Switching In The Financial Services Industry – Part 2 of 3

Part 2 of our 3 part white paper from our Market Research White Paper series.

Measuring the forces on switching behaviour

Market researchers attempt to measure these influences at different levels. There is the very obvious front of mind€? level where a customer is asked very simply to say why they choose a financial services company or what would prompt them to switch. Not surprisingly, because it is front of mind, the answers are fairly predictable. I chose the best product for the best price?.

The researcher may follow this with a prompted question that reminds the customer of the many different issues in the equation. This memory jogger may identify new factors. There are many variants on the prompted questioning theme. For example, the respondent may be asked to rank factors, score them out of 5 or 10 or spend points over half a dozen factors to indicate which carries the most weight.

Figure 2 A Simple Points Spend Question To Establish Customer Needs

I would now like to get some measure of the factors that have influenced your choice of holiday insurance. I would like you to imagine you have 100 points to spend on issues concerning your supplier of holiday insurance. How would you allocate these points between the following:

More sophisticated tools such as conjoint analysis can show the trade off between different issues although even here there is no guarantee that the emotional issues will be given their full weight.

Points spend and conjoint use structured market research interviews to throw light on the forces shaping behaviour. On their own they are not enough to give us the deeper insights of how buyers behave and what makes them switch. For this we have to turn to qualitative research. And here we must get as close to psychology as we can to get a deep understanding of what makes buyers tick.

Part 3 will be published on Tuesday 24th Oct.

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