Download pdf - Bank: Trust, Loyalty, Satisfaction, Growth

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About the study

Executive summary

Why do we look at trust?

How do we look at trust?

Demographics

Consumer Bank Trust 2014

Trust Distribution

HuTrust Analysis

Qualitative focus on relationship trust

About mext

Key Contacts

Distrust

This study was conducted in May 2014 with a general

population sample of almost 1200.

It is part of the annual brand trust tracking initiated by

mext.

The methodology uses HuTrust, a psychological tool to

assess the drivers of trust, NPS and satisfaction to help

brand owners build more trust, achieve clearly connected

bottom line improvements and manage their brands more

effectively

Mext are brand and customer experience specialists

based in Melbourne and Singapore and working with

clients globally.

The HuTrust methodology is used by HuTrust Partners

globally. Clients and service suppliers can integrate the

methodology into any of their surveys to better

understand the key drivers of their KPIs.

For more information please contact:

Stefan Grafe

Managing Director

Mext

[email protected]

mailto:[email protected]

Consumer banking trust:

The Big 4 banks have recovered

from a slight fall in trust among

their customers in 2012.

Bendigo Bank, as the regional

bank tracked in this study has

regained previous trust levels –

well ahead of the big 4 banks at

an average of 8/10.

0

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4

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6

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8

9

10

2011 2012 2013 2014

Axi

s Ti

tle

Bank Trust Comparison 2011 - 2014

ANZ

CBA

NAB

Westpac

Bendigo

Customers vs non-Customers

Non-Customers continue to distrust the other banks. CBA’s trust among non-

customers is lowest and appears to have been hit by the protracted financial

planning scandals. Only Bendigo Bank, is, on average, not distrusted by non-

customers. Because of customer’s distrust of other banks, despite low trust in

their own bank, switching is very unlikely.

The bank that can increase it’s trust with non-customers will gain a significant

acquisition advantage.

The ability to build more trust with own customers will be key determinant of

customer product holding, especially wealth and super products.

The study shows that the opportunity in consumer

banking lies in understanding what ‘trust in an

appealing relationship’ means. Through our

qualitative work we shed some light on this.

Unlike previous years, the Big 4 bank’s trust is now

driven most by the same driver, Relationship trust.

While trust increases over the last years have been

marginal, the banks have done well retaining their

trust levels despite many public challenges.

distrust

neutral trust

trust

high trust

Trust is the most powerful human

motivator.

A 20% improvement in trust can

mean a 400% improved customer

attitude and behaviour.

Trust makes up over 70% of the NPS

and over 2/3 of customer

satisfaction, the most common KPIs

of financial services organisations.

Therefore, if we understand trust, we

understand what drives (or inhibits)

the vast majority of these KPIs.

Further, if we understand trust,

these KPIs can be more effectively

built and managed.

1. Trust is the prerequisite for purchase.

In most studies, trust and product performance are equal drivers or purchase and sign up.

2. Trust in itself is not enough. More trust is the key – and every little more has a huge impact on customer behaviour.

3. Trust is not a competitive advantage unless you are more trusted than your competitors.

A note on NPS and customer

satisfaction:

Both NPS and satisfaction measures

are primarily directed at one’s own

customers. While they can be

benchmarked against competitors,

they are less applicable for potential

customers and their propensity to

choose a provider.

Trust doesn’t have these inhibitions.

Trust by own customers is a clear

indicator of loyalty and willingness to

buy more.

With potential customers it provides

a direct understanding of their

likelihood to choose one provider

over another.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0 1 2 3 4 5 6 7 8 9 10

Trust Score

Likelihood to recommend

Feel connected to

Go out of my way to buy aspecific brand/product

0 1 2 3 4 5 6 7 8 9 10

Distrust No trust Low trust High trust

Trust is the root cause of your customer’s behaviour.

The more your customer can trust you, the more

business they want do with you. A 20% improvement

in trust can mean 400% improved customer

predisposition.

Score Meaning Behaviour examples

0-4 Distrust Will recommend against,

complain a lot, actively work

against

5-6 Neutral (don’t trust

& don’t

distrust)

Sit on the fence. Would switch

readily if there is an alternative.

Spread products. Don’t commit.

Question, are critical, but

somewhat open to listen.

7-8 Low level

of trust

Functionally satisfied. Open to

listen and slightly positive in their

outlook. Still look around and

compare. Still spread products.

9-10 High trust Committed. Don’t look around,

have most products with one

provider. Very open to contact

and suggestions. Will proactively

ask.

The Trust Effect

HuTrust® is trademark of ifm/mext and Stefan Grafe. The HuTrust® Model, its facets, descriptors and statements are copyright ifm/mext and may not be used, reproduced or stored in any medium unless expressly permitted by ifm/mext. HuTrust® is applied in Brand trust development, Customer experience & value proposition development, Sales and Business Development Performance & Training, Employer branding & Employee engagement, Manager Coaching & Leadership training, transformation and change management and corporate affairs & PR., and Research & Tracking. www.hutrust.com

http://www.hutrust.com/

ANZ CBA

NAB Westpac

Bendigo

The sample comprised :

1166 Consumer respondents

Consumer

customers

Consumer

Non-customers

7.36

7.48

7.57

7.47

8.04

4.95

4.76

4.96

4.86

5.31

4 5 6 7 8

ANZ

CBA

NAB

Westpac

Bendigo

Average trust score

Customers

Non-customers

Based on the general population, no bank reaches

trusted status

But customers, on average, trust their own bank.

However, non-customers distrust the Big 4 banks, while they

are just trust neutral towards Bendigo Bank.

Compared to other service industries such as Telco and

Energy, this is a strongly polarised image.

Bank Trust 2014

Base: customers vs. non-customers

5.25

5.39

5.27

5.17

5.47

4 5 6 7 8

ANZ

CBA

NAB

Westpac

Bendigo

Average trust score

Bank Trust 2014 Base: All respondents

ANZ have slightly increased their trust level – even

compared to 2011.

CBA had made good trust gains in the last years, but this

year lost ground. The reason is likely to be the handling of

the financial planning issues. Considering the protracted

coverage of the issues, trust is probably propped up by

the sustained CAN advertising campaign.

While nab’s break up campaign didn’t show a lot of effect

to start with, now nab appears to gain trust ground

rapidly. This is likely due to significant systems changes

and revamped products that now positively impact

customers.

Westpac lost ground last year, but has regained that

ground and added more trust.

While Bendigo Bank dipped in 2012, among its own

customers, Bendigo Bank has made up all ground and

continue to be most trusted (please note, that this is

typical for smaller, tightly positioned players).

Customer’s trust in their own bank has slowly increased

over the last 4 years. There are some interesting

developments for each brand.

Bank Trust Comparison 2011-2014 Consumers

Base: each bank own customers

Except for Bendigo Bank, non-customers

score just within the distrust threshold.

However, the level of distrust is slowly

decreasing.

Bank Trust Comparison 2013 – 2014

Base: each bank non-customers

The Big 4 show a ‘bracket’ pattern with younger and older

people showing more trust than the 35-54 year olds.

Bendigo Bank’s Profile differs significantly, with trust

increasing with age.

Importantly, younger people trust Bendigo Bank less than

the other banks, strongly limiting Bendigo Bank’s ability to

attract younger customers.

Despite being overall most trusted, the trust age profiles

are likely to be a significant inhibitor.

Bank Trust 2014 Non Customers

Base: each bank non-customers by age

Bank Trust 2014

Base: each bank customers by age

28% 29% 28% 30% 23%

39% 32% 37% 39% 44%

21% 24%

22% 20% 22%

12% 15% 13% 12% 12%

0%

20%

40%

60%

80%

100%

120%

ANZ CBA NAB WestpacBendigo

Trust Distribution Base: all respondents

Highly trust (9-10)

Trust (7-8)

Neutral (5-6)

Distrust (0-4)

Overall distrust and neutral trust range between

61% (CBA) and 79% ( Westpac), however trust

neutral percentages are significantly higher than

distrust percentages. This puts the banks in a

promising position to turn neutrals into trusters

which is easier than turning distrusters into trusters.

All banks are well trusted by

their own customers. Especially

Bendigo Bank performed very

well in this study with over 80%

of its customers trusting.

Non-customer trust is very

much aligned with the trend in

this study to distrust banks you

don’t bank with.

10% 31% 18%

42% 31%

19% 40%

8%

Customers Non-customers

ANZ Trust Distribution Base: customers vs. non-

customers

8%

35% 17%

37% 38%

19% 36%

9%


CBA Trust Distribution Base: customers vs. non-

customers

9% 31% 14%

40% 32%

21% 45%

8%


NAB Trust Distribution Base: customers vs. non-

customers

8% 33% 20%

41% 31%

18% 41%

8%


Westpac Trust Distribution Base: customers vs. non-

customers

7% 24% 11%

46% 31%

21% 51%

9%


Bendigo Trust Distribution Base: customers vs. non-customers

Highly trust(9-10)

Trust (7-8)

NeutralTrust (5-6)

Distrust (0-4)

1) Trust is the prerequisite for purchase.

Non customers don’t trust the other banks, making a purchase unlikely.

2) Trust in itself is not enough. More trust is the key.

With own customers, on average, the Big 4 just reach the trust threshold. There is a lot more

opportunity in building trust with customers

3) Trust is not a competitive advantage unless you are more trusted.

When it comes to potential customers, none of the banks has a trust advantage.

Bendigo Bank should be best placed for

growth through high customer trust and

less non-customer distrust. But the lack

of trust from non-customers is still too

high a barrier.

The Big 4 are likely to retain their

customers, but mostly due to their peers

being distrusted.

While the banks found it hard to increase

trust and advocacy after an initial clean

up, more trust will be critical in customer

product uptake

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0 1 2 3 4 5 6 7 8 9 10

Trust Score

Likelihood torecommend

Feel connected to

Go out of my wayto buy a specificbrand/product

0 1 2 3 4 5 6 7 8 9 10

Distrust No trust Low trust High trust

ANZ CBA CBA NAB NAB Westpac Westpac Bendigo Bendigo

4.95 4.76 4.96 4.86 5.31 7.47 7.57 7.48

ANZ

7.36 8.04

Customers Non - Customers

Trust is made up of 6 clear psychological facets that are statistically

and practically validated.

Whenever we interact or think of a person or organisation, our mind

assesses in milliseconds:

- What that person or brand can or can’t be trusted for

- How appealing or unappealing that is

- How strongly one can trust for those things

These trust principles are captured in the HuTrust® Model and allow

us to analyse:

- The strengths of each trust facet (HuTrust Profile)

- Which trust facet drives trust best (HuTrust Drivers)

- Which trust signals (attributes and proof points) best build each

HuTrust Facet (HuTrust Attributes)

HuTrust is psychologically correct, statistically sound and practically

proven.

For more information please visit www.hutrust.com or contact one of

the global HuTrust Partners.


HuTrust® is trademark of ifm/mext and Stefan Grafe. The HuTrust® Model, its facets, descriptors and statements are copyright ifm/mext and may not be used, reproduced or stored in any medium unless expressly permitted by ifm/mext. HuTrust® is applied in Brand trust development, Customer experience & value proposition development, Sales and Business Development Performance & Training, Employer branding & Employee engagement, Manager Coaching & Leadership training, transformation and change management and corporate affairs & PR., and Research & Tracking. www.hutrust.com

• The HuTrust framework drives 75% of trust.

• Trust drives up to 8% of reputation, satisfaction and

NPS.

• HuTrust also drives 75% of Reputation and NPS

(Advocacy) and 65% of Satisfaction.

• If you are measuring and reporting on these key

metrics, then HuTrust provides the steering

framework to drive improvement.


HuTrust Profile HuTrust Drivers

The colour of each HuTrust Facet

points out how well the brand

performs. The number shows the

average score for the HuTrust

Facet on the 11 point trust scale.

Distrust

No trust/neutral

Trust

High trust

The arrows show which

HuTrust Facets are most

important in trusting the

brand.

most important

secondary

In this study we look at the brand’s strengths and weaknesses through the HuTrust Profile. We

also examine which HuTrust Facets are most important to trusting for each brand and show

how each brand’s trust has developed over the last 4 years. In this study we have omitted the

HuTrust Attribute Analysis. Instead some qualitative work has been done.

HuTrust Attributes (not

included in this study)

The HuTrust Attribute Analysis

determines specific proof points

like attributes, behaviours and

facts that best build the priority

trust facets. To get beyond

generic category attributes,

typically qualitative research is

conducted. This ensures category

attributes are covered and brand

specific opportunities uncovered.

23% Inspire & support with new ideas

19% Are honest even if it’s not pleasant

17% Understand how I want to use the services

15% Are consistent in dealing with me over time

HuTrust Tracking

Tracking of trust, other KPIs

and the 6 HuTrust Facets

over time. – including shifts in

the trust drivers.

Direction and inner colour show

whether it is a positive or

negative development.

The outline shows if the score

lies in distrust, non trust/trust

neutral, trust or high trust

17%

Customer HuTrust Profile

ANZ’s trust is carried only by trust in its

stability and future development

Customer HuTrust Drivers

ANZ’s strongest driver of trust is trust in the bank’s

ability to relate well to the customer.

The secondary drivers of trust for ANZ lie in its ability to

demonstrate the building of a strong foundation and

conferring an appealing benefit to their customers.

20%

25%

17%

Non-Customer HuTrust Drivers

Relationship aspects would build trust most

with non-customers.

17% 28%

Non Customer HuTrust Profile

A similar pattern emerges with non-customers,

but at a lower level.

4.9 4.6

6.2 6.4

4.5 5.2

After a dip in the last 2 years, ANZ is

recovering its stability, development

and relationship trust.

Customer‘s trust in ANZ being of

benefit to them declined strongly in

2012 and 2013. In 2014 ANZ has

recovered parts of that trust, but

still doesn’t reach the trust

threshold again.

Trust in an appealing vision saw a

decline in the last two years and the

2014 recovery is only slight.

ANZ has been treading water in

competence trust

ANZ appears to be recovering in at

least 3 HuTrust Facets from losses in

the last two years.

18%

27%

6.6 7

8 7.6

6.9 7


Compared to 2013, CBA has lost ground in

relationship trust and a little in competence trust.

Customers currently don’t trust CBA for having an

appealing vision and the relevant competences to

pursue it.


Trust in the bank to relate well to them

and demonstrate a strong foundation

drive trust with CBA customers most.

Non-Customer HuTrust Profile

Non CBA customers distrust CBA for its vision,

benefits and ability to offer an appealing

relationship.

17% 27%


Trust with non-customers would be most

driven through relationship and vision

aspects.

6.3 6.2

4.9

4.4

4.6

5.2

CBA improved in two HuTrust

Facets, held their score in 2,

but declined in relationship

trust.


Nab’s HuTrust Profile has developed well,

reaching trusted status now in 5 out of 6 facets

– even if only just.

8.1 7.6

7

7.1

6.6

7.1

17% 25%

17%


For nab trust in an appealing relationship is also

most important, but trust in an appealing vision

and the corresponding competences also

uniquely drive nab’s trust.

20%

27%


Nab’s HuTrust profile with non-customers is

similar to that of the other Big 4.


Nab’s trust with non-customers would also be

most driven through trust in an appealing kind

of relationship.

6.3 6.2

4.9

4.4

4.6

5.2

Nab has had steady gains

in all HuTrust facets in the

last 3 years.


Westpac is trusted for half of the trust qualities it

needs to be trusted for

8 7.5

6.9

6.9

6.6

7.1

20%

26%


For Westpac, trust in an appealing relationship

and trust in the corresponding benefits drive

trust most with customers.

6.3 6.1

4.8

4.4

4.5

5.1

27%


Westpac’s HuTrust profile with non-customers the

same as the other Big 4.


Trust in an appealing relationship would rive

trust most.

After a significant dip in

trust in the last 2 years,

Westpac is rebuilding trust

with customers and has

almost reached 2011 levels

again.

7.8 7.7

7.9

7.3

7.4

7.3

18%

21%

Customers HuTrust Profile

Bendigo Bank customers trust the bank in all 6

HuTrust Facets.


For Bendigo Bank customers trust in their vision and

the provision of an appealing benefit are most

important to trusting.


Trust in Bendigo’s strong foundation and an appealing

relationship would drive trust most.


Bendigo Bank is only distrusted by non-customers

for their vision and benefit.

5.8 6.2

5.3

4.7

4.9

5.3

25%

21%

After a deep dip in trust in the

wake of the GFC, Bendigo

Bank’s trust surged again, but

in 2014 stays a marginally

lower level than 2013.

The loss has been strongest in

development and benefit trust.

All of the Big 4 lack in trust in their vision. Except for ANZ all banks are trusted at least for 3 of their 6 HuTrust Facets, something out studies

show to be important for a string brand.

ANZ CBA nab Westpac Bendigo

HuTrust Drivers– Own Customer

With all Big 4 banks, own customer trust is mostly driven by trust in an appealing relationship. Of the Big 4 nab now achieves trusted status in that

critical HuTrust Facet. Apart from the similarity in the importance of relationship trust, each bank brand has a unique set of trust drivers.

Distrust in the bank’s vision and in the customer benefit drag down the bank’s trust most – shortly followed by distrust in the

ability to offer a good relationship.

With non-customers that relationship distrust is important as it would also be the biggest driver of trust. The uniform drivers (as opposed to own

bank customers) suggest that non-customers see the banks as undifferentiated.

HuTrust Drivers – Non Customer

ANZ CBA nab Westpac Bendigo

Considering the importance of trust in the relationship aspects, we conducted qualitative

work to gain further insight into what ‘relationship trust’ means for banks.

Personal contact is not the driver

Relationship trust doesn’t mean having a relationship to a specific

banker. Constant people rating and reminders in the branches

don’t appear to enhance relationship trust. Customers feel the

friendliness is enforced rather than driven by the person they deal

with. The branch manager or personal banker as a person doesn’t

appear to be as a big draw card as:

- personal contact it is less and less needed and desired

- when needed, the personal contact turned out to be useless in

the face of the overriding systems

‘I want as little personal contact with them as possible. What I want

is for them to make my other interactions as great as possible.’

Changes in the way we transact

Customers want to see banks better understand how their way

of interacting and transacting changes – and could change.

Specifically in the areas of mobile interaction, international

offers and alternative financing banks are still seen as reluctant

followers and not innovative enough (with CBA’s recent

advances being positively noted).

‘The mobile apps still don’t allow you to do enough and they are

too fragmented. I also think they are not flexible enough when it

comes to new ways of paying and getting money or borrowing it.

When you compare it to how innovative others work with

technology…”

About face

With regards to home loans, even high and stable earners complain

about the bank’s about face in terms of willingness to lend and

being helpful. A typical complaint is that when it suited the banks,

they threw money at them, just to turn 180 degrees without reason

– causing some significant difficulties.

‘Before the GFC they pushed me and pushed me to buy property,

despite my income not being very high and stable yet. Now that I

earn a lot more and consistently, they don’t even want to lend me

much less than they did before. I had to find different ways of

financing. I won’t forget that.’

Number gaming

Customers understand that data can greatly help their

experience – and in some interactions it does. However, on the

flip side, customers feel they are now just number gamed – and

in a crude manner at that. In our interviews this included debt as

well as badly targeted product offers. This perception of relying

on complex systems (that ‘even employees don’t understand and

can’t explain’ anymore) diminished relationship trust ability.

Mext is a brand & customer experience consultancy.

We have been around for over 10 years and have offices in Melbourne

and Singapore.

Our reputation and brand tools are licensed globally.

Clients that seek our services include organisations ranging from leading

FMCGs to Airlines, Telcos and Government.

Global central contact for brand, experience & sales performance:

[email protected]

Asia:

[email protected]

Global reputation management:

[email protected]

Global sales optimisation:

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