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National Consumer Agency Market Research Findings: Consumer Switching Behaviour August 2012 Research Conducted by
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National Consumer Agency
Market Research Findings:Consumer Switching Behaviour
August 2012Research Conducted by
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Key Findings
Consumer Switching Behaviour
Research Background and Methodology
Profile of Sample
Table of Contents
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Key Findings
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Key Findings - I
• Overall 32% of consumers have switched at least one product or service provider in the past year, most likely to have been• Car insurance (16%) • Broadband Internet provider (14%) • Fixed Landline Provider (13%)
• Savings from Switching• 96% of those who switched car insurance stated that they saved
money by doing so with the average annual amount saved reported as €125
• The highest incidence of multiple switching is found in the grocery sector and car insurance
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Key Findings - II
• 83% of consumers stated that they found the switching process easy
• 59% of consumers who have switched in the past year have found the new service they receive to be better. Just 1% stated that the service they receive is worse
Not Switching?• The main reason cited for not switching is due to “satisfaction with the
quality/level of service of current provider” with the next highest response being “current supplier offers the best value for money”
• Of those who have not switched, over 50% across most sectors rising to 2 in 3 in some sectors have not checked if there is a better package/deal available to them since signing up with current provider
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Consumer Switching Behaviour
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16
11
10
11
9
14
17
11
12
12
10
12
22
17
12
17
12
16
Extent of Switching Providers within the Past 12 Months
(Base: All holders/purchasers of products/services)
Car Insurance
Electricity supply service
Mobile telephone provider
Main grocery shop
Top up grocery shop
Broadband/internet access provider
Yes
Jun 2012Nov 2011
May/June 2011
Primary Secondary Tertiary
Fixed line telephone provider
Home insurance provider
Health 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
Life Insurance/ Mortgage Protection
Yes
N/A
–
13
8
7
7
2
4
10
7
6
5
2
5
12
15
9
7
3
5
11
3
1
2
1
2
7
1
1
1
7
2
2
1
1
N/A
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Switching Trends – Primary
%
16
11
10
11
9
14
Incidence of switching in the Past Year
Car insurance provider
Electricity supply service
Mobile telephone provider
Main grocery shop
Top up grocery shop
Broadband internet provider
%
Stated that they saved money as a result of switching within the past
12 months
96
76
80
62
55
68
(Base: All holders/purchasers) (Base: All who have switched in the past year)
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Switching Trends – Secondary
* Caution small base
%
13
8
7
7
2
4
Fixed/landline telephone
Home insurance provider
Health insurance provider
Gas supply service
Bank/financial institution
TV service provider
%
72
93
89
78
61
53 *
*
*
*
*
Incidence of switching in the Past Year
(Base: All who have switched in the past year)(Base: All holders/purchasers)
*
Stated that they saved money as a result of switching within the past 12 months
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Switching Trends – Tertiary
* Caution small base
11
3
1
2
1
2
Gym membership
Savings/investments provider
Credit card provider
Provider of credit longer than one year excluding mortgage loans
Mortgage credit provider
**Life insurance/Mortgage Protection
81
66
29
72
30
82
*
*
*
*
*
*
% %(Base: All holders/purchasers)
Incidence of switching in the Past Year
(Base: All who have switched in the past year)
Stated that they saved money as a result of switching within the past 12 months
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Average Savings X Typical Billing Periods(Base: All who have saved by switching in the past 12 months)
Car Insurance
(102)
Electricity Supply
(64)*
Home Insurance
(36)*
€125.12 €168.60 €105.55
* Caution small base size
Average Annual Saving Average Monthly Saving
Mobile Phone
(70)*
Broadband
(57)*
FixedLine(57)*
€22.42 €17.70 €21.86
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32%
56 5952 51
3233
32 32
7 312
6
4 410
1 15
Experience of the Switching Process(Base: All who have switched providers in the past 12 months)
Very easy
Somewhat easy
Somewhat difficultVery difficult
Neither/Nor
84%
83%
% %
May/Jun ‘11Nov/Dec ‘10
––
92%
% %
Nov ’11
88%
June ’12
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Quality of Service Received with New Provider
32%
38
29
29
33
31
31
21
21
26
26
30
25
1
2
2
4
2
1
1
1
1
(Base: All who have switched service provider - 325)
June 2012
November 2011
June 2011
November/December 2010
June 2010
November/December 2009
(4)Much better
(5)The same/ Don’t know
Mean Score
39 3.8
48 3.8
42 3.8
39 3.9
36 4.0
40 3.9
(2)Much worse
(1)
59%
61%
56%
55%
–
50%
–
* 59%
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Switching Behaviour Past 5 Years – I
Car Insurance
Broadband Provider
Fixed Line Provider
Mobile Provider
Electricity Provider
Main Grocery Shop
Top Up Grocery Shop
Home Insurance
Gym Membership
34
28
26
23
22
19
17
17
16
%
Switched Past 5 Years
(Base: All holders/purchasers)
47
30
28
27
29
60
57
31
31
%
Switched more than once
* Caution small base
(Base: All switchers past 5 years)
*
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Switching Behaviour Past 5 Years – II
Health Insurance
Gas Supply
TV Provider
Savings/Investments
Life Insurance/mortgage protection
Credit card
Provider of Credit
Bank
Mortgage Provider
15
13
10
7
7
7
7
6
3
%
Switched Past 5 Years
19
16
22
12
12
25
17
14
24
%
Switched more than once
*
*
*
*
*
*
*
*
*
(Base: All holders/purchasers) (Base: All switchers past 5 years)
* Caution small base
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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
22
8
49
10
1
3
1
6
14
7
56
10
3
2
2
7
%
Mortgage Credit
Provider
21
3
51
10
8
1
1
5
16
8
43
6
12
3
12
%
Credit Card
Provider
21
6
57
8
1
1
1
4
17
5
54
7
2
2
13
%
Savings/ Investment
Provider
18
4
58
12
1
1
2
4
17
4
49
7
6
1
2
13
%
Provider of Credit
18
3
52
14
5
1
2
4
18
4
49
7
6
1
2
13
– –
June’12November ‘11
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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
25
7
53
8
2
1
4
20
5
55
7
1
1
2
9
%
Broad- Band
27
8
48
9
3
2
1
4
21
4
56
6
2
1
1
10
%
Mobile Phone
29
6
51
6
2
1
1
5
23
4
61
5
1
1
6
%
TV Service
27
8
51
7
2
1
1
4
18
3
58
5
2
3
1
8
%
Main Grocery
Shop
34
5
47
5
3
1
4
24
4
58
5
2
1
7
%
Top Up Grocery
Shop
32
5
48
5
4
5
22
5
57
5
4
1
7
––
*– *–
*
June’12November ‘11
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23
6
54
9
4
1
1
3
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
21
7
57
8
2
4
17
5
52
9
3
1
3
11
%
Car Insurance
33
6
48
7
2
1
4
24
4
55
5
2
1
10
%
Home Insurance
27
6
54
8
1
1
4
20
5
56
7
1
2
9
%
Electricity Supply Service
31
7
47
8
1
1
1
4
20
5
55
8
1
2
9
%
Gas Supply Service
27
10
45
8
2
1
2
6
25
5
46
6
2
2
2
12
%
Gym Membership
22
5
59
3
2
4
2
3
17
4
52
3
1
3
4
16
%
Life insurance/ mortgage protection
–
*
––
*– –
June’12November ‘11
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3 1 2 1 15
37
3 4
7 16 1010
15
17 1918
19
67 63 6167
61
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Latest Occurrence of Checking Better Deals/Packages Available – I
(Base: All that have not switched provider within the past 12 months and not contract bound to provider)
%
Bank
%
Mortgage Credit
Provider%
Credit Card
Provider%
Savings/ Investment
Provider%
Provider of Credit
Past three monthsPast six monthsPast 12 months
Haven't checked
Longer than 12 months
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4 5 4 35 8 7 6
1115
12 12
2721
17
5948
5662
20
Latest Occurrence of Checking Better Deals/Packages Available – II
%
Fixed Landline
%
Broad- Band
%
Mobile Phone
%
TV Service
(Base: All that have not switched provider within the past 12 months
and not contract bound to provider)
Past three monthsPast six months
Past 12 months
Haven't checked
Longer than 12 months
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3 5 2 3 5 5 26
107 6 7 11
5
20
27
2413 12
17
14
17
18
19 14
15
15
5341
4958 62
5263
18
Latest Occurrence of Checking Better Deals/Packages Available – III
%
Health Insurance
%
Car Insurance
%
Home Insurance
%
Electricity Supply Service
%
Gas Supply Service
%
Gym Membership
%
Life insurance/ mortgage protection
(Base: All that have not switched provider within the past 12 months and not contract bound to provider)
Past three monthsPast six months
Past 12 months
Haven't checked
Longer than 12 months
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30
14
35
20
2
1
How Deals/Packages are Checked – I(Base: All that have not switched provider within the past 12 months
& checked around)
%
Visiting Company Websites
Cost comparison sites
Phoned different suppliers
Media – Newspapers, Radio, TV
Visited Store/branch
Provider called to door
Other
Bank
29
13
26
33
4
2
%
Mortgage Credit
Provider%
Credit Card
Provider
27
13
30
29
2
1
%
Savings/ Investment
Provider
27
14
30
27
3
4
%
Provider of Credit
29
14
29
24
5
1
5
– – – –
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31
16
29
26
2
2
How Deals/Packages are Checked – II
%
Fixed Landline
26
16
32
24
3
3
%
Broad- Band
%
Mobile Phone
23
14
30
30
7
2
%
TV Service
24
14
32
30
1
2
Visiting Company Websites
Cost comparison sites
Phoned different suppliers
Media – Newspapers, Radio, TV
Visited Store/branch
Provider called to door
Other
–
(Base: All that have not switched provider within the past 12 months
& checked around)
*
–
*
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29
16
31
20
5
1
3
3
22
11
36
30
2
3
29
22
39
21
2
27
9
31
31
1
5
26
13
51
13
3
2
How Deals/Packages are Checked – III(Base: All that have not switched provider within the past 12 months
& checked around)
%
Health Insurance
%
Car Insurance
%
Home Insurance
20
13
50
13
1
3
3
%
Electricity Supply Service
%
Gas Supply Service
%
Gym Membership
29
15
27
21
6
%
Life insurance/ mortgage protection
Visiting Company Websites
Cost comparison sites
Phoned different suppliers
Media – Newspapers, Radio, TV
Visited Store/branch
Provider called to door
**Broker
Other
–
–
*
–
–
–
–
–
–
–
–
–
–
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Research Background and Methodology
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• The research was conducted by way of face-to-face interviewing of 1,002 people between the ages of 15-74.
• 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 June 2012.
A. Research Background and Methodology
Nov/Dec 2007
Aug 2008Nov/Dec
2008
Nov/Dec 2009 June 2010Nov/December
2010
Benchmark
Wave 4 Wave 5
Wave 1 Wave 2
Wave 6
May/June 2011
Wave 7
May/June 2009
Wave 3
Nov 2011
Wave 8
June 2012
Wave 9
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1728
4822
52
19
2816
1826
49
26
51
B. Profile of Sample
(Base: All aged 15-74 – 1,002)
Male
Female
% % % %
15-24
25-34
35-44
45-54
55+
Dublin
Rest of Leinster
Munster
Conn/ Ulster
ABC1 F50+
C2DEF50-
Sex Age Region Social Class
Quotas were set on age, gender, region and social class to ensure that the sample was representative of the population.
