Wealthier customers harder to please

by AB26 Sep 2013

Wealthy clients are officially harder to please when it comes to banking customer satisfaction, according to the latest Roy Morgan Research Consumer Single Source report.

While consumer satisfaction with the big four banks rose to an 18-year high of 79.7% last month, ‘higher value’ customers (those with incomes over $70,000p.a.) at each of the major banks proved less content than other market segments.

This presents a problem for the big four, considering that this segment, which makes up only 19.8% of the population, accounts for 44% of the value of the total market for financial services (total footings). It is therefore incredibly important for lenders to improve the satisfaction levels and retention of this highly profitable segment.

“Although the satisfaction with banks among their personal customers remains at historically high levels, it appears that the more valuable higher income individuals and business customers have much lower satisfaction levels than the majority of customers - and yet they are the ones with the greatest profit potential,” says Roy Morgan Research industry communications director, Norman Morris.

Morris says the major banks will need to increase their focus on wealthier customers, as they’re more likely to face increased competition from specialist banks and other financial institutions that will ‘cherry pick’ these high value clients.

 “Our research shows that around 400,000 people and over 200,000 businesses intend to switch their main financial institution over the next twelve months. This indicates a readiness to moving banks if the need arises. In this situation, the key focus of the banks will be the need to retain and attract the customers with the greatest potential rather than letting them just drift off.”

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  • by M C 26/09/2013 11:13:18 AM

    Here's an analogy - 'Its much harder to turn a battleship around than a cruiser'. In large organsiations its very easy to get lost in the crowd. Small organisations quite ofetn focus better on their clients. The new 'Coles' bank, if it comes, may also find this quite difficult to market to, & capture these 'wealthy' clients? We position ourselves as a fully licenced planning, accounting & lending practice which focus & provide great service to our high net worth clients, whilst at the same time looking after those that are not so well off. That can be achieved much more easily when your structure is small & access to technical support is always on hand.

  • by NoTimeLikeTheFuture 26/09/2013 2:49:25 PM

    My less-wealthy clients are much nicer to work for and they appreciate what I do.

    Small fish are sweeter or something.

    Higher income people can be a pain in the ar$e. Not all of course, but I have been disgusted a few times..

  • by mac 27/09/2013 10:47:11 AM

    over $70K is wealthy?? Not in my area!