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No. Banks are not in business to be helpful to customers. They are an actual business with bottom lines. They must continually get new customers in to replace customers that have either died or moved or changed banks. The bank with the "best" deal is not usually the best bank. Beware of banks offering a really good rate on savings because that is a bank that is trying to pump up their customer base and dollars invested so the bank will get more money when they sell to a competitor.
That is an interesting question. I'm sure nobody has tried it. How would everyone find out about the better deal if it isn't promoted? Maybe a viral strategy - offer better rate to those that tell their friends about it - and an even better rate if they move their money to your bank? I'm not sure that is even legal?
yes its been said a thousand times
Very good question. On one hand, it is extremely important for the customers to become aware of the bank's offers, yet on the other hand, I do believe that many banks spend way too much on marketing. Perhaps if they could spend less, but still bring in the customers, surely the price offered would be more attractive to them than the adverts/promotions themselves! Once one person signs on to the bank with the better deal, it is a great talking point for people to spread amongst friends/family, henceforth, creating more customers. This however may not be quite as reliable as a powerful, expensive advertising campaign.
Overall, yes, i do believe that banks should invest more in their customers than their advertising. Besides if, in a lower-budget advert, the bank explained that their advert isnt 'flashy' because they wanted to give customers a better deal, then surely that would give customers a huge amount of respect for the business!
Yes, I do.
Do I think they will do it?
No.
I hope that helps.
Regards
Business in Barnet
http://www.business-in-barnet.com...
Better deal or better promotionals.
if you're just saying a better deal, then you are off in assuming that money can just be transfered from an advertising budget to a supply/demand pricing function. This just isn't the case. If you really want a better deal, go to another bank. Wachovia, WaMu and Commerce are all banks that win awards for their service, and they seem to advertise about the same.
I would recommend looking into a local credit union.. Credit Unions generally puts the money back in there customers pockets as much as possible, including great rates & loan possibilities.
I do agree with you that banks (along with other industries) should spend less money on advertising and more paying the benefits forward to their customers/clients.
You've got some great answers here. But here's my take:
No. Pure and simple, No.
Advertising usually is a very small part of the bank's overall expenses. Usually less than 3%.
But let's say a bank decides to lower all their fees by 10%. Now, 10% isn't all that much. On a bounced check, for example, it's about $3. On a typical account service charge, it's probably only 50 cents. But would you rather spend 3% on advertising or 10% on lower fees? (DUH!!!)
Most customers, when they choose a bank, don't really research items like fees. They ask about direct deposit, monthly account service charges, interest rates, but never other types of fees.
And if you lower your fees and give customers a better deal, how are you going to tell those people who are not already customers of your bank about the change in policy. (I hope you have by now guessed the correct answer. ADVERTISING!)
Therefore ... advertising has a better chance of winning you new customers. Advertise frequently and heavily. If you need a good advertising agency, hire me.
Good Luck.
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