We are delighted to present our second issue on Vietnam Consumer Finance Report 2016: Customer Decision Journey. On first issue was released in 2015, covering the customer satisfaction in consumer finance (“CF”) market which might shape Vietnam’s nascent financial sector. This second publication represents the collective customer survey which evaluates the fundamentals in customer decision journey to use consumer finance and spurs thinking about ways to recruit new customers. 

Many finance companies already understand that it is no longer enough to compete on products or services. Applied it into consumer finance market, we find that how a financial provider delivers for customer is beginning to be as important as what it delivers. Finance companies such as Home Credit, FE Credit excel at specific types of interactions with customers but ignore the fuller experience, both before and after the purchase.

In this edition of the survey, we focus on the following key factors:

Who are the targeted customers? The report surveyed 950 Vietnamese urban people at random to test the customer cognizance of consumer finance services. The respondents were divided into three groups (1) who already used CF services – to understand their concerns and adjust the product package; (2) who intend to use and (3) who realized the existence of CF but used alternative sources – to identify their demands along with decision journey with purpose to recruit these potential customers

How much resource should CF companies focus to recruit customers on Electronic Devices, Motorbike and Durable Goods when customer have intention of “Splitting the expenditure”? Motorbike and Electronic devices greatly contributed to more than 70 percent of consumer finance portfolio. About 70% customer want to use CF to “Split the expenditure” in above items and these products still stay as main items to expand the market share and spread the company identity.

Which are the core channels to interact with new customers? How well are CF companies interfere in customer decision journey? Customers in Vietnam engaged in traditional channels, agents at POS and Friends/Relatives win over the most trusted source to have the influence the purchase. The POS network already underlined by CF companies, however, the power of word-of-mouth recommendations underrated.

How to increase the number of recurring customers? How to compete with alternative lending sources to recruit new customers?  Habit is claimed as the main reason for Vietnamese people to use alternative lending source. When asked for the most important factor in their financial provider’s relationships, 36% of the customers selected the availability of habit. Hence, in order to acquire these customers, CF companies should interfere the before decision making process. 

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