2013 Australian Bank Trust Drivers

Net promoter score, NPS, brand trust, customer sa3sfac3on, customer experience, trust, trust drivers, customer trust, financial services trust, vertrauen, Bank Vertrauen, Markenvertrauen, Kundenbindung, Kundenvertrauen

Growing customer value in Financial Services:UMR/mext 2013 Australian Bank HuTrust® Study.

The 2013 UMR/mext Bank trust study is a continuation of the 2011 and 2012 studies by mext and AOR.

Trust being the key driver of choice, advocacy and loyalty, the study looks at the levels of trust in the Big 4 banks as an indicator of their performance.

Beyond measuring trust as a key indicator, HuTrust® is used to analyse the ‘what the banks are trusted for – and what not’. Further, HuTrust® identifies for each bank which trust drivers are most important to their brand.

The UMR/mext HuTrust® study was conducted in July 2013 with an adult representative sample of the Australian population.

For more information, please contact Australia [email protected]

[email protected] [email protected] [email protected]

part of the Asia Pacific mext/duxton group About the study

˃  The bank’s customers have trust in their own bank, albeit at a low level. For Westpac, on average, this has fallen to trust neutral.

˃  Non customers distrust the banks they are not customer with (except Bendigo, which just makes trust neutral status).

˃  CBA improved trust in all dimensions and appears to separate from the pack.

˃  NAB improved trust overall slightly.˃  ANZ lost trust in all dimensions except stability trust.˃  Westpac lost ground in all trust dimensions.

˃  Bendigo Bank is recovering from a trust slump in 2012.˃  The most effective drivers of trust for each bank have

shifted slightly from 2012.

part of the Asia Pacific mext/duxton group Executive summary

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 a specific brand/product

0 1 2 3 4 5 6 7 8 9 10

Distrust No trust Low trust High trust

avg customers

avg non customers

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 some 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

part of the Asia Pacific mext/duxton group The methodology

Australian Bank Trust 2013

4 5 6 7 8

ANZ

CBA

NAB

Westpac

Bendigo

Average trust score

Bank Trust 2013 customers vs. non-‐customers

Customers

Non-‐customers

Each bank performs significantly better with own customers. Except for Westpac, on average, all banks have low trust with their customers. Westpac, on average is not trusted by its customers.Non customers distrust the other banks (except Bendigo Bank, who score just above distrust in neutral/no trust).This inhibits customer acquisition, but equally customer defection.

part of the Asia Pacific mext/duxton group Each bank’s customers vs. non customers

4 5 6 7 8

ANZ

CBA

NAB

Westpac

Bendigo

Average trust score

Bank Trust Comparison

Trust 2013

Trust 2012

Trust 2011

Base: all customers

With their own customers, CBA and NAB have made continuous gains over the last 3 years. Bendigo Bank appears to recover from a trust slump in 2012. Westpac, however, appears to loose trust.

part of the Asia Pacific mext/duxton group 2012 to 2013 comparison

3 4 5 6 7 8 9

ANZ

CBA

NAB

Westpac

Bendigo

Average trust score

Bank Trust 2013 Base: all respondents

65+ yo

55-‐64 yo

25-‐54 yo

15-‐24 yo

Base: all respondents

CBA performs significantly better with the critical under 25 target audience, but loose that advantage with the 25-54 year old group.

part of the Asia Pacific mext/duxton group Trust by age group

Understanding and managing trust by profiling the bank’s trust strengths and weaknesses with the 6 dimensions of trust.

Summary outcome:Except for Bendigo Bank, the bank’s own customers only trust for a maximum of 3 out of 6 trust drivers.

HuTrust® dimensionalises trust into its 6 drivers.§  Psychologically correct§  Statistically proven§  Practically proven to help increase trust and

actual performance typically by over 30%

www.hutrust.com

HuTrust® is trademark of ifm in depth research and strategies and Stefan Grafe. The HuTrust® Model, its facets, descriptors and statements are copyright ifm in depth research and strategies and may not be used, reproduced or stored in any medium unless expressly permitted by ifm. 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. All images copyright Istockphotos and used under license by ifm & mext.

Whenever customers interact with you or think of you, they assess you

against these 6 drivers of trust.

part of the Asia Pacific mext/duxton group HuTrust® Profile SWOT.

2 3 4 5 6 7 8

Stability

Development

Rela3onship

Benefit

Vision

Competence

Average score

ANZ HuTrust® Profiles 2012 vs. 2013 Base: all customers

2013

2012

ANZ has lost significant ground in benefit trust.

part of the Asia Pacific mext/duxton group ANZ HuTrust® Profile 2012 vs. 2013 – own customers

2 3 4 5 6 7 8

Stability

Development

Rela3onship

Benefit

Vision

Competence

Average score

CBA HuTrust® Profiles 2012 vs. 2013 Base: all customers

2013

2012

CBA has improved its performance slightly in all HuTrust® Facets, except benefit trust. This explains the overall increase in trust in CBA.

part of the Asia Pacific mext/duxton group CBA HuTrust® Profile 2012 vs. 2013 – own customers

2 3 4 5 6 7 8

Stability

Development

Rela3onship

Benefit

Vision

Competence

Average score

NAB HuTrust® Profiles 2012 vs. 2013 Base: all customers

2013

2012

NAB has improved in all HuTrust® Facets, but lost ground in benefit trust.

part of the Asia Pacific mext/duxton group NAB HuTrust® Profile 2012 vs. 2013 – own customers

2 3 4 5 6 7 8

Stability

Development

Rela3onship

Benefit

Vision

Competence

Average score

Westpac HuTrust® Profiles 2012 vs. 2013 Base: all customers

2013

2012

While Westpac has gained slightly in Stability trust, it has lost ground in all other trust areas, explaining the overall loss of trust.

part of the Asia Pacific mext/duxton group Westpac HuTrust® Profile 2012 vs. 2013 – own customers

2 3 4 5 6 7 8

Stability

Development

Rela3onship

Benefit

Vision

Competence

Average score

Bendigo HuTrust® Profiles 2012 vs. 2013 Base: all customers

2013

2012

For Bendigo customers N < 100, therefore only indica3ve

part of the Asia Pacific mext/duxton group Bendigo HuTrust® Profile 2012 vs. 2013 – own customers

2 3 4 5 6 7 8

Stability

Development

Rela3onship

Benefit

Vision

Competence

Average score

ANZ HuTrust® Profiles Customers vs. Non-‐customers

Customers Non-‐customers

part of the Asia Pacific mext/duxton group ANZ HuTrust® Profile – Customers vs. non-customers

2 3 4 5 6 7 8

Stability

Development

Rela3onship

Benefit

Vision

Competence

Average score

CBA HuTrust® Profiles Customers vs. Non-‐customers


part of the Asia Pacific mext/duxton group CBA HuTrust® Profile – Customers vs. non-customers

2 3 4 5 6 7 8

Stability

Development

Rela3onship

Benefit

Vision

Competence

Average score

NAB HuTrust® Profiles Customers vs. Non-‐customers


part of the Asia Pacific mext/duxton group NAB HuTrust® Profile – Customers vs. non-customers

2 3 4 5 6 7 8

Stability

Development

Rela3onship

Benefit

Vision

Competence

Average score

Westpac HuTrust® Profiles Customers vs. Non-‐customers


part of the Asia Pacific mext/duxton group Westpac HuTrust® Profile – Customers vs. non-customers

2 3 4 5 6 7 8

Stability

Development

Rela3onship

Benefit

Vision

Competence

Average score

Bendigo HuTrust® Profiles Customers vs. Non-‐customers


part of the Asia Pacific mext/duxton group Bendigo HuTrust® Profile – Customers vs. non-customers

Base: all respondents

What drives each bank’s trust?!

The facets of the HuTrust® model are equally important. Each facet contributes 16.67%.Depending on brand and context the drivers of trust can differ.The driver analysis tells us which of the HuTrust® facets are more important than others in the brand and social/economic context.The HuTrust® facets are proven to account for 70% of satisfaction and propensity to recommend (NPS).

part of the Asia Pacific mext/duxton group HuTrust® Drivers

7% 10% 13% 16% 19% 22% 25%

Stability

Development

Rela3onship

Benefit

Vision

Competence

HuTrust® Drivers 2013 Base: all respondents

ANZ

CBA

NAB

Westpac

Bendigo

While the HuTrust® Profiles for the banks look very similar, the driver analysis shows significant differences in what drives trust for each bank.This shows what trust building areas to focus on most.

part of the Asia Pacific mext/duxton group HuTrust® Drivers

7% 10% 13% 16% 19% 22% 25% 28%

Stability

Development

Rela3onship

Benefit

Vision

Competence

CBA HuTrust Drivers Base: all customers

2013 2012 2011

What customers want to trust for most changes over time with-  Brand situation-  Societal shifts-  Economic shifts

In this example, CBA should focus on understanding what relationship trust means to their customers and build this trust facet. It also shows that CBA should focus on building its weakest HuTrust Facet, ‘trust in an appealing vision’.

part of the Asia Pacific mext/duxton group CBA HuTrust® Drivers 2011 vs. 2012 vs. 2013

Duxton ConsulNng Singapore Email: laurenz.koehler@duxton consul3ng.com Address: 26 Duxton Rd. Singapore 089490 Phone: +65 6323 3340

ChrisNna Eisenschmid Email: [email protected] Address: Nymphenburger Str. 14 80335 Munich Phone+49 (0) 89 20209610

Concerto MarkeNng Suite 250 – 128 Has3ngs St. West Vancouver, BC V6B 1G8 t: 604-‐684-‐8933 f: 604-‐684-‐8934

Who Group Australia M.Dudley Email: [email protected] Level 2, 1 Southbank Blvd Southbank VIC 3006 03 8636 4000

Tred InternaNonal Adam Thorp, Director Mobile: 0417 584 599 Phone: 02 9300 6439 www.tredinterna3onal.com Email: [email protected]

Global contact: mext ConsulNng Australia Stefan Grafe, Managing Partner & HuTrust® Developer [email protected] 165 Cremorne Street Richmond VIC 3122 +61 3 94285417

For further information and HuTrust® usage, please contact:

2013 Australian Bank Trust Drivers

Business

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