National Consumer Agency Market Research Findings: Consumer Switching Behaviour February 2012 Research Conducted by
2 Making Complaints Key Findings Consumer Switching Behaviour Research Background and Methodology Profile of Sample Table of Contents
3 Making Complaints Key Findings
4 Making Complaints Key Findings - I 38% switched providers in the past year, consumers are most likely to have switched car insurance (13%, ↓4%) mobile phone provider (12%, ↑1%) main grocery shop (10%, ↓4%) Overall, across all categories, 85% of consumers, who had switched service providers in the last twelve months, said they had saved money as a result 95% of those switching car insurance have saved money by doing so with the average amount saved indicated as €102 91% saved by switching house insurance where an average of €84 was saved
5 Making Complaints Key Findings - II 84% of consumers stated that they found the switching process easy 50% of consumers who have switched in the past year have found the new service they receive to be better. Just 2% stated that the service they receive is worse Not Switching? The main reason is due to “satisfaction with the quality/level of service of current provider” the next highest response “current supplier offers the best value for money”
6 Making Complaints Consumer Switching Behaviour
7 Making Complaints Extent of Switching Providers within the Past 12 Months (Base: All aged with each product/service – 1,000) Car Insurance Electricity supply service Mobile telephone provider Main grocery shop Top up grocery shop Broadband/internet access provider Yes Switching Providers Nov ‘11 May/June ‘11 Nov/Dec ‘10 PrimarySecondary Tertiary Fixed line telephone provider Home insurance provider Heath insurance provider Gas supply service Bank financial institution with current A/C service TV service provider Yes Gym membership Savings/investment provider Credit card provider Provider of credit (more than 1 year but excluding mortgage) Mortgage credit provider Waste service provider* Yes – – – (-5%) * New question
8 Making Complaints Switching Behaviour – Primary * Caution small base % Within the Past Year Car insurance provider Electricity supply service Broadband internet access Main grocery shop Fixed/landline telephone Home insurance provider Mobile phone provider Top up grocery shop Health insurance provider Gas supply service More Than Once Within the Past 5 Years % (Base: All aged with each product/service – 1,000) * * Saved money as a result of switching within the past 12 months
9 Making Complaints Switching Behaviour – Secondary * Caution small base % Gym membership TV service provider Bank/financial institution Credit card provider Savings/investments provider Mortgage credit provider Provider of credit longer than one year excluding mortgage loans Waste Services % (Base: All aged with each product/service – 1,000) – – – – * * * * * Within the Past Year More Than Once Within the Past 5 Years Saved money as a result of switching within the past 12 months
10 Making Complaints Average Amount Saved as a Result of Switching Provider (Base: All who stated that they saved money by switching providers in the past 12 months) Home Insurance Provider €84 Car Insurance Provider €102 Don’t Know = 10% Don’t Know = 12%
11 Making Complaints Experience of the Switching Process (Base: All who have switched providers in the past 12 months – 383) Very easy (5) Somewhat easy (4) Somewhat difficult (2) Very difficult (1) Neither/Nor (3) 92% 88% % May/June 2011 Nov/Dec 2010 –– 84% % November 2011
12 Making Complaints Service Receiving with New Provider (Base: All who have switched service provider - 383) November 2011 June 2011 November/December 2010 June 2010 November/December 2009 (4) Much better (5) The same/ Don’t know Mean Score (2) Much worse (1) 59% 61% 56% 55% 1 – 50% 11 –
13 Making Complaints Reasons for Remaining with Current Provider – I (Base: All that have not switched provider within the past 12 months) % Current supplier offers the best value for money Time and money needed to switch outweigh the benefits Happy with the quality/level of service currently provided Too difficult to determine who provides the best value for money Cannot switch due to limitations No convenient alternative provider Other Don’t know Bank % Mortgage Credit Provider % Credit Card Provider % Savings/ Investment Provider % Provider of Credit % Waste Services – –
14 Making Complaints Reasons for Remaining with Current Provider – II (Base: All that have not switched provider within the past 12 months) % Current supplier offers the best value for money Time and money needed to switch outweigh the benefits Happy with the quality/level of service currently provided Too difficult to determine who provides the best value for money Cannot switch due to limitations No convenient alternative provider Other Don’t know Fixed Landline % Broad- Band % Mobile Phone % TV Service % Main Grocery Shop % Top Up Grocery Shop – – –
15 Making Complaints Reasons for Remaining with Current Provider – III (Base: All that have not switched provider within the past 12 months) % Current supplier offers the best value for money Time and money needed to switch outweigh the benefits Happy with the quality/level of service currently provided Too difficult to determine who provides the best value for money Cannot switch due to limitations No convenient alternative provider Other Don’t know Health Insurance % Car Insurance % Home Insurance % Electricity Supply Service % Gas Supply Service % Gym Membership –––
16 Making Complaints Research Background and Methodology
17 Making Complaints The research was conducted by means of face-to-face interviewing with 1,000 people between the ages of To ensure that the data is nationally representative, quotas were applied on the basis of age, gender and social class. Interviewing was conducted over a four week period in November Research Background and Methodology Nov/Dec 2007 Aug 2008 Nov/Dec 2008 Nov/Dec 2009 June 2010 Nov/December 2010 Benchmark Wave 4Wave 5 Wave 1Wave 2 Wave 6 May/June 2011 Wave 7 May/June 2009 Wave 3 Nov 2011 Wave 8 Current Wave
18 Making Complaints Profile of Sample - I (Base: All aged – 1,000) Male Female % % % Dublin Rest of Leinster Munster Conn/ Ulster ABC1 F50+ C2DE F50- MAIN GROCERY SHOPPER YesNo
19 Making Complaints Profile of Sample – II – Internet Use (Base: All aged – 1,000) USE INTERNET No Yes EVER PURCHASED ONLINE No Yes BANKING ONLINE No Yes (Base: All Internet Users - 762) () = May/June 2011 (75%) (25%) (49%) (51%) (30%) (70%) Male Female % Yes Male Female % Yes Male Female % Yes
20 Making Complaints Profile of Sample – III – Social Media Type of phone Regular users of (Base: All aged – 1,000) Higher amongst: 15-24’s 25-34’s ABC1/F50+ Working full time Students Dublin % Higher Amongst Facebook Twitter Bebo Linkedin None of These % Have a ‘Smart phone’ () = May/June 2011 Nov 2011 May/June 2011 (21) % ABC1F50 59% Dublin 55% % % C2DEF50- 56% Munster 53%