FWD Maintains Lead Among Insurers, While Citibank Boosts Performance To Become A CX Leader In Multi-Channel Banking
SINGAPORE, September 20, 2021 / PRNewswire / – According to Forrester (Nasdaq: FORR) 2021 Singapore Customer Experience Index (CX Index ™), the quality of the customer experience has improved significantly in the auto / home insurance industry compared to the banking industry for the first time since the inception of the study in 2018. The Forrester Singapore CX Index assesses the CX quality of financial service brands in the auto / home insurance and banking industries. It is based on a survey of more than 2,000 consumers in Singapore through 11 brands, including six insurers and five banks.
The insurance industry has used the pandemic crisis as an opportunity to build CX capital with its clients. It has seen significant improvements in all three key dimensions of CX quality – emotion, efficiency and ease of use – when engaging with customers during the pandemic. In particular, insurers have made their biggest gains in terms of emotions throughout the pandemic, a period characterized by emotionally exhausting restrictions. In contrast, bank scores declined for all three components of CX quality.
Overall CX quality in Singapore improved by three points, from 60.3 to 63.3 on a 100-point scale, which can be attributed to the fact that each brand of insurance included in the study demonstrated improvement in CX scores. FWD, that of Singapore global CX leader, continues to dominate the vertical insurance market for the second year in a row. Its CX index scores for all three components of CX quality were found to be best in class.
In banking, Citibank was the only brand to improve its CX score in 2021, overtaking longtime leader DBS Bank to rise to the top of the industry rankings after falling in 2020, showing an impressive turnaround effort . Citibank customers highly appreciated the brand for its mobile banking capabilities; the ability to resolve issues and problems quickly; keep prices, rates and fees transparent; and the ability to protect clients’ personal and financial information.
According to the Forrester CX Index, how an experience makes customers feel, through a set of positive or negative feelings, has a greater influence on their brand loyalty than effectiveness or ease. Among customers who feel confident with their supplier, 51% plan to stay with the brand, 66% plan to increase their spending, and 71% will recommend the brand to family or friends. In contrast, among customers who felt disappointed, only 9% plan to stay with the brand or spend more with it, and only 5% will defend it.
“For an industry that relies heavily on personalized agent service, insurers have had to adapt quickly to pandemic realities by doubling the engagement of digital services to replace face-to-face interaction,” said Tom Mouhsian, senior analyst at Forrester. “Improvements from the insurance industry demonstrate that emotionally positive customer engagement drives improvement in CX, which ultimately leads to customer loyalty. If businesses are to emerge stronger after the pandemic, they must build on this CX capital well, which is built on empathy and engagement with their customers, as well as superior service experiences. To achieve this, CX professionals must have a disciplined approach to imagining, designing and delivering a high quality customer experience.
Forrester’s CX Index methodology helps CX leaders grow revenue faster, increase brand preference, and charge more for their products. The Forrester CX Index helps brands identify the main drivers of positive CX for their customers in order to prioritize efforts. Even a minor improvement in the quality of a brand’s customer experience can generate revenue by reducing customer churn and increasing portfolio share. In addition, a superior CX leads to lower service costs and lowers the cost of acquiring customers through word of mouth.
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About the Forrester CX Index
The Forrester CX Index links quality and loyalty metrics to revenue models, giving executives the ability to guide CX investments that generate the best ROI.
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