JWT’s AnxietyIndex is designed as a place to discuss how brands and consumers are responding to the global recession. With daily content updates, AnxietyIndex.com includes contributions from around JWT’s network, offering a truly global perspective.
Though well-intentioned, a recent TV commercial from leading Singapore bank OCBC has put a spotlight on the promises that brands make to customers. The spot—which is intended to support the bank’s recently launched Sunday Banking service—tells the story of a customer who visits the bank on her birthday, which happens to fall on a Sunday. In a show of the bank’s commitment to delighting its customers even on Sundays, its staff brings out a birthday cake, much to the surprise of the customer. The story was told so convincingly that some people believed the bank gave out birthday cakes on customers’ birthdays. Two days later, a blogger posted an account of what happened when she went to a OCBC branch on her birthday and was not offered a cake. The scathing entry has generated over 500 comments and created a controversy over the ad that was picked up by The Straits Timesnewspaper.
While one can dismiss the blogger as being overly literal—and probably a bit of a smart ass—what’s interesting about this reaction to the ad is how consumers could expect a real payoff. In our 10 Trends for 2010, we said people are Reading the Fine Print to get the best value and determine whether a company’s claims are sincere. I suspect that in a less wary time, consumers would let OCBC simply slide. But after a reality check in the form of an economic slowdown where people have lost jobs, defaulted on financial obligations or sold their belongings to get by, empty promises such as this are not welcome. For brands, this means being more conscious about how their advertising is perceived. Is the company giving customers the impression they will receive a benefit from that company? If so, is the message something the company can make good on? If not, perhaps the message needs to be tweaked. After all, in these times when customer satisfaction is utmost, no one wants an angry customer, especially one with a blog.
During this economic downturn, a number of brands have employed a strategy of producing content that uses simple language and graphics to help consumers understand a situation they may not previously have faced. For example, I’ve written about UBank’s series of smart Webisodes on topics such as “Credit Crunch Explained” and “Recession Explained.”
By contrast, Westpac, Australia’s second largest bank, recently stumbled with an animated video that tries to explain why it has pushed up interest rates. The bank’s retail chief, Peter Hanlo, e-mailed the roughly three-minute video to hundreds of thousands of customers. The response was outrage over the video’s condescending tone and its misplaced analogy centered around banana smoothies (which have become more expensive since severe storms destroyed banana plantations in Australia). Prime Minister Kevin Rudd suggested Westpac take “a long, hard look at itself.”
One of our 10 Trends for 2010 is Visual Fluency—the acceleration of the shift from words to images, and increasingly innovative ways to explain and illuminate complex topics. There are many ways for brands to leverage this trend—and likewise many ways to get it wrong. In this case, the medium was right, while the message was all wrong.
In a recession year, what a surprise it was last month to see a modest Filipino family hauling a big box containing their new widescreen TV. Before they rushed off to do more shopping, in answer to my query they said the purchase was “thanks to the credit cards—their offers are better this month!”
Off I went to the appliance store to investigate. What I found is that banks were offering extended payment like never before. Credit cards from Citibank and BDO (Banco de Oro) touted “Buy now, pay in 2010” and “Pay much later” schemes. Surely a big help to the Filipino family with a primary breadwinner still working abroad and perhaps a little late coming home for Christmas. Or families still feeling unstable because a member lost a well-paying job in 2009. And banks know that in December, along with splurging on food for their family, the typical Filipino family loves TV Christmas specials and soap operas, now amplified for some in wide-screen splendor.
The New York Times recently ran a story, “In New Campaigns, Spots Take On a Rosier Hue,” observing that new messaging from brands including GE, Bank of America and Levi’s visualizes a bright future for America. “Marketers’ emphasis on American pride and an economic comeback suggests that the air is starting to crackle with optimism,” the paper reported.
But new spots for John Hancock’s “Cursor” campaign—dialogue-free commercials in which people tap out digital messages—acknowledges some disheartening realities that everyday Americans are facing. In one ad, an older man in a café messages a friend: “Remember when we used to say ‘WHEN’ we retire like it was a sure thing?” Responds his mate: “Then it became a lot of ‘WILL WE.’” To get “from WILL WE back to WHEN WE,” the spot touts Hancock’s findtheanswers.com. In another spot, a middle-aged man texts his wife about someone whose parents are selling their house—“realized their money wouldn’t last”—and moving in with the younger couple. “Tell me that won’t b us,” he pleads.
Viewers likely want a bit of both approaches. John Hancock’s message that it understands the retirement-related anxieties of Americans will surely strike a chord; at the same time, consumers want to believe in an “American renewal” (as GE puts it), even if the job market they’re facing offers little immediate hope.
Saudi Arabia is very fiscally conservative, and messaging from banks focuses on the careful relationship between the person and his money. The banks are very cautious about who they loan to; earlier this year, our work for HSBC (known locally as SABB) targeted reliable prospects with stable jobs.
Saudis who are on the brink of a new life—recent graduates, new parents, first-time homebuyers—tend to be anxious about how they will secure the funding to fulfill their dreams. A new bank, Al-Inma, is making a revolutionary and risky move, going against the grain by promising loans to the strivers. Its hope-filled message is based around the unique Arabic word “Tafa’al,” which encourages people to be optimistic. Al-Inma is positioning itself as the bank that helps all borrowers achieve their goals, even in hard times, a message that’s been very successful in gaining awareness for the bank.
In India, Levi’s is the No. 1 denim brand and also one of the most premium brands. So while the brand is hugely aspirational, broadening the user base and making the brand more accessible is still an issue: How does the brand cater to those who aspire to buy Levi’s but may not be able to afford a purchase? And how can it do that without discounting the brand or weakening its premium positioning? Levi’s also wanted to increase frequency and value of purchase among existing customers.
To achieve these goals during an economically challenging time, Levi’s came up with a solution revolutionary for the apparel category: partnering with one of India’s major banks (HDFC) to offer an EMI (equal monthly installment) scheme. In terms of the creative, JWT did not want to simply announce the offer, we also wanted to keep the brand in the conversation. So the communication champions a “Live Now” philosophy; the anthem print ad, which brings this philosophy to life, takes on the “un” from the “Live Unbuttoned” global Levi’s campaign.
The program has seen terrific industry and consumer response, and has generated a lot of PR and buzz. The average bill value has risen by about US$20, and 60 percent of HDFC credit card users who have recently made a Levi’s purchase have used the EMI scheme.
Ordinarily, a legal struggle within a family business wouldn’t have much impact on consumer confidence in general. But in the case of the Ahmad Hamad Algosaibi & Brothers Company (AHAB)—which is alleging that Maan al-Sanea, the son-in-law of one of AHAB’s founders, “misappropriated” about $10 billion—nothing is ordinary, especially in the current climate.
In various social media forums, people are abuzz about the scandal. One question that keeps popping up is: “If the recession brought out problems in this family, what kinds of problems are lurking elsewhere, including at local banks?”
People’s confidence will continue to decrease, as more questions emerge about transparency in the banking sector and the regulatory Saudi Arabian Monetary Agency (SAMA). How could they not see a huge fraud like this in the making?
Some people seem to think that banks are actually partners in this fraud because they took money from ordinary people during stock market glory days and gave it to hawameer (Arabic for “big bosses”) like Maan al-Sanea.
The net result of all this will be an even more cautious approach when people and companies deal with the banking sector or family-owned businesses.
One of South Africa’s “big four” lending institutions, Nedbank, is attempting to grow its client base by offering R750 (approximately $100) for new customers. Aptly named the “Fresh Start Account,” this targets consumers in their early twenties who have not yet formed any serious attachments to banks. When a minimum salary of R3,000 (about $450) is paid into the account, Nedbank credits it with R750 after 45 days. A “refer a friend” portion of the promotion attempts to tap into the social networks of these new consumers by offering R30,000 (just over $4,000) in a random drawing to one customer who has successfully referred a friend.
This is a good tactic by Nedbank. Not only is it providing a financial incentive for joining the bank (at a time when people really need extra cash) but it’s targeting people who will potentially stay with the bank for years and expand their product portfolio, generating revenue for Nedbank that will eventually eclipse the R750 it has paid out.
With banks all over the world in a precarious situation, Citibank has found a way to enhance its performance in Bahrain. In a somewhat unexpected twist, Citibank is leveraging consumer loyalty in the airline business to push its own products by joining forces with Gulf Air: Members of Gulf Air’s frequent flyer program will be rewarded with miles for buying Citibank investment products. It’s as simple as that.
With the arrival of the summer travel season, such a promotion could not have come at a better time. For Gulf Air, this is an opportunity to use what it’s learned about its best customers to create a stronger communication strategy. And in terms of building brand loyalty in a recession-sensitive industry, Gulf Air is not only broadening customer experiences, it’s giving its brand adopters a new benefit to doing business with the airline. Looks like a win/win for both brands in the region.
Barclays has launched an interesting TV campaign in the U.S. with the tagline “Bank on substance.” The spot succeeds in demonstrating the state of anxiety we find ourselves in these days: A young businessman is trapped in a world where everything is revealed to be a fake. As he frantically runs around the Wall Street area, the motionless people prove to be mannequins, newspapers are worthless decoration and what looks like a building is simply a paper façade that can be torn away.
Considering that many consumers are worried their financial institutions are made of “air” and the economy is a bursting bubble, the ad presents a state of mind most viewers will relate to. Consumers—many of whom suspect that investment firms have been selling them stock market manipulations and other dubious investments—will get the feeling that Barclays has a different approach. At the catharsis of the ad, when a real person steps out of Barclays and ask the young man if he needs help, we get the sense of caring and authenticity we need in order to feel safe again.
Ordinarily, a legal struggle within a family business wouldn’t have much impact on consumer confidence in general. But in the case of the 
One of South Africa’s “big four” lending institutions, Nedbank, is attempting to grow its client base by offering R750 (approximately $100) for new customers. Aptly named the “Fresh Start Account,” this targets consumers in their early twenties who have not yet formed any serious attachments to banks. When a minimum salary of R3,000 (about $450) is paid into the account, Nedbank credits it with R750 after 45 days. A “refer a friend” portion of the promotion attempts to tap into the social networks of these new consumers by offering R30,000 (just over $4,000) in a random drawing to one customer who has successfully referred a friend.
With banks all over the world in a precarious situation, Citibank has found a way to enhance its performance in Bahrain. In a somewhat unexpected twist, Citibank is leveraging consumer loyalty in the airline business to push its own products by joining forces with Gulf Air: Members of Gulf Air’s frequent flyer program will be rewarded with miles for buying Citibank investment products. It’s as simple as that.
