Bank Marketing

A cat-astrophic lesson in social media for bank marketing execs

noreply@blogger.com (Julie Arnsdorf) — Fri, 09 Sep 2011 04:28:00 +0000

There’s a lost cat at JFK airport and its causing a social marketing dilemma for one airlines. And, it’s a blueprint for disaster from which bank marketers can take note.

A little background: On Aug. 25^th, Jack the cat mysteriously escaped his carrier in American Airlines baggage before his flight from New York to California. In an effort to find out what happened to the pet and garner its return, the owner’s sister started a Facebook page, Jack the Cat is Lost in AA Baggage at JFK. The Facebook page is steadily gathering faithful followers. At the two-week mark, they number over 13,000 and climbing. Fans are peppering the American Airlines Facebook day after day asking what they’re doing about the wayward feline. And, Jack’s fans have been soliciting the media for help. So far that’s been working as the New York Post, Fox News NY and ABC News among others have picked up the story. Now there’s a YouTube video. You can get the details of Jack’s story from his Facebook info page. And, you can find the meager response from American Airlines under their Facebook “Notes” section.

Slow response to viral backlash.
It’s in the slow or lack of response from the airlines that raises the cat fur. The airlines has issued notices beginning August 29, four days after the incident, and basically repeating the same message for the next several days. Their last “update” was a week ago on September 2 with promises of more updates, but none have followed. This has further infuriated Jack’s fans.

American Airlines runs Facebook sweepstakes showing pet as travel buddy.
Apparently American’s marketing department doesn’t have a clue about the negative deluge appearing on their FB wall. On that same Facebook page, they’re running a sweepstakes entitled “Who goes with you?” asking fans to take a photo of the person you enjoy traveling with the most and share it with us. The photo they depict with the contest is a pooch. Surprisingly they didn’t show a cat!

A cautionary tale for bank marketing execs.
Bank marketing departments can take a lesson from this cat-astrophe. While you may not lose a cat or any other pet on your premises, there’s a host of other problems that can befall your financial institution and a viral nightmare may be just around the corner. Is your financial institution prepared if a sudden viral plague hit your bank? Are you prepared for 13,000 angry online adversaries?

11 tips to avoid a bank marketing cat-astrophe.

1. Just because your bank doesn’t have a Facebook page doesn’t mean someone won’t launch one affecting your financial institution.

2. Have a protocol or best practices solution in place for various types of crises that could occur.

3. Include a social media solution for these identified crises.

4. Address the situation quickly.

5. First and foremost offer a sincere apology to all of your audiences and repeat, repeat, repeat. You may find yourself forgiven more easily.

6. State a plan for rectify the problem in the future so it won’t happen again.

7. Don’t disengage in hopes that the furor will disappear in time and be forgotten.

8. Remember your response or lack of response affects your brand equity.

9. Designate one person to handle the responses. Be sure that’s someone who can also put some empathy into the situation. After all, most people just want to be heard. And, discourage employee responses which will only escalate the situation.

10. Be forthright and don’t just offer spin.

11. Check that your marketing and other departments are on board with what’s being posted in social media before they run any campaign or you could wind up with more egg on your face.

How do marketers measure the impact of their social media?

noreply@blogger.com (Julie Arnsdorf) — Wed, 18 May 2011 01:12:00 +0000

If you’re thinking about adding social media to your bank’s marketing plan, then you should consider how you’ll monitor its impact. But how are other industries measuring social media?

Marketing Sherpa queried 3,300 marketers from a wide selection of industries. They found marketers used traditional metrics like website traffic and search engine rankings, but they also looked at metrics that are specific to social media, such as the number of fans and followers. Some of the tracking mechanisms used are only available to more advanced evaluation programs.

Here’s what the marketers looked at when analyzing their social media campaigns:

85% - visitors referred to website
56% - reach of fans, followers & subscribers
54% - search engine ranking positions
54% - conversion rate (registrations, purchases)
51% - leads generated
44% - inbound links
35% - sales revenue generated
25% - value of fans, followers or subscribers
24% - brand sentiment
22% - social bookmarks
22% - strength or share of conversation
11% - customer service / support savings

Banks continue to embrace social media according to survey

noreply@blogger.com (Julie Arnsdorf) — Wed, 13 Apr 2011 04:55:00 +0000

Banking executives recently expressed their views about customer communications in a new survey. Varolii Corporation in partnership with American Banker, Bank Technology News, and US Banker, surveyed 458 executives from top retail banks and consumer lending organizations around the country. Entitled 2010 Survey Results: Top Retail Banking Communications Strategies, the report queried execs about the strategies they’re using to increase customer retention. One area of the survey delved into the use of social media.

Execs were queried about their organizations’ use of social media to communicate with customers. While 53% of respondents do not use social media, a surprising 40% do, according to the Varolli survey. Eight percent cited that they didn’t know if their institutions engaged in the practice. The study cited this key takeaway, “This trend indicates that a relatively large percentage of organizations are actively targeting younger customer segments into their communication strategies, as sites such as Facebook and Twitter are predominantly used by Gen X and Gen Y.”

What social media outlets do bankers use to communicate with retail customers?
Not surprising, Facebook and Twitter are the most popular forms of social media communication. Thirty-four percent have a Facebook page, while 22% own a Twitter account. Where do other social media rank?

Here’s the breakdown:

Will those banks not using social media now use it in the future?
The future trend for social media by these non-user banks is mixed, according to the survey. Thirty-five percent of non-users intend to embrace it in the future, while 33% have no intention of using it. An almost equal number of 32%, just don’t know what they’ll do.

Seattle-based Varolii, creates outbound consumer messages via voice, text and email for various industries.

Creative bias – is it seeping into your bank advertising campaigns?

noreply@blogger.com (Julie Arnsdorf) — Wed, 09 Mar 2011 23:49:00 +0000

We hear a lot about media bias – left wing, right wing or racial bias. But there’s another type of bias that can affect your marketing campaigns. A bias you may not even be aware you have. For lack of a better name, I’d call it a personal creative bias. Bank marketing execs are not immune to this phenomenon. Focus groups, consumer testing, A/B direct mail splits, and even common sense can fly in the face of a bank marketer who exhibits creative bias. In other words, no matter what the research indicates, a bank marketer with creative bias just can’t seem to accept it. Perhaps some past event in their childhood, or just plain arrogance limits they’re ability to look at a campaign objectively.

Back in journalism school, we were taught to strip all bias from anything we wrote. Be objective was the mantra. Good advice for a writer. Good advice for a bank marketing director or manager. And, yes, a good writer can achieve objectivity. And, so should a good bank marketing exec.

What are examples of creative bias? I’ve seen bank marketers reject a great campaign because they had a personal aversion to the color being used. Another marketer vote down the use of envelopes being used in direct mail and preferred self-mailers in her mailbox. Another nixed a photo, not because it didn’t fit their demographic, but because he personally didn’t like the person’s looks. Ever wonder why certain spokespersons or celebs are used for a marketing message? A personal bias could be at work here. Or why a sports team or event receives a bank’s sponsorship, although it’s not a great fit for the organization, but because it happens to be an exec’s favorite? Bias.

While it may be the marketing director’s prerogative to accept or reject an element of the advertising campaign, bias could be coloring a good marketing decision.

Marketing isn’t about YOU, it’s about your CUSTOMER. Get over your bias. See the big picture from the outside, not from your viewpoint. You could be doing your marketing a disservice. The next campaign you evaluate, ask yourself if you can objectively look at its merits.

Promotion asks customers to" love" their community bank & win an iPad!

noreply@blogger.com (Julie Arnsdorf) — Fri, 18 Feb 2011 03:52:00 +0000

The Independent Community Bankers of America (ICBA) want their customers to show a little heart for their favorite bank. Appropriately enough, the ICBA launched their “I Love My Community Bank” promotion earlier this week on Valentine’s Day.

ICBA is urging community bank customers to create a video, write a comment on their microsite, submit a photo or post a Twitter tweet about their neighborhood bank. The association has created a microsite just for this purpose. Entrants could win an Apple iPad to be awarded in a random drawing on March 31^st. And, submissions could be featured as part of a national advertising campaign for community banks.

The ICBA published this statement in a news release: "The ‘I Love My Community Bank' campaign was created by ICBA as a method to support the new status of the industry in the wake of banking reform," said Chris Lorence, ICBA senior vice president/chief marketing officer. "The goal of the primarily social media driven campaign is to provide a creative forum for consumers and small businesses to share their experiences and show how choosing a community bank puts them at a distinct advantage."

The association is promoting the campaign on its microsite, www.ilovemycommunitybank.com and with a Twitter account, @iluvmycb. ICBA is also supplying turnkey marketing materials through several ICBA state associations for banks who wish to participate in the promotion.

PROMOTION POINTERS:
As someone who has produced these types of promotions, I’ve found some technical concerns which could prove problematic for the ICBA, but could help you in creating your own unique promotions:

LESSON 1: Make sure all elements of your promotion are easily understood. Test them out on people who know nothing about the campaign. And, look carefully at your entry forms.
Since the ICBA entry form does not ask the bank’s location, only its name, it could prove difficult to determine the bank the entrant “loves”.

LESSON 2: It’s a legal requirement that entrants are provided with the Official Rules for any contest or sweepstakes. In other words, how are prizes awarded or entries judged. The Official Rules seem to be missing for this promotion.

LESSON 3: Does your promotion have simple entry methods? Don’t make them too difficult. At the end of the promotion, you’ll have a lot of added work trying to compile them. The ICBA promotion allows entries through different media . . . Twitter as well as its microsite. They’ll need to gather them all together in some form.

Promotions of this type, especially video participation, seem to be capturing the public’s attention and have been successfully executed by a number of companies other than banks. It will be exciting to see how the public responds to this type of promotion from the banking industry.

3 Essential Elements for Successful Social Media Marketing

noreply@blogger.com (Julie Arnsdorf) — Thu, 28 Oct 2010 02:27:00 +0000

As a bank marketer, you’ve probably been tempted to simply jump into social media marketing. Twitter, Facebook, YouTube all seem so simple to use. And, all your bank marketing conferences have had speakers touting the benefits of this phenomenon. But wait, before you take the plunge you need to consider if you meet these three essential criteria for successful social media marketing. To date, many banks just haven’t accomplished a memorable strategy for social marketing primarily because they haven’t adhered to these principles.

1. Content must be relevant.
No longer are consumers content with fluff or purely promotion material. They want real information. Information that is educational, straight forward and easy to understand. By delivering content that is vital and relevant to your target market, you begin to take on an important role in your customers’ lives. There’s nothing more disappointing to finish some form of content – whether it be a web or e-newsletter article – and there’s just no substance to it. In fact, content marketing has now garnered its own niche and own budget in corporate marketing departments. Social marketing demands relevant content if you are to make any impact and attract consumers’ attention. Can you come up with fresh, intriguing topics on a consistent basis?

2. A solid structure or strategy must be in place.
Before your bank even thinks about social media, you must decide what you want or expect from your endeavors. What’s the goal? What do you want from your bank’s audience or consumers? Will your social media marketing have a retail focus or a small business emphasis? From there a formal plan is outlined, detailing how the various social media, and even traditional media, will interact with and support each other. Banks must include a strategy to promote their social media efforts. It’s not enough to just have a Facebook page. How are you going to promote and support that page? And, finally, as part of your strategy, you need to have a Social Media Policy in place. That policy will set your course through various possible pitfalls – from how to handle negative comments to employee participation on corporate social media. A risk assessment should also be part of that planning so you can address potential risks beforehand. Anticipate and you’ll have a successful program. Too many banks simply jump into social media with no thought to implementation or goals.

3. A commitment to the program is required.
For any social media program to work, the institution must commit to its implementation. In a word, timeliness. Since this is a conversational medium, you’ve got to keep the conversation or message going. . . through posts, commentary or response to commentary. And, there must be a commitment to promote your social media efforts on your other marketing programs through icons, links, RSS feeds, etc. Whether an internal department is designated or an outside firm is hired, there needs to be a devoted individual at its helm.

Be honest with yourself. Can you truly meet these three critical elements? If yes, then you’re ready to join the conversation. I’ll be looking forward to your posts.

Are you hip enough to reach your next generation of bank customers?

noreply@blogger.com (Julie Arnsdorf) — Wed, 15 Sep 2010 23:33:00 +0000

Beloit College in Beloit, WI recently published its current Mindset List. It provides a look at the cultural influences that shape the lives of students entering college this fall and will make up the class of 2014. The college began the Mindset List as a reminder to faculty to be aware of dated references. The List quickly became a catalog of the rapidly changing worldview of each new generation.

This list will smack any bank marketer into customer reality and the differences among their varied audiences. Many bank marketing execs become complacent in addressing their audiences and often let their generational biases reign. While the Mindset List was meant to influence academia and how they engage with their current audience, it is also a good lesson for bank communicators to keep up with cultural experiences and trends. The List may even cause bank marketing departments to rethink how they communicate across generational lines. It could be a wake-up call to re-evaluate the methods and messages used to attract their newest customers.

If your bank is trying to communicate to the younger end of Gen Y (according to experts, Gen Y are those born 1980-1995), you’ll definitely want to put the 2014 Mindset List on your reading docket. By the way, the majority of the Class of 2014 was born in 1992.

Here are some insights into the Class of 2014 from the Mindset List:

- Since "digital" has always been in the cultural DNA, they've never written in cursive and with cell phones to tell them the time, there is no need for a wrist watch. Dirty Harry (who’s that?) is to them a great Hollywood director. The America they have inherited is one of soaring American trade and budget deficits; Russia has presumably never aimed nukes at the United States and

- China has always posed an economic threat.

- Email is just too slow, and they seldom if ever use snail mail.

- “Go West, Young College Grad” has always implied “and don’t stop until you get to Asia…and learn Chinese along the way.”

- A quarter of the class has at least one immigrant parent, and the immigration debate is not a big priority.

- John McEnroe has never played professional tennis.

- They never twisted the coiled handset wire aimlessly around their wrists while chatting on the phone.

- DNA fingerprinting and maps of the human genome have always existed.

- Leasing has always allowed the folks to upgrade their tastes in cars.

- Unless they found one in their grandparents’ closet, they have never seen a carousel of Kodachrome slides.

- Computers have never lacked a CD-ROM disk drive.

- They’ve never recognized that pointing to their wrists was a request for the time of day.

- The first computer they probably touched was an Apple II; it is now in a museum.

- Czechoslovakia has never existed.

- Second-hand smoke has always been an official carcinogen.

- There have always been HIV positive athletes in the Olympics.

- American companies have always done business in Vietnam.

- The dominance of television news by the three networks passed while they were still in their cribs.

- Rock bands have always played at presidential inaugural parties.

- They may have assumed that parents’ complaints about Black Monday had to do with punk rockers from L.A., not Wall Street.

- Beethoven has always been a dog.

- They first met Michelangelo when he was just a computer virus.

- Ruth Bader Ginsburg has always sat on the Supreme Court.

- They have never worried about a Russian missile strike on the U.S.

- The Post Office has always been going broke.

- The nation has never approved of the job Congress is doing.

- One way or another, “It’s the economy, stupid” and always has been.

The current Mindset List contains 75 items. Past years, from the Class of 2002 until the present, can also be accessed.

Bankers give thumbs up to U.S. economy.

noreply@blogger.com (Julie Arnsdorf) — Tue, 22 Jun 2010 01:23:00 +0000

America’s bankers are more optimistic about the U.S. economy than they have been in quite awhile. According to the 17th Bank Executive Survey conducted by Grant Thornton, a global audit, tax, and advisory organization, only six months ago 24% of bankers expected the U.S. economy to improve. Now, when the survey was conducted from May 4-24, forty-five percent of bankers believe the U.S. economy will continue to improve during the next six months.

According to the survey, this is a statistically significant improvement over how bankers felt about the U.S. economy six months ago.

And, looking at the bankers’ local economies, there’s some optimism as well. More than one-third (35%) of bankers surveyed expect their local economy to improve in the next six months, up from 22% in December 2009. Only 9% of bankers expect their local economy to get worse, down from 18% in December.

The survey queried both large and small institutions which were both privately and publicly held. Fifty-nine percent of the respondents were from small banks with less than $500 million in estimated assets, while the remaining 41% of the banks had assets over that amount.

“Bankers across the country are starting to become more optimistic about both the U.S. economy and their own local economy,” noted John Ziegelbauer in a news release. He’s national managing partner of Grant Thornton’s Financial Institutions practice. “Their optimism about the economy is spilling over into their own banks, with bankers reporting that they are also cautiously optimistic about the number of people they expect to hire in the coming months. Overall, it appears that bankers believe that the economy has finally turned a corner.”

On the job front, a quarter of bankers say that their bank will increase hiring in the next six months, up from 18 percent in December; while the number of banks that plan to decrease staff has dropped slightly to 16 percent from 18 percent in December.

Survey stats.
Here’s a look at some of the statistics.

Will enthusiasm extend to bank marketing?
With this overall optimism from both large and small banks, plus the indication of additional bank hiring, will bank marketing budgets be reviewed and increased? It will be interesting if the bank execs’ enthusiasm extends to their own bank marketing.

Related articles in Bank Marketing:
16th Bank Executive Survey: New Survey hints at bank strategies and marketing forecasts.

Prove you’re small business friendly. Chart your lending record.

noreply@blogger.com (Julie Arnsdorf) — Mon, 15 Mar 2010 22:44:00 +0000

Community banks have had a reputation as being lender friendly to small business. And, that reputation continues as big banks hold on to their lending dollars. Perhaps it’s in your community bank’s interest to point out your lending record to prospects. . . especially if you have one to crow about. Don’t just talk about it. Demonstrate it. Chart it. Put a graphic to it. Post it to your website. Then use it as part of your presentation to small business. Show you are a friend to small business.

The New Rules Project, a program of The Institute for Local Self-Reliance, did some charting of their own. They examined large, mid and small sized banks and contrasted their share of assets to their share of small business lending. As expected, small banks. . . those under $1 billion in assets. . . carry the lion’s share of small business lending.

The New Rules Project went further and compared the amount of actual commercial loan dollars that went to small business. Again, community banks catered to smaller enterprises.

Do your own chart. Create a graphic depicting your share of lending to the small business community. Then, show how you compare with the big boys, as well as your community bank competitors. As they say, a picture is worth a thousand words.

FOOTNOTE:
Large banks rebrand themselves as “community” banks.

Now in an attempt to turn their stingy reputation around, big bankers Citibank and Wells Fargo have recrowned themselves as “community banks.” A Huffington Post article, Big Banks Want You Back, notes that a revamped portion of the Citibank website makes “conspicuous use of the words ‘local’ and ‘community’," And, the online publication reported that Wells Fargo with its 10,000+ locations and $1.2 trillion in assets described itself as "the nation's leading community bank" during Olympic Games ads.

In a biting response to the commercials, Camden Fine, head of the Independent Community Bankers of America, warned, "Wall Street mega-firms better be careful what they call themselves lest they be confused with actual community banks that regulators allow to fail."

It's no surprise that big banks are grabbing onto words like "local" and "community," says Tim Pannell, president of Financial Marketing Solutions, which develops branding and advertising for banks. "Big banks understand that those are the key words that are creating success for a lot of community banks," said Pannell.

Do customer relationships affect your bank’s mortgage and home equity sales?

noreply@blogger.com (Julie Arnsdorf) — Thu, 11 Mar 2010 01:53:00 +0000

This past week the Raddon Financial Group posted two interesting charts, especially in light of the mortgage mess that hit the U.S. this past year. Where would customers look for mortgage and home equity products? In their online Raddon Report, the financial consumer research and database company answers that question.

Positive vs. negative. . . there are two sides to this coin.
Looking at the numbers in a positive light, bank marketers would say customers look first to their existing financial institution for either mortgage and home equity products. Sounds good, especially in terms of relationship building. But. . .

View the numbers from the other side of the coin. Then you’d say that roughly 70 to 75% of the population is open to jumping ship and looking elsewhere for these services.

Where to go for a mortgage loan.

When consumers were asked what type of financial institution they’d consider for a future mortgage, 31% responded that they’d turn to their primary financial institution. This was followed by 27% who would look to a bank. And, 17% would go to a mortgage broker.

Where to go for a home equity loan.

When consumers were asked their choice of institution for a home equity product, 26% would march through the doors of their primary financial institution. Eighteen percent would search for a bank and 9% would head down the street to a credit union.

In either situation, banks seem to have the lead as a second choice over other alternatives.

What does this means for bank marketing strategies?
Well, this depends if you’re a “glass half full” or “glass half empty” person. It seems that bank marketing departments have an opportunity here to build on their customer relationships. As the charts show, there’s definitely a consumer tendency for people to be drawn to their own financial institution first. The Raddon results, therefore, demonstrate that bank relationships are important. But with the current image of banks lacking, there’s definitely some fence mending needed to boost those numbers.

HELOC features that are preferred by consumers.

In a related study, Raddon tallied 1,155 survey responses to determine what home equity credit line features consumers preferred. Over eight out of 10 (84%) indicated that it is important that a line of credit not have any early closing costs. Eighty-four percent also reported that it is important that a HELOC should not have upfront fees. In contrast, only one-fifth (27%) indicated that it is important that a lender offer credit card access to their product.

Related articles in Bank Marketing:
Use refi promotions to strengthen relationships and cross-sell. . . before your competition does.

Bank markets to small business with educational webinar.

noreply@blogger.com (Julie Arnsdorf) — Thu, 04 Mar 2010 01:51:00 +0000

Nevada State Bank made a smart move. They tapped business and sales guru Jeffrey Gitomer to conduct an online webinar for small business clients and prospects. In the approximately 1-hour webcast, the animated Gitomer flailed his arms as he presented point after point of solid sales strategy for the rough upcoming year. Gitomer, who has authored a number of sales-oriented books, is a draw for any marketing event, but that’s not what’s unique about Nevada State’s strategy. What’s unique is the bank’s awareness of stepping up to the plate and offering businesses a hand. . . or in this case, the knowledge to work their way out of recession.

This isn’t the first foray, or even the last, into online “education” for Nevada State Bank. They have been doing it for the past year. Their 30-45 minute webinars complete with additional 15-minute live Q&A opportunities have been monthly events for the Nevada-based bank. Past archived webinars include a Stephen Covey presentation, insights from publisher Darren Hardy of Success Magazine, an SBA lending event and economic forecasts.

Tom Sweet, Vice President of Marketing at Nevada State Bank, introduced the webinar concept to his bank’s marketing department. He previously used the same format at a Los Angeles bank. In a phone interview, Sweet said that they’d “originally started the webinars to build awareness for who we are and add credibility to some of the services that we offer and provide value-added to clients and prospects.

“The results have been huge,” he explained. “Different subjects draw different size audiences. They generate a lot of goodwill and a lot of good word-of-mouth feedback and interest. The smallest audience was approx. 500 to up to thousands.” The Gitomer presentation proved more popular. Sweet credits the webinars with increased business for the bank.

The marketing veep remarks that he hasn’t seen a consistent, on-going webinar program in other banks’marketing plans.

Promoting to small business.
Gitomer wrote about his preparation for the Feb. 24th webinar in his popular Sales Caffeine email newsletter saying he spent more time preparing for this event than his regular live seminars. Gitomer, who has his own large following, promoted the event on his blog, Facebook, Twitter, and LinkedIn pages. From there it went viral. Nevada State Bank’s marketing department added email, offline and online advertising including biz journal ads, bellybands on newspapers, direct mail and online banners to the promotion mix for their webinar series. A microsite on the bank’s website also promoted the free webinar along with event registration.

From a “budget stand point, it’s [the webinar series]not huge, noted Sweet of his marketing budget for his 57 bank offices. “ It’s an important component , but it’s not everything.” Nevada State Bank has used outside technology resources to pull off the events; although the more savvy the bank marketing staff has become, the more they are able to handle themselves.

Stepping up as a small business leader.
I’ve been a long-time proponent of bank marketing departments looking beyond traditional advertising to reach their audiences. It would be a huge facelift for more of the banking industry to step up and change the image of banking. . . from self-serving to customer-service. Small business is especially in need of a helping hand. Perhaps the conclusion of the Gitomer webinar says it best. He endorses the bank’s efforts at the end of his online presentation, stating that Nevada State Bank “gets it” and that they’re “the only bank in the country who understands the real state of the economy.” From Gitomer’s loyal fan-base, this definitely is a seal of approval.

What this means for Community Banking:
No matter what your bank’s marketing budget, you can recreate your own online version of this same educational strategy. Don’t be intimidated by the Gitomer and Covey names on this webinar’s roster. Tap into your community and business leaders as expert presenters and create 2 to 5 minute low-cost, no frills video and post it to your website, deliver it via email to customers and make it available to small business prospects. Be pro-active and set your community bank up as a small business promoter worthy of their loyalty.

Related articles in Bank Marketing:
Energize your small business clientele & you’ll earn entrepreneurs’ loyalty.

Nine bank marketing trends for 2010.

noreply@blogger.com (Julie Arnsdorf) — Tue, 23 Feb 2010 01:29:00 +0000

The “new economy” is forcing some changes in banking and one analyst has several predictions that could impact the financial services industry in the coming year. Savvy bank marketing execs, especially those in community banks, can capitalize on these trends. The consumer-focused trends were compiled by Mintel Comperemedia and released on February 8th. The Chicago-based company reviewed the directions bank direct marketing departments have been taking recently then developed their predictions.

“Based on evidence from recent direct marketing, I see waves of change ready to wash through the banking industry.. . . banks seem poised to make 2010 a year of innovations,” states Susan Wolfe, vice president of financial services at Mintel Comperemedia. “The biggest challenge will be finding new opportunities for revenue.”

Wolfe believes the banking trends for 2010 are. . .

1. The end of "totally free” in checking
In 2009, fewer than half of checking direct mail offers promoted free checking, down from three-quarters in 2007-2008. Susan Wolfe explains: “With pending regulations on overdraft fees, banks risk losing a major revenue source. Charging fees on checking is one way to recoup income.” Some banks may implement monthly fees, while others will let customers decide which perks are worth paying for.

2. More comprehensive rewards programs
With the decline of free checking, Mintel Comperemedia expects an increase in rewards checking and more specifically, rewards banking. As financial institutions look for ways to appeal to new clients and make current customers more loyal and profitable, they’ll start offering rewards for more than just debit use.

3. Programs designed to increase deposits
Automatic account builder products that boost deposits will become more popular. Deposit-building accounts get customers invested in multiple products, while helping banks secure more deposits.

4. More aggressive debit card marketing
Mintel Comperemedia has seen direct mail decline across financial services categories, but debit card volume remains strong at nearly 67 million offers in 2009. “I expect we’ll see more aggressive debit card marketing this year because banks are using debit fees to increase revenue. . . I expect to see more cash incentives and other perks that encourage debit card usage,” notes Wolfe.

5. Cash incentives increase and expand
Cash incentives are a hot direct marketing tactic for checking accounts, appearing in most offers. In 2010, cash incentives will grow even more enticing. Mintel Comperemedia has already seen incentives reach $200 and higher from larger banks. Watch for banks to start using cash incentives for other types of deposit accounts too.

After Mintel’s initial news release, the company issued four additional predictions for the months ahead…

6. Banks will seek to create “financially literate” customers
Much has been said about how the ongoing economic situation was caused—in part—by a lack of consumer knowledge about financial matters. The “Great Recession” has been a wake-up call for every generation. According to Mintel consumer surveys, each generation is reacting differently, but young Echo Boomers (Baby Boomers’ children) have a strong desire to learn more about financial matters.

7. Mobile banking is here to stay
The popularity of smart phones is driving banks and investment firms to develop applications that allow mobile banking and payments. User demand will be the reason that mobile banking succeeds. With teenagers and young adults relying on their phones in ways never imagined, mobile banking will become an expected service for the younger generations. At the same time, banks must carefully consider how they’ll engage mobile banking customers to ensure a long-term relationship.

8. Prepaid cards as an alternative to checking accounts
The prepaid industry claims that, for some lower-income consumers, prepaid cards can be cheaper than traditional bank accounts with overdraft protection. This will certainly be true if banks begin to institute monthly fees or fees for bill payments and other types of transactions that are currently free. In a sign that there is more interest in prepaid cards, MasterCard reported it is looking at ways to market prepaid cards to the affluent.

9. Banks will begin to figure out social networking
Banks have struggled with how to embrace social networking sites such as Twitter, Facebook and You Tube, but 2010 will see them finding new and better ways to get involved. Overall however, 2010 won’t be about financial services companies setting up pages and groups on social networking sites. Instead, banks will start developing applications for use in social media and creating a presence that says something about their brand. They will begin to use social media to network with new groups of customers.

With all the bank marketing cut-backs in 2009, these predictions should mean that bank marketing departments will again be pro-active and promoting their products and services.

New Gallup Poll: Banks’ image continues to plummet.

noreply@blogger.com (Julie Arnsdorf) — Wed, 19 Aug 2009 04:08:00 +0000

Americans’ perception of the banking industry continues to plummet, according to a new Gallup poll. The poll was conducted August 6th through 9th, 2009. Gallup was seeking Americans overall view of various business sectors. They wanted to know if respondents were “positive, somewhat positive, neutral, somewhat negative or very negative” of the specific industry.

In this annual poll, Gallup found that many industries that took big image hits in the 2008 poll have recovered this year. But one exception is banking. In 2008 they lost 14 points, one of the largest drops of all industries that year. In the recent poll, banking dropped an additional 8 points, the largest of any industry.

A positive image just 2 years ago.
Surprisingly only two years ago, more Americans viewed banking more positively than negatively. As recently as 2006, a majority of Americans had positive ratings of the banking industry. In fact, banking had a 58% approval rating. As of last week, it’s now at 28%. The following chart shows the image decline along with the automobile industry.

The image decline is understandable with all the events that have occurred in the past year. But what’s disturbing is the continued decline, especially since the survey was conducted just over a week ago.

What this means for community banking.

While some community banks may prosper at the expense of their larger competitors, many smaller banks are still tainted by the overall downfall of the industry. And, others are simply wavering on the financial brink themselves. Bank marketing execs can certainly step up to the plate to help remove the tarnished image. But it will take more than a few ads to rebuild Americans’ perception of the banking industry. Everything from consumer service to financial education to advertising transparency must all be addressed in a successful marketing plan.

To see how other industries faired and the most popular sectors, Gallup has its findings online. In addition, The Economist has a great graphic of the Gallup results.

Is your bank’s brand on parade?

noreply@blogger.com (Julie Arnsdorf) — Wed, 01 Jul 2009 03:36:00 +0000

Summer is the time for community festivals and parades. No doubt as a local banker you’ll want to haul out all the crepe paper and chicken wire you can find to create that prize-winning float. Participating in that Main Street parade shows you’re part of the community. In fact, it’s a unique and fun-filled way to reach out to townsfolk. And, it’s a great team builder for bank staffers as well. A lot of goodwill can be mustered during that mile and a half trek down the street.

But as a bank marketer are you watching what your branch banks are floating down that street? Is it in keeping with your bank’s primary message?

Creativity, camaraderie and enthusiasm.
You don’t want to stifle the branches’ creativity, camaraderie and enthusiasm. That’s priceless in itself. And you don’t want to be heavy handed in dictating a theme for a local festival. After all, the local bankers are part of that community and festival, while you’re not. They can judge the pulse of the community easier than you.

Finally, it’s understandable that community banks don’t have the funds or the professional assistance like Key Bank did for their terrific float depicted here for a Portland parade. And, it can be humorous to the crowd goers to view the makeshift floats being pulled by cars, trucks and tractors.

Beware the cringe factor.
It might be in your bank brand’s best interest to outline a rudimentary image requirement before branch staffers go parading down the street. I’ve seen a number of bank messages that made me ask, “What were they thinking?”

Recently I cringed when I saw this crudely emblazoned on one community bank float filled with Hawaiian décor and lawn chairs. . .

Relax. Your $ is safe with XYZ Bank.

I’m not sure that a comical float was the proper venue for proclaiming the bank’s solvency. Especially, in light of the recent bad publicity of large bank bailouts and small bank failures.

Setting guidelines for your next parade float.
Set standards for local festivities. Let your crew be creative, crazy and community-inspired, but within reason. Here are some questions you need to ask when establishing guidelines. . .

- Are your branch managers or staffers sensitivities the same as the parade goers lining the streets with their lawn chairs?
- Does your bank’s attempt at humor or creativity illicit another image in the community’s mind?
- Is their dress or costume too sexually explicit?
- Is the theme too adult and not family oriented?
- Is your theme getting your message across without destroying your brand?
- Are there spelling or grammar mistakes in your hand-printed signage?
- How is your logo or tagline being used?
- Will your next float illicit smiles or gasps?

While your next float might not always project your brand exactly due to monetary and creative restraints, the guidelines will at least protect your image. Think about setting guidelines so your float doesn’t become the talk of the town. . . negative talk that is.

J.D. Power bank survey gives banks blueprint for customer satisfaction & increased deposits.

noreply@blogger.com (Julie Arnsdorf) — Wed, 20 May 2009 05:55:00 +0000

View video.

The headline for the new J.D. Power 2009 Retail Bank Satisfaction Study out yesterday screamed that “customer commitment to retail banks declined for a second consecutive year.” Hidden in that dire report was a blueprint for success. One that pointed to increased customer satisfaction and increased deposits. The smart bank marketer just needs to read between the lines.

While the official news release on May 19th from the renowned marketing information company noted some excellent facts, it was the podcast by Michael Beird, director of the banking practice at J.D. Power, that imparted some positive plans for bank marketing. In the current environment, marketing execs may believe that it’s easier to focus on financial goals and shy away from customer satisfaction. But it’s actually customer satisfaction that affects profitable deposit growth.

J.D. Powers analyzed six factors: transactions, account statements, account initiation/product offerings, convenience, fees and problem resolution.

The study found that only 35% of customers are highly committed to their retail bank in 2009 compared to 37% in 2008 and 41% in 2007. Understandably highly committed customers . . .
- use more products
- give more referrals
- are less likely to switch to another bank

Increased satisfaction = increased deposits.
But what’s more crucial is that “customers reporting the lowest levels of commitment in 2009 happen to be those with deposit balances that are 15 percent higher than average,” said Beird in the news release. “With this in mind, it is crucial that banks take steps to address this steady decline in customer commitment, as moving just 5 percent of customers from low and moderate levels of commitment to high commitment can mean additional deposit growth of more than 2 percentage points higher than average.”

In other words, banks ranking in the top half of the customer satisfaction survey had 2 to 5% greater deposit growth.

What drove customers away from their banks?
In a word, fees. One in 3 customers who switched banks in the past year did so because of fees, especially the rising cost of overdraft fees.

How can banks improve customer satisfaction?
Resolve problems quickly seems to be the answer. In addition, the banker should initiate follow-up contact to ensure customer satisfaction. The customer shouldn’t have to continue to follow-up until a satisfactory resolution is achieved.

“Banks with high brand image scores typically engage in practices that focus on strong communication with customers, such as welcoming them to the branch office or following up on problems,” said Beird. “By focusing on aspects most critical to the banking experience, banks can win the favor of their customers, which can lead to considerable financial rewards.”

When customers have a problem, it’s how it is handled that affects their customer satisfaction. In fact, how it’s resolved affects attrition and customer retention. Forty-four percent of customers who are at risk for switching banks reported they had at least one problem with their accounts over the last 12 months, as opposed to 7% of loyal customers who reported they had a problem.

Besides having their problems resolved quickly, customers are also attracted to the number of conveniently located branches and availability of online transactions.

The secret of bank marketing. . .
communicate, communicate, communicate.
Proactive communication played an important role with banks who performed well in customer acquisition, cross-selling and retention . . . key goals in any bank marketing program.

Beird points out that a needs assessment during initial account opening and outbound follow-up within 3 days results in average deposit balances that are 17% higher than other customers. And, customers must feel that questions asked are specific and relevant rather than routine.

The report also broke down how specific banks performed by region. Check out the graph accompanying their news release or view the detailed regional bank ratings charts.

The lesson for community bankers.
While the study highlighted larger banks in each region, community bankers can use the information to beef up their own bank marketing programs. Initiate a needs assessment campaign for new prospects with relevant questions, follow-up with new customers promptly, set-up a customer satisfaction program and be pro-active in resolving problems. Follow these suggestions and you may be on top of that next J.D. Powers survey.

Can creative genius John Cleese improve your bank marketing?

noreply@blogger.com (Julie Arnsdorf) — Thu, 07 May 2009 02:04:00 +0000

Funny man John Cleese has the creative chops to shake up any bank marketing department. After all, he’s one of the writers and actors behind Monty Python’s Flying Circus, Faulty Towers and A Fish Called Wanda. He has since moved into creating business training videos and online courses for professionals. But what should be of interest to bank marketers is the British-born actor’s lecture on The Importance of Creativity which he presented at Trinity College in Texas last month. In that talk he revealed insights which could help any bank marketing exec with marketing strategy, tactics, creative and general problem-solving.

Cleese cracks the code to creativity.
It’s the system that this creative genius employs that can unlock your marketing department’s thought-process, too. If you’ve ever been stymied about strategy, terrified over tactics, cornered by creative or deadlocked with deadlines, Cleese’s suggestions will boost your thought-process.

* Use your unconscious mind to find solutions. “Every great breakthrough comes from the unconscious, ” says Cleese. While our culture favors the analytical mind which uses logic to solve problems, the comedic talent believes that an overreliance on our right brain creates its own set of problems. We try to become too efficient. “We are always trying to save time and we become anxious because of deadlines,” he explained.

* "Don't suppress creativity; it's like driving with the brakes on,” warns this now professor-at-large at New York’s Cornell University. Unlock your unconscious mind with a good night’s sleep when working on a project or problem. Often the unconscious mind works best on a solution while you are not awake.

* Avoid interruptions. Interruptions are the most destructive roadblock to creative thinking. Find a place and a time to think creatively without outside interference. . . no phone, TV, computer. Creative thoughts can be realized if people give them time and a non-interruptive environment. You can train yourself to be creative by just leaning to be quiet. If people put the time and effort in, something happens, Cleese said.

* Do not get anxious if a solution does not come right away. A highly creative person realizes that a more patient, less deliberative type of thinking is good for solving problems.

* Once the unconscious mind starts working, the results will be surprising. “What you will get is unarticulated ideas – vague notions and whims, “the actor/writer notes. “You will have no idea what will come up.”

* Don’t analyze the information or thoughts too soon. Cleese believes “you have to give it time. You have to wait until it begins to make sense.”

* Repeat the entire process. “Take the information from your unconscious, see what works and what doesn’t, and then relegate it back to the unconscious,” explains the Monty Python star. After all, Cleese wrote 13 drafts of the screenplay "A Fish Called Wanda" before it became a film!

The unconscious mind works for everyone.
Cleese demonstrates how the system actually worked for him. Donna J. Tuttle recounts this story in her blog entitled, Writeontime. The blogger attended a dinner party with the famed actor prior to his lecture. Tuttle writes. . .

“True creativity, Cleese says, comes from the unconscious portion of the mind. For example, Cleese once wrote down a problem. He left it for a couple of days, and the answer arrived in his head quite naturally when he wasn’t tumbling the issue over and over in his brain. He lost a script and rewrote it from memory. When he found the original script and compared the two, the second was almost word-for-word — except, well, better. Cleese believes his brain edited that work while it simmered in his unconscious, safe from real-world, task-driven edit mode.”
While I’ve read about this incubation/unconscious mind theory in various books, I’ve never really heard someone validate its practicality. I know that from now on when faced with a bank marketing problem . . . whether it’s strategic, tactical or creative , I’ll be thinking about John Cleese.

New survey hints at bank marketing strategies and forecasts.

noreply@blogger.com (Julie Arnsdorf) — Thu, 23 Apr 2009 00:14:00 +0000

The 16th Bank Executive Survey was just released on April 21st and it could signal where your competition will be spending its marketing dollars in the months to come. The study conducted by Grant Thornton, a global accounting and consulting firm, in association with Bank Director magazine contacted CEOs and other senior officers of banks and savings institutions in early November 2008.

It’s interesting to note that 62% of the respondents report assets of less than $500 million, with 38% reporting assets greater than $500 million. One-third of the bankers reported that their institutions are publicly held, 55% are with private corporations and 12% have mutual charters.

Bank marketing recession plans go back to the basics.
While the study examines bankers’ outlooks for the economy, the causes of the credit crisis, credit and lending issues, future funding sources, exec compensation and strategic planning, it does offer insight for bank marketing execs. What actions do bank execs anticipate taking to grow and compete in the next 12 months? Cross-selling tops the list of strategies. Eighty percent of bankers plan to increase cross-selling efforts to current customers. Seventy-seven percent will conduct promotions to attract new customers to existing products and services. The chart outlines other marketing endeavors considered by bankers.

In a news release, John Ziegelbauer, national managing partner of Grant Thornton LLP's Financial Institutions practice said, "As evidenced by our respondents, many banks are going back to basics and refocusing on their existing service offerings."

Deposits remain important in bankers’ minds.
Increasing deposits should be on a bank marketing execs agenda since 94% of those surveyed cited that core deposits will be the most frequently anticipated means of funding bank growth in 2009. While funding is a key issue, 44% of bank execs stated that finding adequate resources is currently a challenge. And, 48% believed that core deposit balances will remain flat or decrease this year. According to the survey, some observers have suggested that banks could see an increase in deposits as consumers move away from declining returns on mutual funds. A more likely scenario, cautioned the study, is that consumers will simply have fewer discretionary funds due to debt and rising unemployment. If that occurs there would be net deposit shrinkage. Despite those possibilities, 51% say they will be increasing their share of deposits in the marketplace as a reaction to the credit crisis and subsequent consolidation in the financial services industry.

Bankers looking to GenY.
Many banks are gearing their retail efforts toward capturing GenY customers. In responding to the survey, 85% of the bankers claimed that they are moving internally and externally to meet the needs of this generation. For example, about 34% of larger banks and 21% of smaller banks will be investing in mobile banking as a way to attract this group. Only 15% said they are not meeting future generations’ needs.

Recession predictions for
consumer & commercial lending.
With lending promotions taking a significant portion of bank marketing budgets in the past, what do bankers predict for the future in the loan arena? Here are the anticipated changes:

Commercial loan demand:
27% predict increase; 28% no change; 45% decrease
Consumer loan demand:
14% predict increase; 36% no change; 50% decrease
Core deposits:
52% predict increase; 35% no change; 13% decrease
Customer refi-s:
35% predict increase; 54% no change; 11% decrease
Residental mortgage demand:
18% predict increase; 36% no change; 46% decrease

Read the entire survey on the Grant Thornton website.

Related articles in Bank Marketing:
Using refi promotions to strengthen relationships and cross-sell . . . before your competition does.

Spooked about authoring a financial article? Hire a ghostwriter.

noreply@blogger.com (Julie Arnsdorf) — Wed, 22 Apr 2009 03:38:00 +0000

I’m a big proponent of having a bank president or CEO craft his or her own message, especially if it’s for the troops or customers. According to our research with email newsletters, the President’s Message or CEO’s Letter always scores extremely high. In fact, it wipes out all the other articles in the newsletters as far as readership numbers. That’s why I always encourage bank execs to author their own communiqués. The message rings with authenticity and readers get to know the person behind the suit.

But there is one time when I suggest you rethink this strategy. . . that’s when an established publication comes calling and asks for an article as an expert in your field. First, a good article takes time. There’s research, plus the writing and editing. You could literally invest hours and hours in the project. You may not have the luxury of penning your thoughts. Second, if you’re not an accomplished writer, you could be in for a rough patch. Most important, you’ll want to maintain your reputation. I’ve seen a number of CEO essays where readers wondered about the author’s credentials due to poor sentence structure, confused logic and uninteresting content. So how can you maintain your expert standing yet polish your prose? Hire a ghostwriter!

What can a good ghostwriter do for you? The writer can. . .
Save you time. Your time’s at a premium. A writer can carry the heavy writing load and bring you a draft for approval and revisions.

Gather the important ideas and facts, plus do additional research if needed. Then organize those fragments into a logical, coherent article. A really great writer can run with any nugget of info and polish it into a real gem.

Replicate your style into the writing so it sounds original and incorporates your personality. After all, you’d like to instill some of your personality into the piece if it calls for it.

What you should look for in a ghostwriter?
Sharp, quality writing that engages the appropriate audience. Your ghostwriter’s samples will give you a clue. Is the writing intriguing? Does it hold your interest? Is it easily understood?

Experience & knowledge. Look for someone whose background you feel comfortable with. Depending on the type of article, you’ll want someone who has knowledge or experience in your field. Look for someone who can relate to the audience or express a complex subject with simplicity. If the person is more knowledgeable about your topic, the less time you’ll need educating them. That writer will just be able to run with your topic. Remember, the more knowledgeable the person, justifiably the higher the fee.

Compatibility. You’ll accomplish more if the two of you are on the same wavelength. Establish a good relationship at the beginning of the process and you’ll be working from an advantage.
Getting the best possible written results. If you follow a few simple caveats, the process will be smoother and the results will be sharper. You’ll have a running start if you. . . Identify your goals for the article. Do you wish to educate, state an opinion, inspire or encourage?

Explain the task. Do you have a topic in mind? All the better. Do you have any background material to share about the topic, resources to recommend or information about the publication? What’s the deadline, word count or other specifics the publication has mandated? The more you have ready, the faster and more smoothly the project will progress. You may even wish to outline the topic or prepare a rough draft. Don’t have a specific topic? At the very least, offer the writer some direction, otherwise you both will just be frustrated and spinning your wheels. On the other hand, find an extremely knowledgeable writer in your field and that person may be able to suggest appropriate topics.

Be willing to let the writer do his or her job. If you do write that first draft, be willing to accept changes. That’s why you hired a writer. A professional is able to view the topic from the reader’s viewpoint. You may be too close to the situation to see it from various angles. Too many times I’ve seen execs change the copy back to their original version. A good writer doesn’t mind being corrected, especially if there is an error. But you’re defeating the purpose of using a professional writer if you go heavy on the edits.

Define the audience for the writer. Are you writing for the Harvard Business Review or a Junior Achievement magazine? You’ll want someone who can match the content of those publications.

Outline the specifics you want to include in your article. . . any quotes, stats, keywords.

Spend some time with the writer. If it’s important that your personality come through in the article (esp. in a journal where people know you), spend some time with the writer so he can judge your style of expression. An experienced writer can pick up on your personality and express it in the article. You don’t want an inexperienced writer literally putting inappropriate words in your mouth or writing from their perspective. I once read an article “authored” by a male bank president in which the writer used expressions that would have definitely been used by a female writer.

Don’t pass the finished article through a committee or group for their feedback. Fine, if you need to go through compliance. But send it through the meat grinder and you’ll come up with incoherent hash. You hired a pro, trust that person.

You don’t need to be a bank president or CEO
to hire a ghostwriter.
Even bank marketing execs, lenders, branch managers, or commercial bankers may be asked to pen a few words for a publication. If it means maintaining the bank’s reputation, don’t fear hiring a ghost writer.

Related articles in Bank Marketing:
What can the “President’s Message” do for your marketing?

No fancy corporate jet for Colorado bank. Just a tiny biplane dwarfed by a big message.

noreply@blogger.com (Julie Arnsdorf) — Wed, 15 Apr 2009 01:47:00 +0000

While some big financial institutions arrogantly touted their corporate jets and big bonuses in the face of taxpayers after taking federal handouts, a Colorado bank was flying their own “corporate plane.” FirstBank wanted to set itself apart from the jet-tripping, high-living, bonus-grabbing fat cats that were stealing the headlines. Instead the largest locally-owned bank in Colorado hauled out a rented biplane and tied a banner to its tail. Then they circled Coors Field during the opening game of the Colorado Rockies baseball team. Trailing behind that little plane was a great big 30’x115’ banner that read. . .
This is the closest thing we have to a private jet.
A big message behind a tiny plane!

The promotion, costing about $7,000, was seen by about 50,000 baseball fans at the stadium. FirstBank with assets of $8 billion and 120 offices in Colorado alone, plus a handful in California and Arizona, worked with Boulder-based TDA Advertising and Design, the ad’s creator.

According to an article in The Denver Post, the bank has been promoting its long-standing conservative lending practices since late last year and steered clear of risky loans.

In reviewing the comments on The Denver Post website, I haven’t seen a single negative comment about the clever stunt . . . only amusement. Even in this economic time when bank customers are furious with many bank practices and marketing tactics, this clever promotion tells me that a smart bank marketer can make a great impression and spread a little humor, too.

Use refi promotions to strengthen relationships and cross-sell . . . before your competition does.

noreply@blogger.com (Julie Arnsdorf) — Tue, 14 Apr 2009 01:26:00 +0000

While customers are looking to take advantage of the lowest mortgage rates in 35 years by refinancing their homes, bank marketing departments can jump on the bandwagon and gain momentum, too.

"There are 7 to 9 million people across the country who right now could be taking advantage of lower mortgage rates," said President Obama in a televised statement on April 9th. And, smart bank marketers should be steering their customers into more favorable rates before their competition moves in on them. If you don’t plan and take action, your competition may be seeing your customers walk in their doors.

Use your advantage over the competition.
Your knowledge of the customer's mortgage.
Right now, you have a huge advantage over the bank down the street. The types of loans, rates and balances of your mortgage customers are right in front of you. Take the initiative to contact your customers with a personalized, sincere message. Fill it with information that could save them money in these economic times. They’ll appreciate that gesture. Right now you can be supplying them with specific cost-savings that your completion cannot deliver . . . “save $215 this month alone!” . . . all because you have that data at your discretion. Give them the right information and incentive and you’ll be arming them with a solid reason to stay with your institution. You could be seen as a banker who’s interested in their well-being. Don’t let your competition be the first to express this concern.

More than a mortgage loan, customers represent
cross-sell opportunities.
Loose these valuable customers and you’ll be eliminating a steady income stream. A typical $200,000 mortgage can generate net interest income of up to $5,500 per year. Remember, your customers are more than just mortgage loans! They represent hard-earned relationships and opportunities to cross-sell other income producing products. . . products that can retain relationships for years to come.

66% of financial institutions fail to use their website's home page to tackle economic crisis.

noreply@blogger.com (Julie Arnsdorf) — Thu, 09 Apr 2009 02:32:00 +0000

“The majority of financial services companies - 66% - have been silent recently when it comes to communicating about the troublesome economy on their corporate Web site home pages” reports Weber Shandwick in an April 8th news release. The global public relations firm looked at a diverse segment of 55 U.S. and European/EMEA financial services companies including investment firms, commercial banks and financial data service firms. They tracked the organizations weekly since mid-October to determine their reactions as the economic news worsened. The study covered a five-month period.

“Since corporate home pages are a prime gateway to a company’s positioning, messaging and reputation, we examined them to determine how an industry under intense scrutiny rises to the challenge of building trust in tough times,” noted Barb Iverson, president of Weber Shandwick’s financial services industry practice group in the news release. “It is not enough for leading financial services companies to communicate only in good times.” She went on to urge financial services organizations to use their low cost, high impact home pages in communicating with customers and investors.

Surprisingly the European institutions studied communicated earlier on their home pages about the crisis than did their American counterparts. U.S. firms eventually caught up and surpassed their European peer sin home page communications.

Only 24% (in Feb. 2009) and 13% (in mid-Oct. 2008) linked to a message from a CEO/Chairman. Weber Shandwick reported that when these same execs were used on home pages, they helped “humanize the crisis and put a face on the company.”

Iverson noted in the release that “for many, the Web sites of these financial services companies are one of the first places that customers, investors and others go to in search of information and reassurance.”

Home page recommendations.
Incorporate the following into home page messages, recommends Weber Shandwick:

Explain unfamiliar financial terms and add hotline numbers, contact names & photos, as well as FAQs
Convey empathy in messages, as well as acknowledge customers’ confusion, concerns and loss of trust
Use social media tools such as podcasts, Webcasts, blogs and customer discussion forums in an attempt to make relationships more personal and interactive

The release featured additional stats and charts illustrating the agency’s findings.

The message for community banks.
While the sites studied were of Fortune 500 firms, smaller financial institutions can learn from the Weber Shandwick study. We know that all financial consumers, whether they are affiliated with a troubled institution or not, are concerned and fearful. The financial climate is not business as usual. And, smaller bank marketing departments are not immune to the fallout of the current economic situation. All financial institutions need to step up to the plate and to the challenge of relating to your customers. Your home page is the face of your institution. . . in good times and bad. And from our own observations working in financial communications, we’ve learned that the President’s Message is valuable real estate for your bank’s marketing. Mesh the two and you’ll forge a strong link with your consumer.

Related articles in Bank Marketing:
Ohio community banker talks “tough” on his website.

How do you combat negative headlines?

What can the “President’s Message” do for your marketing?

Fifth Third “dreams” of quelling consumers concerns.

Readers & employees respond to Wells Fargo “Las Vegas” blog post.

A superhuman marketing resource. . . your branch manager.

noreply@blogger.com (Julie Arnsdorf) — Wed, 08 Apr 2009 02:51:00 +0000

Community banks have a secret weapon that larger banks cannot disarm. It’s the local branch manager. . . your Superman or Wonder Woman. He or she is usually a pillar of the community, a friendly loan officer and a trusted investment advisor all rolled into one dynamic personality. . .or you hope they have that added charisma. Some larger banks have done away with branch managers altogether and others are charging fees just to interact with a teller. Therefore, that affable manager can go a long way to market your bank and solidify your brand.

In 2007 Booz Allen Hamilton, a strategy and technology consulting firm, studied over 4,000 bank branches. The researchers identified the traits of top-performing bank managers. Those bank managers are. . .

1. Willing to be held accountable for both their success and failures
2. Proud of their bank, branch and employees
3. Creative in coming up with new ways to drive business
4. Driven to succeed and motivated by their branch’s success, not just their own salary and bonus packages
5. Confident in their ability to meet their goals
6. Typically hold an integrated view of all aspects of their business – sales, service, people, core operations. . . in other words, they run their branches as if they were their own businesses

Sounds like the perfect person who can personify your bank’s brand!

These traits bring in the clients, too.
Booz Allen found that the best branch managers are worth between $500,000 and $1 million in incremental revenue to the bank. And branch managers who settle in at an office tend to do better than those who are transferred. According to the study, branches with managers who have stayed put or who have moved only once enjoyed an average growth in deposits of 13.2 percent, whereas those with managers who have transferred to new positions more than five times had an increase of just 3.2 percent.

What’s in the psyche of the perfect community bank manager?
If you have a bank manager who sees himself or herself as a “town mayor”, you definitely have an asset. This person identifies strongly with the bank and the community rather than the overall organization. Maximizing the branch’s performance and the communities’ ability to prosper ranks high on this manager’s list of goals. This type of manager also has few ambitions to move beyond branch manager. They’ve found their niche.

Keep them in the loop & you’ll have a marketing ally.
While this person is a natural for promoting your bank’s brand and message, they shouldn’t be left in the dark as far as your marketing goals. The Booz Allen study noted that well-trained branch managers produce significantly higher customer-service and customer-satisfaction scores. Keep them in your marketing loop. Play off their strengths. Keep them happy by letting them interact with the community. In fact, encourage it. Your manager already identifies with the bank and the community. Give them the ammunition to continue to spread your message and they’ll become your bank marketing ally.

Ohio community banker talks “tough” on his website.

noreply@blogger.com (Julie Arnsdorf) — Tue, 17 Mar 2009 03:10:00 +0000

While other banks were issuing letters and written statements about the state of their financial institutions, Bill Carr, president and CEO of Liberty National Bank, decided to literally roll up his shirt-sleeves and talk to the public. Carr is featured in two video podcasts which appear on his bank’s website. And, his message isn’t buried deep within the site. It’s front and center on the homepage. When accessed, the podcasts appear as a pop-up on the site.

While I’ve seen other bank presidents give video presentations on their websites, I prefer the genuine appeal of this one. First, this is a community bank with only 5 offices located in central Ohio. They can’t rely on slick, expensive videography. Second, Carr’s content is quite compelling. Rather than give the perfunctory, “we’re just fine” spiel, the president and CEO of this bank with $192 million in assets gives a tough and frank assessment of the economy. He hits the topic of subprime mortgages head on and reflects on their effect on community banking. This 40-year bank veteran addresses cost -cutting measures the bank intends to pursue including e-services (online statements), but pledges to retain employees. Carr even remarks on the new administration in Washington, D.C. His podcast is definitely a refreshing look at the entire banking situation. Because he is so honest, the customer definitely feels confident about Liberty National.

“Even at our shareholder meetings, he pretty much tells it like it is,” explained Heather Cox, Liberty National’s assistant vice president of marketing in an interview about Carr’s style.

Why should community banks consider
presidential podcasts?
Through my work with e-newsletters for our clients, we know that the President’s Message

garners the most readership each time these newsletters are broadcast. In fact, I’ve done a post on the importance of the President’s Letter, entitled “What can the ‘President’s Message’ do for your marketing?” And, I’ve encouraged bank marketing execs to take advantage of this prime real estate in their communications efforts. Liberty National has taken the President’s Message to a new and impressive level. And, I applaud this community bank for their ingenuity.

Podcasts supported with traditional media.

Rather than just let the podcast stand on its own merit, Cox supported the online video with news releases, newspaper ads and radio spots. The traditional marketing efforts helped drive traffic to the podcasts. Cox reports that the 1st video in the 2-part series received appox. 400 hits in February alone.

An advertising consultant produced the two podcasts for the bank’s marketing department. Each podcast is roughly 3 minutes long. . . a nice, concise length that keeps the viewer engaged. Rather than an interviewer quizzing the president or a continuous monologue, the presentation is broken by a couple of “fades to black” on which a question is posed to the exec.

The Liberty National podcast ends with Carr informing viewers that he will be retiring this summer. Let’s hope his successor keeps up the “talk”.

Using altruism to draw consumers to your social networking sites.

noreply@blogger.com (Julie Arnsdorf) — Tue, 10 Mar 2009 01:31:00 +0000

A few posts ago, I blogged about how Dairy Queen was incenting bloggers to write about their new menu by awarding the first 250 to a $5 gift card. Now, author Tim Ferriss is encouraging people to “follow” him on Twitter, the fast-growing 140-character microblog. Billed as the “Tweet to Beat: Paying $3 per Twitter Follower”, Ferriss notes that he and an anonymous matching donor will give the funds to high-need schools in the U.S. via DonorsChoose.org Through this altruistic approach, Ferriss is sure to gain continued PR for his book and gain popularity in search engine rankings. . . all due to links connecting to his website and blog. He even provides readers with the appropriate links to use to direct others to his sites. Ferriss, who started the promotion at approx. 22,500 followers (those who sign-on to watch what he writes or “tweets”) will cap it at 50,000. The author of the NY Times bestseller, The 4-Hour Work Week, has set up his challenge with rules, regs and deadlines.

This is definitely an interesting approach to fundraising, public relations and social networking media. Simply it encapsulates all three in one tight package.

How can bank marketing executives use this same approach?
If you don’t already have a blog, FaceBook or Twitter presence, now is the time to consider one. Some time down the road, it will be essential to add these forms of social networking media to your marketing mix. Your younger consumers will demand it. And, you might be surprised how many of your “older” business and retail clientele is already dabbling with it. Starting now you can get your feet wet and experiment before your competition becomes adept at the increasingly popular media. A similar campaign from your bank marketing department would be a great driver to your social networking site. You’re introducing them to your new form of communication and identifying yourself as a community activist. Plus, you’ll be getting your employees backing that new bank promotional tool.

Many banks, especially community banks, are involved with altruistic endeavors in their various locales. But often times, the support is scatter-shot. . . giving to many different charities. I have recommend in the past that community banks choose one major charity . . . at least for the year. . . and commit to it. In effect, “branding” their bank with that charity. It could be the local fire department, an animal shelter or. . . . a tie-in to a financial product or service (supporting a military platoon which co-insides with your SBA Patriot Express program).

In the meantime, sign-on to Ferriss’ campaign, see how social networking works and help out a worthy cause.

Talk about transparency. . . YES Bank displays its diversity. . . graphically.

noreply@blogger.com (Julie Arnsdorf) — Fri, 06 Mar 2009 05:05:00 +0000

In preparing various marketing materials for my clients, I’m instructed by their compliance departments to include diverse clientele and employees. In other words, a microcosm of our society. No problem with that. Mumbai-based YES Bank (which I introduced in my last post) has found a unique way to show its workforce profile. . . AND build its brand. The Indian financial institution boldly announces its “diversity” of “human capital” with a series of graphs covering an entire webpage.

In fact, their reference to “human capital” seems so apropos for this financial institution. The bank uses it to define their entire HR section (a fairly good-sized section at that) of their website. The term isn’t new. It was first defined by Adam Smith, an economist in the 1700s.

Building its brand around its workforce.
YES Bank has a reason for defining its workforce graphically. Apparently the bank is building its brand around the quality of its employees. Their stated objectives include:

- To build a strong employer brand.
- To attain a preferred employer status in the Banking and Financial Services industry.
- To ensure that the Bank is able to attract, engage and retain high quality human capital for its long-term success.

And, YES Bank seems to be achieving their branding goal. According to EECH – the largest source of management case studies in the world, YES Bank has established a strong employer brand and projects itself as an 'aspirational' employer in the Indian banking sector. EECH notes that the 200-branch bank has “differentiated itself from its competitors with its unique 'knowledge banking' approach and its emphasis on human capital.”

The bank has outlined a number of impressive employee programs including entrepreneur and mentoring programs. And, they’ve earned their stripes with the “Continuous Innovation in HR Strategy” Award.

What does all of this have to do with Bank Marketing in the U.S.?
While Americans may see the Indian bank’s “diversity” as a little lopsided, you must remember that you’re dealing with a different culture. But, there is a message here for financial marketers. First, YES is defining its brand around its employees. Their graphic approach drives that point home and works for them. It’s much more direct than the typical “we have great service” claim. And, second, your bank marketing (no matter what your brand) is only as good as your employees. . . i.e.,the knowledge and service they put forth. On the surface, YES Bank receives an affirmative grade on both fronts.