Top-quintile customers unhappy with big four
Personal customers in the low-quintile are satisfied with the performance of the big four banks in the six months leading to December 2016, but this was not the case for top-quintile customers.
Roy Morgan research found top quintile customers, who account for 62.9 per cent of total value across banking and wealth management products, had the lowest satisfaction levels.
Top-quintile (top 20 per cent) customers had also recorded the lowest level of advocacy, with a net promoter score (NPS3) of minus 23.9, on top of their low satisfaction rating of 73.4 per cent.
The highest satisfaction level for all four big banks were among their lowest-quintile customers, but this group accounts for just 0.3 per cent of total market value. The best performer for the bottom value quintile was the Commonwealth Bank of Australia (CBA) with an 86.7 per cent satisfaction rating. ANZ recorded an 84.5 per cent rating, while National Australia Bank (NAB) had 82.9 per cent of customers satisfied, and Westpac had 81.1 per cent.
Despite recording the lowest satisfaction level in bottom value quintile, Westpac recorded the second highest satisfaction rating among its top value quintile customers at 74.3 per cent.
This was behind CBA's 75.6 per cent. A total of 71.3 per cent of top-quintile ANZ customers were satisfied, while NAB recorded 70.6 per cent.
"A focus on customers who are ‘very satisfied' provides a more stringent criteria and a tougher benchmark for banks to target," Roy Morgan industry communications director, Norman Morris said.
"This research shows that there is now a big opportunity to focus both satisfaction and advocacy on the more important segments rather than simply a total market measure."
Outside the big four, Teachers Mutual Bank continued ahead of the pack with 96.1 per cent of its top-quintile customers satisfied, slightly ahead of Bendigo Bank (91.6 per cent), ING Direct (87.8 per cent), and Bank of Queensland (84.4 per cent).
AUTHOR
Hope William-Smith
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