Banks taking gloves off in advertising campaigns
Consumers stand to gain, say analysts, as banks will have to back their boasts, writes
BY NOW First National Bank’s (FNB’S) “Hello Steve” marketing campaign is a household name among radio listeners. The campaign centres on a call centre employee, Steve, trying to lure customers away from FNB. His attempts are turned down by the FNB customers who then rattle off a list of reasons that they will remain loyal to their bank.
“It is one of the reasons that I switched banks,” says one consumer taken in by the campaign. But Steve has achieved more than its clever concept and simple message.
It has shifted the parameters of how the big financial houses market their products. It has effectively opened the door for more aggressive and confrontational marketing rivalries that have moved beyond the selfreflection that has so far characterised marketing by the banking giants.
The “Hello Steve” radio campaign, which was later supported by print and TV, has had one central goal: to tell customers the bank is better than its rivals and to spur them to action.
It has taken a while for the other banks to respond but that seems to be changing.
Two months ago Standard Bank took to print and the airwaves with its “mythonomics” campaign in which it tells customers about its products, with the payoff line, “We can’t speak for other banks”.
John Davenport, part of the creative force behind award winning independent advertising agency Ireland-davenport, says while confrontational campaigns come and go, it’s new to banking. “I haven’t seen it in the banking sector before. South African advertising has tended not to be very overly aggressive and criticise the competition but it’s happened before in airline, fast foods and car companies. It is new in the banking sector.”
The campaign took on another dimension when Standard Bank and FNB lodged complaints against each other at the Advertising Standards Authority of SA (ASA).
Both banks were found guilty of technical infringements and agree that it has made them more mindful of infringements.
Competition among SA’S big four banks has increased, especially amid huge discounting by new entrants such as Capitec. Absa has the largest customer base of 12-million clients, Standard Bank has 10-million clients and FNB about 7-million.
Modise Makhene, SA CEO of international agency JWT, says the aggressive marketing is a result of tougher economic conditions, which are forcing companies to offer better products and services and then market these aggressively. “Companies are pushing the envelope in terms of competitive advertising but it’s competitive in the context of SA in certain parameters. I think that kind of thing is going to stay and it shows how cutthroat business is becoming.”
FNB’s chief marketing officer, Bernice Samuels, says the aggressive campaign was aimed at getting customers to switch to FNB’s innovative new products.
These included fuel rewards, subsidised internet and smart devices, and lately airtime credits. She feels it has worked. “We had an increase of 1,3-million new accounts registered over the last 12 months. Not all new clients but new accounts.”
Mr Davenport says the campaign was successful because it was built on the back of the relevant new products, which allowed FNB to be assertive, and because it focused overwhelmingly on one medium — radio.
Nevertheless, he still expected an immediate and hard-hitting response from the other retail banks, which never came.
This, Mr Davenport believed, allowed FNB to capture the space at their expense.
“I was surprised not to see an aggressive response by the other banks,” he says.
“I would have expected to see them hit back and defend their high ground. Maybe there’s some other cunning plan.”
However, Mr Makhene believes the other banks have taken a more measured approach and are being careful not to be seen “punching off the back foot”.
Standard Bank marketing director Jacqui Carnelley says the institution is wary of getting into advertising spats, saying the bank would rather concentrate on its own products.
She says marketing will become more aggressive due to unprecedented changes in customer habits and as an unwritten “gentlemen’s agreement” ceases to be relevant. “We’ve seen it (confrontational marketing) in other sectors and financial services is just catching up. We have to become much more competitive in our messaging.”
Ms Carnelley says the “mythonomics” campaign was not a response to FNB but a bid to tell the market about what Standard Bank offered. The campaign was launched on the back of reduced bank charges, which Ms Carnelley says also were not in reaction to what other banks were doing but rather were a response to customers’ needs.
Mr Makhene says the competition is great news for consumers. “It forces companies to continually improve their products, which means the consumer benefits. “You can’t go into that direction when you can’t back it. You’ll see that in the mobile telecoms space. It’s a function of the environment and ultimately the consumer benefits.”