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FNB offer under fire

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 17 Nov 2011

Almost a month after First National Bank (FNB) launched an initiative to “put smartphones and tablets in the customer's hands” it appears many “customers' hands” are still waiting for their device.

On 19 October, FNB announced it would provide its gold and platinum cheque account holders with certain devices at significantly reduced rates of up to 35% off. The offer allowed qualifying customers to select from a range of smartphones and tablets, including the Apple iPad 2, and pay the device off on a monthly basis, with the relatively nominal amount coming off with their bank charges.

The offer quickly elicited a considerable response, particularly with regard to the popular iPad 2, which is the world's leading tablet device in terms of market share.

According to Kartik Mistry, product owner at FNB Core Banking Solutions, the magnitude of the response was unexpected. “We had no idea what the response to the offer would be and have seen a phenomenal reaction, with over 1 500 queries a day.”

Mistry says as at 14 November, FNB had received 32 088 queries regarding the discounted devices offer, an estimated 80% of which translates into sales. Some 89% of these were for the iPad, while the other four devices on offer, namely the BlackBerry Curve 8520, HTC Flyer tablet, Sensation and Wildfire S, comprised insignificant proportions of the number.

Frustrated customers

While FNB says it now has measures in place to cope with the demand, and that it is adequately stocked with devices, the administration for the offer's execution appears lacking.

The turnaround time seems to be the bane of many customers who have had less than satisfactory experiences.

ITWeb received a number of complaints from would-be iPad owners. One such complaint, received this week, read: “I completed my application [last month and] they said 10 days max and I will get my iPad 2. After 2 e-mails to my personal banker someone eventually came back to me today and said they 'lost' my file and that my device will be delivered in 10 days. Unacceptable.” (sic)

Online grievance platform Hello Peter bears testimony to customers' iPad troubles, having received dozens of complaints along the similar lines of “20 working days and counting”, “Still waiting for my iPad”, “No delivery within promised 10-day period”.

One complainant wrote this morning: “I ordered an Apple iPad 2 from FNB on the 28th of October. It is approaching three weeks with no call about delivery. They said it would take 10 working days. With this deal FNB should have anticipated the high demand and applied the correct channels/mediums to supply the demand.” (sic)

Proof in the pudding

The Notebook Company CEO Christopher Riley says he has dealt with a number of frustrated customers who have found no joy in acquiring an iPad via FNB's offer. “A lot of them say that the frustration of having to wait too long, and of not receiving an adequate response to their applications and queries, is just not worth it.” He says many of them opt for the conventional route of purchasing an iPad through a retailer.

“The offer itself is fantastic. If only the execution of it was too. When the offer was initially announced it sounded like an amazing offer, but like most amazing offers the proof is in the pudding.”

He says, from the information he has garnered from frustrated customers, the problem with the FNB offer is two-fold. He suggests firstly that the demand outweighs supply, for the popular iPad tablet in particular, and that the terms and conditions affiliated with the offer are too cumbersome to justify taking advantage of it.

Ramped up resources

Mistry says FNB initially ran into stock problems in light of the sudden and overwhelming demand, but steps were immediately taken to deal with this.

“FNB has experienced a more than anticipated demand for this product. Within a week of launching this offer we noticed that we needed to ramp up our resources to meet customer demands, and we have done so in our sales, fulfilment and courier processes.

“Once the order has been placed by our sales agent, customers would need to wait 10 working days for their device.”

He concedes that a large number of customers have not received their devices within this time frame, but that this is due to certain formalities with the courier companies.

“We try to keep the communication channels open with our customers, to inform them of stock delay and when instruction has been sent to the courier to deliver their device. However, we have also found that our courier companies often have difficulty contacting our customers, as their calls are often missed.”

Mistry says that, after three failed attempts to contact the customers, the device goes back into storage. “We urge customers who would like a status on their application to e-mail smartphone@fnb.co.za or call us on 0860 102 970. We will ensure a prompt follow up.”

He says customers can expect a response to their queries via these channels within 24 hours.

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