Monday, September 9th, 2013
While the banks place an ongoing focus on attracting new customers to increase their share, it’s interesting to consider how many of their customers continue to deal with them in the years to follow. Among the Big 4 banks, CBA has by far the highest proportion of its retail customers (61.4%) who have dealt with the CBA for 10 years or longer, this is despite the fact that their customers have the lowest average age of the four major Banks. However this is not the case amongst its business customer base, where 55% of businesses have dealt with CBA for over 10 years. These are the latest findings from the Roy Morgan Research Business and Consumer Single Source surveys.
Tenure across retail and business customers appears to differ among the Big 4 banks. In contrast to CBA, less than half of ANZ’s retail customers (48.1%) have dealt with ANZ over 10 years and 42.1% of businesses, the lowest proportion among the Big 4 banks. Westpac appears to have the most similar tenure among both its retail and business customers, while NAB who is traditionally well known for a strong business banking franchise, is the only Big 4 bank to have a higher proportion of businesses than retail customers dealing with them for more than 10 years.
Source:Roy Morgan Consumer Single Source, 6 months to June 2013, sample size = 25,341; Roy Morgan Business Single Source, 6 months to June 2013, sample size = 6,893
Norman Morris, Industry Communications Director, Roy Morgan Research, says:
“With such a high proportion of retail customers and businesses continuing to deal with the same bank over a number of years, this highlights the importance of focusing on maintaining banking relationships. Banks benefit in maintaining a relationship with their customers for longer because our research shows that the longer a customer is retained, the more products they are likely to hold. This increases long term profitability, much more than chasing new customers.
"When looking at new personal customers who have dealt with their bank for less than 12 months, the CBA is the clear winner with 436,000, followed by ANZ with 315,000. This big gain by the CBA combined with a higher proportion of longer term customers and high customer satisfaction puts them in a potentially strong position. For the business market the largest number of new customers over the last 12 months went to the CBA with 38,000 followed by the ANZ with 33,000. Getting the balance right between customer retention and new customer acquisition is critical for long term success.”
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.
P: 03 9224 5332