Forrester’s Singapore CX Index: For The First Time, Insurers Surpassed Banks In Delivering Better Customer Experiences
FWD maintains its lead among insurers, while Citibank raises its performance to become a CX leader in multichannel banking
SINGAPORE, September 20, 2021 — According to Forrester’s (Nasdaq: FORR) 2021 Singapore Customer Experience Index (CX Index™), the quality of customer experience improved significantly in the automotive/home insurance industry compared to the banking industry for the first time since the inception of the study in 2018. Forrester’s Singapore CX Index benchmarks the CX quality of financial services brands across automotive/home insurance and banking industries. It is based on a survey of more than 2,000 consumers in Singapore across 11 brands, including six insurers and five banks.
The insurance sector used the pandemic crisis as an opportunity to build CX equity with its customers. It recorded significant improvements across all three key dimensions of CX quality — emotion, effectiveness, and ease of use — when engaging with its customers during the pandemic. In particular, the insurers made their strongest gains in emotion scores throughout the pandemic, a time characterized by emotionally draining restrictions. In contrast, the scores for the banks fell across all three components of CX quality.
The 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 every insurance brand included in the study demonstrated improved CX scores. FWD, Singapore’s overall CX leader, continues to top the insurance vertical for the second year in a row. Its CX Index scores across all three components of CX quality were found to be best in class.
In the banking industry, Citibank was the only brand to improve its CX score in 2021, displacing long-standing leader DBS Bank to rise to the top of the industry ranking after being at the bottom in 2020, showcasing an impressive turnaround effort. Citibank’s customers rated the brand highly for its mobile banking capabilities; the ability to resolve problems and issues quickly; maintaining transparent prices, rates, and fees; and the ability to keep customers’ personal and financial information secure.
According to Forrester’s CX Index, how an experience makes customers feel, through a collection of either positive or negative feelings, has a bigger influence on their loyalty to a brand than effectiveness or ease. Among customers who felt confident with their provider, 51% plan to remain with the brand, 66% plan to increase their spending, and 71% will recommend the brand to their family or friends. In contrast, among customers who felt disappointed, only 9% either plan to remain with the brand or spend more with it, and just 5% will advocate for it.
“For an industry that is heavily reliant on personalized service from agents, the insurers had to quickly adjust to pandemic realities by doubling down on digital service engagement to replace face-to-face interaction,” said Tom Mouhsian, principal analyst at Forrester. “The improvements made by the insurance sector demonstrate that emotionally positive customer engagement drives CX improvement, which ultimately leads to customer loyalty. If businesses are to emerge stronger after the pandemic, they must build upon this well of CX equity, which is founded on empathy and engagement with their customers, as well as superior service experiences. To achieve this, CX professionals must have a disciplined approach to envisioning, designing, and delivering a consistently high-quality customer experience.”
Forrester’s CX Index methodology helps CX leaders grow revenue faster, drive higher brand preference, and charge more for their products. Forrester’s CX Index helps brands identify the key drivers of a positive CX for their customers to prioritize efforts. Even a minor improvement to a brand’s customer experience quality can add revenue by reducing customer churn and increasing share of wallet. Additionally, superior CX leads to reduced service costs and lowers the cost of customer acquisition through word of mouth.
- Download Forrester’s 2021 Singapore CX Index report (client access required).
- Learn about the Forrester Decisions for Customer Experience service.
- Check out how to revitalize CX measurement and prioritization.
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