Top Bank Accounts Discussion Area

Consumerist

paulyuk6 said:

. . . I resent every penny that Lloyds spends that isn't going into my account and millions like me. . .

I wouldn't worry too much, it's probably all their overdraft prisoners (paying 60% pa interest) who are paying for the marketing.

murphydavid

paulyuk6 said:

I'm sure we all appreciate Lloyds Bank's lavish TV advertising campaigns featuring beautiful wild horses, stunning landscapes and carefully selected emotional music.
But here is a little thought for you, Lloyds Bank - How about you dismiss the expensive advertising agency, fire your marketing team and cancel all planned future campaigns. Then use the millions of Pounds you waste on making you feel good about yourselves to pay your savers a DECENT rate of interest?    See, it's not that difficult!!

I resent every penny that Lloyds spends that isn't going into my account and millions like me.

regards

Mrs. Sarah Dolland

Mill Road, Cambridge

Its an interesting perspective but.
They have 30 million customers and your share would be in pence not pounds.
Also Marketing don't work like that.
Not knowing the numbers consider this hypothetical proposition:
 If you have 30 million customers and make £5 profit per customer (on average) and to get those customers you spend £5,000,000 on marketing then that's £145,000,000 profit.
On the other hand if you spend nothing on getting customers and end up getting 3 million via MSE best interest charts, to make your 145,000,000 profit you need to make £47 profit per customer.
I'd rather they made £5 profit out of me than £47.
Also note Lloyds and the others dont pay for savers interest; people with borrowings do. With house prices as high as they are a savers "decent" rate of interest is a mortgage payers "exorbitant" rate so who do we feel sympathy for?  Someone with money or someone paying off a debt?

paulyuk6

murphydavid said:

paulyuk6 said:

I'm sure we all appreciate Lloyds Bank's lavish TV advertising campaigns featuring beautiful wild horses, stunning landscapes and carefully selected emotional music.
But here is a little thought for you, Lloyds Bank - How about you dismiss the expensive advertising agency, fire your marketing team and cancel all planned future campaigns. Then use the millions of Pounds you waste on making you feel good about yourselves to pay your savers a DECENT rate of interest?    See, it's not that difficult!!

I resent every penny that Lloyds spends that isn't going into my account and millions like me.

regards

Mrs. Sarah Dolland

Mill Road, Cambridge

Its an interesting perspective but.
Marketing don't work like that.
Not knowing the numbers consider this hypothetical proposition:
 If you have 30 million customers and make £5 profit per customer (on average) and to get those customers you spend £5,000,000 on marketing then that's £145,000,000 profit.
On the other hand if you spend nothing on getting customers and end up getting 3 million via MSE best interest charts, to make your 145,000,000 profit you need to make £47 profit per customer.
I'd rather they made £5 profit out of me than £47.
Also note Lloyds and the others dont pay for savers interest; people with borrowings do. With house prices as high as they are a savers "decent" rate of interest is a mortgage payers "exorbitant" rate so who do we feel sympathy for?  Someone with money or someone paying off a debt?

Yes indeed, that is a valid point. BUT I have been a Lloyds customer for 30+ years.   So they have not spent anything in many, many years to attract me as a new customer, or do anything at all to retain me as an existing customer.  However if I start considering moving my account elsewhere because of their appallingly low interest rates, then they have lost any potential earnings from me in the future (what I think is called 'customer churn' in the mobile phone market).  Their so-called High-Interest current account is nothing of the sort.
Why are they spending so much on attracting new customers whilst doing nothing at all to retain existing customers?   If enough existing customers move elsewhere then all their expensive marketing is wasted because the number of new customers is not high enough to replace the customers that they are losing. 
Your point about debtors versus savers is also fair comment.  But if Lloyds Bank tightened their belts and cut back on a their constant TV, Radio, magazine and newspaper advertising, they could offer to reduce their interest rates to people with mortgages and loans AND increase their savings rate.
Ok, perhaps I am being naive ! :-)

polymaff

I've never heard of any organisation that "gets" 30 million customers due to a 0.5 million marketing initiative - let alone worthwhile customers.   Nor any occurrences of the other circumstances you advance.

Consumerist

murphydavid said:

. . .  If you have 30 million customers and make £5 profit per customer (on average) and to get those customers you spend £5,000,000 on marketing then that's £145,000,000 profit. . .

I think the question really is whether they get 30 million EXTRA customers from the £5m YEARLY spend.

It might be said, however, that they wouldn't do it if it wasn't worthwhile in some respect or other.

bigadaj

murphydavid said:

paulyuk6 said:

I'm sure we all appreciate Lloyds Bank's lavish TV advertising campaigns featuring beautiful wild horses, stunning landscapes and carefully selected emotional music.
But here is a little thought for you, Lloyds Bank - How about you dismiss the expensive advertising agency, fire your marketing team and cancel all planned future campaigns. Then use the millions of Pounds you waste on making you feel good about yourselves to pay your savers a DECENT rate of interest?    See, it's not that difficult!!

I resent every penny that Lloyds spends that isn't going into my account and millions like me.

regards

Mrs. Sarah Dolland

Mill Road, Cambridge

Its an interesting perspective but.
They have 30 million customers and your share would be in pence not pounds.
Also Marketing don't work like that.
Not knowing the numbers consider this hypothetical proposition:
 If you have 30 million customers and make £5 profit per customer (on average) and to get those customers you spend £5,000,000 on marketing then that's £145,000,000 profit.
On the other hand if you spend nothing on getting customers and end up getting 3 million via MSE best interest charts, to make your 145,000,000 profit you need to make £47 profit per customer.
I'd rather they made £5 profit out of me than £47.
Also note Lloyds and the others dont pay for savers interest; people with borrowings do. With house prices as high as they are a savers "decent" rate of interest is a mortgage payers "exorbitant" rate so who do we feel sympathy for?  Someone with money or someone paying off a debt?

How's the career in marketing going?

polymaff

Consumerist said: It might be said, however, that they wouldn't do it if it wasn't worthwhile in some respect or other.

Marketing loses money hand-over-fist in a lot of businesses.  Sometimes their own business - e.g. Hoover and the crazy holiday promotion, sometimes other businesses - e.g. "me, too" Supermarket home delivery, where they all gouge each other.

Marketing also promotes products and so sells more - oblivious of the fact that sales are made at prices below the cost of the delivered items - so more  sales leads to more losses.

The two most dangerous departments in businesses are undoubtedly HR and IT - but Marketing runs a close third. ...

Consumerist

Personally, I think it's more about image than it is directly about profits.

Just look at the advertising bilge served up recently by Amazon. They've had bad press recently concerning their employees so they want to pretend they are the perfect employer for the paid staff (or actors) they portray.

Do they really think anyone believes their advertising clap trap?

dcs34

Consumerist said:

Personally, I think it's more about image than it is directly about profits.

Just look at the advertising bilge served up recently by Amazon. They've had bad press recently concerning their employees so they want to pretend they are the perfect employer for the paid staff (or actors) they portray.

Do they really think anyone believes their advertising clap trap?

They were evening gearing up to offer Joe Bloggs public tours of their warehouses before the pandemic hit!

adamp87

paulyuk6 said:

I'm sure we all appreciate Lloyds Bank's lavish TV advertising campaigns featuring beautiful wild horses, stunning landscapes and carefully selected emotional music.
But here is a little thought for you, Lloyds Bank - How about you dismiss the expensive advertising agency, fire your marketing team and cancel all planned future campaigns. Then use the millions of Pounds you waste on making you feel good about yourselves to pay your savers a DECENT rate of interest?    See, it's not that difficult!!

I resent every penny that Lloyds spends that isn't going into my account and millions like me.

regards

Mrs. Sarah Dolland

Mill Road, Cambridge

Banks are entitled to advertise their services if you are unhappy change banks , most saving accounts are around the same to be fair, but you can always shop around for a better deal