A Cimigo 2010 report on insights of Vietnam banking behaviours and user demographics

1. Vietnam Retail Banking
Why Delighting Customers Matters

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4. Cimigo advise 4 of the top 5 advertisers in
Vietnam on their brand and communication
strategies.

5. Copyright © 2010 Cimigo Download this presentation for free: www.cimigo.vn
Research Channels
Telephone interviewing In-depth interviewingStreet intercepts Focus groups
Videographies Mystery shopping Online survey Online usability labs

6. 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

7. 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

8. Delighting Customers

9. Contents
Does Delighting Customers Matter?
What Delights Them Right Now?
Banking Behaviour And User Demographics
Extending the Relationship

10. Does Delighting Customers Matter?

11. To answer this, let’s compare what bank
customers think about their bank
relationship vs. what they actually do.

12. 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

13. Comparing Attitudinal Loyalty Vs. Behavioural Loyalty
0%
20%
40%
60%
80%
100%
5 6 7 8 9 10
Satisfaction Rating
%Likelytocontinueuse
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

14. Even Steeper Drop For Likelihood To Recommend!
0%
20%
40%
60%
80%
100%
5 6 7 8 9 10
Satisfaction Rating
%Likelytorecommendbanktoothers
A drop in satisfaction rating from 9 to 8
can mean a drop of 40 points in
likelihood to recommend!
From 70%
to 30%

15. 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?

16. What Delights Them Right Now?

17. Let’s see what banking experiences stick in
their minds…

18. Positive And Negative Experiences
Had any exceptionally positive
experiences recently?
26%
Had any exceptionally negative
experiences recently?
4%

19. Top 5 Examples Of Positive Experiences
Call from bank sales3%
Convenient banking10%
Quick banking service22%
ATM network/services24%
Staff interaction54%
Number 5

20. Top 5 Examples Of Positive Experiences
High interest rates9%
Convenient banking10%
Quick banking service22%
ATM network/services24%
Staff interaction54%
Number 5

21. Top 5 Examples Of Positive Experiences
High interest rates9%
Convenient banking10%
Quick banking service22%
ATM network/services24%
Staff interaction54%
Number 4

22. Top 5 Examples Of Positive Experiences
High interest rates9%
Convenient banking10%
Quick banking service22%
ATM network/services24%
Staff interaction54%
Number 3

23. Top 5 Examples Of Positive Experiences
High interest rates9%
Convenient banking10%
Quick banking service22%
ATM network/services24%
Staff interaction54%
Number 2

24. Top 5 Examples Of Positive Experiences
High interest rates9%
Convenient banking10%
Quick banking service22%
ATM network/services24%
Staff interaction54%
Number 1

25. Staff interaction by far the most
mentioned reason for positive
experiences.
ATMs also mentioned, but to a lesser
extent.

26. Top 5 Examples Of Negative Experiences
Call from bank sales3%
Number 5

27. Top 5 Examples Of Negative Experiences
Poor ATM locations5%
Staff not nice and warm8%
Banking took too long11%
ATM ran out of money35%
ATM broke down44%
Number 5

28. Top 5 Examples Of Negative Experiences
Poor ATM locations5%
Staff not nice and warm8%
Banking took too long11%
ATM ran out of money35%
ATM broke down44%
Number 4

29. Top 5 Examples Of Negative Experiences
Poor ATM locations5%
Staff not nice and warm8%
Banking took too long11%
ATM ran out of money35%
ATM broke down44%
Number 3

30. Top 5 Examples Of Negative Experiences
Poor ATM locations5%
Staff not nice and warm8%
Banking took too long11%
ATM ran out of money35%
ATM broke down44%
Number 2

31. Top 5 Examples Of Negative Experiences
Poor ATM locations5%
Staff not nice and warm8%
Banking took too long11%
ATM ran out of money35%
ATM broke down44%
Number 1

32. Out of the top 5 negative experiences,
3 of them relate to ATM problems.
Bank staff and service delivery
mentioned far less.

33. There seems to be a direct relationship
between satisfaction and staff
interaction…
and an inverse relation between
satisfaction and ATM usage…

34. 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
%Delightedcustomers
…the more likely they are to
have high overall satisfaction.

35. 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
%Delightedcustomers
ATMs don’t “cause” dissatisfaction,
but don’t help boost loyalty either

36. Modern banking technology and
convenience is great, but human interaction
still matters.
Especially when technology hasn’t been
perfected yet.
But is interaction of equal importance to
everyone?

37. Banking Behaviour
And User Demographics

38. ATMs Most Frequently Used Touch Point
70% 34%
6% 5%
Touch points visited/contacted once a month or more – HCMC & Hanoi

39. 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

40. 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

41. By trying to understand what creates a
valuable experience for customers, we’ve
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?

42. Extending the Relationship

43. Touch-points are not only essential for
managing customer relationships, they are
also opportunities to transmit information
and announce new products and
promotions.

44. 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?

45. Most “convincing” ways to encourage sign-up
Phone call from bank employee12%
Info sheet describing the new product12%
Gift given upon sign-up16%
Face-to-face talk with bank representative20%
Preferential interest rate25%
Number 5

46. Most “convincing” ways to encourage sign-up
Phone call from bank employee12%
Info sheet describing the new product12%
Gift given upon sign-up16%
Face-to-face talk with bank representative20%
Preferential interest rate25%
Number 4

47. Most “convincing” ways to encourage sign-up
Phone call from bank employee12%
Info sheet describing the new product12%
Gift given upon sign-up16%
Face-to-face talk with bank representative20%
Preferential interest rate25%
Number 3

48. Most “convincing” ways to encourage sign-up
Phone call from bank employee12%
Info sheet describing the new product12%
Gift given upon sign-up16%
Face-to-face talk with bank representative20%
Preferential interest rate25%
Number 2

49. Most “convincing” ways to encourage sign-up
Phone call from bank employee12%
Info sheet describing the new product12%
Gift given upon sign-up16%
Face-to-face talk with bank representative20%
Preferential interest rate25%
Number 1

50. 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?

51. Delighting Customers

52. Richard Burrage
Cimigo
9 Nguyen Huu Canh Street, Binh Thanh District, HCMC, Vietnam
T: (84) 8 3822 7727 Ext 345
E: richardburrage@cimigo.com, W: www.cimigo.vn