Market Analysis: Top 4 Drivers of Customer Satisfaction In Home Loans
July 2017- Sep 2017
User Conversation Analysis – Home Loans
First home buyer lending moved up more than 40% in 2018 over 2017, and has accounted for 12.4% of all housing loans in February 2018. As of 2018, Australia’s housing stock numbers nearly 10 million homes, with about 20,000 new houses approved every month. This report offers insights into the customer perception and delight drivers obtained based on customer reviews and online conversations relating to home loans in Australia.
The analysis is based on customer reviews and conversations online in the segment. The analysis results presented are completely unbiased and not based on any subjective judgement. The source data used for the analysis are user conversations available publicly online like public forums and social media.
Number of Brands Analyzed
Total number of customer conversations analyzed
Home Loan Industry Overview
- Average industry growth 2014–2019: 3.2%
- The total value of owner-occupier home loans written Australia in July 2019 was $14.1 billion.
Home Loan Industry Growth Drivers
- House prices have declined, helping first-home owners (FHO) to enter the housing market.
- Higher migration between Interstate and overseas has led to the demand for residential properties, thereby leading to an increase in housing finance in Australia.
- High employment rate of 83% full time employees contribute to a strong home loan industry in August. High employment rate provides stability to borrowers to repay their debt obligations.
4 Actionable Insights Uncovered From Customer Satisfaction Analysis of Home Loans
A marketing insight basically starts as data, and upon passing through multiple layers of analysis, and after deep thought and reasoning, it emerges finally as an agent of change. Customer data when converted into useful marketing insights goes a long way in predicting your customers’ future choices. It allows you to craft your marketing messages based on the predictions. By collecting and analyzing customer data, marketers get to know where to focus their time and effort to deliver an extraordinary customer experience.
Companies that leverage customer behavior data and create insights outperform peers by 85 percent in sales growth and more than 25 percent in gross margin, according to research by McKinsey.
It’s important to get deeper, industry-based marketing insights on how potential consumers perceive different industries, what do they need from a particular range of products, do they desire a particular benefit from product or service, what do a particular segment of consumer believe in, and so on.
Home is where the heart is! When consumers start home loan search they do not just look at interest rate, they consider many other home loan features that can save them big bucks and time. So what do customers care the most about? As per online conversations, it turns out that customers are looking for few basic features such as flexibility and easy approvals rather than fancy apps, websites and free credit cards.
Clootrack conducted an extensive analysis on home loans in Australia based on 2,25,001 online conversations.
In this guide, we’ll run you through the 4 Insights Uncovered From Customer Satisfaction Analysis of Home Loans in Australia:
Home loan features are all about convenience and flexibility. Customers are demanding higher flexibility in repayment options and interest rates. They prefer banks to set rates based on customer credit history so as to take advantage of strong credit history. There are a number of first time buyers and hence most of them expect encouragement by the bank by offering higher flexibility.
2. Interest Rate
Numerous banks offer attractive interest rates to the advantage of the home buyers. But customers are asking for a combination of options that allows them better choice of interest rate. Home loans come with various interest rate options such as fixed rate or flexible rate. Customers search for best rates with floating options. They prefer to have a yearly review of the interest rates and renegotiate rates.
When a customer thinks of home loan, generally the first thing that can put off a customer is the huge amount of fees and hidden charges. Consumers feel that there should be clarity on advertised versus the actual fees, along with a break up of various fees. Customers ask for low upfront fees and customized penalties based on repayment behavior.
Customers switch to a new and faster loan provider when they witness slow and unprofessional approval process. Customers find it hard to get instant approval from banks because of their lengthy verification procedure. Customers want to move towards loan providers who can offer easy and quick approvals without any post approval surprises and are also expecting zero fee approvals.
Top 3 Feel Good Factors
Buying a dream home is an important milestone in a person’s life and hence a customer spends a lot of time in planning and comparing different options. With a wide variety of housing loans available in the market, a customer can be delighted when he has additional information in the form of builder and property ratings. If a borrower counseling provision is offered the customer would definitely feel good about it. Further customer is looking forward for different rates based on ratings.
Extensive documentation that goes into getting a home loan approved is really something that scares a customer. Although the home loan application states the list of necessary documents required, customers are asking for ease in documentation process. Also, it will be a great relief for customers if they are offered legal assistance during their home loan process.
3. Relationship Management
The importance of effective relationship management is key to customers. While the entire process of home loan approvals should be smooth, customers are looking forward for the banks to offer excellent relationship management during and post the home loan approval process. They expect that they get assistance from personal relationship managers, financial counselors, documentation advisors and reminder service for payments.
Do you know what customers are talking about a specific brand? Companies perform deep analysis by gathering and analyzing information collected about the consumers, market, business environment, products, and competitors. Actionable insights are derived based on audience analysis and competitive analysis using data from various sources such as interviews, surveys, news, online forums, and social media conversations. Competitive intelligence gives enough information about what consumers are saying about different products on social media. Using this information, your company can design a product that satisfies most of the expectations of consumers.
Do you want to understand more about consumer insights and brand equity for your brand? Do you want to know more interesting insights on what customers converse online about home loans in Australia? You can download the pdf version of the complete report for free. Enter your email at the end of this report and we ll send it to you for FREE.