(11 April 2011 – Australia) The latest bi-monthly advocacy research by business banking research firm East & Partners has revealed that good service represents the strongest driver of advocacy with corporate businesses. Nearly a quarter of all corporate enterprises report that service is the most important driver encouraging them to advocate their primary bank. Despite this, actual advocacy still remains low and Intention to advocate even lower.
The firm’s March 2011 report reveals that 24.1 percent of corporates view
service as the most important driver encouraging them to advocate their primary
bank, with only 16.3 percent nominating availability and ease of access to
credit as a driver.
Notably, despite this seemingly simply correlation, corporate businesses are
only reporting actual advocacy of their primary bank or relationship manager at
an average of 0.71 times in the last two months; fewer businesses recommending
or referring their incumbent providers translates into lower levels of customer
acquisition.
“Middle market companies are still not advocating their banks. It is notable
though that service has superseded access to credit as the most important driver
of what advocacy that is occurring – a further indication of normalising credit
relationships between customer and bank,” said East & Partners’ Principal
Analyst Paul Dowling.
“This isn’t the case, however, in the SME and Micro segments, where credit
continues to dominate customer advocacy,” Mr Dowling added.
Micro businesses and SMEs are reporting incidences of actual advocacy at only
0.35 and 0.52 times respectively.
About East & Partners’ Business Banking Advocacy Monitor
The East & Partners’ Business Banking Advocacy Monitor is a bi-monthly Index of
business customer advocacy and sentiment towards banks, based on interviews
conducted Australia-wide with a structured sample of +/- 775 companies turning
over A$1 to 100 million per annum, some 4,650 direct interviews with business
banking customers annually. The Index provides a monitor of several key drivers
of customer engagement behaviour with their banks including advocacy,
detraction, empathy, satisfaction, loyalty and mind share.
For more information please contact:
Kimberley Burgess
Client Communications
East & Partners
t: 02 9004 7848
m: 0405 250 796
e: kimberley.b@eastandpartners.com
Average Advocacy Score by Bank – March 2011
10 (would not recommend) to 100 (would
recommend)
| (N: 799) | |
| ANZ | 14.5 |
| BOQ | 56.9 |
| BWA | 24.4 |
| CBA | 11.3 |
| CITI | 15.0 |
| HSBC | 45.5 |
| NAB | 36.2 |
| SGB | 37.1 |
| SUN | 17.0 |
| WBC | 14.0 |
| OTHER | 18.5 |
| TOTAL | 23.3 |