Word-of-mouth marketing still not working for CBG – Global InfoAnalytics
Global InfoAnalytics, a Ghanaian research firm, has said word-of-mouth marketing or advertising is still not working for the Consolidated Bank Ghana (CBG).
The research firm in its first-quarter Banking Sector Brand Health Check report indicated that the word-of-mouth marketing or advertising strategy used by banks were working for them with exception of the CBG.
According to Global InfoAnalytics in its Q1 2021 report and as reported by norvanreports, CBG per its Net Promoter Score (NPS) metric which measures customer loyalty and how likely customers are to refer the brand, products, and services to others, gained a score below 50 percent indicated that the bank’s word-of-mouth marketing strategy isn’t working for them.
The research firm in its Q2 2021 report, has once again indicated that the word-of-mouth marketing or advertising strategy of the bank isn’t working for them as the bank for the second quarter scored NPS below 50 percent.
Per the report, CBG gained a score of 3 which translates into 42.86 percentage points of NPS – this is, however, a significant improvement in the first quarter’s 0.0 percentage points of NPS.
Banks such as the First National Bank, First Atlantic Bank, and FBN Bank, topped the NPS rankings with the first two scorings being 100 percent and FBNBank score being 92.31 percent respectively.
First Atlantic Bank and First National Bank are among the few banks that have consistently scored 100 percent in their NPS scores indicating that the word-of-mouth marketing strategy is effectively working for them.
Q2 2021 NPS scores and ranking
Q1 2021 NPS scores and ranking
Word-of-mouth marketing is when a consumer’s interest in a company’s product or service is reflected in their daily dialogues. Essentially, it is free advertising triggered by good customer experiences.
A study indicates that 64 percent of marketing executives believe word-of-mouth is the most effective form of marketing and 82 percent of marketers use word-of-mouth marketing to increase their brand awareness.
Another study by Nielsen also asserts that 92% of consumers believe suggestions from friends and family more than they do advertising, making it one of the most valuable sources of marketing for companies.
Meanwhile, Global InfoAnalytics for the review period asserts that Stanbic and Absa saw a significant increase in their NPS during the period. Stanbic recorded an increase of 11.4 percent to 91.7 percent in the Q2 whilst Absa recorded an increase of 13.9 percent to 84.4 percent.
The score for Access bank declined by 30.8 percent to 64.4 percent whilst GCB declined by 10.5 percent to 75.3 percent.