Question

Topic: Student Questions

Lloyds Tsb Marketing Strategies 4 Current Accounts

Posted by Anonymous on 3/7/2005 at 1:33 PM ET 500 Points
Hi, myself and a colleague of mine are conducting research into potential future marketing strategies for Lloyds TSB bank. Due to falling market share Lloyds has recently adopted a competetive pricing startegy, offering high interest rates and attractive extras for those willing to open a new account with them. We believe this is a worthwhile move as most accounts are simply used for cross-selling oppertunities and their profit making abilities are rather limited anyway.
However we are looking on building on top of that with some new "complementary" strategies and would be greatful for any of your ideas on how current accounts can be better marketed. Also if anyone can give us some information on the demographics of the major banks customer base this would be greatly appreciated. We especially want to know the ages of those holding accounts at different banks in order for segmentation purposes.
Your help will be greatly appreciated.
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted by jcmedinave on 3/8/2005 at 11:17 AM Accepted
    Hello,

    The price variable could be useful to incentive and seduce specific targets, but it is difficult to win loyalty if you no combine it with service, products and advice strategies. In my opinion, the best position attribute for Financial Institutions is "Adviser", we all need a bank that help us in find the best way to invest the money and use the resources.

    It is a good example of Lloys TSB Bank In the book "capturing Customer´s Heart:

    "Banking on Customer Service: Last year my partner and I were buying a house, and I was trying to sell my flat. My buyer pulled out at the last minute, so I was in the position of having to find an $18.000 bridging loan within a few days to secure our purchase. I phone my Bank Lloyds TSB on the off chance that they might be able to help, and was amazed at the service I got. They took a few details over the phone and invited me to see the manager the next day. When I arrived he had already worked out the combination overdraft and loan that I needed, filled in all the paperwork and got the necessary approval. He recommended that I swap my normal current account for a gold service current account, which gave me a discounted interested rate on the loan. He also explained how I could avoid paying more interest than I needed to, which seemed odd for a Bank! The loan was paid into my account the same day. Lloyds TSB didn´t even make profit from the loan as I paid it off within three weeks, but they definitely gained my goodwill. This is a good example og an organization that treats potentially profitable customers well, in order to keep their business and in the long term, make money out of them".

    Bye,

    Juan Carlos
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Student Questions)