Customer Power is a programme of research exploring the relationships that customers want to have with UK companies. We’ve previously looked at the financial services, mobile, pay tv & energy sectors and now we are putting retail banks under the spotlight. This presentation is the first in a series of 4. Here we look at whether consumers have the relationship they want with their bank, how it makes them feel, who the best banks are and why, and how banking compares with other sectors. We have lots more data from this self-funded research, so if you would like to hear more, please get in touch - our contact details are included at the end.

1. Exploring the relationships that customers
want to have with their retail bank
2014
© Harris Interactive

2. 2
1
Understanding retail
banking relationships today
2 Switching & Brand
3 Digital Banking
4
"A customer is the most
important visitor on our
premises, he is not dependent
on us. We are dependent on
him.
He is not an interruption in our
work. He is the purpose of it.
He is not an outsider in our
business. He is part of it.
We are not doing him a favour
by serving him. He is doing us a
favour by giving us an
opportunity to do so.“
Jumping out of the banking Mahatma Gandhi
box
2

3. Financial services has been living under a
grey cloud for a long time
• Financial Services is one of the least trusted industries, is it any surprise?
Pension mis-selling
Endowment
mortgages
Collapse of
Equitable life,
BCCI & Bearings
Irresponsible
lending
ATM Charges
Late payment
charges/Over-drafts
PPI Bailouts
LIBOR
Payday loans
Service failures
Indiscrete
indiscretions
3

4. It is one of the least trusted industries –
is it any surprise?
79%
77%
71%
70%
69%
69%
64%
64%
62%
59%
49%
44%
43%
32%
32%
Technology
Cons electronics
Brewing and spirits
Food and beverage
CPG
Entertainment
Automotive
Cons. Health
Telecommunications
Pharma
Chemicals
Financial services
Media
Banks
Energy
Source Edelman Trust Barometer UK Up 10%pts 4

5. So how do banks make customers feel?
Secure
In control
Relaxed
Confident
Supported
Valued Happy
Grateful
Optimistic Disappointed
Frustrated
Sceptical
Powerless Angry Neglected Uninterested
Worried
Depressed Apathetic Resentful
Net Positive: 72%
Net Negative: 24%
High – 40%
Low – 0%
5

6. And many consumers have the relationship
they want with with their bank
16%
48%
32%
AGREE
Completely Agree
Agree
I would like a closer
relationship with .....
15% At least Agree
6
The type of
relationship I
have with ....... is
what I want

7. But some do want something different ....
I want a return to old
fashioned banking
with a more
personalised
service
41%
15%
37%
26%
41%
AGREE
7
Completely Agree
Slightly Agree

8. 8
So how do individual banks rate?
The
relationship I
have is what I
want
70%+ 60%-69% 50% - 59% 40% - 49% 30%-39% Under 30%
..........................................................................................................................................................................................
I want a return
to old
fashioned
banking
Although these customers aren’t getting what they
want, there is also a clear link with age
48%
41%

9. The Harris Relationship Score
Emotional
 Satisfaction
 Likelihood to
recommend/NPS
 Values you as a customer
 Relationship based on trust
 Likelihood to
continue using
 Preferred
banking provider
 Gives something
different
Relationship
Score
9

10. It’s time for the bank bashing to stop!
54%
53%
51%
51%
47%
45%
38%
Banks
Credit cards
Pay TV
Mobile
Motor Insurance
Home Insurance
Energy
Relationship Score
73%
66%
55%
59%
61%
51%
41%
10
Best Performer
Relationship Score
...........................................................................

11. It’s time for the bank bashing to stop!
11
And only
11%
Don’t care who they
bank with
“I trust my bank completely, and it has
been built over a long time. They have
always dealt with all my banking needs to
a very high standard, and I feel very loyal
towards them.
They often inform me of new products
that are relevant to me, but do not
bombard me. The in-branch staff have
become more like friends, and we even
exchange cards”
(female, 34-45, fully connected)

12. 12 © Harris Interactive

13. And why is this?
DRIVERS OF A STRONG RELATIONSHIP
DERIVED IMPORTANCE
Service provided*
Understanding needs*
Range of products/services
Clarity of comms*
Listening to you
Staff professionalism
Ease of understanding products
* At least10% gap between first place and 2nd
=
13
1st 2nd 3rd

14. Why having fully connected customers is important
Emotionally & Rationally Connected
11%
Emotionally Connected
14%
Rationally Connected
11%
Indifferent
36%
Disconnected
9%
All Banks
14
FULLY
CONNECTED
19%
Emotional

15. And there are big differences in how customers feel
when they are fully connected with a bank......
fully connected
banking customers
15

16. disconnected
banking customers
16
Vs those who are at the opposite end of the
spectrum ......

17. And there is a tangible commercial benefit
17
• Hold more products
• Consider more products
• Cost less to serve
• Less complaints
• Less likely to switch
• Higher advocacy/WOM
fully connected
banking customers

18. Date 2012
(Jan)
2012
(Jul)
2013
(Jan)
2013
(Aug)
Relationship
Score
43% 41% 45% 51%
Santander - The road to a higher state
2014 – Relationship Score
57
63
Rational 56
Emotional
Intentional
59%
Base: 251 UK
adults, aged 18+,
who have their
primary bank
account with
Santander

19. 2014 - Top 3
Rewards you for loyalty
Communicate the way you want
Service provided
Quality of online banking
Relevance of products to me
Ranges of products
Performance
1st
2nd
2nd
3rd
3rd
3rd
3rd
3rd
Quality of mobile banking app
Staff knowledge
3rd Competitive charges / fees
19
Santander - The road to a higher state
Highest importance

20. 20 © Harris Interactive

21. 2014 - Top 3
Treating you as an individual
Staff professionalism
Communicates at a time you want
Relevance of communications
Listening to you
Performance
1st
2nd
2nd
2nd
2nd
2nd
2nd
3rd
Value for money
Amount of communication
3rd
21
Highest importance
The Co-operative
A fall from grace, but has bouncebackability
Clarity of Communication
Easy to understand products
3rd Understanding needs

22. Summing up
• Banks compare well to other sectors
• Not all banks are equal
• Its important to be connected
• The sector is viewed negatively,
but customers are more positive
about their own banking
relationship
22

23. #customerpower
Phil Brooks
pbrooks@harrisinteractive.com
@mrresearcher
0161 242 1360
Debbie Senior
dsenior@harrisinteractive.com
debbie_senior
07989 388 825
© Harris Interactive 23