Compass Bank, the sizeable US bank which has market share in the central US States, appears keen to try and gain friends. Compass Bank is keen to get the bank’s customers to “refer a friend” and make some money in the process. The bank’s scheme appears to give existing Compass account holders an opportunity to make US$25 and another US$5 and another US$5 and another US$5, you get the drift.
The refer a friend approach appears, on the face of it, to be a good way of the US bank gaining market share. One could argue that Compass is buying market share. Compass probably has a plan which assumes that by effectively buying new banking customers the bank will find opportunities to sell financial products. Compass offer a selection of financial products, such as Compass credit cards and Compass home equity loans.
It is not only Compass bank which has tried the refer a friend approach to buying new customers. This has been tried by many banks, as well as many other companies in completely different industries. There are many ways to gain market share and this approach is sometime effective. The reason it may prove effective to Compass bank is because the marketing campaign is specifically directed at potential bank customers who are likely to like what the bank offers. This is because in many cases a friend of a Compass bank customer is likely to be quite similar to the existing bank customer, thus the hypothesis is that Compass will be able to sell similar financial products and make a significant return on the bank’s investment.
Related posts:
I worry more and more about a violent revolution. And the people who have put many mortgage payments on credit cards, and the people who put 60% down, still owe 40% but their down payment would have more than covered the value of the home, the people who paid off their homes at the inflated rates, the pension fund investors who have no retirement to sustain themselves, the municipalities that continue the ostrich approach budgeting with figures in the billions based on their investments in AAA-rated MBS, and all of us. how this happened and continues to happen.