The FINANCIAL — Satisfaction of Georgian banks’ customers has decreased in 2012 year first time, in comparison with 3 previous years, as showed in the results of EPSI Rating study (independent survey aimed at measuring European Customer Satisfaction Index) released last week.
About 1000 clients were interviewed via phones about their banks’ quality taking into consideration 12 months experience.
TBC Bank and Bank of Georgia share the leadership. Clients of Liberty bank are not satisfied — All the banks in 2012-year rating demonstrated decrease of customer satisfaction index. Average industry index is 83,0 points out of 100, it is 3 % lower than 12 month ago. Liberty bank demonstrated the biggest slowdown. Satisfaction index has 5,7% drop towards last year reaching the rate of 81,9 points. It is the lowest result of Liberty bank during 3 years since the beginning of the annual study (Liberty bank was not included in EPSI rating in 2009). From the point of view Georgian customers, TBC bank and Bank of Georgia are considered to be the leaders: 85,6 points out of 100 and 84,6 points out of 100 respectively. Level of customer satisfaction for these banks has also gone down in comparison with 2011, however not noticeably – about 2%.
The survey took place on September under supervising of an independent Georgian contact center ACT Research and EPSI analysts in accordance with European EPSI Rating standards. Analysis was focused on banks with the biggest market share. As a result the rating includes Bank of Georgia, TBC Bank, Liberty Bank and a group “Others”: Bank Republic, ProCreditBank, Privatbank, VTB Georgia, Constanta bank, Kor Standart bank, BТА Bank, Basis Bank and other banks.
Analyzing dynamics for 4 years of monitoring we conclude that it is only Bank of Georgia that improved loyalty and satisfaction of its clients for about 4 %. TBC bank’s indices on the whole didn’t change in comparison with 2009 year; however some of the aspects demonstrate decrease of customer satisfaction.
Customer satisfaction is one of the most crucial forthcoming microeconomics indices determining future sales and costs of bank in relationship with its clients. Leader group of banks with high satisfaction has 45 % of clients who are ready to extend their cooperation with a bank next year, whereas Liberty Bank has only 37 % of this kind of clients.
It is getting harder to retain clients without help of satisfaction increase, EPSI researchers believe — Consequence of satisfaction decrease is a loyalty decrease. In 2012 year loyalty level for Georgian banks demonstrates 2,8 % loss and has 85,3 points out of 100. The most noticeable loyalty decrease has been shown by Liberty Bank: index has gone down to 84,0 points (it is 3,2 % change). During the latest years the banks retained their clients with the help of not only high satisfaction but also psychological and technical switching barriers. This fact is proved by the loyalty level being higher than satisfaction level. In 2010 the difference between two indices in the sector made up on average 4 points and in 2012 it was reduced to 2 points. Development of market mechanisms and competition in Georgia are gradually displacing such instrument of retention as switching barriers. As in many countries with developed competition it is exactly the satisfaction index and its growth that plays the main role in clients’ retention by increasing costs of competitors during the process of attracting new clients.
The firmest confidence is demonstrated by the clients of Bank of Georgia and TBC bank. However in 2012 TBC bank has had more rapid pace of loyalty index reduction than Bank of Georgia: 2,7% and 1,9% respectively.
“According to the results of 4-years monitoring it can be said that Bank of Georgia has taken tremendous improvement measures in quality of work and relationship with clients. During 4 years it is the only bank that has had increase of satisfaction index as well as confidence of clients. Whereas TBC bank is little by little losing its competitive advantages in ability to react client’s demands, give rise to their satisfaction and loyalty, but still it is one of the leaders in terms of work quality in Georgia. But it is worth holding in mind that in sphere of quality one shouldn’t take any moment's respite. And from the point of customer’s view, TBC bank did take it”, as Alexander Kosobokov, CEO EPSI in Russia, CIS and Georgia, comments.
The voice of customer was not listened to — The basis of customer relationship analysis includes 5 aspects of satisfaction: image, quality of bank products, client’s expectations, service quality and value for money. Deep analysis of 2012 sector’s average gives idea about decrease of all aspects indices, which is not significant, but crucial in terms of affecting satisfaction index change.
Such aspects as Image, Value for money and Quality of banking products has demonstrated the biggest decrease (1% on industry average). At the same time there was no significant change in clients’ Expectations and Service quality satisfaction in comparison with previous year. During the last 4 years all Georgian banks have been putting efforts in Service Quality without noticing that Product Quality is much more important for clients and requires improvements in terms of Image in the society as well as Value for money. As a result, clients didn’t appreciate the actions of their banks and confidence began to disappear.
“Some banks didn’t managed to apprehend changes in clients’ priorities”, Kosobokov concludes.
Loyalty analysis in 2012 study also shows that one third of each bank’s clients consider 2-3 other banks as alternatives. In 2011 this group made up on average no more than 28% of clients. About 60% of Liberty bank’s clients take in mind 2 and more alternatives, it is 10 % more in comparison with the industry leader – TBC bank. It has 46,8% of such kind of clients.
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