for 92% of does attract a greater level of dissatisfied comment than content about supermarkets) is not always a platform for some other sectors. It may be that the context of the complaints. Supermarkets saw positive mentions around crisis has encouraged consumers to complain, but it also everyday aspects of their offering e.g. interest rate appears that there is less propensity to comment about comparisons rarely took place on Twitter, whilst favourable positive experiences, and innovations are quickly comparisons of prices in supermarkets were common. assimilated into everyday expectations. Sector sentiment by share of conversations 100% 90% Percentage of conversations 80% Neutral mentions of retail 70% banking focused on the 60% sharing of news, whilst 50% supermarket conversations 40% centred around passing 30% mentions of being in a shop. 20% 10% 0% Retail banking Supermarkets Favourable Unfavourable Neutral6
  7. 7. Key insights Whether customers think banks are wasting their time or saving their time, time is clearly an important criterion for the evaluation of experiences with retail banking – and customers are often willing to take more time in order to comment on it. Resentment over lost time appears in general to have different drivers across online and offline banking, however. Online frustrations are generally the accumulation of a number of minor inconveniences that essentially centre around the individual experiencing hassle (even though this might be described in terms of the impact on time); whilst ‘real-world’ experiences can be an isolated incident but fundamentally focus on the person’s time being wasted. There appears to be a subtle inflation in expectations of the use of technology in banking, such as the launch of new apps. Innovations that are seen as saving time generate goodwill, but this appears to be quite short- term and soon dissipates as they become accepted and everyday. Expectations of customer service are low and surprise at receiving good service can often prompt people to comment on this. Identifying the drivers of these positive experiences is likely to provide a focus for innovation and improvement, but is arguably unlikely to be enough to fundamentally shift perceptions of the sector.7
  8. 8. Contact:Contact:James WitheyHead of Brand 7264