Probably reducing the time for customer support response might do it!
The adverts are likely very targeted, as your browsing the Monzo forum it’s going to be perceived by advertisers that you might also be interested in Starling.
If I log in to Facebook at work i’ll start getting adverts related to things we sell at home as Facebook perceive i’m interested in products that we sell based on my browsing history, cookies and so on.
A word of mouth recommendation is worth a lot more, when was the last time you clicked an internet advert and purchased / signed up for something?
What’s a large market for banking, if not the UK?
Sure the US is larger in raw numbers, but other than a few other European countries, the UK has one of the most developed and sizable banking sectors around
The UK isn’t a small market. The UK has a population of 63 million (as of the 2011 census). Take away the 11 million or so children and that means Monzo has a potential adult market of 52 million people. Seen as Monzo only have around 1.3 million customers, they have a long way to go.
Word of mouth will beat ads everyday especially when we are talking about a bank. Trusting a bank with your hard earn money is obviously a big thing, so hearing from someone you know about a new bank gives you more confidence in trying them out than seeing an ad built and designed by them.
By focusing on creating a community, a bright card and excellent customer service Monzo have built drivers for word of mouth to work effortlessly, at also probably a fraction of the cost of N26 or Starling’s marketing efforts. This will in turn create longer lasting users and advocates. Not to mention all the free press that Monzo have received recently (crowdfunding and the Which? award), their competitor’s probably saw this and wanted to try and act quick thus throwing ads everywhere.
I saw this yesterday for Monzo which while it isn’t advertising directly, it’s Word of Mouth but quite interesting…
Someone on my snapchat had posted on their story advertising how “amazing” Starling is and said specifically “do not go with Monzo”
There’s always going to be competition and the Challenger banks are really starting to garner mainstream attraction now.
That being said, remember Starling had almost a two year head start over Monzo. I also think the fact they offer interest, albeit megre, on their current accounts helps with the initial appeal.
But where are N26, Revoult, Starling on Which? best banks table? They aren’t there. Yet Monzo is sitting in first place. So shows the significance of community and brand identity.
I’ve not used Starling so it’s not really my place to comment, but from what I’ve seen and heard, appears SLICKER and more fleshed out. Their customer base is still far behind Monzo’s but their uptick of growth has stemmed form the slew of well developed features they’ve added. As they have a product that is more finalised it makes sense for them to be pushing hard advertising to shore up their numbers. I’m sure Monzo will follow a similar path once its product has matured more.
I’ve seen quite a few posts about growth outside of the UK. My thoughts are that while this is important in the long term, these markets are tough to break into, especially the US and Asia. Lots of companies have been successful in the UK but failed to take off in the USA, and vice versa. There’s a lot of consumer differences and challenges which require a lot of effort to overcome. It’s a lot more complicated than a simple ‘port’ over, as N26 have done and I think making the product solid and the best it can be first will be best in the long run, personally.
I’m not worried at all though. From everything we’ve heard, 2019 is going to be a big year for Monzo in terms of development and product direction. And it has a solid community to support it!
To appear in Which’s survey, a bank needs to have a certain number of customers. This is the first year that Monzo has been eligible. Well done to Monzo for toppling First Direct.
Starling isn’t yet eligible. They did win Best British Bank and Best Current Account Provider in the 2018 British Bank Awards though.
To be honest I’ve always found First Direct to be overrated; they’ve been best rated because the other banks are so bad.
It will be interesting to see where Starling rates once it is eligible. Personally, I wouldn’t rate them that highly on customer support right now, perhaps even below some legacy banks, but otherwise it’s a good offering.
I thought it was more the number of respondents - the Which article says
“Not all banks appear in our table. That’s because we need a minimum of 30 people to respond to our survey to generate meaningful ratings. We’re always trying to increase our coverage.”
" Sample sizes for our survey as follows: Monzo Bank 40, First Direct 299, Nationwide Building Society 397, Metro Bank 50, Marks and Spencer (M&S Bank) 93, Tesco Bank 188, Santander 393, Halifax 398, Co-operative Bank 97, Barclays 348, NatWest 388, Lloyds Bank 390, Danske Bank 34, Virgin Money 37, Clydesdale Bank 98, Bank of Scotland 236, Citibank 30, Yorkshire Bank 149, HSBC 390, Ulster Bank 39, Royal Bank of Scotland 288, TSB 347, Bank of Ireland 31"
Im presuming here - the survey was carried out on Which customers/ subscribers - Monzo had 40 Which subscribers willing to carry out the survey and Starling have less than 30 that were willing to give their choice ?
Not sure its anything to do with the customer numbers of the individual Banks
Seems a very small sample size to be eligible to top a league table of banks really lol I suspect there would have easily been 347 unhappy TSB customers