Here’s an idea

03Apr09

Image nodd.

Right now, Abbey (part of the Santandar Group, no less) are spending a truckload of cash advertising that their ISA is offering an incredible 1.5% ‘bonus’ rate, on top of their already dizzy 2% standard rate. That means if I put a grand of my hard earned dosh into it, I’ll come out a year later with a whopping great £1,035. If Abbey don’t change their mind about the bonus rate. Which they probably will.

Why do this? Okay, I’m aware that all the banks are desperate for cash following the recent financial debacle. But is 1.5% really going to entice people in?

Is it shite.

If we merrily skip past the whole ‘why the banks are in this mess right now’ debate and look at the marketing challenge that banks face, then the Abbey campaign falls flat on its bum.

A few customer insights:
1) People know banks are desperate for cash. Doesn’t matter whether you read the Sun, the Telegraph, or watch the Beeb. It’s all the press have been talking about for bloody ages.

2) People have lost all faith in banks. Hell, no-one ever really loved you guys, but right about now, you’re pretty much Enemy Number 1.

3) People are more likely to leave their spouse than leave their bank. Now, I know this old saying is completely out of date and that attrition rates for banks are much higher than before, but the fact is that most people really can’t be bothered to leave their bank. The only things that will push them to are: a) a shocking customer service experience, or b) total loss of faith cos the bank’s about to fold. Hell, if First Direct can offer £100 to entice people in, you know that most people don’t switch.

So, bearing this mind, I’d make my marketing priorities the following:

1) Reassure. For example, ‘…being part of The Santandar Group means that your cash is safe. We’re massive and we’re not going anywhere. Oh, and we don’t gamble with your dosh in a totally irresponsible way.’ You see where I’m going with this.

2) Reward. Concentrate on existing customers. Tell them how great they are. Give them a call. Hell, give them something for staying with you. Basically, listen to what Seth says on the matter. Because he’s right.

3) Be transparent. If you’re paying idiot bankers massive bonuses, stop. Don’t. Give them a paycut and kick out the ones who are in it just because you’re paying more than the other job offer they got. Banking is a responsibility. If this financial crisis does nothing else, I hope that this fact hits home with the industry.

I, like millions of others, am appalled at what the banking industry has done. And advertising strategies like Abbey’s simply seem totally out of touch with what’s going on at the moment.

Be interested to hear your thoughts.

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