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Lack of vision is banks’ biggest growth impediment.
Strongest inhibitor of customer trust is the total absence of an appealing vision. While all banks appear to focus on relationship building and benefit communication, driver analysis shows that trust in a vision is a top 3 driver for all banks.
The results of the driver analysis show that all major banks have almost identical Trust profiles with little differentiation. Lack of differentiation in the banking sector is not a new idea, but the idea that Trust can be used to deliver that sought after differentiation is.
Mext’s HuTrust methodology holds that trust is made up of 6 facets, and in much the same way as reputation and brand equity can be analysed, understood and grown, so too can Trust. The advantage that Trust building has, however, lies in its links to satisfaction, recommendation and corporate / individual KPIs. “Where traditional analysis is focused around attributes, yielding a strong benefit focus in campaigns, Trust analysis and strategy can improve performance across the entire acquisition funnel from communications to front-line staff.”
But back to banking… “We found that the strongest inhibitor of customer trust is the total absence of an appealing vision”. While all banks appear to focus on relationship building and benefit communication, the driver analysis shows that trust in a vision is a top 3 driver for all banks.
The analysis goes some way to explain why much of the bank’s market investment shows little impact on their KPIs, the indicators for growth.
The 2012 Banking HuTrust Index (an update study with fresh data) is currently in analysis and will be available in 2 -3 weeks.
Mext, a specialist customer value consultancy, examined the data of 2200 personal and business banking customers with a model of trust that is proven to account for up to 88% of trust. Trust always measures the same as customer satisfaction and propensity to recommend, the Net Promoter Score input, and therefore is an equally valid indicator for current and predictive performance. Mext works with clients locally and internationally including Qatar Airways, Celcom, Telstra/Sensis, SPCA/CCA and Tower.
The trust model, HuTrust, was developed in collaboration with a leading European Professor of Psychology and identifies the 6 facets that make up trust. It is being used by organisations like Qatar Airways, Sensis/Telstra and provided critical input into the hugely successful AXA Plan campaign.
Stefan Grafe is the Managing Director of mext, co-creator of HuTrust and a former Head of Strategy for the Bates and BBDO Groups in Europe, Asia and Australia. He worked with clients like Allianz Global, HSBC Asia and AXA. For more information please contact Stefan.grafe@
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