It has been seven months since National
Australia Bank (NAB) launched the ‘Break Up’ campaign and now they
have a new home loans offer for customers – Freedom –in keeping
with the break up theme.
Talking to RBI at the 2011 Teradata PARTNERS User
Group Conference & Expo in San Diego, Lisa Rossjohn, head
of CRM and sales support at NAB, said the fair value strategy
that NAB has been trying to push with the break up campaign has
helped the bank “grow apart”, and the Freedom home loans aims to
propose the same fair value to customers.
Said Rossjohn, “NAB is a conservative bank so
the advertising campaign was a bold move for us. And it worked. It
spread very fast. Freedom was launched at the end of September and
it drives our fair value strategy further – giving consumers more
in comparison to other banks.”
The concept of Freedom is that home loan
customers can leave the scheme whenever they want without having to
pay any early exit fees “because no one likes being locked in”.
Customers, however, will have “more reason to stay as they get to
know more about the Freedom home loans offer,” believes
NAB has abolished over half of the home loan
fees – such as switching fees and redraw fees – for Freedom.
Customer have the freedom to switch their variable rate home loan
to another NAB home loan or increase the variable rate home loan
without paying a fee.
Says Rossjohn, “All of our customers have
enjoyed the lowest standard variable home loan rate of the major
banks, over two years and counting.”
The NAB website gives customers a comparison
table that shows how the Freedom home loans offer stands against
home loan offers by Westpac, Anz and CBA. It also includes two
multimedia ad campaigns – ‘The Job Interview’, which upholds the
concept of ‘See what happens when people have their freedom taken
away’, and ‘Open For Inspection’ that shows ‘See what happens when
people feel trapped, in an apartment’.
Though NAB is relatively new to social media,
it is now an “important part of the bank’s operations” says
Rossjohn. NAB has also become the first Australian bank to adopt
social commerce on its website to assist customers in the online
buying process. Since 3 October, NAB is asking for and displaying
customer ratings and reviews of its credit card products online to
provide feedback that potential customers can use. NAB will look to
roll this out in 2012 to other products.