Despite the banks tightening lending to investors, consumer satisfaction is still relatively strong.
The top 20% of high value banking customers, however, had the lowest satisfaction level among all the quintiles, according to a recent Single Source survey conducted by Roy Morgan.
The survey points out that July’s overall satisfaction level of 82.8% carried over to the following month, a level just shy of March 2015’s 20-year record high of 82.9%.
It also reveals that the top 20% of personal banking customers—considered high value clients—had the lowest level of satisfaction compared to the others, with 78.2% satisfaction. These high value customers account for a sizeable 63.2% of the total value of the financial services market.
The survey notes that the country’s four major banks have all done a great job of raising satisfaction among their low value customers, although this quintile only makes up 0.2% of the total market value of financial services. Of the four, the CBA is considered the best performer with a customer satisfaction level of 87.8% for low value customers.
With the highest quintile of customers considered, NAB leads the list with 77.5%, followed by the CBA at 76.0%, Westpac at 75.1%, and ANZ at 73.3%.
Despite all this, CBA managed to raise its overall customer satisfaction level for the month of August by up to 0.3%; the other three banks declined by a small fraction.
The survey also takes a detailed look at other banks outside of the major four, with Teachers Mutual Bank being the best performer in terms of customer satisfaction at 94.8%.
Notably, the survey discovered that the other banks enjoyed higher satisfaction levels compared to their larger counterparts. Indeed, the average satisfaction level of these banks comes in at 86.1%; a marked difference from the CBA’s 82.6%.
Overall, the survey suggests that banks should pay more attention toward accommodating their high value customers.
“Achieving a higher share of wallet with (high value customers) represents a considerable challenge but they are clearly the segment with the highest potential for business growth and as such are likely to be more profitable than chasing new low value customers,” said Norman Morris, the Industry Communications Director of Roy Morgan Research.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now