WELLINGTON, N.Z. (7/12/13)--In a new approach using social media, one of New Zealand's largest banks has turned its mortgage rates into a social media lottery.
Every Wednesday for four weeks, ASB's "Like Loan" promotion will provide its Facebook users a chance to win a reduced fixed-rate home loan. The rate is based on the number of Facebook "Likes" the promotional app accumulates for the day (FinancialBrand.com July 1).
Before launching the promotion, ASB's Facebook page had 66,970 "Likes." After the launch, it added 6,000 more--a 9% increase. The response helped drive down the first week's Like Loan rate to 2.4732%, compared with its 5.19% advertised rate for that type of loan.
The promotion created a lot of buzz, with 6,387 users talking about it. On the first day of the promotion, more than 800 of its Facebook users shared the app with friends.