Customer Advocacy: Trade Financiers in Asia are not making the most out of It

Ask any large corporates across Asia what their preferred source of advice on trade finance matters, and the majority (57 percent) of them will tell you that word of mouth and referrals trump any other channels. Consultants and their current relationship bankers are just not seen to be as helpful as colleagues and friends.


Given the vital role advocacy can play in banks’ customer acquisition and retention strategies, what are corporates saying about their incumbent trade banks?


Customer Advocacy is Mediocre at Best


Although the average advocacy scores for primary and secondary trade providers in Asia are slightly higher than their counterparts in Australia, at 7.02 and 7.71 respectively (on a 0-10 scale, with 0= not at all likely to recommend and 10= extremely likely to recommend), these scores still effectively represent “passives”.

Corporate customers, whilst they probably would not spread any negative word of mouth about their providers or services offered, they are also not enthusiastic enough to actually promote them.


Happy Customers Do Not Necessarily Translate Into Brand Promoters


Perhaps counterintuitively, the latest research by East & Partners suggests that satisfied customers are not necessarily the ones who will talk or recommend. This pattern of a disconnected, broken link between customer satisfaction experiences and advocacy is most evident in JP Morgan and BAML.


Although both banks achieve above average customer satisfaction ratings at 1.95 and 2.01 respectively (on a 1-5 scale, where 1= satisfied and 5= dissatisfied), their advocacy ratings are well below average at 7.00 and 6.87 respectively.


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