Vietnam Retail Banking

Why Delighting Customers Matters

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Cimigo advise 4 of the top 5 advertisers in
Vietnam on their brand and communication
strategies.
Copyright 2010 Cimigo Download this presentation for free: www.cimigo.vn
Research Channels
Telephone interviewing In-depth interviewing Street intercepts Focus groups
Videographies Mystery shopping Online survey Online usability labs
Copyright 2010 Cimigo Download this presentation for free: www.cimigo.vn
Richard Burrage
Richard Burrage has seventeen
years of experience in market
research and strategic consulting.
Richard has worked across Asia
Pacific consulting across a range of
industries and business issues.
Richard has spent the last ten years
in Vietnam assisting in the
development and building of
numerous brands to achieve
leadership positions.
Richard is a UK national and resides
in HCMC with his Vietnamese wife
and their children.
Richard is the Managing Director of
Cimigo: www.cimigo.com
Cimigo has surveyed
over 5,000 consumers on over 100
questions relating to personal banking and
financial behaviour, attitudes and
perceptions.
Cimigo Consumer Financial Services Monitor
Delighting Customers
Contents
Does Delighting Customers Matter?
What Delights Them Right Now?
Banking Behaviour And User Demographics
Extending the Relationship
Does Delighting Customers Matter?
To answer this, lets compare what bank
customers think about their bank
relationship vs. what they actually do.
How Cimigo Measures Commitment
Customer Satisfaction
Likelihood to Recommend
Comparison to Other Banks
Likely Future Use
Behavioral Loyalty
Loyalty measured by what
customers do
Attitudinal Loyalty
Loyalty measured by how
customers feel about doing
business with your bank
Comparing Attitudinal Loyalty Vs. Behavioural Loyalty
0%
20%
40%
60%
80%
100%
5 6 7 8 9 10
Satisfaction Rating
%

L
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t
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Scores
below 7
suggest
higher
likelihood of
defection
A rating of 8
results in a
20-point
decrease in
likelihood to
stay with
bank
Satisfaction
Ratings of 9
and 10 most
likely to
indicate
strong
behavioural
loyalty to
bank
Even Steeper Drop For Likelihood To Recommend!
0%
20%
40%
60%
80%
100%
5 6 7 8 9 10
Satisfaction Rating
%

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A drop in satisfaction rating from 9 to 8
can mean a drop of 40 points in
likelihood to recommend!
From 70%
to 30%
Customers can rate their satisfaction level at
8 and still not be completely likely to
continue using their bank or recommend it to
others.
Delighting customers (moving them from 7-8
to 9-10) has a direct impact on long-term
growth.
Does delighting customers matter?
What Delights Them Right Now?
Lets see what banking experiences stick in
their minds
Positive And Negative Experiences
Had any exceptionally positive
experiences recently?
26%
Had any exceptionally negative
experiences recently?
4%
Top 5 Examples Of Positive Experiences
Call from bank sales 3%
Convenient banking 10%
Quick banking service 22%
ATM network/services 24%
Staff interaction 54%
Number 5
Top 5 Examples Of Positive Experiences
High interest rates 9%
Convenient banking 10%
Quick banking service 22%
ATM network/services 24%
Staff interaction 54%
Number 5
Top 5 Examples Of Positive Experiences
High interest rates 9%
Convenient banking 10%
Quick banking service 22%
ATM network/services 24%
Staff interaction 54%
Number 4
Top 5 Examples Of Positive Experiences
High interest rates 9%
Convenient banking 10%
Quick banking service 22%
ATM network/services 24%
Staff interaction 54%
Number 3
Top 5 Examples Of Positive Experiences
High interest rates 9%
Convenient banking 10%
Quick banking service 22%
ATM network/services 24%
Staff interaction 54%
Number 2
Top 5 Examples Of Positive Experiences
High interest rates 9%
Convenient banking 10%
Quick banking service 22%
ATM network/services 24%
Staff interaction 54%
Number 1
Staff interaction by far the most
mentioned reason for positive
experiences.
ATMs also mentioned, but to a lesser
extent.
Top 5 Examples Of Negative Experiences
Call from bank sales 3%
Number 5
Top 5 Examples Of Negative Experiences
Poor ATM locations 5%
Staff not nice and warm 8%
Banking took too long 11%
ATM ran out of money 35%
ATM broke down 44%
Number 5
Top 5 Examples Of Negative Experiences
Poor ATM locations 5%
Staff not nice and warm 8%
Banking took too long 11%
ATM ran out of money 35%
ATM broke down 44%
Number 4
Top 5 Examples Of Negative Experiences
Poor ATM locations 5%
Staff not nice and warm 8%
Banking took too long 11%
ATM ran out of money 35%
ATM broke down 44%
Number 3
Top 5 Examples Of Negative Experiences
Poor ATM locations 5%
Staff not nice and warm 8%
Banking took too long 11%
ATM ran out of money 35%
ATM broke down 44%
Number 2
Top 5 Examples Of Negative Experiences
Poor ATM locations 5%
Staff not nice and warm 8%
Banking took too long 11%
ATM ran out of money 35%
ATM broke down 44%
Number 1
Out of the top 5 negative experiences,
3 of them relate to ATM problems.
Bank staff and service delivery
mentioned far less.
There seems to be a direct relationship
between satisfaction and staff
interaction
and an inverse relation between
satisfaction and ATM usage
In Fact, The More Customers Visit A Branch
34%
40%
48%
53%
0%
20%
40%
60%
80%
100%
Never Rarely Once a month More often
Frequency of visiting branches
%

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the more likely they are to
have high overall satisfaction.
While The Same Cannot Be Said For ATM Usage
49%
47%
40%
39%
0%
20%
40%
60%
80%
100%
Never Rarely Once a month More often
Frequency of using ATMs
%

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ATMs dont cause dissatisfaction,
but dont help boost loyalty either
Modern banking technology and
convenience is great, but human interaction
still matters.
Especially when technology hasnt been
perfected yet.
But is interaction of equal importance to
everyone?
Banking Behaviour
And User Demographics
ATMs Most Frequently Used Touch Point
70% 34%
6% 5%
Touch points visited/contacted once a month or more HCMC & Hanoi
ATMs Popular Among Younger Segments
84% 80% 58% 50%
25% 32% 41% 42%
18-24 25-34 35-44 45-54
ATM & Branch Visited Once a Month or More HCMC & Hanoi
1. Staff interaction is a leverage for delighting older customers
and fostering long-term relationships.
2. As younger users grow in age, net worth, and financial
sophistication, they too will begin to place higher value on
staff quality.
3. However, for now, ATMs remain the primary touch point
among younger users.
Conclusions
By trying to understand what creates a
valuable experience for customers, weve
identified two key segments based on age,
bahaviour and interaction with different bank
touch points.
How well do you understand
Your customers?
Your service levels?
Across touch points?
Extending the Relationship
Touch-points are not only essential for
managing customer relationships, they are
also opportunities to transmit information
and announce new products and
promotions.
If your bank wanted to let you know about a
new savings product that might interest you,
how likely would each of the following
methods be to convince you to sign up?
Most convincing ways to encourage sign-up
Phone call from bank employee 12%
Info sheet describing the new product 12%
Gift given upon sign-up 16%
Face-to-face talk with bank representative 20%
Preferential interest rate 25%
Number 5
Most convincing ways to encourage sign-up
Phone call from bank employee 12%
Info sheet describing the new product 12%
Gift given upon sign-up 16%
Face-to-face talk with bank representative 20%
Preferential interest rate 25%
Number 4
Most convincing ways to encourage sign-up
Phone call from bank employee 12%
Info sheet describing the new product 12%
Gift given upon sign-up 16%
Face-to-face talk with bank representative 20%
Preferential interest rate 25%
Number 3
Most convincing ways to encourage sign-up
Phone call from bank employee 12%
Info sheet describing the new product 12%
Gift given upon sign-up 16%
Face-to-face talk with bank representative 20%
Preferential interest rate 25%
Number 2
Most convincing ways to encourage sign-up
Phone call from bank employee 12%
Info sheet describing the new product 12%
Gift given upon sign-up 16%
Face-to-face talk with bank representative 20%
Preferential interest rate 25%
Number 1
Direct personal interaction is a key method
of up- and cross-selling, almost as potent as
rates.
More remote methods of contacting
customers are seen as less convincing.
How can you leverage your staff for both
maintaining and extending banking relationships?
Delighting Customers
Richard Burrage
Cimigo
9 Nguyen Huu Canh Street, Binh Thanh District, HCMC, Vietnam
T: (84) 8 3822 7727 Ext 345
E: [email protected], W: www.cimigo.vn