To better understand the position that your financial institution holds within its key markets, this market study designs your research to audit awareness, market share and customer loyalty, as defined by:
- Market Share: Ask respondents to report their primary FI (or the FI where they conduct most of their personal banking). This produces a self-reported market share for the category of primary financial institutions.
- TOMA: Determining top-of-mind awareness for retail banking is used to better understand the share-of-mind divided by all competitors within a given market. This question serves as a staging question for accessing general bank reputation. TOMA is a reflection of overall marketing efforts and can be significantly higher or lower than actual market share.
- Bank of Choice: This metric helps you better understand the competitive potential that your FI holds within a market, because respondents were asked to list the bank to which they would be most likely to switch.
- Bank Reputation: This finding helps you define who’s best at what: service, convenience, strength, community service, rates, and quality.
- Net Promoter Score (NPS): Many use this score to provide a comparative analysis for customer response across markets (or a given department). A net promoter score is traditionally calculated from an advocacy question such as, “Using a scale of 0 to 10, where 10 is extremely likely, how likely would you be to recommend your primary bank to a friend, family member or co-worker?” Research published on the net promoter methodology has shown that those who answer 9 or 10 are considered “promoters,” those who answer 7 or 8 are considered “neutral,” and those who answer 6 or below are considered to be “detractors.” NPS is calculated by taking the percentage of those who answered 9 or 10 and subtracting the percent of those who answered 6 or below for the given question. When you apply this same methodology to satisfaction and loyalty questions and look at them all together, you have a better understanding of how secure the customer relationship is.
It’s never been more important to know your customers and know your market. In times like these, research can be your most valuable marketing tool. Want to talk about how you can benefit?