Why No Banking Retentions Thread?

ianianian_2

Bit of a rhetorical question!

Why don't banks offer anything to longserving customers? I am currently thinking of joining Abbey/ A&L due to there £100 offers and am unaware of any reason I should stay with the Halifax?

I'm assuming they make a few quid from having my money, so while my mobile phone company is prepared to offer me massive reductions to keep hold of my business why won't my bank?

Mikeyorks

ianianian wrote: »

so while my mobile phone company is prepared to offer me massive reductions

Bit of a rhetorical answer then ...... what do Halifax charge you that they can massively reduce in order to intrigue you to stay?

You tend to stick with a Bank because of (reasonable) service / excellent online facilities ..... I find Halifax fits that. And good interest rates ..... struggling with everywhere after this last weekend's rates cuts!

ianianian_2

How about a few quid after a year/ 5 years/ 10 years..... hey i've been with them over 20 and i'm still waiting!

I'm not having a go at Halifax, i'm just saying that banks seem to offer high interest rates and cashback to new customers, while if you stay still you get nothing

cifpower

ianianian wrote: »

Bit of a rhetorical question!

Why don't banks offer anything to longserving customers? I am currently thinking of joining Abbey/ A&L due to there £100 offers and am unaware of any reason I should stay with the Halifax?

I'm assuming they make a few quid from having my money, so while my mobile phone company is prepared to offer me massive reductions to keep hold of my business why won't my bank?

Mobile companies pay a lot in commission to third party companies like Carphone Warehouse and Dial a Phone. To prevent them having to pay more commission in attracting new customers to replace the ones that leave they give nice retention deals which work out cheaper for the company in the long run.

As for banks, I would say everyone needs one which is why most of them don't work as hard to get new customers.

apt

I find Halifax not as bad as Alliance and Leicester at exploiting existing customers. E.g. the recent 6% Guaranteed Saver Reward was for both existing and new current account holders. The same was true of the 10% regular saver offer. They did offer £100 for transfers a few months ago, but they are not serial 'new customers only' merchants like A&L. The Co-op have also been surprisingly poor in this respect.

wheelel

I'm always worried about the banks that have to bribe customers into creating accounts with them. Everyone on these boards seems to be rushing around to get their free £100 from Abbey/A+L, but no-one seems to questioning why they are so desperate for new customers!! It's obviously because they've lost so many with unacceptable service!!

If you're happy where you are then stay... there are also many benefits to be gained from staying with one bank for a long time such as it looking good on your credit file and also being probably more likely to get favourable deals from your bank because you should have built up a good internal credit score with them over the years. I think it's a little bit unrealistic to expect anything more, I never think we'll see the day where the banks will pay us for having accounts with them, they are businesses at the end of the day.

ianianian_2

Fair points!

So what kind of profit do banks make from our cash?
One would imagine that they must be making some decent money if they can afford to offer £100 to join, £50 to reccomend a friend and a high interest rate regardless of how much money you decide to place in their hands. I suppose they're hoping you stay for longer than the year usually contracted into the joining bonus, but if you have changed banks for this money your more likely to do it again as soon as you can!

YorkshireBoy

wheelel wrote: »

...but no-one seems to questioning why they are so desperate for new customers!! It's obviously because they've lost so many with unacceptable service!!

I don't see it that way.

The sign-ups are primarily designed to increase, not restore, their customer base, which in turn gives them cross-selling opportunities galore...

loans
insurance (more now than ever)
credit cards
investments
savings
mortgages

Very few people move due to poor service...FACT. Most people put up with it as a necessary evil. Lethargy and inertia are still rife in current account banking, and that's why they resort to 'bribery'.

And they're all at it (not just the ones renowned for poor service). I've had incentives from...

A&L
Halifax
Barclays
Nationwide (as an existing customer!)
First Direct (and they're reputed to be leaders in customer service!)

And RBS & Abbey have also run/are running promotions.

Even HSBC pay £50-100 through affiliate networks/cashback sites (and have paid customers directly previously).

There can't be many left.

And the killer...if they mess up on switching your DD's & SO's, most people will say "I'm not going through that again!" and stay.

Twister84

wheelel wrote: »

If you're happy where you are then stay... there are also many benefits to be gained from staying with one bank for a long time such as it looking good on your credit file and also being probably more likely to get favourable deals from your bank because you should have built up a good internal credit score with them over the years.

Hit the nail head there :T

The way described above means that you're more likely to get the things you want, eg decent interest rates on savings, guaranteed products ie mortgages, loans etc.....we'll also go out of our way for you - (which leads nicely onto)

I find it very rewarding when when I see staff (including myself ) who've built up a rapport with a longserving customer - as sad is sounds!

Extant

Twister84 wrote: »

Hit the nail head there :T

The way described above means that you're more likely to get the things you want, eg decent interest rates on savings, guaranteed products ie mortgages, loans etc.....we'll also go out of our way for you - (which leads nicely onto)

I find it very rewarding when when I see staff (including myself ) who've built up a rapport with a longserving customer - as sad is sounds!

I am a big believer in the idea of getting your sales through good service, it's not sad at all.

There are just as many, if not more, people who will stay with a bank just for the service and the rapport as there are rate tarts out there.

ragingbass

It#s just market forces. The fact is, people regularly look for better mobile phone deals, so phone companies have to work hard to try and retain your business. Probably because it a little daunting, people don't tend to switch their bank accounts hardly in a lifetime!! So the banks don't have to do much to keep your business (and money!), so they don't.

If people did start switching banks on mass, then you would no doubt see a similar retention drive. But I don't think that would ever happen to be honest, because most people are happy to stay with a bank even when they're not getting a decent deal.