Commwealth
Commonwealth Bank: Home seeker
Will Nichols The Communications Council Bronze, Australian Effie Awards, 2011
Title: Author(s): Source: Issue:
Commonwealth Bank: Home seeker Will Nichols The Communications Council Bronze, Australian Effie Awards, 2011
Commonwealth Bank: Home seeker
Agency: BMF Advertiser: Commonwealth Bank Author: Will Nichols Total Campaign Expenditure: Under $500K
STRATEGIC COMMUNICATIONS CHALLENGE
The Australian home loans market is highly competitive. The big four banks, brokers and smaller lenders ferociously compete for valuable home buyers. Convincing these buyers to speak to the Commonwealth Bank (CBA) and begin the application process is vital to success. However, analysis of the bank's application process showed that 85% of pre-approved customers do not convert to a fully funded home loan within the six month approval period. This was occurring despite the fact that these customers had already gone to the trouble of providing their financial details and speaking with the bank to gain approval. We needed to understand why they weren't converting with us. Three main factors were in play. Competitive market Many potential customers took a loan elsewhere. At the time of the campaign, we were in the middle of 3 continuous months of interest rate increases, rising a total of 0.75%.
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And as the market leader, CBA was usually the first mover, and often the target of the press. “Shortly after today's decision the Commonwealth Bank of Australia raised its variable home loan interest rate, effective from May 7, in line with the RBA s move. Later, Westpac also raised its variable home loan rate” The Australian, 4th May 2011. http://bit.ly/9MSZVG At the campaign launch CBA's rate of 7.11% was not the best rate in market, so this triggered further re-evaluation, and shopping around. Customers applying via 3rd party brokers were also particularly at risk, with
Will Nichols The Communications Council Bronze, Australian Effie Awards, 2011
Title: Author(s): Source: Issue:
Commonwealth Bank: Home seeker Will Nichols The Communications Council Bronze, Australian Effie Awards, 2011
Commonwealth Bank: Home seeker
Agency: BMF Advertiser: Commonwealth Bank Author: Will Nichols Total Campaign Expenditure: Under $500K
STRATEGIC COMMUNICATIONS CHALLENGE
The Australian home loans market is highly competitive. The big four banks, brokers and smaller lenders ferociously compete for valuable home buyers. Convincing these buyers to speak to the Commonwealth Bank (CBA) and begin the application process is vital to success. However, analysis of the bank's application process showed that 85% of pre-approved customers do not convert to a fully funded home loan within the six month approval period. This was occurring despite the fact that these customers had already gone to the trouble of providing their financial details and speaking with the bank to gain approval. We needed to understand why they weren't converting with us. Three main factors were in play. Competitive market Many potential customers took a loan elsewhere. At the time of the campaign, we were in the middle of 3 continuous months of interest rate increases, rising a total of 0.75%.
Downloaded from warc.com
2
And as the market leader, CBA was usually the first mover, and often the target of the press. “Shortly after today's decision the Commonwealth Bank of Australia raised its variable home loan interest rate, effective from May 7, in line with the RBA s move. Later, Westpac also raised its variable home loan rate” The Australian, 4th May 2011. http://bit.ly/9MSZVG At the campaign launch CBA's rate of 7.11% was not the best rate in market, so this triggered further re-evaluation, and shopping around. Customers applying via 3rd party brokers were also particularly at risk, with