Banking – when all brands seem tarred with the same brush, how do customers react?
Scandal upon scandal has hit the banking sector and evidence of collusion has left customers feeling none are to be trusted. So, when a whole group of brands are considered toxic how do consumers respond – especially when the service is one everybody needs, amounting to distress purchases.
Brand damage usually results in rejection by the public and often by an exodus of customers. Competitors can benefit as disaffected consumers drift in search of alternative suppliers. But what happens when you have nowhere to go, when a whole sector has lost brand confidence? We all need our banks but now we see them as something akin to distress purchases. Brand choice is no longer an issue. Customer paralysis seems to have set in.
For a canny bank brand, however, there is an opportunity here. With nobody prepared to jump ship, retail customers will still be aware. There is space for…
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