How we worked with the financial services industry to develop a bespoke Market Share Estimation.
In the past, the All Media and Product Study (AMPS) had been the most credible source of market share in the financial industry, given AMPS’s 25,000 sample base.
The AMPS started in 1975 and aimed to cover all traditional media as well as products and services. The study’s purpose was to be a tool that gives insight to marketers in the media industry by combining usage and perception with demographic data. The passage of time saw the introduction of various non-media products and services, including various financial services such as banking and insurance. The last AMPS measure was conducted in 2015, after which it was dissolved.
With the absence of AMPS, the financial services industry started to investigate alternative ways to estimate market share, as this is a crucial measure in determining business growth.
Given this opportunity, Consulta worked with the financial services industry to develop a bespoke Market Share Estimation that would meet the industry’s needs.
The first measure was conducted in 2017 Q4, and will invariably mature from there. The sample included 5,000 randomly selected participants, yielding a group that is representative of the country's demographic.
The results of this measure and the full Market Share Estimation Reports for both banking and insurance industries are available from Consulta.
Approaching The Challenge – Unbiased Methodology was Key
The most pertinent aspect of the project was not necessarily what to include in the questionnaire, but to ensure a measure that has very little measurement bias. This is to guarantee that any subsequent changes in market share figures on repeated measures can only be ascribed to actual change within the market.
It was for this purpose that the decision was taken to follow an approach that gives each banking customer an equal chance to participate. The approach followed in the General Household Survey (GHS) conducted by StatsSA was selected to be the closest to an unbiased estimation of market share.
Given that this is a geographically based survey, it closely mirrors the country’s wealth inequality levels - 56% of respondents stated a personal yearly income of below R 60,000.
Description of Methodology
The methodology followed was a face-to-face interviewing process whereby dwellings were chosen at random within ward-level areas. This ensured minimum bias in terms of digital adoption or network coverage, which is still a problem in the South African market.
As mentioned, the project was designed in a way so that it can be tailored to the needs of the industry. Over and above this, the report contains overall market share figures and executive summary, full background and methodology discussion as well as detailed feedback on industry market share and usage.