The ConsultaPanel Team recently conducted a Financial Brand Perceptions study in which we evaluated the reasons why customers choose one brand over another. More than 3913 ConsultaPanel members voiced their opinion and you where one of them!
Firstly, we like to thank you for your inputs! Secondly, we want to share some of our findings.
The study background:
The aim of this brand study is to better understand South African’s views, opinions and perceptions towards financial service providers in South Africa, specifically looking at:
- Brand funnel (to identify which brands are dominating the minds of consumers); and
- Which brands South African consumers make use of. We also looked at why do consumers use these brands and how loyal they are to these brands.
3 Key areas that showed quite significant movements from the previous brand study was in terms of “Top of mind awareness (spontaneous awareness)”, “Consideration to use in future” and “Connection with the brand”. Below is a summary of the top 5 brands for all 3 components. The score in the circle represents the brand score from an industry point of view, the inner circle represents the score given by that brand’s own clients and the outer circle represents the score given by non-clients for that brand. YOY in the below graph refer to the Year on year movements in scores.
Looking at Top of mind, Discovery remains the number 1 brand that comes to mind however, compared to last year their brand’s awareness went down which means less South Africa’s thought of Discovery. Old Mutual, OutSurance and Momentum has shown an increase in this area due to their marketing campaigns which ran across different platforms.
It is interesting to note that Momentum was the only brand that increased in brand consideration for future take up. This could be due to the brand increased social media presence. Discovery took quite a knock i.t.o. brand consideration with a 13% decrease. The questions relating to brand love was only asked to main brand clients. Here we see an increase in most of the brands with the biggest seen in Allan Gray. We cannot help but wonder if this increase in brand connection (love) could be due to these brands going the extra mile during the Covid-19 pandemic? Leave your thoughts in the comments.
Brand usage and loyalty:
As researches we often make the assumption that our Community members are 1) multi branded clients and 2) will select a particular brand to rate because it is their favourite brand. Well you know what they say about making assumptions… So we decided to take our investigation further. From the brand study we dug a bit deeper into why consumers select a specific brand to rate and we were surprised by what we found. Majority of the reasons are of a positive nature as only 14% indicated it is because they absolutely love the brand. This goes to show that brands in South Africa still has a long way to go creating that brand love. It was also interesting to note that there 3% of respondents indicated they selected a specific brand because it is the brand that causes the most frustrations and problems.
The Impact COVID-19 had on Brands
The Covid-19 global pandemic has caused disruptions to economies around the world and it is no surprise that the South African economy has not been spared. While the most devastating effects of the disease have been the number of infections and number of deaths, its economic consequences cannot be understated. The insurance sector braced itself as the South African government took steps to deal with the pandemic, which in turn has had an impact on the way insurers have dealt with clients. As you know, during COVID-19 ConsultaPanel conducted a number of studies with consumers to understand their primary concerns. What we found is a consumer psyche that changed amidst the uncertainty of the pandemic, coping mechanisms that were increasingly challenged as the hard lockdown continued and a consumer that, despite prolonged economic challenges prior to Covid-19 and lockdown, encountered a financial services industry that they largely didn't perceive as providing relief and assistance in time of need.
From these studies we identified 4 key learnings as seen below. South African’s are now more than ever concerned about how brands, especially financial and health brands, are going to support their individual and family needs. This puts a lot of pressure on brands to not just meet these expectations but also exceed them.
We would love to hear what your thoughts on these findings, so feel free to leave your comments below. If you would like to chat to our researcher, you can pop her a mail at firstname.lastname@example.org.
This study will continue this year, so be on the lookout for our next invitation to participate! We can’t wait to see if your perceptions have changed in the next battle of the brands.
What do you think about these results? Do you think this will still be the case next year? What role do you think the Covid-19 pandemic had on how we evaluate these brands? We would love to hear your thoughts, so please login and leave a comment below.