The Challenge

First Direct, the no-branch bank owned by HSBC, is a success story in the finance sector. However it has traditionally focused its marketing in London and the South-East.

In early 2003, however, First Direct and PHD Confidential started talking about changing the strategy to target other regions. The question they had to resolve was whether targeting new regions would generate better returns that continuing to milk its current strategy.

The key to the success of any change would be the effectiveness of the new TV plan in reaching the right new customers.

The TV Solution

In order to model the potential in each region, PHD Confidential analysed more than half a million customer and applicant records. The result was 624 different customer segments, each of which was given a score based on key business criteria, such as likelihood to become a First Direct customer, before regional TV costs were factored in.

By autumn 2003 when the campaign started it was agreed that extra emphasis would be put on the North and Midlands while the South was downweighted and London cut back a little.

The black and white ads showed a landscape with voice over. The words spoken by the interviewee appear on screen before the film cuts to the person speaking. Two response routes were clearly indicated with web address and call centre number indicated in the final frame.

The campaign kicked off in July and August with direct mail before TV arrived on the schedule in September. This activity was backed up by more DM as well as press, which took 4% of the total 2003 budget.

The Results

The results of applying direct marketing techniques to TV planning resulted in First Direct’s best new customer acquisition programme for five years. Volumes rose 21% year-on-year and targets were exceeded by 18%.

The increase in acquisitions could be tied directly to the change in TV strategy, with more new customer growth strongest in the Midlands and the North.

The new strategy also helped boost the presence of First Direct as a national brand, with awareness rising 20%.