IBLA 2006
Indonesian Bank Loyalty Index 2006

What Is IBLA?

Indonesian Bank Loyalty Award (IBLA) is the ultimate award for banking and financial institution that has successfully achieved high level of customer loyalty on our index, called Indonesian Bank Loyalty Index (IBLI). IBLI measures the customer loyalty level by conducting survey (face-to-face interview) to customers who use certain banking products. MarkPlus Research and Infobank magazine initiate IBLA award to drive the banking industry to provide better service to customers, increase customer loyalty and corporate profitability. The IBLA award is held annually for banking and financial institutions based on the survey results of IBLI.

Why IBLA?

Customers are Kings. Inspired by this point of view, many business entities run their businesses either in traditional market or in modern market segment. Most of them believe that as salespersons or marketers, the first duty of their businesses is to treat customers like Kings and to satisfy customers with their products or services. The question is whether those satisfied customers will be loyal and continuously drive profit for the companies in the future. The answer for this riddle can be “Yes” or “No”. One company reported that 90 percent of the customers they lost were highly satisfied customers. Other companies reported high customer satisfaction scores despite disappointing sales. Why? Perhaps, it is because their customers are satisfied but not enthusiastic . Moreover, according to MarkPlus Research study, satisfied customers do not guarantee that they will repurchase a product or a brand. When they repurchase, it doesn't necessarily mean that they will purchase more, spend more, purchase regularly, and migrate less. Furthermore, the highest loyalty level of customers is demonstrated through the extent of customers' enthusiasm by referring products or brands they use to others. They are also eager and willing to advocate those products or brands. The more loyal customers are to some brands or products, the more they are enthusiastic to advocate them. As a result, more profit will be generated by the companies.

How do we measure Indonesian Bank Loyalty Index (IBLI)?

Indonesian Bank Loyalty Index is a comprehensive banking customer loyalty measurement which refers to four relevant and powerful customer loyalty school of thought; they are customer satisfaction, customer retention, customer migration, and customer enthusiasm. IBLI first dimension, customer satisfaction, is measured in “ transaction dimension” and the attributes of the measurement refer to the basic concept of customer satisfaction: reliability, assurance, tangible, empathy, and responsiveness. The second dimension, customer retention, is measured in “ relationship dimension” and the attributes of measurement consist of retention rate, length of usage, purchase driver, and purchase barrier. The third dimension, customer migration, is measured in “ partnership dimension” and the attributes of measurements consist of frequency of usage, volume of usage, variety of product usage, money spending, and migration risk. Furthermore, the forth dimension, customer enthusiasm is measured in “ ownership dimension” and the attributes of the measurements consist of customer referral, customer advocates, and customer involvement. However, past study has demonstrated that higher level of customer referral has significant impact to high level of corporate growth (profit).

The first IBLI survey was conducted in 2004 and observed 2 (two) product categories, which are savings account of National Public Banks and credit cards issued by banks and financial institutions. We interviewed + 1500 respondents from 6 major cities in Indonesia ( Jakarta , Surabaya , Bandung , Semarang , Medan , and Makassar ). The second IBLI survey was conducted in 2005 and we observed 3 (three) product categories. In addition to the two categories, we added savings account of National Sharia Banks. In IBLI 2005, for savings account and credit cards category, we interviewed + 1800 respondents from 6 major cities in Indonesia (Jakarta, Surabaya, Bandung, Semarang, Medan, and Makassar), while for Sharia Bank, we interviewed + 500 respondents from Jakarta and Surabaya. IBLA 2006 was awarded to several banks in reference to the result of IBLI 2005 survey.

The Indonesian Bank Loyalty Award (IBLA) Winners

IBLA 2006

Savings Account of National Public Bank
Indonesian Bank Loyalty Champion – Savings Account Category: 5 winners

• Bank Buana Indonesia
• Bank Central Asia (BCA) - The Best of Indonesian Bank Loyalty Champion
• Bank Mandiri
• Bank Negara Indonesia (BNI)
• Bank Permata

Credit Card
Indonesian Bank Loyalty Champion – Credit Card Category: 4 winners

• Bank Central Asia
• Bank Negara Indonesia (BNI)
• Citibank - The Best of Indonesian Bank Loyalty Champion
• HSBC

Savings Account of National Sharia Bank
Indonesian Bank Loyalty Champion – Sharia Bank Category: 3 winners

• Bank Danamon Syariah
• Bank Negara Indonesia (BNI) Syariah
• Bank Syariah Mandiri (BSM) - The Best of Indonesian Bank Loyalty Champion

More information about IBLA please contact to Farid Subhkan at farid.subkhan@markplusinc.com

***

Click here for Highlights and Features