Mobile money loan lenders overtake banks in Kenya – Ajua Q3 2019 Customer Loyalty Industry Benchmark Report

28th October 2019

Nairobi, Kenya –

Africa’s first Integrated Customer Experience Company, Ajua has officially released its third quarterly Customer Loyalty Industry Benchmark for 2019. The report covers 9 industries from mobile money lenders, pharmacy and food and beverage.

Across the board, businesses are increasingly implementing customer centric strategies to boost customer acquisition and retention. This has in turn increased competition within different industries. Speaking on the importance of understanding one’s customers, Heritage Insurance Managing Director, Godfrey Kioi shared the following remarks, “We are planning to use social media knowledge and data analytics to understand customer’s lifestyles and use that data to advise customers on the most suitable products.”

Findings from the report indicate that the Banking industry continues to record steep competition not only between brands but also from SACCOs, mobile money lenders and Telcos that provide similar mobile money services. Security issues also continue to be a threat to these industries, drastically reducing scores of some leading brands.

Speed of service at the counters continues to be a vital driver of customer experience in banks. KCB customers recognised the bank’s efforts to improve speed of service at the counters. One of the factors that led to KCB taking first place in customer experience in the banking industry with a Net Promoter Score (NPS) of 39 a whopping 10 points above the industry average. Following in second place was Co-Operative Bank with an NPS of 27. Their customers recommended the bank for having the fastest service at the counter compared to other banks.

Ajua Q3 2019 Customer Loyalty Industry Benchmark Infographic 

Another win for KCB lay under the mobile money industry with KCB – M-Pesa scoring first place alongside M-Shwari owing to their moderate interest rates compared to other lenders. Both KCB M-Pesa and M- Shwari also remain popular as one does not require a smartphone or internet connectivity to access them.

Kenya’s Telco industry is mainly dominated by one brand. As such, there is low competition from different brands and customer attrition is not a major concern for some of the brands. Customers also tend to have attitudinal loyalty other than behavioral loyalty.

This does not mean that there is no competition at all. The usage of WhatsApp and other social media platforms like Facebook has also grown significantly over the last year. Some of the customers have substituted normal calls for WhatsApp calls which are cheaper and more efficient.

Safaricom took first place in the Telco industry with an NPS of 31. Customers rated them highly for their internet offers and promotions like dabodabo, Storo bonus, tunukiwa among others. This was in stark contrast to previous quarters where customers complained of fast depletion of internet bundles and airtime. Speaking on the offers, one customers shared the following remarks, “Great 4G capability, great promotional materials e.g. 200% bonus and great tariffs.”

In the pharmacy industry, when 1000 customers were asked what factors they consider when choosing a pharmacy, they mentioned licensing of the pharmacy by The Pharmacy and Poisons Board, competency of staff and quality of drugs. This confirms that the present-day consumer is empowered. One customer commented, “Checking whether it is a licensed business, quality of drugs accompanied with trademarks, and knowing the person well to avoid being treated by a quack.”

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About Ajua
Ajua is Africa’s first Integrated Customer Experience company for businesses on the continent. We exist to bridge the gap between businesses and their customers. Ajua’s technology integrates with businesses at the points that matter most to their customers to measure and optimize their Customer Experience. Our plug and play platform has enabled leading brands of various sizes and industries on the continent to create actionable strategies that drive business growth.

Ajua officially rebranded from mSurvey on July 31st, 2019 to reflect our growth, ambition and African Identity in our corporate brand.

Contact
To learn more, please contact the Corporate Engagement & Learning team at [email protected] or Leonida Kombo – Senior Associate, Corporate Engagement & Learning | [email protected] | +254 726 024 751.