Table of Contents
Overview
-
- What you need to know
Executive Summary
-
- Companies and brands
- Overt efforts to give something extra create loyalty perception
- Banking brands retain customers most effectively
- Almost half have at least one favourite credit card or current account brand
- Favouritism is rarer in insurance
- The consumer
- Only utility firms are seen as worse than insurers at rewarding loyalty
-
- Figure 1: Financial services loyalty in context, August 2017
- Almost half of people show loyalty through a long-standing relationship
-
- Figure 2: How finance consumers show loyalty, August 2017
- Customers expect financial rewards for showing loyalty
-
- Figure 3: How finance providers are expected to show loyalty, August 2017
- Discounts and scheme affiliations could encourage loyalty
-
- Figure 4: Interest in aspects of reward schemes, August 2017
- Few people feel encouraged to hold multiple products with one provider
-
- Figure 5: Attitudes and experiences with multiple product holdings and management, August 2017
- The instinct to research the market may undermine loyalty
-
- Figure 6: Attitudes towards loyalty in financial services, August 2017
- What we think
Issues and Insights
-
- Open Banking could redefine loyalty and rewards in financial services
- The facts
- The implications
- Cross-selling rewards have the power to cement customer loyalty
- The facts
- The implications
Companies and Brands – What You Need to Know
-
- Overt efforts to give something extra create loyalty perception
- Banking brands retain customers most effectively
- Nearly half describe at least one current account or credit card brand as a favourite
- Insurance brands less likely to build connection
Brands and Loyalty Rewards
-
- Overt efforts to give something extra create loyalty perception
-
- Figure 7: Agreement with “A brand that rewards loyalty” in the financial services sector, May 2015-July 2017
- Users of brands more likely to describe them as rewarding loyalty
-
- Figure 8: Agreement with “A brand that rewards loyalty” among users of brands in the financial services sector, May 2015-July 2017
- Users likely to tell non-users
- Even most loyalty-rewarding brands get caught by attrition
Brand Favouritism and Preference
-
- Banking brands retain customers most effectively…
-
- Figure 9: Ranking of brands in the financial services sector with the lowest proportion of lapsed users (total users who have not used in the last year), May 2015-July 2017
- …and are most likely to become favoured brands
-
- Figure 10: Agreement with “This is a favourite brand” in the financial services sector, May 2015-July 2017
- Post Office is a preferred brand despite lack of reputation for reward
-
- Figure 11: Agreement with “I prefer this brand over others” in the financial services sector, May 2015-July 2017
Current Account and Credit Card Brand Focus
-
- Nearly half describe at least one brand as a favourite
-
- Figure 12: Repertoire analysis of agreement with “This is a favourite brand” across current account and credit card categories, May 2017
- Preference more widely proffered
-
- Figure 13: Repertoire analysis of agreement with “I prefer this brand over others” across motor insurance and travel insurance categories, December 2016
- Using brands with no affinity
-
- Figure 14: Usage repertoire analysis of brands in the current accounts and credit cards categories, May 2017
Insurance Brand Focus
-
- Favourite insurance brands a less common occurrence
-
- Figure 15: Repertoire analysis of agreement with “This is a favourite brand” across motor insurance and travel insurance categories, December 2016
- Insurance brands less likely to build connection
- Churn means differentiation is more crucial
-
- Figure 16: Repertoire analysis of agreement with “I prefer this brand over others” across motor insurance and travel insurance categories, December 2016
- Usage of insurance brands
-
- Figure 17: Usage repertoire analysis of brands in the current accounts and credit cards categories, May 2017
The Consumer – What You Need to Know
-
- Only utility firms are seen as worse than insurers at rewarding loyalty
- Long-standing relationships are difficult to interpret
- Customers expect financial rewards for showing loyalty
- Discounts and scheme affiliations could encourage loyalty
- 58% of people hold more than one product with the same provider
- The instinct to research the market may undermine loyalty
Financial Services Loyalty in Context
-
- Only utility firms are seen as worse than insurers at rewarding loyalty
- Banks and building societies fare marginally better
-
- Figure 18: Financial services loyalty in context, August 2017
- Building societies trail behind banks among under-35s
-
- Figure 19: Different types of financial services provider rated ‘good’ at rewarding loyalty, by age, August 2017
- Lower exposure to financial services impacts on affinity
-
- Figure 20: Average agreement with “I prefer this brand over others” and “This is a favourite brand” across brands, by sector, January 2015-June 2017
How Consumers Show Loyalty
-
- Almost half of people show loyalty through a long-standing relationship…
- …but long-standing relationships are difficult to interpret
-
- Figure 21: How finance consumers show loyalty, August 2017
-
- Figure 22: How finance consumers show loyalty, loyalty shown versus no loyalty shown, August 2017
- Almost a third show loyalty through multiple product holdings…
- …and the same proportion show loyalty through preferential treatment
- Millennials most likely to show loyalty by going direct to the provider
-
- Figure 23: How finance consumers show loyalty, by generation, August 2017
- Those with higher incomes show stronger provider preferences
-
- Figure 24: How finance consumers show loyalty, by gross annual household income, August 2017
How Providers are Expected to Reward Loyalty
-
- Customers expect financial rewards for showing loyalty
- More than half want a higher standard of customer service
-
- Figure 25: How finance providers are expected to show loyalty, August 2017
-
- Figure 26: How finance providers are expected to show loyalty, August 2017
- Multiple product holders are sensitive to the gap in financial rewards
-
- Figure 27: How finance consumers show loyalty, by how finance providers are expected to show loyalty, August 2017
- Older generations expect superior customer service in exchange for loyalty
-
- Figure 28: How finance providers are expected to show loyalty, by generation, August 2017
Interest in Reward Scheme Benefits
-
- Discounts and scheme affiliations could encourage loyalty
-
- Figure 29: Interest in aspects of reward schemes, August 2017
- Voucher rewards may clash with other financial rewards
-
- Figure 30: Paid-for Co-op Insurance advert on Twitter, September 2017
- A wide choice could improve perception as a rewarding provider …
-
- Figure 31: Interest in Aspects of Reward Schemes, August 2017
- Figure 32: Number of reward scheme aspects highlighted as interesting, August 2017
- Providers can improve relationships with customers that give them preferential status
-
- Figure 33: How finance consumers show loyalty, by interest in aspects of reward schemes, August 2017
- Millennials would be receptive to financial advice in exchange for loyalty
-
- Figure 34: Interest in Aspects of Reward Schemes, by generation, August 2017
Impact of Multiple Product Holdings on Loyalty
-
- 58% of people hold more than one product with the same provider …
-
- Figure 35: Multiple product holdings with same provider, August 2017
- …and older people are the most likely to do so
-
- Figure 36: Multiple product holdings with same provider, by age, August 2017
- Few people feel encouraged to hold multiple products with one provider
-
- Figure 37: Attitudes and experiences with multiple product holdings and management, August 2017
- Half of those who don’t hold multiple products with the same provider say they would consider it
-
- Figure 38: Interest in multiple product holdings with the same provider, August 2017
- People holding multiple products with one provider may be frustrated with lack of rewards
-
- Figure 39: Multiple product holdings, by attitudes and experiences with multiple product holdings and management, August 2017
Attitudes towards Loyalty in Financial Services
-
- The instinct to research the market may undermine loyalty
-
- Figure 40: Attitudes towards loyalty in financial services, August 2017
- People are sceptical about providers’ interest in their loyalty
- For certain products, customer service can be an important driver for switching
- Open Banking could make customers question their loyalty
-
- Figure 41: Interest in open banking-related services, August 2017
- Different approaches to research may shape customer loyalty
-
- Figure 42: How finance consumers show loyalty, by agreement with attitudes towards loyalty in financial services, August 2017
Appendix – Current Accounts and Credit Card Brand Focus
Appendix – Insurance Brand Focus
Appendix – Cross-selling to Existing Customers
-
-
- Figure 43: Santander email cross-selling offer, September 2017
-
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Back to top