Posts Tagged ‘customer newsletters’
As media continues to tell stories about the lack of loans to business and consumers, a number of banks are currently running “Continue to Lend” or “Responsible Business” print advertising campaigns.
These campaigns come in direct response to an environment that calls for banks to articulate what they are doing, especially as the press continues to report about the lack of lending. It is definitely an effort to focus on the positive and move beyond the troubles of the past few years by highlighting their newly-implemented practices of responsible lending.
Recently, Chase launched its “The Way Forward” campaign, which includes media support and a microsite. The ads communicate the company’s commitment to lending and, similar to other banks, the ad provides lending statistics for the past 12 months. The company placed targeted print ads which detailed lending activity by state. The campaign utilized testimonials from companies located within the state where the ad ran and stated how Chase helped.
Not to be outdone, Bank of America ran ads informing readers, “Last year, we extended more credit than any other US Bank. It’s part of our effort to help fuel the economy.” Another ad read, “Thank you.” This ad was directed to US taxpayers for the TARP money and announced that the bank had repaid the money. The ad included “The Facts” which listed the type of lending and the amounts the company had done over the past 12 months.
It makes sense that in troubled times, companies would focus on what they are able to bring to consumers and the economy. Banks are taking steps to discuss what they can do for consumers and not letting failures or the economy define the company. These efforts help increase employee morale and begin to rebuild trust with consumers. Expect these campaigns to continue until banks are on more stable ground and public opinion is more favorable.
Thank you everyone for attending my webinar yesterday on 2010 Banking Predictions, and thank you for submitting so many questions. I’ve answered most of your questions below, so let me know your thoughts!
If you’d like to download the slides or listen to a recording, click here.
Also, if you’re interested in learning more about Mintel Oxygen’s Finance Reports, please email Zach Leahy at firstname.lastname@example.org. You can see a list of past and future titles here.
Q. Have you noticed a penetration difference between the $15 incentive and the $50 incentive. What is the optimal figure?
A. The $15 and $50 cash incentives were for increasing debit card usage. Typically on an acquisition campaign we see about $100, although amounts are increasing. For loyalty campaigns, the amounts are lower. The optimal figure is dependent on the total cost to increase debit card usage and the long term profit. Each bank is going to differ in that equation.
Q. As it relates to incentives, do these predictions still apply to non-traditional banks, like Schwab bank and other asset managers looking to acquire new clients and assets?
A. Investment firms are struggling right now with an image crisis. As a result, most investment marketing is focused on regaining trust or convincing consumers that the firm is focused on the customer rather than just on selling products or services. Investment firms typically don’t rely on incentives to acquire customers. Instead they rely on free seminars, webinars, education, etc.
Q. Do you predict any differences in these trends between banks, credit unions or other types of financial institutions?
A. Credit unions and smaller banks are less likely to use cash incentives and more often offer merchandise or the offer to buy back unused checks and debit cards. Across the other trends, however, we see similar types of things. We tried to incorporate examples from all types of banks to illustrate that point.
Q. Who’s going to win, regional or big banks?
A. Big banks are always going to win on the national level. However, while it’s almost impossible for a regional bank to compete with Chase, for example, on a national level, they can certainly compete with the Chase branch across the street.
Q. What banks do you see as having best practices in social media at this point?
A. Since banks are doing so little in social media, none of them really have developed a “best practice.” Certainly Chase was successful in its Community Giving Program that it moved to Facebook. It was a program that existed offline, but in an effort to make consumers part of the decision, the company moved it online. More importantly, Chase did it in a way that allowed Facebook members to participate in a meaningful way.
Q. Have we seen debit card promotions targeted at non-customers?
A. Absolutely. Debit cards are being aggressively marketed in acquisition campaigns. We see this mainly through rewards programs, since rewards are earned primarily through debit activity. But we also see cash incentives for opening a new account tied to a debit card and debit usage.
Q. Any predictions on credit cards as stand-alone products outside of a banking relationship?
A. Companies have recently moved away from this, so I don’t expect a return anytime soon. MBNA was bought by Bank of America and Capital One obtained its banking charter so that it could use deposits to fund its lending activities.
Q. Can you explain how the deposit money app works on the iPhone?
A. The feature works through an iPhone application that customers download from the iTunes Store. When the user accesses the application they are asked for their user name and password. To deposit a check, the customer touches “Remote deposit.” The check must be placed on a dark surface. Then the customer takes a picture of the front and back of the check. While in this mode, green lines are visible so the customer can line up the check correctly. Once both sides are captured, the customer clicks submit and the transaction is complete. A video of the process is available here:
Q: Have you developed any predictions for the future of credit cards?
A. My colleague Andrew Davidson conducted a webinar last September titled “Seven Predictions for the Future of Credit Card Marketing.” If you’d like a copy of this presentation, please email email@example.com. His predictions were:
1. Direct mail is coming back
2. There will be more integrated marketing campaigns
3. The brand message will become more important
4. The CARD Act will lead to creative new products
5. The national wallet will shrink
6. The subprime segment will redefine itself
7. The card industry will adapt to the environment
Tags: banks, checking accounts, Credit Cards, customer newsletters, Direct Mail, direct marketing, economy, Email, email marketing, Financial Services, incentives, Investment, new product, print advertising, social media
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Today (Wednesday, May 5th), Mintel Comperemedia is hosting a webinar on “Seven Predictions for the Future of Banking.” Join Susan Wolfe, Vice President of Financial Services, as she explores seven key predictions for banking in 2010, using research and examples taken directly from Mintel Comperemedia and custom consumer surveys.
You can register and learn more here: http://www.mintel.com/us-email/compere_sevenpredictions.htm
This presentation will examine:
–The return of banks to “relationship banking” and how they will promote this
–Incentives and their importance in acquisition marketing campaigns
–Use of financial literacy programs by banks as they rebuild from the financial crisis
–Mobile banking as the “new” online banking
–Use of social media among financial institutions
Date and Time: Wednesday, May 5th, 2010 2:00pm-3:00pm CST (45 minute webinar, 15 minutes of Q&A)
Tags: banks, checking accounts, customer newsletters, Direct Mail, direct marketing, economy, Email, email marketing, Financial Services, incentives, Investment, new product, Print, print advertising, rewards, social media
Posted in Banking | No Comments »
The iPad is dominating our national attention, being described as the precursor to how we will use computers and communicate in the future. Whether you believe this or not, the iPad has inspired a flurry of innovation. Insurers are determined to get onboard.
This year, insurance companies continue to announce newly developed apps, targeting the majority toward auto policy holders. Last month, Travelers added itself to the list. Named “Auto Accident Help” for the iPhone and “Quick Connect” for the BlackBerry, Travelers apps are free for download. The apps can be used to ument the misfortunes of an auto accident, and if the incident is being documented by a Travelers policy holder, the auto claim process can be started immediately through the same app.
Many other insurance companies developed smartphone capabilities last year. Now, the trend is toward integrating insurance agents into the communication channel.
Universal American seems to have taken the lead by creating an app that lets the agent connect to its Lead Management System. In an email to agents, Universal American briefly talks about how the agent can manage and access active leads anywhere, at any time.
Additionally, Progressive proactively helps its agents develop an Internet presence. Progressive’s recent “Agency Reporter” tells agents how to improve Internet sales opportunitiesm including creating and optimizing a website and communicating via Twitter. Progressive writes about a discounted website development and hosting fee available to agents through its partnership with Web.com.
In a recent Mintel Comperemedia survey of agents, almost 25% responded that getting leads “is the biggest challenge [they] face as an insurance agent.” With this being the main struggle for agents, it seems that Universal American and Progressive have developed a couple of killer apps. The more insurance companies can help their agents find and nuture leads, the better they’ll do.