The increased satisfaction of the mortgage customers of the four big banks in January increases the overall satisfaction
The retail customer satisfaction of the four major banks was 80.1% in the six months to January 2017, slightly above 79.9% in December, according to the latest data from Roy Morgan. This increase is due to a 1.4 percentage point (to 77.4%) increase in satisfaction among mortgage customers, while satisfaction among non-mortgage customers remained unchanged (80.7%). However, the engagement of mortgage customers, as measured by the “Net Promoter Score” (NPS®), remained negative for each of the four large banks.
Despite some tentative signs of improvement in Big Four mortgage customer satisfaction in January, overall it remains well below that of smaller bank mortgage customer satisfaction. All four major banks showed improved satisfaction with their mortgage customers in January, but only the ANZ improved compared to the same period last year.
Source: Roy Morgan Single Source (Australia) 6 months to January 2016, n = 24,332; 6 months to January 2017, n = 23,895.
ING Direct has the highest proportion of satisfied mortgage customers (of the 10 largest banks) with 96.3%, followed by Bendigo Bank with 93.2%. These two lag far behind the field, with Bankwest (85.9%) and Bank of Queensland (82.5%) being the second best. The CBA has the highest mortgage customer satisfaction of the Big Four at 79.7% and Westpac the lowest (75.4%).
Interest representation among mortgage customers less
The Big Four’s mortgage customers rate them negative and lower for their Net Promoter Score (NPS®) than their non-mortgage customers, who also have negative NPS values.
‘Net Promoter Score’® of mortgage customers compared to non-mortgage customers: Big Four Banks, ING Direct, Bendigo Bank
Source: Roy Morgan Single Source (Australia) 6 months to January 2017, n = 23,895.
The best performing among the Big Four in terms of mortgage customer NPS was the CBA (minus 12.7), followed by ANZ (minus 13.8), Westpac (minus 20.4) and NAB (minus 20.7). In contrast, the two top ten banks with the highest mortgage customer satisfaction scores also had positive NPS scores for these customers, with Bendigo Bank (plus 32.3) and ING (plus 3.4) achieving the best results.
NAB had the Big Four’s most improved satisfaction levels in January
In January, the NAB showed the greatest improvement in satisfaction among the four big banks (plus 0.9 percentage points to 80.3%), maintained its second place and closed the gap to the KNA, which is now only 1.6 percentage points ahead . This improvement was mainly due to the increased satisfaction of mortgage customers over the course of the month (plus 3.2 percentage points).
Satisfaction of consumer banks
Source: Roy Morgan Consumer Satisfaction Report, January 2017, average 6-month sample n = 25,015 ..
While the Big Four continue to focus on their satisfaction rankings among their peers, the mutuals remain well ahead of all four. The Big Four’s average satisfaction rate in January was 80.1%, compared with the mutual banking average of 90.2%. The best performers among the mutual banks were the Greater Bank (95.0%), the Heritage Bank (92.3%) and the Victorian Teachers Mutual Bank (92.0%), all well ahead of the fourth-best bank, CBA 81.9% were.
Norman Morris, Industry Communications Director, Roy Morgan Research says:
“Although mortgage rates have been low for some time, it is somewhat surprising that mortgage customer satisfaction is lower than that of other customers who are likely to be negatively affected by the low deposit rates. The smaller banks have shown that it is possible to achieve much higher satisfaction ratings from mortgage customers than the big banks, even though they operate in the same interest rate environment. To understand their better overall performance, Roy Morgan has done extensive modeling over the past several years to understand the underlying factors that determine how customers rate their bank in terms of satisfaction and advocacy (NPS).
“This particular analysis goes well beyond looking at recent events such as negative publicity and interest rate movements, which we know have generally short-term effects on satisfaction and engagement. With data from the Roy Morgan single source survey database, compiled from more than 50,000 interviews per year, it covers all aspects of financial behavior and thus enables in-depth analysis.
“The most important factor for customer satisfaction and lobbying is the ‘customer experience’ when dealing with a bank. This includes many of the gentler measures such as “making customers feel valued”, “treating customers with respect” and “having experienced and well-trained employees”. Roy Morgan has conducted this analysis at most of the major banks and found that the very high levels of satisfaction and engagement of Bendigo Bank’s customers seem to be closely related to their “customer experience”.
“The second most important factor in satisfaction and advocacy is the more difficult metric relating to ‘interest rates, fees and charges’ – another important reason for the strong performance of Bendigo Bank. Other key factors are “reliable and safe” and “product offering”.
“Not only did Roy Morgan understand what drives happiness, but he also developed Helix Personas, a sophisticated segmentation that provides an overview of Australians in 56 segments, including demographics, location, attitudes and behavior. This enables a deep understanding of customers and can see how to communicate with specific target groups. The personas with the highest potential for the financial sector are, for example, “blue chip” and “smart money”. Both personas have high household incomes, are tech savvy, and live in the inner suburbs, with Blue Chip likely being older and more established, while Smart Money is more family-oriented. Helix can also determine the geographic areas where these personas are most likely to be concentrated.
“Roy Morgan has been the industry currency for consumer financial services for over two decades, and now with Helix Personas, it offers additional insights into that data, as well as identifying what drives customer satisfaction improvement and advocacy through ‘customer satisfaction drivers.’ and Drivers of Advocacy reports. “
For comments or further information, please contact:
Suela Qemal, General Manager – Financial Services & Advisory
Office: +61 (3) 9629 6888