(12 November 2012 – Australia) Big advertising spending by Australia’s banks doesn’t necessarily deliver higher mind share, the latest research from leading industry consultants East & Partners has found; important, due to mind share becoming the biggest driver of market share outcomes in business banking.Of the Big Four domestic banks, NAB has the highest mind share amongst business
customers as a “business bank”, with 22.4 percent, but has the second lowest
advertising recall with 13.8 percent. On the flip side of this, ANZ has 21.8
percent recalls for their advertising but only 15.4 percent of customers’ share
of mind.
Outside the Big Four, HSBC and Bank West have the next highest mind share with
6.3 percent and 3.7 percent accompanied by relatively low advertising recall
(5.9 percent and 2.7 percent respectively).
Institutional customers, in particular, seem to be less swayed by advertising
than customers in the Corporate and SME segments.
NAB, for example, with the second lowest advertising recall, has the highest
mind share among Institutional customers. Westpac, which has the highest
advertising recall (22.5 percent), produced their highest mind share results
among Corporate and SME’s.
The Mind Share/Advertising Recall Ratio
| % Mind Share over % Advertising Recall | |
|
ANZ |
70.6 |
|
NAB |
162.3 |
|
CBA |
84.5 |
|
WBC |
98.7 |
|
HSBC |
106.7 |
|
BWA |
137.0 |
East & Partners’ Business Banking Index – September 2012.
East & Partners’ Head of Markets Analysis Lachlan Colquhoun commented, “Mind
share is a much more sophisticated phenomenon and is driven by more subtle
influences than advertising campaigns.”
“Our research shows that if banks want to increase their market share among
business customers, understanding mind share and investing in developing it
delivers better returns on investment than above the line advertising spend”, Mr
Colquhoun added.
“These customers are more responsive to thought leadership – where a bank will
take the lead on an issue of real relevance and continue to deliver incisive
commentary and information which reflect customer concerns.
“It’s more about intellectual firepower and relevance than advertising spend and
a slick campaign, which business customers tend to see straight through.”
About East & Partners’ Business Banking Index
A bi-monthly Index of business customer behaviour toward their banks, based on
interviews conducted Australia-wide with a structured sample of over 6,150
companies across four segments annually.
The Index provides a monitor of a number of important drivers of customer
engagement behaviour with their banks including advocacy, detraction, empathy,
satisfaction, loyalty, channel engagement, advertising recognition, product
demand, product advocacy and mind share.
Index Methodology: For this round of the Business Banking Index, direct
interviews have been conducted with 1,009 businesses based on a structured
sample frame of the target population nationally, comprising:
› Institutional – 221 – (A$530+ million turnover enterprises)
› Corporate – 249 – (A$20-530 million turnover enterprises)
› SME – 287 – (A$5-20 million turnover enterprises)
› Micro – 252 – (A$1-5 million turnover enterprises)
For more information or to interview East & Partners, please contact:
Sian Dowling
Marcomms & Client Services
East & Partners
t: +61-2-9004 7848
m: + 61-420 583 553
e: sian.d@eastandpartners.com