FIRST

DIRECT:
Name

Roll Number

Anisha

PGP/19/246

Dhanush

PGP/19/253

Kaustubh

PGP/19/264

Madhu

PGP/19/267

Naman

PGP/19/272

Jigish

PGP/19/273

Case Overview

Brief Plan stage

Pre-Purchase

Content
Service Encounter

Post-Encounter stage

stage

Future
Outlook

Case overview: First Directs Innovative Banking Channels

Traditional Banking Structure and channels

Branches being the only point of contact
Establishment of First Direct in 1989
No Branches
Personal Response to Calls 24x7x365
Target Customers Financially Aware and Independent income earners
Birth of a new breed of marketing channel Telephone , Online and
Mobile Banking

Current Situation
First direct now has 1.25mn customers, .9mn of them use Internet
Banking
Handles around 157,000 calls every week including 29,000 calls a day
outside working hours

Case Overview

Pre-Purchase stage

Service Encounter
stage

Post-Encounter stage

Future
Outlook

Pre-purchase Stage

Futuristic TV
Commercial
Sharp and clear
communication
through brochure

Toll free telephone

service
Available 24x7

Need
Awareness

Information
Search

Pioneered
personalized
telephone banking
in the UK
One of its kind

Evaluating
Attributes

Case Overview

Pre-Purchase stage

Service Encounter
stage

Post-Encounter stage

Future
Outlook

Pre-purchase Stage

Subsidiary of
already well known
bank
High standards in
service quality
further sated the
anxiety associated
with a new
financial service

Set up a very high

service standards
Consistent high
ratings
More than 90%
satisfied and highly
satisfied customers

Perceived
Risk

Service
Expectation

Word of mouth
publicity helped
Existing customers
themselves
recommended the
First Directs
services to the new
customers
Purchase
Decision

Case
Case Overview
Overview

Pre-Purchase
Pre-Purchase stage
stage

Service
Service Encounter
Encounter
stage
stage

Post-Encounter
Post-Encounter stage
stage

Future
Outlook

A period of time of direct interaction

A. Moment of Truth:
Relationship marketing, every encounter must be pleasant, prevent one encounter from
destroying a mutually valued long-term relationship
First Direct focused on:
Data- Every time a customer called someone else picked up, data helped in
complete
knowledge of customers needs, wants, issues, predictive data mining
Communications- No automated machine rather a human with an easy, friendly accent,
knowledgeable
people who could solve issues, no customer frustration, loan
typically only took 7 minutes
Trust- 6 core directves-openness,responsive,respect,kaizen,contribution,right first time ,
clear as black and white
B. Service encounters contact model
Retail banking typically falls in high contact and on emphasis with physical elements
First Direct moved it to a medium contact with emphasis on encounters with service
personnel

Case Overview

Brief Plan stage

Pre-Purchase

Service Encounter
stage

Post-Encounter stage

C. Servuction System
Consumers purchase a service for its value which is derived from the experience.
First Direct engineered to give a pleasant experience every time.

Technical Core

Back
Stage(Invisible)

Inanimate
Environment
Contact
Personnel
Front Stage

Customer A

Customer B

It eliminated inter-customer interaction and physical environment contact

Technical core was strong and backend was not visible to the consumer
Contact personnel were friendly and able to help quickly and swiftly and knew
about the customer on call

Future
Outlook

Case Overview

Brief Plan stage

Pre-Purchase

Content
Service Encounter

stage

Post Encounter stage

Post-Encounter stage

Future
Outlook

In a competitive market when expectations are met, customers are

satisfied
Customers evaluate the service
Personalized service offered than
performance with certain
previous bank
expectation
87% of the customers were
Positive disconfirmation for First
extremely satisfied with 40% for High
Direct
Street Bank
90% said they wont transfer back
Loyalty, repeat purchases and
even if same services offered, over
spread positive word of mouth are
90% referred to others and 29% from
the results of positive
customer recommendations
Customer
Delight isfor
necessary
in retention
of customers in such services
disconfirmation
first direct
Retained
95% of the customers since
which
are
mundane
Increased lifetime value of its
launch
Rewarding
customersthe customer for maximum number of referrals every month
Best reaction of customers about First direct to be posted along with the
advertisement

Case Overview

Brief Plan stage

Pre-Purchase

Content
Service Encounter

stage

Post-Encounter stage

Future
Outlook

Future Outlook

Kevin Newman has set the goal of achieving customer base of one
million by 2000
No compromise on the current service level
Increase
to the customers
Physical
Peoplethe value addition
Process
Hire more qualified
employees to
ensure
uninterrupted
service
College /university
students Retail
Banking/Loans
Children Saving
plans
Reduce stringent
screening process

Offer online
banking service to
PC owners
Customer support
cell for online
banking

Environment
Expand or increase
the number of
telephonic
operation sites
Keep the physical
environment of
banks same across
all branches