Lexden's Customer ISA Diary 2014

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Lexden's 2014 ISA Customer Diary is now complete. A review of the ISA season's campaigns from the consumer's perspective in a lite bite digestible fashion. Perfect as an additional insight source to inspire marketing planning or activation.

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Lexden's Customer ISA Diary 2014

  1. 1. ISA Customer Diary 2014 Report Presented by the ISA Customer Brought to you by Lexden, the Customer Strategy Agency Conducted in March/April 2014
  2. 2. We help clients realise the potential of putting customers at the heart of their business We achieve this through our suite of ‘What Matters Most’ customer strategy solutions
  3. 3. Lexden works with brands who are serious about “putting customers at the heart of what they do”
  4. 4. The 2014 ISA Customer Diary Methodology Who: One consumer seeking an ISA records provider engagement Currently holds £10,000k combination of Cash & Stocks & Shares ISAs When: Consideration phase - 19th March to 5th April 2014 Also included - post 5th April 2014 messages seen How: Capture and assess all ISA messaging seen travelling into and around London in terms of positive & negative sentiment to arrive at a preferred provider for this year’s ISA selection. INTRODUCTION A review of the ISA season brought to you from the customer’s perspective
  5. 5. What influences consumer decision making along the ISA pathway to purchase? When looking for an ISA consumers purchasing directly will be exposed to several influencing factors (blue chevrons). In different markets the same patterns occur and the same importance is placed on various factors. From our studies, first-hand customer experience of a brand will have the most significant impact on an existing relationship with a customer (c50%). However, at consideration phase ‘experience’ is often difficult for products such as financial services to demonstrate. Consumers use factors such as those below to form an impression and create a preferred list* and eventually a decision. It is these factors we have used to build the 2014 ISA Customer diary. ADVERTISING REPUTATION PEER EVALUATIONS COMMUNICATIONS PROSPECT EXPERIENCE PRODUCT TERMS BRAND *none of which most consumers consciously register in reaching their decisions INTRODUCTION
  6. 6. In our ISA Diary review we recorded messages from these providers INTRODUCTION
  7. 7. ISA messages were consumed across the following media INTRODUCTION BRANCH WINDOW TRAIN & UNDERGOUND TAXI ONLINE INSERTS DIRECT MAIL PRESS & MAGAZINE ADS EVENTS
  8. 8. Providers comms registered with our consumer at different points in the review period INTRODUCTION 19th Mar 26th Mar 4th Apr Post 5th Apr
  9. 9. The volume of ISA messaging observed, peaked on 25th March, prompted by an ES ISA section INTRODUCTION 0 1 2 3 4 5 6 7 8 Evening Standard ISA Guide
  10. 10. ISA Diary key observations & insights contents • 2014 ISA season highlights • Key message word bank • Provider’s specific integrated campaign review – Fidelity – HSBC • Sentiment analysis • Critical observations impacting consumer confidence • Top 3 providers based on messaging and communications • Creative gallery • Conclusions INSIGHTS A review of the ISA season brought to you from the customer’s perspective
  11. 11. 2014 ISA season high (and low) lights Fidelity’s travelling ISA show Alliance Trust’s multiple messaging strategy. The consumers view was, “I see them all, but I remember none” ISA - the afterthought campaign from Schroders HSBC spend big to land emotional ISA message via a small child INSIGHTS
  12. 12. ISA providers key message word bank INSIGHTS Key Themes Flat fees Dreams fulfilled Choices Fairness
  13. 13. Specific integrated campaigns – Fidelity Investments INSIGHTS CD provided from stand at Waterloo ISA stand at Waterloo with data capture Website Cross-track, tube and press advertising
  14. 14. Specific integrated campaigns – Fidelity Investments INSIGHTS 15th April 201419th March 2014
  15. 15. Specific integrated campaigns – Fidelity Investments Campaign strengths • Fidelity was the only provider who delivered an (observed) integrated campaign with continuity in message and campaign style across media • Smart ‘deferred decision’ option presented • CD provided easy access ISA info with balance of sector info and Fidelity proposition • Website and email provided ‘easy to digest’ choice of funds based on my experience of investments, expectations from investment return and attitude to risk Room for improvement • CD from event had a language bank littered with unnecessary ‘trade’ expressions • Quality of the ‘our office’ environment on the CD was not consistent with the brand perception established through advertising • My choices from the stand were not reflected in the follow up email I received • Too many different messages within the same campaign: fund choices, fees and deferred decisions. As the consumer we were uncertain of what to focus on • It felt as if different ad agencies had the same brief with the creative idea not translated cohesively across all media INSIGHTS
  16. 16. Specific integrated campaigns – HSBC Branch poster TV ad INSIGHTS
  17. 17. Specific integrated campaigns – HSBC Campaign strengths • The link between the ‘small investment’ of the boy in the ad being hard earned and well invested scans well a small but sound return from an ISA (Cash) • Unlike many of the other campaigns, HSBC have avoided rational messages about fees. The connection with the customer is on an emotional level – probably appealing to retail bank customer types who are less sensitive to the fees associated • Very brand focussed which lends confidence to product category Room for improvement • Whilst the TV helped HSBC stand apart in stature and commitment to ISA’s beyond the competition, the messaging take out is about ‘saving can lead to growth’ rather than product level – consistent with HSBC’s other brand messages • As a HSBC banking customer, we missed the connection between the TV and the in- branch activity – even though there is a creative link • The TV and the branch poster refer to the ‘NEW’ ISA but we didn’t keep engaged long enough to see evidence of what the advantage of the ‘NEW’ was – a missed message opportunity? INSIGHTS
  18. 18. ISA communications often left our consumer feeling less positive about the brand because of the confusing messaging 15 18 4 0 2 4 6 8 10 12 14 16 18 20 POSITIVE NEGATIVE NEUTRAL INSIGHTS e.g. “Over 1,900 clean fund” e.g. “Lowest fees ever” e.g. “Still unsure? Buy more time” e.g. “happy with your ISA returns?”
  19. 19. Messaging was varied with some focus on growth and emotional connection consistent with important considered decision, polarised with a display of rational ‘efficiency’ and ‘savings’ messages more typically associated with low interest, high frequency and routine purchasing categories INSIGHTS Emotional Rational Efficiency driver Growth driver Lowest ever charges5 Make dreams happen1 £150 cashback4 Rocket2 Give your ISA the edge3 Fairer fee structure4 Buy more time5 Our team ,your investment6 Make more of your ISA4 Happy with your returns?7 1 HSBC 2 Lloyds Bank 3 M&G 4 Alliance Trust 5 Fidelity 6 Schroders 7 Nutmeg 8 Scottish Friendly Nice to have more choice8
  20. 20. Critical observations impacting consumer confidence INSIGHTS With a focus on criteria such as fees, Alliance Trust are appealing to a consumer who has rationalised their ISA purchase to a commodity. Any motivational qualities of the Alliance Trust brand are marginalised in order to allow the fee message to headline. The consumer is left with an understanding that ‘it’s free to get in’ to this event, but no appreciation of what advantage there is to attending the event. In a market where attracting quality customer types is imperative to leverage further investments x-sells, does this approach connect with that type of investor. Or is it more likely to chime with one who thinks ‘cheap is good’? The ‘power to the people’ campaign thought may have looked good at the creative agency presentation, but It is at best underwhelming and otherwise confusing here. Other ISA inclusive executions at the same time seemed to drop the revolution theme altogether. And finally the £150 cashback for existing ISA transfers meant that the execution had to not only carry multiple messages but deliver dual AUM revenue strategies. This is a challenge for most media – but it is beyond single execution press.
  21. 21. Critical observations impacting consumer confidence INSIGHTS Do we like nutmeg? Of course we like nutmeg – the platform, the brand confidence, the clean communications. We love it all…well almost. What we were disappointed to see was the lack of a proposition in the communications. Along with Fidelity they have adopted the general insurers model out outspend the competition out of the arena. and at times it felt as if every second cab was blazoned with nutmeg. But the story didn’t develop for our consumer. When you pose, ‘why nutmeg’ the question remains unanswered. And without an engaging enough story to compel the consumer to seek them out, I would image this campaign has high awareness and then a drop out at consideration. Of course it could be aimed at just existing customers, but if it was the media choice would be an expensive one. If there was a second act to the brand piece which was a proposition we missed, we apologise but the ‘temptation’ to read on is far to easy to resist with this campaign, sadly.
  22. 22. Top 3 selected by our ISA customer based on message, memorability and confidence CONCLUSION IF WE WERE TO PURCHASE THE FIDELITY PATHFINDER FOUNDATION 1 FLOATED OUR ISA BOAT
  23. 23. Top 3 verbatim from our ISA Customer - Fidelity Date Comms engagement Observations Sentiment 19th March Stand – Waterloo Funds matched to risk (didn’t really like black box way of telling me my risk vulnerability) POS Helpful girl- but not the level of experience I expected Fidelity to have NEG Email Follow up reinforcing what I'd picked up on stand. A bit soon (over keen). NEG 20th March Fidelity CD Popped in laptop to play. Saw first page of text and decided to leave for now NEG 21st March Fidelity ISA dynamic ad Kings Cross Confused now as I was thinking choice of funds and now the messaging has switched to focus on fees. NEG 25th March Fidelity ad – ES I did get the choice message again. Reminded me to watch my CD - where did I put it? POS 31st March Fidelity cross track Too far to read message - recognised shape and colours though - 1st April Fidelity press ad I like this - delaying my decision without missing out - but of course they've got my money then - smart POS 2nd April Fidelity cross tracks There it is again. Not sure what it's saying - but I'm thinking they are definitely my back up plan POS 5th April Website Struggled to untangle several messages I picked up along route and decided I might make wrong choice. Reluctantly pushed on. NEG 5th April Fidelity CD Watched (some of it). Came across too much like a recruitment video! Useful in parts but trying to talk to notice to well informed in one hit which is too wide a gulf. -- 15th April Follow up email I received this nearly 3 weeks after I had registered my details on the stand - why nothing in between? NEG INSIGHTS
  24. 24. Top 3 verbatim from our ISA Customer – Santander and HSBC Date Comms engagement Observations Sentiment 28th March Statement They say timing is everything. II wanted to check last two years performance and here it was – not bad and gave me context to check other claims against. And with an extra 0.1% bonus because Rory McElroy won a trophy (nice bit of experience enjoyment) I feel good towards them POS 5th March Website Easy to navigate and I knew where I stood. But would only consider Santander for cash ISAs POS INSIGHTS Date Comms engagement Observations Sentiment 28th March TV ad I've seen this before but didn’t connect to ISA before. Like the message of growth. Simple POS 3rd April Branch poster It's very soft on the message - not very confident - not really strong enough to get my attention NEG 3rd April TV ad It's sticking now. Really simple execution - conveys what I am looking for from an ISA. Simplicity and growth POS HSBCSantander
  25. 25. ISA season creative gallery INSIGHTS
  26. 26. 2014 ISA Summary OVERALL OBSERVATIONS • Emotional engagement is more memorable through relevance and resonance than rational propositions • Our perception is providers have a less defined audience type in mind when they promote ISA’s, or the marketing team are being pressured to ‘reach everyone’ • Multiple messages confuse • Limited digital integration – unless the consumer visits their site, the consumer wont find the provider in which case the ad spend is pure brand (and apart from HSBC and Lloyds) no ads worked like brand ads • Fees featured as a motivating factor. Stop and think about that as a lead message. Is it inspiring to attract an investor or does it conjure up a relationship where the provider will judge success by how little they charge where as we all want to judge in the confidence on the return (FCA limitations accepted) • Campaigns such as Fidelity which are well organised and integrated cut through. The consumer remembers the brand, the message and as we found has to find something wrong then to take them off the consideration list • Nebulas brand statements about using up your allowance in the main have disappeared, but there is still some bland outdoor messaging happening. If you stand by a cross track poster and look at whose looking at it – you soon find out how compelling your proposition and your message are. We’d suggest the likes of M&G and Schroders should invest time here before budget on outdoor. • Most disappointing was NatWest. Having had an ISA with them for 2 years, and liking the customer-centric emotional engagement of the ‘mum’s magic’ campaign, to receive nothing except a performance statement frustrated the ISA consumer who decided to take them off his list going forward for other products too. RECOMMENDATION • ISA planning typically starts around November or even later. A strategy which focussed on understanding what informs decision making (beyond the rational equation), what customers do with their ISA’s and ‘what matters most’ when they apply invested now, would bear the content fruits for next years campaign and steal a competitive advantage. FINDINGS
  27. 27. We hope you’ve enjoyed this light touch Diary | We will be presenting home insurance, travel insurance, summer days out and more later in 2014 |We also publish a free monthly CUSTOMER FIRST which many blue chip brands subscribing from across the globe – to sign up, simply email ‘customer first’ to christopherbrooks@lexdengroup.com and we will send you the latest issue. If you would like to talk to us about specific customer insight interpretation, proposition development or experience programmes requirements, we’d love to hear from you. www.lexdengroup.com @consultingchris 7th Floor Elizabeth House York Road London SE1 7NR T: 0207 0362968 M: 0796 8316548

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