The overall quality of customer experience delivered by financial services brands in Singapore improved by 3% over the past year, with six out of eight returning brands showing improved scores, according to Forrester’s latest CX Index.
Financial services brands in Singapore improved all three dimensions of CX quality, especially in the banking sector. Banks edged out the auto/home insurers for the most effective experiences: 51% of banking customers said that the CX was effective, versus only 40% for auto/home insurers.
DBS Bank saw the biggest year-over-year gain of 4.2 points, which earns them the top spot in the banking sector and in the overall rankings. DBS Bank had a narrow edge over new entrant FWD, the leader among the insurers.
According to Forrester’s CX Index data, how an experience makes customers feel has a bigger influence on their loyalty to a brand than effectiveness or ease. In the multichannel banking industry, among customers who felt valued, 52% plan to stay with the brand, 59% plan to increase spending with the brand, and 70% will recommend the brand to their family or friends.
In contrast, among banking customers who did not feel valued, just 23% plan to stay with the brand, 6% plan to increase spending with the brand, and only 2% will advocate for the brand.
In addition, angering customers isn’t as harmful to their loyalty as making them feel disappointed, frustrated, or neglected. Among auto/home insurance customers who felt disappointed, only 3% plan to remain with the brand, 7% plan to spend more with it, and just 9% will advocate for it.
On the other hand, among auto/home insurance customers who did not feel disappointed, 55% plan to stay with the brand, 38% plan to spend more with it, and 43% will advocate for the brand.
“While the improvement of CX quality in Singapore is encouraging, brands that want to further differentiate themselves and strengthen their appeal to customers should focus on creating emotionally positive experiences for their customers to boost loyalty,” said Tom Mouhsian, principal analyst at Forrester.
“Even a minor improvement to a brand’s customer experience quality can have a positive impact on revenue by reducing customer churn and increasing share of wallet, which is especially important in the current economic climate.”
Sourced from Forrester