Introduction Customer loyalty is bound to be more important than competition returns to the Australian market for financial services. The global financial crisis allowed the major national banks for much of the new banking activities, but with new operators set to enter the market, customer loyalty is expected to gain in importance. This report analyzes a wide range of topics related to customer loyalty. Scope * Look at the key drivers of customer loyalty and its state across different product categories. * Analyzes which factors are most important to customers when considering booking or changing supplier. * Provides an analysis of best practices for financial services providers. * Scans the next evolution of customer loyalty. Highlights There are relatively few opportunities for financial institutions transaction to acquire customers, with most of the opportunities closely linked to events in the lives of consumers. One obvious opportunity is that young people make their first transaction account. Customers also can get when you move location or change jobs. In addition to its effect on loyalty and customer satisfaction, loyalty systems derive their value from the information collected about customers during implementation. This dimension is even more important in other industries, such as the retail industry. As with the relationship between loyalty and customer profitability, customer loyalty and satisfaction are positively but not perfectly, correlated measurements. As a result, an effective loyalty program does not require that the customer satisfaction. Reasons to buy * Obtain a thorough understanding of the issues of customer loyalty Australian financial service providers are facing and what they are doing about it. * Identify and evaluate the most effective strategies in customer retention and acquisition of different product categories. * Understand the evolution of the next customer loyalty and where the opportunities are. Table of Contents: Overview Catalyst Summary 1 1 1 Executive Summary 2 Background to the “customer loyalty in the loyalty of Australia Financial Services 2 customer can be caused either by satisfaction or apathy two Western European countries have high level of customer loyalty in financial services transaction accounts are two key products to generate customer loyalty 2 farms of additional products are not necessarily correlated with greater satisfaction of three opportunities to reach customers often linked to events Customer Life March 4 mutual competitive dynamics of society MFI customers are polarized on the types and appropriateness four major banks have different strategies, strengths and weaknesses in the product types of accounts in May for the first time are Group 5 key customer loyalty savings account has been eroded due to increased 5 online savings accounts mortgage customer loyalty has stabilized since the market has matured five credit card rewards programs have declined in importance over the years last 6 Allegiance: reflections and recommendations 7 Develop the best loyalty program should focus on long-term return of 7 loyalty schemes can be characterized according to five features of financial services loyalty seven drivers share with other industries September 8 and forget industries share the same drivers of customer loyalty and beat eight churn management is a major challenge operating in the telecommunications industry eight hybrid products will deposit products more importantly customer loyalty transaction accounts 8 and savings accounts will be merged into a single product 8 The product resulting from the concentration of deposits change the rules of customer loyalty 9 Recommendations for providers of financial services in September preventive measures for change are most effective in September loyalty deposit account must be a key to financial service providers 10 program credit card reward should offer more options for the establishment of 11 risk-based rates should be considered by mortgage lenders in Australia in November 1912 Contents Table of Figures 13 Tables 14 Table Background to the “loyalty customer loyalty Australian Financial Services 15 The customer satisfaction is always linked to customer loyalty 15 can be caused either by satisfaction or apathy 15 29% account holders to maintain its supplier transaction for reasons other than customer satisfaction in the loyalty of 17 financial services has declined, partly due to the increasing number of market participants and products 18 Customer loyalty has declined in past two decades, but recently has increased 19 From an international perspective, Western European countries have a high level of customer loyalty transaction accounts 19 are the key to generate customer loyalty can be 24 viscosity transaction account question by legislation expanded 25 propensity for change is much higher for holders of savings accounts holding 25 additional products are not necessarily correlated with greater satisfaction of 27 opportunities to reach customers often linked to key events 29 customer global services companies to try to retain customers in motion 30 Dynamic jurisdiction of society 32 clients of MFIs are polarized on the types and mutual convenience Society 32 MFI clients are more likely to value the convenience of a single legal institution of society 32 clients of MFIs are more polarized with respect to the tradeoff between price and convenience 34 major banks have different strategies, strengths and weaknesses across 37 types of product holding account transactions force assimilation of the influences of other products 37 The proportion of account holders of long-term transactions vary among the 37 leading banks on First time accounts are a key group of 38 customer dissatisfaction with a previous provider is a relatively common reason for switching account provider 40 propensity of switching allegiance account varies between 41 Savings institutions has been eroded due to the increase in online savings accounts 43 The big banks were slow to respond to online savings accounts online savings 43 accounts have led to a convergence of rates online savings accounts have been 43 aversion increasing rate over 44 types of switching products savings accounts is seldom planned and often led to Cross-sell rate of 45 savings accounts for holders of bank transaction accounts is a classical approach to customer loyalty 47 Mortgage is a relatively frequent disincentives around 48 of refinancing has stabilized since the market has grown 49 products have strong impact on the surprisingly high mortgage provider credit card rewards 50 programs have diminished in importance in recent years 52 Each driver card provider of choice has been the target of a major group 52 different bank cardholder loyalty varies by institution 53 Loyalty: Analysis and Recommendations 56 Designing Optimum loyalty program should focus on long-term profitability 56 The optimal regimen loyalty begets loyalty and profitable customer satisfaction, while data collection 56 The assessment of long-term profitability of loyalty programs is a challenge 57 customer satisfaction could be a possible but not necessary for an effective loyalty program 58 Collection of information is a feature of many frequent flyer programs from 59 systems Loyalty can be characterized according to five features 59 Loyalty schemes offered exclusively to new customers are in most cases an error 60 Disincentives can be a way to lose 61 customers deliberately Unprompted rewards can delight client if appropriately structured 61 Australian banks can get ideas of development model of five stages for the loyalty card 61 Stage one: no credit card loyalty systems 61 Second stage: loyalty and customer acquisition through 61 Phase three: penetration of loyalty decreases as some issuers to begin withdrawing their plans of 62 Fourth step: move the program or focus on the price of 62 Fifth stage: maturity of the market and co-brand solution of 62 Services drivers share financial loyalty with other industries in September 1963-and-forget industries share the same drivers of customer loyalty and beat 63 churn management is a major challenge in operating the telecommunications industry 63 In the utilities sector is nine major steps toward true understanding of the customer 64 In Canada, banks have partnered with supermarkets to provide a comfortable interaction and loyalty drive 66 hybrid products will deposit products more importantly customer loyalty accounts 67 transactions and savings accounts are merged into a single product 67 The product of the concentration of deposits change the rules of customer loyalty 68 recommendations for providers of financial services to 68 preventive measures are most effective switching allegiance deposit account 68 must be a key to financial service providers 69 credit card reward schemes should offer more options than 70 patterns of risk-based pricing should be considered by mortgage lenders in Australia recently submitted 71 NAB-based prices the risk of mortgage broker mediated APPENDIX 74 Supplementary data 72 Methodology 88 References 74 Ask the analyst 88 88 88 88 Consultation Legal Notice For more information, visit: http://www. aarkstore. .com / reports / Customer-Loyalty-in-Australian-Financial-Services 45,130. html