Client: First Federal of Charleston

Description:

First Federal of Charleston has 52 offices in the Charleston Metropolitan area as well as in Horry, Georgetown, Florence and Beaufort counties in South Carolina. They also have an office in Brunswick County, North Carolina.

Situation:

During the second half of 2002, significant “big bank” competition was intensifying in First Federal's market area. Bank of America had entered the 18 cities First Federal served, and long-term regional powerhouses Wachovia and First Union had recently joined forces.

Both giant entities were aggressively promoting free checking, an offer that First Federal could not afford to match. Nor could First Federal compete with the larger institutions' heavy media budgets.

Strategy:

Since free checking wasn't feasible for First Federal, Anderson recommended focusing on the institution's two greatest strengths: convenience and uncomplicated services.

“Change the Subject to One You Win”

By alluding to the many fees and complexities hidden in the big banks' “free” checking, the client was able to position itself as an easy-to-work-with institution, dramatically reducing account closings and, even more rapidly, stimulating new account openings.

A TV campaign dramatized key concepts of complication, distraction (on the part of the competition) and simplicity and control (offered by First Federal). By incorporating gentle humor, First Federal was able to convey these concepts with sensitivity and respect for the consumer and its own image.

Support in other media increased customer awareness of First Federal's simpler approach. Anderson also assisted the bank in opening multiple new branch offices. And business banking was promoted effectively with print and radio.

Results:

• The multi-media campaign, described above, hit the airwaves in January 2003.
• Within two months, account openings increased by a net 400%.
• Overall, account openings increased 33%, while the rate of closings decreased by 25%.
• During the first year, gross and net checking account openings hit a five-year high.
• Assuming a lifetime customer's average value to be $1,000, the incremental account gains earned a return of 3.4 to 1 on the ad campaign in the first two months alone. Four years later, the TV campaign was still in use.