Lloyds banked a £59 return for every £1 spent

Submitted by: Jess Taylor 08/11/2016

Lloyds Bank DM
Brand Name: Lloyds Commercial Banking         Agency: Proximity London

Background

Businesses that turnover between £1 million and £25 million a year have little time for extra admin, meaning just 4% of companies switch banks annually. And SMEs think banks are all the same – so even when they get a raw deal they tend to stay with ‘the devil they know’.

The Case Study

Research showed what mattered to high-value SMEs was service – it was the main reason for switching. So it came as a revelation that for over a decade Financial Directors had voted Lloyds ‘Best Bank for Service’.

Research suggested it would take five to 10 contacts to trigger a switch.
By concentrating on a service proposition rather than a commercial one, Lloyds asked SMEs to score their current bank’s quality of service and turned dissatisfaction into new customers worth millions of pounds per year.
This scorecard borrowed from the scoring criteria of the FDs’ Excellence Awards, with a few of Lloyds’ own USPs included. It was mailed along with a branded pencil.

Results

  • Despite the research suggesting that more than five contacts would be necessary to drive a switch, the campaign smashed its annual target with the first burst of activity.
  • With the mail pack costing less than £1 and being followed up by email, the power to change entrenched behaviour with just a big idea and some real service was proven by an ROMI of 59:1. More than 275 SMEs switched, bringing approximately £5 million into Lloyds Commercial Banking and, more importantly, initiating relationships that Lloyds’ service can maintain for an average 12 or more years


 

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