Nice and selective summary with little insight as to why Mybroadband
Complaints Incidence and Resolution
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Capitec has the lowest complaint incidence ratio (10%) which is line with global benchmarks, coupled with a high complaint resolution rate. Capitec’s low complaint incidence rate is reflective of its simple and efficient model that avoids complexity.
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In contrast, for all other banks, customer complaints are red-flagged, being on average 150% higher than the international benchmark of 10%. It is concerning that when you delve into the reasons for complaints,
these revolve around the basics and fundamentals of banking products such as account queries, debit orders and payments, card issues and so on, rather than more complex issues.
• Banks are in general very poor at preventing the repeat causes of complaints and customer dissatisfaction once resolved. The lack of root cause identification and management of complaints has a direct correlation to customer loyalty, and given the new entrants in the market, warrants strong attention.
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FNB has seen a 4% increase in complaints incidence compared with the previous year, which suggests that while FNB has strongly positioned as the ‘digital’ bank, its systems and processes have at times not supported this move seamlessly and reliably for its customers.
Customer Loyalty
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Absa, Nedbank and Standard Bank have excelled in this year’s index on customer loyalty improvements and also show consistent year on year growth. Nedbank have shown the largest year-on-year increase in Net Promoter Score (+11%).
• It is noteworthy that while FNB is strongly placed in a ‘digitally differentiated’ position, it will be increasingly difficult to sustain this advantage as competitors and new entrants will be closing the digital lead.
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Capitec has the highest Net Promoter Score (NPS) at 59,8%, which is almost double the industry average. Capitec customers are actively promoting and recommending the brand to others. NPS measures the likelihood of a person recommending a brand.
• However, across the banking sector, NPS-only measurement practices are exposed as non-reliable indicators of loyalty as 1 in 4 (25%) of all banking customers are considered “defector” customers on the brink of defecting to another bank. While banks may point out that their churn rate is below 25%, the disjoin comes in when one considers the time frame when a client defects to another bank. Customers usually adopt a phased approach rather than close and move all accounts in one go. Banks won’t necessarily see the churn as quickly or as marked as it occurs over a few months. The red flag should be that 25% of bank customers have indicated very low satisfaction levels and thus low levels of loyalty, and thus are likely to move to a better competitor offering. These customers are the soft target for new competitors such as Discovery Bank, Bank Zero, and TymeBank.
https://blog.consulta.co.za/sa-csi-banking-results-2018/
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