Conversions at What Cost?

BAD CUSTOMER EXPERIENCE – So yet another Friday night, 8 PM, the start of the weekend, Ring Ring. “Hello?”. “Hi Stephen Crooks this is Bank of Montreal calling …”.  And this is probably the 4th call I’ve received from Bank of Montreal (or with their trying to pretend they aren’t Canadian acronym: BMO) in the past few months. Do they not get that No means NO?

But here’s the thing – I know why they’re calling: IT WORKS. They’re making money doing this – why else do it?  But my question is “at what cost?”. I know somewhere in their white head office tower theirs a spreadsheet that shows executives the ROI by telemarketing. 2%? 3%. I’m sure it’s low, but lucrative enough.

But at what cost do these conversions come at? Of the 100% of people they contact what % of their customer base develops disdain for the brand? What about people like me who’s on the fence. My only service with the bank is a credit card, with a high interest rate. So they offer me little value. But now I have a negative association with the brand and it makes me more willing to entertain offers (on my terms) with other financial institutions.  Therefore BMO has turned me into a Negative Conversion – def. someone who is positive or neutral towards the brand who due to their own actions turned me against the brand.

SOLUTION: Telemarketing must always be permission based.  I know BMO is using a loophole set-up by the Canadian Government that allows them to call me because I’m an existing client.  But did I ask to be called?  I know how to find them, I’ll call if somethings up.  If they looked at my customer profile they’d know that I call occasionally to see what my balance is.  So use those calls as a method to interact with me – I’m willing at that time.  Maybe make me an offer “Sir, when you’ve completed your banking please press #5 – we have an agent who wants to speak with you”.

Obviously any bank is bottom-line focused. But this obsession with short term profits will come at a cost. I’m a big fan of ING, and watch for many of my glowing articles that I plan to publish and it will help further demonstrate the radically different approaches Canadian and International banks take in dealing with their customers.

THE BOTTOM LINE

Questions Marketing Managers must ask themselves in determining the true Customer Experience ROI:

- Is this the best way to reach our customers?  Not everyone falls into the same bucket – time for a brainstorm.

- For every conversion we obtain – what is the % of Negative conversions we might result in getting from such a campaign?

- How much are our Negative Conversions worth to the company (they could be your crap customers – like me – or those with an extensive portfolio)

- Do sample and conversion testing – what is the response of the Negative Conversions?  Feisty? Passive? Angry?  And how many negative conversions did you create?

Related articles on other Sites:

• BMO quarterly profit up 16% (cbc.ca)
• Big Banks Say Go Elsewhere! (thehiddennews.blogspot.com)