Andrew Wiseman’s been thinking about the broader brand impact of switching initiatives.
I’ve got a confession — I’ve never banked with First Direct.
But I still think they’re great.
Why? Because of that £175 switching incentive. Every time I see it, I catch myself thinking, “That’s generous. They must back themselves.”
It’s a perfect example of what we call the brand halo effect — when one positive action by a brand colours how we see everything else they do. And in the world of financial services, where most people stick with what they know, that halo could be more valuable than we think.
The Myth of Loyalty in Financial Services
Let’s be honest — most people don’t stay loyal to their bank because they’re deeply in love with it. They stay because switching feels like a pain.
Yes, we have the Current Account Switch Service, and yes, it really does make the admin simple. But perception often beats reality. Ask around and you’ll still hear fears about paperwork, about things going wrong, about having to update all those pesky direct debits.
And so, people stay. Not because they want to — but because it’s easier not to move.
That’s inertia. And in a market full of inertia, when a brand launches a switching incentive and doesn’t see a flood of new customers… that’s not necessarily failure. It might just be success of a different kind.
When Loyalty Schemes Become Brand Signals
Take First Direct again. Their £175 switching bonus hasn’t made me switch. But it’s done something else: it’s put them firmly on my radar as a bank that believes in itself — and rewards people for taking a chance.
This is classic signaling theory in action. The brand is saying:
“We’re so confident you’ll like us, we’ll pay you to find out.”
That’s powerful. Even if people don’t act on it, they notice. And they remember.
It’s the same principle behind money-back guarantees, free trials, or “no questions asked” returns. The real value isn’t always in uptake — it’s in what those offers say about the brand.
Measuring the Halo
So how do you know whether your incentive has created a halo?
It won’t show up on your acquisition dashboard. But it might show up when you ask people how they feel about your brand. You can measure:
- Unaided brand recall – Are people thinking of you more?
- Perceived generosity or fairness – Do people believe you treat customers well?
- Consideration – Are you getting added to more shortlists?
Not every incentive converts today — but it might plant a seed for tomorrow.
The Inertia–Halo Matrix
To help make sense of it all, here’s a simple model we’ve been playing with. Picture a grid: one axis for customer inertia, one for brand generosity.
| Low Generosity | High Generosity | |
| High Inertia | Complacent Giants | 🌟 Halo Heroes |
| Low Inertia | Forgettable Brands | Switchable Stars |
That top-right box — the Halo Heroes — is where you want to be. These are the brands people admire even if they haven’t switched yet. The ones that make people say, “If I ever did move, I’d probably go with them.”
And when something does finally prompt them to switch — poor service, life changes, or just the right nudge — you’re already front of mind.
Why This Matters Now
Right now, every marketing pound is being scrutinised. Loyalty and switching schemes are being asked to justify their costs.
But maybe we’re measuring the wrong thing.
Instead of asking, “Did we gain new customers this quarter?”, what if we asked,
“Are we building a brand people want to be with — even if they’re not ready yet?”
Because in a market where people rarely move, how they feel about you might matter more than what they do today.
So, What Should Brands Do?
Don’t forget the non-customers – They’re still listening. And watching.
Think beyond behaviour – Not all loyalty shows up in clicks. Start measuring sentiment and emotional response.
Be visible with your generosity – A hidden offer can’t change perception.
Design for admiration, not just conversion – It’s okay if people don’t act right now.
In Summary
Incentives aren’t just about acquisition — they’re about attention.
In a market full of inertia, the brands that show up generously — not just loudly — are the ones that get remembered.
Be one of them.
Drop us an email or give us a call if you’re thinking about the impact of your different activities on your brand and need a broader view.
