Customer experience is the single most important factor in determining the choice of the primary bank for customers in Malaysia, says market research company Frost & Sullivan.
Hazmi Yusof, country head in Malaysia, said the Frost & Sullivan Malaysian Banking Services Customer Experience study showed that Maybank Bhd and CIMB Bank Bhd were leading the Customer Experience Index at an overall level in Malaysia.
Over a period of two months from October to November 2014, Frost & Sullivan surveyed 1,300 respondents randomly selected from online consumer panels.
He said 38% of the respondents surveyed stated that customer experience was more important when choosing a bank compared to other factors such as choice of products and services, the determinant of trust, and rates or fees charged by the bank.
He also said that 81% of the respondents surveyed disclosed that the lack of customer experience would be one of the main reasons that would drive them away from their primary bank.
“Banks that continue to overlook the importance of customer experience do so at their own peril,” he said.
Hazmi also said that Malaysia was home to one of the most well-developed and regulated financial services markets in South-East Asia, with strong, comprehensive oversight from Bank Negara Malaysia (BNM) and the Securities Commission.
“The Excellence in Customer Experience Management study will benefit the banks in Malaysia as it serves as a benchmark for the experience delivered by retail banks to its customers and evaluates the critical factors that influence customer behaviour throughout their banking journey,” he added.
He said while a comprehensive view had been taken to assess company performance by channels and touch points, in summary, companies that had scored over the industry average on a scale of 1-5 found a place in the “Band of Champions”.
“These companies are the ones that have been voted highest by their own customers when it comes to delighting them.
“Therefore, there are instances where there are more than one company recognised for Excellence in Customer Experience in the same category,” he said, adding that there were consequently other categories where no company made it to the “Band of Champions” based on their scores.
Hazmi said Frost & Sullivan measured customer experience based on three levels: overall customer experience, customer experience by channel and net promoter score.
He added that the overall customer experience was measured by examining customer experience across the customer journey, while customer experience by channel was measured at various touch points or channels.
Meanwhile, the net promoter score measured the likelihood of customers in recommending the brand to others which was calculated using percentage of promoters (likely to promote the brand) — percentage of detractors (likely to shift brand).
“Malaysian banks score an average 3.21 (on a scale of 1 to 5) on the Customer Experience Index with significant variation across channels,” Hazmi said. He added that a score of 5 was “Extremely Positive” on customer experience while 1 was “Not Positive At All”.
The following are the Malaysian banks that stood out according to the survey.
Overall experience: Maybank, CIMB; Branch experience: RHB Bank; Self-service experience: Maybank, CIMB; Contact Center experience: RHB Bank; Online experience:Maybank, CIMB, RHB Bank; Mobile experience: Maybank RHB Bank; Net Promoter Score: Maybank Bhd.