Marketing Research Planning for Decision Making - an Example Agency Brief a the Agency's Proposal

Research Planning for Decision Making

February 2006

Research brief to examine customer attitudes towards the activities and performance of Halifax/Bank of Scotland Personal Banking sales colleagues

Introduction to the brief

You are invited to put forward a proposal to undertake a marketing research brief to examine customer attitudes towards the activities and performance of the Halifax/Bank of Scotland ('HBOS') Personal Banking ('Banking') mass market sales force.

Introduction to HBOS and Banking

HBOS, part of HBOS plc is one of the UK's leading financial services providers.

HBOS plc was formed in May 2001, when Halifax and Bank of Scotland boards announced that they had agreed to merge.

It is the UK's largest mortgage and savings provider as well as being a major player in the provision of new current accounts and credit cards in the UK. The company also provides a range of other products and services, including long term investments, insurance, personal loans, share dealing and business banking.

They have around 22 million customers, with a relationship with 2 out of every 5 households in the UK.

Banking offer a range of bank accounts to retail customers, which can be split between mass market and high net worth products.

Your research proposal should focus on sales of those mass market products that are actively sold (Current Account and moneyback Current Account, 'primary accounts').

Products and services

A range of mass market products are offered to different types of customers, as shown in Appendix One.

Products are sold to mainstream customers, who are required to meet certain criteria, the level of which varies depending on account type. All customers have to pass certain checks, such as those to ensure that the account is not used for fraudulent purposes (identity and address verification checks), and customers applying for an account that includes a credit facility are also required to meet credit based criteria, by means of an independent credit check.

Facilities vary depending on the product, but can include:

Debit card, including cheque guarantee and ATM functionality

Cheque book

Overdraft

Free access to all HBOS and Link cash machines

24 hour access to the account via telephone and internet banking, and access also to the Branch network

Switching facility - automatic transfer of regular debits and credits from an old account

Sales channels

Products are sold through a network of high street branches, over the telephone and via the internet.

Sales force

Products are managed and coordinated from HBOS's Halifax office (employing around 100 staff).

The sales force consists of approximately 3,000 banking advisors working in the branch network, and 150 colleagues dedicated to bank account sales working in call centres.

The HBOS sales ethic

Sales colleagues are required to sell a variable number of Current Accounts moneyback Current Accounts per month, with additional targets for also arranging for old accounts to be switched to HBOS.

By meeting these targets, colleagues are awarded points, which together with the points gained by their branch/team colleagues, go to making up their annual bonus - the more points they gain as a group, the higher their annual bonus.

In terms of banking products, colleagues are only targeted to sell the Current Account, and the moneyback Current Account. All other account types are sold if they are asked for by the customer.

Service colleagues (those working on branch counters, and in telephone banking servicing areas etc.) are used to set up appointments for customers with Banking Advisors. Service colleagues are prompted to open discussions on accounts suitable for each customer through a message that appears on their computer screen when accessing the customer's account.

Customers who decide that they would like to open an account are guided through a process by a Banking Advisor called Customer Review. Customers are questioned about the products they currently hold with HBOS and other institutions, and their future requirements, with the end result being a recommendation on the product that may be suitable for them - for example, customers who use their debit card regularly would have the moneyback Current Account recommended.

Sales personnel are supported by marketing campaigns, which include promotional material displayed in branches, and are supported (to varying degrees depending on the particular campaign) by television advertising, direct marketing, online and press advertising.

Customers

The full product range ensures that an account is available for any customers aged 11 or over.

As previously mentioned, the research to be undertaken is to focus on the primary accounts. Customers for these accounts are typically aged between 25 and 55, in employment and earning at least Ј16,000 a year. All customers must meet the following criteria to be accepted for an account:

Aged 18 or over

Able to pass the credit checks for the accounts

Able to fund the account with Ј1,000 or more a month

The competition

Banking's main competitors are other high street financial services providers, including the 'Big 4' (HSBC, Royal Bank of Scotland (incorporating NatWest in England), Lloyds TSB and Barclays), as well as other 'traditional' providers, such as Alliance & Leicester,

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