First Direct - what are the numbers?

Gromitt

greenorange wrote: »

I'd imagine first direct has millions, rather than tens of thousands.

No need to imagine:

http://www.newsroom.firstdirect.com/press/about

• first direct has 1.16 million customers
• 950,000 of them use Internet Banking
• 420,000 customers use SMS message banking. first direct sends around 3.5 million text messages to customers every month
• first direct employs 3,200 people in 2,700 FTE roles at two sites, in Leeds and Hamilton (near Glasgow)

MoneySaverLog

Gromitt wrote: »

• 950,000 of them use Internet Banking

So just shy of a million to one chance of winning £500 if they all logged in during the time period.

Archi_Bald

Thanks guys & gals, there's some interesting numbers games to be had.

If FD have 1.16m customers (thank you Gromitt, sounds a credible number), why would they send an email saying 64 (sixtyfour!!!!!!!!! -- - - this time of night I can't even work out the %age of 64 from 1.16m but it is of course completely tiny and insignificant) people recommended them? Are they desperate, and why are they desperate? 64 people recommended FD?

Also, why would they say that 64 recommendations for their bank would be better than 117 for others? Have FD lost the plot?

matttye

Archi_Bald wrote: »

Thanks guys & gals, there's some interesting numbers games to be had.

If FD have 1.16m customers (thank you Gromitt, sounds a credible number), why would they send an email saying 64 (sixtyfour!!!!!!!!! -- - - this time of night I can't even work out the %age of 64 from 1.16m but it is of course completely tiny and insignificant) people recommended them? Are they desperate, and why are they desperate? 64 people recommended FD?

Also, why would they say that 64 recommendations for their bank would be better than 117 for others? Have FD lost the plot?

For any survey you take answers from a small selection and then extrapolate the results.

First direct has a higher satisfaction percentage, like I said earlier

Archi_Bald

matttye wrote: »

For any survey you take answers from a small selection and then extrapolate the results.

First direct has a higher satisfaction percentage, like I said earlier

so are you saying we should think that if 64 of 1.16m customers recommended a company, we should all rush to do business with that company?

And are you saying that if 64 customers of one company recommend that company, whilst 117 customers recommended another company, we should still stick with the recommendation of the 64? Why?

matttye

Archi_Bald wrote: »

so are you saying we should think that if 64 of 1.16m customers recommended a company, we should all rush to do business with that company?

And are you saying that if 64 customers of one company recommend that company, whilst 117 customers recommended another company, we should still stick with the recommendation of the 64? Why?

Read this: http://en.wikipedia.org/wiki/Sample_size_determination

You ask a sample of people and extrapolate the result across the entire customer base.

64 out of 107 is the equivalent of 693,796 out of 1.16m once extrapolated.

The 117 people who recommended the second, unnamed bank, were part of a larger sample group. The point is that had First Direct asked the same size sample group, they would have had a better result.

This is basic stuff; I'm surprised this needs explaining

Hominu

FD themselves say

[/quote]more than 1 in 4 of first direct's customers join because of personal recommendation[/quote]

So 25% of people joined on recommendation. Thats 290,000 people.

So 41% of people who are recommended don't join.

Aren't statistics fun?

matttye

Hominu wrote: »

FD themselves say

more than 1 in 4 of first direct's customers join because of personal recommendation

So 25% of people joined on recommendation. Thats 290,000 people.

So 41% of people who are recommended don't join.

Aren't statistics fun?

A lot of people might be happy with their current bank and not see a reason to change to FD. Doesn't necessarily mean they wouldn't find them better if they did join!

Gromitt

matttye wrote: »

A lot of people might be happy with their current bank and not see a reason to change to FD. Doesn't necessarily mean they wouldn't find them better if they did join!

I'd think the only people who find them actually better are those who need to contact them during 'out of hours' and get straight through to a human rather than an automated menu system or a "You are important to us" message on loop for 10 minutes. In the last 10 years I've never rang them, but I have left some 'secure messages', as I never believed anything was that urgent.

I'd recommend them even so, but I'd also recommend Lloyds TSB, Halifax, Nationwide and Santander, as they never ask what reason you would recommend them. I'd wouldn't recommend Santander for customer service, but I would recommend some of their products depending on what someone is after.

Archi_Bald

matttye wrote: »

The point is that had First Direct asked the same size sample group, they would have had a better result.

Extrapolation of sample sizes doesn't prove that FD would have had a better result had they actually asked the same number of people.