Wealthy customers are far less ‘brand loyal’ when dealing with banks and other financial institutions than middle or low income Australians, new research has found.
Roy Morgan’s Single Source survey of 50,000 people found that the top 20 per cent of banking and finance customers, or top quintile, “show very little loyalty to the financial institutions they deal with”.
Customers in that group have “less than a third of their potential dollars with their bank” and on average deal with 5.7 institutions each compared with an average 1.9 institutions in the lowest quintile.
The top quintile group represents nearly two-thirds of the total financial services market – a frustration for the major banks, who according to the report are struggling to attract their business.
The report notes: “The number of financial institutions dealt with covers all banking, wealth management and insurance products. Each of the big four banking groups, as well as some of the smaller players, are able to provide all of these products.
“Clearly the majors are having only limited success cross-selling to their most valuable customers, with no real improvement over the last four years.”
Norman Morris, industry communications director at Roy Morgan Research, commented: “Achieving a higher share of wallet among this group represents a considerable challenge as they are also the segment with the lowest satisfaction level with the major banks.
“Regardless, they are clearly the segment with the highest potential for business growth, but only if the banks are willing to put in the hard yards to win them over.”