When Not Standing Out Makes Sense…
The Commonwealth Bank of Australia partly achieved its goal of being different last week – be it for the wrong reasons – after copping a dual bashing from both the Federal Treasurer and one of the country’s leading ad-men.
First, the bank reaped the whirlwind from Treasurer, Wayne Swan, who was himself belittled in January for being a ‘mug’ when the majors increased rates independently of the RBA.
But worse was to follow for CBA, as it was made to stand out like a sore thumb, after renound media personality John Singleton shot-down the bank’s new $50 million ad campaign.
“They had to go all the way to America for this? Mate, there are lots of really bad agencies in Australia. You don’t have to go to America to get shit,” Singleton was quoted as saying.
Swan is a quick learner, and this time around he was quick to get on the front foot and being seen projecting strength – fearing derision from Malcolm Turnball and company again perhaps?
This was achieved by pouncing on the first bank to again raise rates above the RBA’s cash rate.
Unfortunately or stupidly for CBA, it moved first and in advance of NAB, which followed suit on Friday, and therefore took the brunt of Swan’s lambasting – made on behalf of Labor’s core voter base, the so-called Australian working family.
Whether or not the additional 0.05 variable rate increase was justified is beside the point.
The fact of the matter is that in this industry image is everything – as evidenced by the bank spending $50 million on an ad campaign.
The Government is looking to introduce new legislation making it easier for consumers to switch banks.
Specifically, Mr. Swan and company are aiming to reduce or eliminate the switching and exit fees imposed by the banks on customers, particularly on home loans, which can cost up to $2000 to leave early.
Whether or not people will jump ship from CBA or any of the other banks once the changes come into force remains to be seen, as most research (including CoreData) identifies are large number of consumers who tend to remain where they are.
However for a bank desperate to improve its customer experience (which is arguably largely based on perception of the group anyway) it looks like a tough road ahead.
One saving grace for the bank though is that consumer opinions can change like the wind – but this is unlikely to happen as long as the current ad campaign continues to penetrate people’s homes every evening.
One Comment on “When Not Standing Out Makes Sense…”
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The Bard says:
‘Renound’?!!!!
Talk about sticking out like a sore thumb!