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Monday, January 11, 2010
Thursday, July 9, 2009
The mutual, the celebrity and the forgotten community
Did ya hear? Some bank in Orstraya signed up Jerry Seinfeld to do their ads! Oh my god, oh my god, he’s just so nice.
Or so the fans were chanting down in Cedarhurst, New York, the location Greater Building Society flew its marketing manager and some Aussie talent for an ad campaign like no other.
The last time Jerry fronted up for a bit of corporate spruiking it was for Microsoft, and he was rumoured to have been paid US$10 million.
A spokesperson for Greater told us the building society paid “significantly less” than this and frankly they were a little surprised he took the gig. Apparently instead of “show me the money” Jerry said “I like it”.
Seems there was an “alignment” between Jerry’s humour and that of the marketing folks at Greater. Overstated American humour lining up with regional Aussie self-mocking – I guess that could work.
If you live outside regional NSW or the Gold Coast you’ll only be able to see the ads on YouTube, since Greater is not planning a national campaign and is sticking to TV, it’s advertising medium of choice. Greater Building Society has used TV almost exclusively throughout its history.
Type “Greater Building Society” into Google and you won’t see any targeted ads from the institution. Of course with the kind of free publicity the ad is generating there’s plenty of organic listings. But should you wish to apply online for a new account with Greater you’ll be disappointed.
You wont find Greater Building Society on Facebook, and I suspect they’re not fans of Twitter.
Which is a shame because with even a slightly improved online presence Greater could have taken its campaign national.
Perhaps if Greater was participating in social networks it would be able to respond to some of the interesting posts being made on Twitter. Like this one which appears to come from the husband of a staffer revealing concerns the ad spend might mean the death of this years’ bonus.
But putting all that aside and assuming the campaign delivers a rush of customers to Greater Building Society’s call centre and branches, is it right for a regional mutual to be putting itself in the same advertising ball park as American Express?
I’ve always had a soft spot for credit unions and building societies. I used to work for one. The idea of a financial institution that is owned by its members and isn’t run to profit shareholders who might not actually be customers makes sense to me.
But in recent years a rash of mergers and demutualisations have left me wondering if there’s room in Australia for small community banking.
When a group of economists came out calling for a state-supported bank this week, mutual industry association Abacus was quick to shout back “We’re the people’s bank”.
And there’s the rub. Much of the coverage and chatter about Greater uses the word bank. And if there’s one thing I remember from my days in credit union land, mutual people HATE being called bankers. A mutual being mistaken for a bank because of its advertising campaign is not doing anything to support the concept of mutuality.
Think for a moment about what a “people’s bank” would be expected to do. Would a people’s bank spend megabucks on glossy advertising campaigns? Or would it be expected to take the profits it makes and channel them back into the community, or offer more products with competitive interest rates and low fees?
New Zealand “peoples bank” Kiwibank gets it. In their albeit slightly lower budget advertising they highlight their understanding of local community. I’m yet to be convinced Jerry Seinfeld speaks community. Sure the ads are funny, but in five years time will we remember the regional bank with the celebrity spruiker, or the credit union that helped pay for the soccer pitch our children play on?
Or so the fans were chanting down in Cedarhurst, New York, the location Greater Building Society flew its marketing manager and some Aussie talent for an ad campaign like no other.
The last time Jerry fronted up for a bit of corporate spruiking it was for Microsoft, and he was rumoured to have been paid US$10 million.
A spokesperson for Greater told us the building society paid “significantly less” than this and frankly they were a little surprised he took the gig. Apparently instead of “show me the money” Jerry said “I like it”.
Seems there was an “alignment” between Jerry’s humour and that of the marketing folks at Greater. Overstated American humour lining up with regional Aussie self-mocking – I guess that could work.
If you live outside regional NSW or the Gold Coast you’ll only be able to see the ads on YouTube, since Greater is not planning a national campaign and is sticking to TV, it’s advertising medium of choice. Greater Building Society has used TV almost exclusively throughout its history.
Type “Greater Building Society” into Google and you won’t see any targeted ads from the institution. Of course with the kind of free publicity the ad is generating there’s plenty of organic listings. But should you wish to apply online for a new account with Greater you’ll be disappointed.
You wont find Greater Building Society on Facebook, and I suspect they’re not fans of Twitter.
Which is a shame because with even a slightly improved online presence Greater could have taken its campaign national.
Perhaps if Greater was participating in social networks it would be able to respond to some of the interesting posts being made on Twitter. Like this one which appears to come from the husband of a staffer revealing concerns the ad spend might mean the death of this years’ bonus.
But putting all that aside and assuming the campaign delivers a rush of customers to Greater Building Society’s call centre and branches, is it right for a regional mutual to be putting itself in the same advertising ball park as American Express?
I’ve always had a soft spot for credit unions and building societies. I used to work for one. The idea of a financial institution that is owned by its members and isn’t run to profit shareholders who might not actually be customers makes sense to me.
But in recent years a rash of mergers and demutualisations have left me wondering if there’s room in Australia for small community banking.
When a group of economists came out calling for a state-supported bank this week, mutual industry association Abacus was quick to shout back “We’re the people’s bank”.
And there’s the rub. Much of the coverage and chatter about Greater uses the word bank. And if there’s one thing I remember from my days in credit union land, mutual people HATE being called bankers. A mutual being mistaken for a bank because of its advertising campaign is not doing anything to support the concept of mutuality.
Think for a moment about what a “people’s bank” would be expected to do. Would a people’s bank spend megabucks on glossy advertising campaigns? Or would it be expected to take the profits it makes and channel them back into the community, or offer more products with competitive interest rates and low fees?
New Zealand “peoples bank” Kiwibank gets it. In their albeit slightly lower budget advertising they highlight their understanding of local community. I’m yet to be convinced Jerry Seinfeld speaks community. Sure the ads are funny, but in five years time will we remember the regional bank with the celebrity spruiker, or the credit union that helped pay for the soccer pitch our children play on?
Thursday, December 4, 2008
Are you ready for a crisis of customer loyalty?
In the middle of a crisis, it’s human nature to deal with things day by day. But a new report from Forrester Research analyst Bill Doyle asks bankers to look ahead and consider what impact the global financial crisis will have on customer loyalty.
The report reveals customer advocacy scores for US banks have fallen to their lowest levels ever – bad news for banks seeking to retain customers in turbulent times.
Closer to home, business banking research house East & Partners has found promoters and advocates are virtually non-existent in business banking in Australia. Less than 1 per cent of all businesses are willing to recommend their bank to a friend or colleague.
Retaining customers will be critical for banks in 2009, and this means bankers are going to have to get better at convincing customers they care.
The financial crisis has driven a larger number of bank mergers, which can be tough on customers. Forrester argues Washington Mutual, Wachovia and Merrill Lynch customers are all likely to experience service hiccups as they are absorbed by their suitors, something which is likely to keep customer advocacy scores low. Westpac and the Commonwealth Bank will also have to work hard to retain St George and BankWest customers.
Customer decisions to switch banks are typically driven by a desire for better pricing (interest rates), lower fees, or better customer service.
Google Insights reveals since the credit crunch there has been an upward trend in the number of searches for “cheap banking”.
The report reveals customer advocacy scores for US banks have fallen to their lowest levels ever – bad news for banks seeking to retain customers in turbulent times.
Closer to home, business banking research house East & Partners has found promoters and advocates are virtually non-existent in business banking in Australia. Less than 1 per cent of all businesses are willing to recommend their bank to a friend or colleague.
Retaining customers will be critical for banks in 2009, and this means bankers are going to have to get better at convincing customers they care.
The financial crisis has driven a larger number of bank mergers, which can be tough on customers. Forrester argues Washington Mutual, Wachovia and Merrill Lynch customers are all likely to experience service hiccups as they are absorbed by their suitors, something which is likely to keep customer advocacy scores low. Westpac and the Commonwealth Bank will also have to work hard to retain St George and BankWest customers.
Customer decisions to switch banks are typically driven by a desire for better pricing (interest rates), lower fees, or better customer service.
Google Insights reveals since the credit crunch there has been an upward trend in the number of searches for “cheap banking”.
Source: Google Insights for Search
Forrester’s Doyle rightly points out “The direct banks’ products are simple and transparent, unlike the synthetic products that got us into the current mess”.
So what are the attributes that drive loyalty?
Forrester’s research has found three attributes which drive loyalty to smaller institutions over larger ones. They are:
1) “My banking institution always honours its promises or guarantees.”
2) “My banking institution offers the best prices, rates or fees.”
3) “Even if not regulated, my banking institution would do what’s right for the customer.”
Perhaps the best thing bankers can do now is try and underpromise and overdeliver?
Thursday, November 6, 2008
What's the truth behind the truth pod?
Mystery surrounds a new campaign that is asking people to enter a virtual "truth pod" and complete a survey on what most annoys them about their bank.
This campaign advertisement ironically ran alongside an SMH story on banks refusing to pass on this week's 0.75 per cent rate cut from the Reserve Bank.
The advertisement links to a campaign site http://www.truthpod.com.au/ where visitors are encouraged to step inside a virtual booth and complete a short survey.
At the end of the two-question survey participants are thanked for "telling it like it is" and advised "From November 16 your banking could change".
The truth pod looks very similar to the JetBlue story booth which was used to gather feedback on the brand from customers. Video and audio material gathered via the booth was then used in a series of advertisements for the airline.
Online Banking Review sources say the campaign appears to be the work of Sydney advertising agency Lavender which boasts Westpac amongst its list of clients.
We've emailed the feedback address for the truth pod asking them to reveal their identity, and await a response.
Tuesday, October 21, 2008
Mozo pitches at penny-pinchers
After months in development mozo.com.au has launched to the Australian public, hoping to capitalise on the financial crisis and appeal to consumers looking to get a better deal.
Mozo competitor Ratecity scores banking products with Cannex star ratings. Mozo will instead rely on consumer feedback, and partnered with Roy Morgan to generate 3,000 initial consumer reviews and ratings of individual banks for the site.
Banks were rated on five categories: trust, customer service, convenience, product features, and rates and fees. Based on the initial batch of reviews Australia's favourite banks are Bendigo Bank, Members Equity, Bank of Queensland, Suncorp and BankWest. All regionals, and all at risk of, or already being swallowed up by larger competitors.
Probably the most unique feature of the site is the “Health check” tool that enables users to compare their existing bank products with those of competitors and work out whether they would benefit from switching.
Users can shortlist the products they are interested in and come back at a later stage when they are ready to purchase. Mozo will generate revenue from leads sent to financial institutions, and display advertising.
Mozo has also secured an Australian Financial Services Licence, making it easier for the group to compare and discuss deposit products – a definite advantage given the current strong industry competition for retail deposits.
The only obvious exclusion from the site is a discussion forum, something the journos behind fatcat.com.au have managed to pull off with moneyconfessions.com.au.
The combination of qualitative and quantitative data is a must in the current climate where consumers are seeking advice and perhaps a shoulder to cry on.
We’ll be watching the social networks closely to see if Mozo pops up.
Tuesday, October 14, 2008
A win for the little guy
The Federal Government’s move to guarantee all Australian bank deposits has been generally welcomed by the industry, with many commentators arguing it was needed to avoid a run on an Australian bank.
The guarantee is certainly good news for Australia’s second tier and mutual financial institutions which had been subjected to increased questioning from customers on their credit ratings and overall stability.
Despite credit unions and building societies falling under the same regulatory regime as their larger bank competitors, many consumers were under the false impression these institutions were less secure and that deposits with the major banks were explicitly protected.
The guarantee puts all ADIs on a level playing field and there’s even the chance it could save Suncorp from being eaten up by one of the big four, which would ultimately be a win for competition and consumers.
Credit unions have been telling Online Banking Review for some time that they are being questioned by customers seeking to know their credit rating, usually as a result of bank branch staff hoping to deter them from moving their funds to a competitor.
Credit ratings were not even on the radar of consumers shopping around for savings products until the credit crunch emerged and direct bank RaboPlus started marketing itself as “Australia’s safest bank”.
Until recently the Australian Bankers’ Association had always opposed deposit insurance, arguing it was costly and problematic, most likely because of the moral hazard issues it presents. Ultimately it means all financial institutions will come under increased scrutiny with regulators looking more closely into their investment practices.
So it will be interesting to see if any of the big 4 banks start using the guarantee as a marketing tool.
Following feedback from customers, RaboPlus moved quickly to add information about the guarantee to its site – nothing like a big red “guaranteed’ stamp to instill confidence.
The Commonwealth Bank continues to heavily promote its “Determined to be strong in volatile times” brand messaging, but a quick glance of all the major bank’s websites shows no obvious references to the Government guarantee.
NAB’s new direct banking arm UBank has not added any reference to the guarantee, referring instead to the strength and “global capability” of its parent.
mecu, one of the only Australian credit unions to have a credit rating, has added a fact sheet to it’s site (in their haste they spelt Government incorrectly), something likely to be replicated by more institutions in coming days.
The guarantee is certainly good news for Australia’s second tier and mutual financial institutions which had been subjected to increased questioning from customers on their credit ratings and overall stability.
Despite credit unions and building societies falling under the same regulatory regime as their larger bank competitors, many consumers were under the false impression these institutions were less secure and that deposits with the major banks were explicitly protected.
The guarantee puts all ADIs on a level playing field and there’s even the chance it could save Suncorp from being eaten up by one of the big four, which would ultimately be a win for competition and consumers.
Credit unions have been telling Online Banking Review for some time that they are being questioned by customers seeking to know their credit rating, usually as a result of bank branch staff hoping to deter them from moving their funds to a competitor.
Credit ratings were not even on the radar of consumers shopping around for savings products until the credit crunch emerged and direct bank RaboPlus started marketing itself as “Australia’s safest bank”.
Until recently the Australian Bankers’ Association had always opposed deposit insurance, arguing it was costly and problematic, most likely because of the moral hazard issues it presents. Ultimately it means all financial institutions will come under increased scrutiny with regulators looking more closely into their investment practices.
So it will be interesting to see if any of the big 4 banks start using the guarantee as a marketing tool.
Following feedback from customers, RaboPlus moved quickly to add information about the guarantee to its site – nothing like a big red “guaranteed’ stamp to instill confidence.
High interest savings, term deposits, managed funds, online investments from RaboPlus via kwout
The Commonwealth Bank continues to heavily promote its “Determined to be strong in volatile times” brand messaging, but a quick glance of all the major bank’s websites shows no obvious references to the Government guarantee.
NAB’s new direct banking arm UBank has not added any reference to the guarantee, referring instead to the strength and “global capability” of its parent.
mecu, one of the only Australian credit unions to have a credit rating, has added a fact sheet to it’s site (in their haste they spelt Government incorrectly), something likely to be replicated by more institutions in coming days.
Goverment Deposit Guarantee - Fact Sheet via kwout
Update: Citibank has also added a banner to its home page:
Wednesday, September 17, 2008
Marketing the Wesabe way
Wesabe is one of the few finance-related companies which seems to truly understand the role of social media marketing to building a brand. Which is why I asked Wesabe VP of marketing Gabriel Griego to speak at last month's Innovative Marketing of Financial Services forum.
Gabe was kind enough to Skype in for questions after the presentation. No mean feat, given he was on holidays in Nicaragua at the time.
It turns out Gabe simply believes in using new media techniques to conduct traditional marketing, as you'll see from this 15 minute video.
Wesabe makes a genuine effort to engage with bloggers, uses Twitter to announce and get feedback on upgrades to its service and, as James Gardner put it so aptly, engages in "community management" rather than PR.
If it sounds like I've drunk the Kool-Aid, it's because I find this quite rare. As an Australian-based journalist covering banking innovation I spend most of my time seeking innovation, searching for examples that stand out, and then trying to convince those involved to speak about it.
Perhaps it's because bankers generally fear failure that they are hesitant to promote new things before they're cemented in the day-to-day. Or maybe they define innovation differently to me.
At last month's innovative marketing forum we had an interesting panel discussion about innovation. Commonwealth Bank GM of digital marketing Trent Moy made the point that people looking at innovation often get caught up in the "shiny new things" as opposed to structural or systems innovation that can actually deliver better results to the bottom line.
This is true, but equally damaging is a hesitance to even consider a new thing before three of your competitors are using it and customers are asking why you're not there yet.
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