Only 14% of comments related to mutual funds on Facebook, Twitter and LinkedIn were positive, reveals a recent analysis of social media comments on mutual funds published in a report called ‘Riding the wave of opportunity and optimism’ by the McKinsey & Company.
Peeyush Dalmia, Partner McKinsey & Company pointed out that insurance (38% comments were positive) and banks (63% were positive) got much better feedback on social media.
McKinsey had collated this data from social media websites by tracking three large fund houses which are among the top ten fund houses. 14% (positive comments) was the highest figure among the three fund houses. Other two fund houses received only 5% and 8% positive comments.
Surprisingly, around 70% of social media comments related to mutual funds were negative. Most of such comments were related to post sales services like rejection of transactions, errors in transaction execution, incomplete communication to customers, no response from call center, issues with online services and wait time and processing. While one fund house got the maximum percentage of negative comments - 73%, the other two fund houses got 38% and 61% negative comments.
The report has cautioned MF industry of consequences of such a reputation and said, “In such a scenario, it is essential for organizations to deliver high-quality service in every customer interaction, as a single dissatisfied customer can rapidly destroy a reputation built over years. Further, this trend highlights the necessary of managing online perception. Dissatisfied investors vent their frustration on social media, which can easily influence potential investors.”
At a recently held CII Mutual Fund Summit, SEBI Chairman UK Sinha had urged the MF industry to make transformational changes to grow. He said, “If we look at the customer experience from mutual funds in the McKinsey report, only fourteen per cent is positive. This shows early signs of weakness in the industry and if this is not addressed, the optimism will be short lived.”
The report has advised fund houses to take a cue from hospitality industry. “A lot of hotels ensure that they respond to each comment posted regarding their service, either with a note of thanks acknowledging the positive comment, or with an explanation of reasons behind the poor service. This interactivity builds confidence among customers that their voice is heard and heeded. AMCs could look at hiring the right talent and procure the necessary technical capabilities for continuous monitoring and proactive management of online sentiment.”
The report showed that other discussions pertaining to returns, performance, SIP, pension and retirement were neutral.
