Share of Wallet: Best Practice in Cross-selling

Global Reviews has now launched Share of Wallet, a unique data and insights solution that helps your digital and marketing teams to understand the opportunities for a better cross-sell experience for desktop web, mobile web and native app. We’d like to share some information on our methodology with you and show you a few best practice examples.

We conducted research in the banking industry in which we evaluated the current experience and offering of key brands cross-selling within their digital assets and identified best practice in this area across all their products.

With Share of Wallet, we found a solution to:

  • Align/contrast share of wallet performance against the promotion of cross sell opportunities
    • Measure the consumer share of wallet allocation of key brands within banking and insurance industries
    • Audit the implementation of feature and function best practice on digital assets across the same brands
    • Correlate share of wallet performance against the promotion of best practice digital cross-sell strategies
  • Identify best practice in this area across all industries
  • Provide recommendations to improve cross-sell features and functions

Our research shows that there is no correlation between volume of sales a customer has with your company and the volume they have with a competitor. Someone with a current account at one bank, could easily have a home insurance with another bank.

We also can’t focus on absolute satisfaction as a means of understanding share of wallet, for what drives share of wallet, is not what drives the Net Promoter Score (an index that measures the willingness of customers to recommend a company’s products or services to others, used as a proxy for overall customer satisfaction and loyalty to the brand).

Our study on Australian banks shows that the satisfaction rank has no impact on the number of brands customers use.

SoWSatisfaction

So, despite high satisfaction with one product, we found that these are the main reasons for customers to choose a brand for another product they’re interested in:

1. They have the best deals/ offers for my needs (48%)
2. They look like they have good customer service and support features (45%)
3. Their products/ offers were easy to understand (43%)

After our extensive research, our recommendations are:

  • Facilitate quote and applications: This must be a function that is prioritised and provides a good user experience within secure areas, as this is where the existing relationship can play a big part in decision making and ease of completion
  • Help me complete the form: If a current customer is getting a quote or applying, within the customer services area or app, their information should be provided and merely confirmed by the customer (name, address, date of birth, email address, income, employer, assets, debts etc.)
  • Help me understand: Use customer data to provide product recommendations, such as the optimal credit card or loan for them
  • Communication: If you are handing the customer off from one channel to another, ensure that the customer is informed but also that their details are passed on
  • Manage applications and quote: Allow visitors to view and manage applications from within the app, updating them on the progress and status of the application form, and promoting if incomplete
  • Contextual offering and solution approaches: Consider information architecture and content approach, promoting other products softly, in areas where ideal prospective customers may be
  • This content should be shown in a solution/ content manner, rather than an advertisement, in order to be viewed as helpful, UNLESS a strong offer or proposition is available
  • Checking out and quoting functionality: Promote the ability to add, combine, upsell options when quoting or checking out – it is important that cross-buy doesn’t have a negative impact on those who wish to only buy one product
  • Recalling customer data: If an existing customer is following the journey on the public site, they should be given the option to complete in the secure area or recall their details via a policy number etc. to reduce effort required

So how are providers helping existing members to buy more products? Some best practice examples:

SoWAvivaSoWANZSoWANZ2SoWLloydsSoWLloyds2SoWLloydsAviva

Global Reviews specialises in helping top brands worldwide convert more of their ideal customers online, through the use of the most advanced research methodologies. To find out more about how we can help you and your digital teams, or if your brand would like to be included in our next round of Share of Wallet research, please contact: 

Hannah-Rose Farrington – Commercial Director
T:         +44 (0) 203725 8260
M:        +353 (87) 1263043
E:         hannah.farrington@globalreviews.com

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How to optimise cross-sales conversion: a new solution (webinar)

Global Reviews is delighted to announce the launch of SHARE OF WALLET, a unique data and insights solution that helps your digital and marketing teams to understand the opportunities for a cross-buy experience for desktop, mobile, mobile app and public websites.

Global Reviews evaluated five banks in Australia and their audit scores show that they currently achieve between 27% and 57% cross sell success. We were curious to find out why they lost their existing customers, who are looking for another product they offer, to a different brand.

We evaluated the current experience and offering of key brands cross-selling within their digital assets and identified best practice in this area across all their products.

Share of Wallet measures:

  • How many existing customers, who are in market for another product, you are losing to a competitor that you could and should have won
  • Why your cross sales experience didn’t encourage your customers to buy and to which competitor you lost them to
  • The quality and effectiveness of the experience you are providing online with real world conversion metrics

This analysis creates understanding of the competitor and market forces that are influencing purchasing decisions and identifies what changes you need to make to your site and app to impact conversions.

Some examples of best practice we discovered during our research:

  • Promote complementary products within content, with a solution approach (consider scenarios or personas)
  • Utilise customer data to provide detailed examples of their potential opportunities (borrowing capabilities, repayments, loan type)
  • Give the customer the opportunity to buy or find out more – Don’t forget to plant the seed for later

 

To see more research results and find out more about Share of Wallet, sign up to our webinar of Thursday 6 April 2017, 9am GMT

SoW webinarGlobal Reviews specialises in helping top brands worldwide convert more of their ideal customers online, through the use of the most advanced research methodologies. To find out more about how we can help you and your digital teams, or if your brand would like to be included in our next round of Share of Wallet research, please contact: 

Hannah-Rose Farrington – Commercial Director
T:         +44 (0) 203725 8260
M:        +353 (87) 1263043
E:         hannah.farrington@globalreviews.com

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Top three tips for winning more of your ideal personal loan customers

A recent Global Reviews Digital Sales Effectiveness study (April 2016) revealed that financial services websites in the UK are not doing enough to help customers find the personal loan that is right for them. Simply put, the UK banking industry is failing to help customers match products to their specific needs online by not providing enough general information.

When we look at the top and bottom performers throughout the customer journey, it is apparent that no one brand is leading the market across all stages.

Loans Top Performers

We asked ‘in-market’ customers, i.e. those who are actively in the market for a new personal loan, to spend some time on the homepage of some of the leading banking brands in the UK, absorbing and actively looking for their desired information on personal loans. Voice of the customer feedback was captured and it is very apparent that customers found many of the homepages difficult to navigate, overloaded with information and interestingly, personal loans information was difficult to find.

VOC

So, what can financial service providers do to help their ideal customers find the correct information on the personal loan, effectively and with relative efficiency and ease? The following ‘Best Practice’ examples provide some insight:

Halifax – Addresses different needs on the homepage 

Halifax

Citigroup helps users understand the difference between overdrafts and loans 

citi

CBA includes a summary of each loan with key features and benefits 

CBA

Recommendations: 

  • Consider guided choice methods to help customers find the personal loan that is right for them.
  • Include links to ‘more information’ and ‘apply now’ for customers at different stages of the funnel.
  • Remember WHY customers are on the personal loans page, think like a customer and answer the big questions.
    • Why pick a personal loan?
    • Why choose a loan over an overdraft or a mortgage extension?
    • Which is more cost effective?

Global Reviews excels at solving the critical problems digital leaders face in customer acquisition.

  • WHY are we losing potential online customers who are actively considering buying from us (taking out a quote and shortlisting us) but then buy from another company?
  • WHAT can we learn from other companies around the world that will enable us to stop losing customers that we should and could be winning?
  • HOW do we independently validate, in such a fast-moving and disruptive digital environment, that the development decisions we are making are the right ones?

To find out how we can help you, please contact us. 

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How personalisation can help banks retain customers

In research conducted across retail financial services, in 2014 and 2015, it was found that around 74% of consumers would initially prefer a provider, when looking for a banking product, because they’re a current customer. However, of that 74%, 35% go on to choose a different provider to open an account with or apply through. The credit card industry fared the worst with 41% of people selecting a different brand, followed by mortgages with 34% going elsewhere.

Brands within the banking industry generally aim to encourage customers to hold multiple accounts and products with them, so to lose a current customer to another bank when they’re seeking out a new product can result in a significant loss for the bank. Not only are they missing out on a new opportunity, but it also puts the bank at risk of losing the customer’s business across other accounts as well.

Why are banks losing so many opportunities?

In addition to competitive offers and rates, website usability plays a major role in which brands consumers choose to do business with. To assess how well banking websites aid consumers online, a series of consumer experience benchmarking studies were conducted. For the most part, Australian banks perform relatively well across the online customer journey, compared to UK peers, however there is one area that suffers greatly: the handling of existing customers.

Across the main banking products, credit cards and mortgages are the worst performers in this area, with industry averages of 38% and 30% respectively. The performance is far better within transactions accounts, averaging 58%, leaving personal loans (45%) and savings accounts (44%) in the middle, although still a lot of room for improvement.

Existing customer handling

When we break down some of the key elements used to aid in existing customer handling, we can see that there are areas that are lacking. Looking at the Big 4 banks (ANZ, CBA, NAB and Westpac), all brands ask if you’re an existing customer during the application process for a personal loan. However, when it comes to applying for a credit card or transactions account only three of them ask and for mortgages and savings accounts only two ask the question.

Going on to prompt a non-registered customer to register for online member services, three brands do this for transactions accounts, but only one brand for each of the other products does so – and it’s not the same brand each time!

Big 4 banks criteriaFrom this assessment we can see that not only are there areas that are missing, but there is also an inconsistency across brand websites. In recent years there have been endless discussions about ensuring a consistent user experience across devices in order to create a seamless flow as consumers switch between desktop and mobile devices. This same focus of consistency is not being considered and implemented across the full product range a brand’s website offers. When there isn’t a predictable and reliable flow throughout a website, it creates more work for the customer as they try to navigate their way through a mix of design structures.

It’s human nature to stick with what we know. So if a customer knows the process of opening up a savings account with Bank X and they now want to get a credit card account, then it would be reasonable for them to expect the process to be similar. If Bank X is offering a completely different experience across the two products, then there is no sense of familiarity for the customer and therefore getting a credit card account with a competing bank would hold just as much consistency.

Until brands implement a more universal approach on their websites, customers may as well view each product offering as a separate website. So the question for customers then becomes whether to use different websites within the same domain or across a multitude of sites? After all 18% of consumers surveyed within our consumer experience benchmarking studies for financial services products, stated that if they encountered a problem they would most likely leave and try a different site.

 

Visit our research library for more research across the banking sector and register your brand to ensure it’s captured in our next study period.

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Banks in competition as households pay an extra 7.5% for personal loans

Author: Suzy Coulson

The results of a recent survey conducted by the Reserve Bank of Australia on bank fees has revealed a 2.3% rise in the product fee income banks have received from households during 2013. Personal loans had the biggest fee income increase compared to all other banking products, going up by 7.5% from the previous two years. As we move closer to feeling the impact that the Government’s proposed budget plan is promising, we suspect households will be keeping a closer eye on their finances, including the interest rates they’re paying.

With this in mind, now is the time for banks to consider how they will capture and retain customers as they go on the hunt for the best personal loans deal.

In February 2014, we ran a study to assess the sales effectiveness of some of the bigger players in personal loans to see how they perform across the customer decision journey.

What we found was that relative to the sales journey of other major banking products, the journey for personal loans performs quite well. However, there are a couple of key stages where the journey falls a little short; ‘evaluating (product) options’ and ‘facilitating (customer) decisions’. If we consider the stages of a typical sales journey, then these are two key stages before people are likely to even want to ‘act’ on their decision.

Personal loans graphEvaluating loan options and making a decision on which loan to choose are likely to be key areas of focus for households now given the results of the RBA study and release of the new budget. Failing to adequately support customers through these stages could prove to be of great disadvantage to the banks as we continue to see alternative loan providers such as Cash Train and Nimble flooding our TV screens.

As part of being able to evaluate their loan options, customers will look for products offering specific features, such as low interest rates, of course.  They will also often rely on borrowing power calculators and loan repayment calculators to assist them with their decision making.

In the range of tasks we asked consumers to complete, the task of matching a product to the customer’s needs scored the lowest with an average success rate of 45%. This average was primarily brought down by Westpac (25%) and CBA (10%).

On a scale of importance from 1-10, consumers rated ‘having a tool to help select a loan based on personal needs’ as an 8.3 in importance and the ‘ability to easily view account features and benefits’ an 8.9 in importance. Given these high rankings of importance and low performing task success rates, brands need to pay close attention to how they are going about displaying their product options.

In addition to the low scoring task, the industry averaged just 45% for the category of ‘calculating options’. ANZ topped this list with 86% (89% for borrowing power calculator and 81% for loan repayment calculator), 30 points ahead of CBA who was in second place with 67% (60% for borrowing power calculator and 72% for loan repayment calculator). Citibank, who was in last place with 19%, and St George, who was second last with 21%, fell short in this area as they don’t provide borrowing power calculator for customers. Consumers rated online tools such as borrowing calculators 8.6 in importance, showing just how important it is that personal loan providers provide these elements on their website to support decision making.

If customers are unable to calculate how much they can borrow, they are likely to go elsewhere to find out!

With the interest rates on personal loans typically sitting at the same value regardless of the provider, brands need to not only sell their products, but also need to sell themselves. Where offers are near identical, brands need to sell themselves alongside their products to give customers a reason for picking them over their competitors. The industry overall fails here, with most companies neglecting to educate prospective customers on their value proposition. If the banks can’t tell consumers why they should be chosen, how can they expect these prospective customers to pick them over somebody else offering the same product?

As consumers begin to take more notice of their budgets, banks need to take more notice of their customer experience journey in order to keep consumers on side. If they can’t improve in aiding customer with evaluating their options and making a decision, then other loan providers become as worthy a competition as the banks themselves.

For more information about the Personal Loans Digitial Sales Effectiveness Study, download our free report or please contact:

Ché Carbis
Senior Commercial Director
T: +61 3 9982 3419
M: +61 411 962 857
E: che.carbis@globalreviews.com

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