Tuesday, July 29th, 2014 - Roy Morgan Research

Bendigo Bank stands out among its peers when it comes to their customers recommending the bank to friends and colleagues, with almost two thirds of its customers (63.2%) being High Advocates, that is they rated Bendigo Bank an 8, 9 or 10 out of 10. Bendigo Bank’s result is well ahead of its next closest competitor, Suncorp, with 55.7% of High Advocate customers according to the June 2014 Roy Morgan Research Finance Single Source survey.

Among the major four banks, Commonwealth Bank has the largest proportion of customers who are High Advocates at 52.6%, followed by NAB (48.4%), ANZ (45.6%) and Westpac marginally behind at 45.5%.

Customers who consider their bank as their Main Financial Institution (MFI), are even more likely to recommend them, and this was evident across all banks listed. A total of 64.2% of Bendigo Bank’s MFI customers are High Advocates, a difference of 1.0 percentage points when compared to overall customers. Bankwest shows the largest difference in terms of high advocate customers (7.0%) with 59.4% of its MFI customers being High Advocates compared to 52.4% of its total customers.

Likelihood to Recommend Bank – Proportion of High Advocates

proportion-high-advocates

Source: Roy Morgan Single Source (Australia) January 2014 - June 2014; n = 25,453. Total: Customers with Any Financial Service, MFI: Considered as Main Financial Institution. High Advocates rated their financial institution on likelihood to recommend an 8, 9 or 10 on a 10 point scale.

As would be expected, customer satisfaction is likely to lead to higher advocacy as shown by the fact that the satisfaction levels for High Advocates of all banks are higher than average. Bankwest scored the highest level of customer satisfaction amongst High Advocate customers at 96.8%. As Bendigo Bank has a high proportion of customers as High Advocates (63.2%), this reflects positively on its overall customer satisfaction score (87.3%). Similarly for Suncorp, with the second highest proportion of High Advocates (55.7%), its customer satisfaction score of 88.2% is highest among the major and second tier banks. Among the major four banks, CBA has the highest level of customer satisfaction among all customers (82.1%) and High Advocates (96.1%).

Customer Satisfaction – High Advocates

customer-sat-advocates

Source: Roy Morgan Single Source (Australia) January 2014 - June 2014; n = 25,453. High Advocates rated their financial institution on likelihood to recommend an 8, 9 or 10 on a 10 point scale. Satisfaction is based on customers who answered Very or Fairly Satisfied. Customers must have at least a Deposit/Transaction account relationship with the institution.

Norman Morris, Industry Communications Director, Roy Morgan Research says:

“More customers of smaller banks are recommending their bank than those of the four major banks. This is even more predominant among MFI customers. The strength of word of mouth highlights the importance of having a higher proportion of customers who are satisfied and who consider their bank as their main financial institution. CBA is in the strongest position with 82.2% of its customers considering the bank their MFI. Second to CBA is NAB, with 73.5% of its customers considering NAB as their MFI. Fewer customers of second tier banks however consider the institution as their MFI, the highest level being for Suncorp where 68.4% of its customers considering Suncorp as their MFI.

 

“The comparatively higher levels of customer satisfaction for the smaller banks show the benefit by having more customers as High Advocates. It is also important for banks to identify which of their customers are High Advocates, and in particular assess whether their high value customers are recommending their institution.”

Read this release in full on our website.

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Roy Morgan Research is Australia's best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
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Keywords

banking, finance, satisfaction, bendigo bank, suncorp, bankwest, st george, anz, nab, cba, westpac

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