CBA tracking well on customer relations
Commonwealth Bank may be making progress in its quest to improve customer views of service quality.Or maybe Commonwealth was making progress, given the week-long irritant of sub-standard internet banking performance that was the hallmark of the bank's operations this week.The regular monthly snapshot of customer satisfaction ratings prepared by Roy Morgan Research shows that CBA was the only bank amongst the big four to improve its customer satisfaction rating in the 12 months to May 2009. CBA lifted its rating to 71.2 per cent in May 2009, up from 67.9 per cent 12 months earlier.This makes it much closer to the market leader among the major banks, ANZ, which was down by 1.2 per cent over the same period to 74.1 per cent, Norman Morris, industry communications director wrote in an email."A year ago the CBA was 7.4 percentage points behind the ANZ and now it is only 2.9 per cent behind and well on the way to its objective of being number one in customer satisfaction amongst the majors," Morris wrote.CBA management, and especially the managing director, Ralph Norris, have bonuses linked to gains in customer satisfaction. The Roy Morgan data reported here is one of three key indicators (the others being research by TNS covering business banking and Assirt covering wealth management) that will determine whether Norris collects $11 million in bonus shares in another year or two.If CBA rank first in each survey, and CBA perform tolerably in overall profit measured against its peers, then Norris collects.The improvement on the banking side, if maintained, is sufficient to deliver Norris one quarter of his projected bonus.