The satisfaction level of personal banking customers in the 6 months to August 2015 was 82.8%, which was unchanged from July and only just below the 20 year high of 82.9% seen in March 2015. The high value customer quintile however (top 20%) that accounts for 63.2% of the total value of the financial services market, had the lowest level of satisfaction of all the quintiles with only 78.2%.
These are the latest findings from Roy Morgan’s Single Source survey of over 50,000 people pa.
High value customers are negatively impacting overall bank satisfaction levels
It appears that each of the big four banks has done a good job of achieving high satisfaction levels among their low value customers (bottom 20% or lowest quintile) but this group accounts for only 0.2% of the total market value of financial services. The best performer with this segment among the big four was the CBA with 87.8% satisfaction.
Consumer Banking Satisfaction by banking and finance quintiles* of Big Four banks
Source: Roy Morgan Single Source (Australia): March - August 2015 (n=25,847)
In contrast to the bottom quintile satisfaction levels, each of the big four has their lowest satisfaction level in the highest value quintile which represents 63.2% of market value. With such a large (and potentially profitable) group being well below the average satisfaction level for each bank, they represent the need for increased attention if overall satisfaction levels are to be improved.
The highest level of satisfaction among the big four in the top quintile was the NAB with 77.5%, followed by CBA (76.0%), Westpac (75.1%) and ANZ (73.3%).
CBA retains top satisfaction spot among the big four
The CBA was the only one of the big four to increase its customer satisfaction level in August (up 0.3% points), while the others all showed small declines. The CBA now has 82.6% customer satisfaction, followed by NAB (81.9%), Westpac (80.0%) and ANZ (79.4%). In terms of MFI (Main Financial Institution) customer rankings, CBA also retained top spot among the big four with 84.5% satisfaction, followed by NAB (84.0%).
Consumer Banking Satisfaction
Source: Roy Morgan Research Consumer Banking Satisfaction Report August 2015, average 6-month sample n = 25,632
Among the banks outside of the big four, Teachers Mutual Bank remained the best performer with 94.8% of its customers satisfied. Overall, banks other than the big four had higher satisfaction levels, with an average of 86.1%, well ahead of the best of the big four, the CBA with 82.6%.
Over the last 12 months, the most improved of the big four was the CBA (up 1.6% points), followed by the NAB (up 1.2% points). The ANZ (down 0.3% points) and Westpac (down 0.7% points) showed small declines.
Norman Morris, Industry Communications Director, Roy Morgan Research says:
“For more than a decade, the big four banks have had a key objective to improve customer satisfaction and as a result they have all achieved major gains. They are now much closer to each other in satisfaction levels than they were ten years ago, which makes it increasingly difficult to sustain a clear market positioning as the satisfaction leader among this group.
“This research shows that there is now a big opportunity to focus more on important segments rather than simply a total market measure. With a market that is as highly skewed as finance, where 20% account for nearly two thirds of the market value, performance in this segment is in need of more attention if banks are to achieve longer term financial gains.
“The top quintile currently not only has the lowest satisfaction level of the major banks but it also has the lowest share of wallet of all the segments. All of the major four banks have less than a third of their top quintile customers’ wallet.
“Achieving a higher share of wallet with this group represents a considerable challenge but they are clearly the segment with the highest potential for business growth and as such are likely to be more profitable than chasing new low value customers.”
Roy Morgan Research
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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