Marketing Mix: We'll call you

November 29, 2006

How long?

1 minute

Marketing Mix: We'll call you - First Direct

We want to switch banks and are thinking of First Direct - but not if it's going to charge us for having an account.[QQ]Q Mktg I'm thinking of switching to First Direct, but I read you charge £10 a month for current accounts.

First Direct Will there be less than an average monthly balance of £1500 in the account?

Mktg Do you mean there needs to be £1500 in there the whole time?

First Direct No, just as long as there is an average balance or credit turnover of that amount each month.

Mktg Is that with effect from today?

First Direct New customers have six months to get used to it. After the first six months, you'll get charged for it.

Mktg Why have you decided to do it?

First Direct It's to help customers benefit from the products we offer.

Mktg How are they going to benefit from parting with £120 a year?

First Direct Well, you mentioned you want to switch your banking.

Mktg I probably won't after hearing this. Are you offering any incentives to new customers?

First Direct We have a £50 incentive if you transfer to us and if your salary gets paid into the account and is more than £1500 a month.

Mktg So anyone not earning over £1500 can't benefit?

First Direct They can if they hold more than one account with us.

Mktg You're discriminating against people who are paid less than £1500 and only want one bank account.

First Direct Not really.

Mktg What's the interest on current accounts?

First Direct It's 2% for the first six months regardless of how you use it, and then it'll drop to 0.1%. I'm just going to check the average balance on that. (Mktg holds for one minute.) For any credit balance, it's 2%.

Mktg I've heard you're offering video banking. Can you tell me about it?

First Direct I'll have a look. (Mktg holds for a minute). We have opened video-call lines and some of our customers who are on the 3 mobile network are taking part in a pilot scheme. If it proves successful, we will look at doing it with everyone in the future.

VERDICT

The call-handler was polite, efficient and informative about First Direct's products and services. However, she was unable to explain how the new £10 monthly charge would benefit customers earning less than £1500 and who wanted to open only one bank account. This seems to be a reflection on her training, rather than her company knowledge. She did not know about the video banking scheme, but she was quick to look up the information.

SCORE 6/10.

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