Case Study: Brand Extension in Financial Services

An established financial services provider was making a big step – moving into the current account sector. The potential rewards were considerable as current accounts offer a chance to demonstrate financial services expertise and provide a platform from which to cross-sell other lucrative services like mortgages.

Our brief was to understand the appetite for a current account delivered by our client. We were also asked to find which product features would deliver the most compelling proposition – one that would reinforce the brand’s position and help it overcome consumers’ anxiety about switching current accounts.

Our approach

The first stage of research assessed feasibility using an online concept test. This showed there was sufficient interest to make it worth proceeding and revealed the profile of consumers who showed most interest. The findings also provided some early clues about which product features would create interest and which should be left out.

The second stage employed conjoint analysis to optimise the current account. This efficient technique enabled us to mix and match lots of combinations of account features and measure their appeal. In doing so, we identified the most motivating proposition elements and where people would start to lose interest. The conjoint analysis was calibrated using a ‘likelihood to switch’ question, enabling us to estimate more accurately the likelihood that consumers would switch.

Results

The conjoint simulator enabled our client to experiment with different propositions and understand the commercial implications of each one. These findings were used along with a parallel piece of brand positioning research to inform positioning and communication.