Pondering the Road Ahead - what will change?

Could we finally be seeing a glimmer of light at the end of the tunnel? There are reports of some positive economic indicators. And, economists are suddenly cautiously optimistic, even forecasting a recovery ahead, albeit slow.

When we come out of this morass is a question I'll leave for others. But I do think we as marketers and planners need to spend some time thinking about how the world will have changed in response to this unprecedented financial crisis.

How will what has happened in banking and the economy over the last 18 - 24 months change our industry in the next 10 years?

I'm not talking simply about the regulatory changes we will all have to navigate, but, what has this done to the psyche of our customers?

Ponder the following and share your thoughts so we can paint a picture of what to expect in 2020.

How will the experience of surviving and economic meltdown change how businesses and individuals deal with their finances?

Will customers have new expectations of their financial partners as far as transparency, knowledge, guidance, etc.?

Will this change how customers seek credit? More cautious about
accepting credit? More skepticism about the fine print?

Will customers become more receptive to financial management products?

Is the increased interest in savings products and a rise in the personal savings rate a newly ingrained behavior of the future or is it a temporary reaction?

How will the dramatic crisis of trust in the financial services industry impact our ongoing customer relationships? How can we turn the tide? Are there other industries that have faced a similar break in trust that have overcome it successfully? What did they do?

I'm sure there are other questions to look at to see how the relationship between customers and financial services providers will change. Share them as you think of them.

Now the big question -- how do we incorporate these changes into how we market and what financial services products we offer?

We are looking ahead at MarketMatch, asking questions and realizing that we will be doing business in a changed world. Call me and let's ponder the future together.

Deanna

Branding ... It's Not What You Say, But What You Do.

If you don't think that you can afford to rebrand your institution in this economy, think again.

It’s all in the definition.  Yes, your brand is tied (in part) to your name, logo and visual appearance.  But it is defined by the customer experience.

To rebrand your institution properly, you need to focus less on the creative department and more on strategy and day-to-day interactions.

Check out this great article published on customerthink.com.  

Where are you in the continuum of: do-nothing; basic Customer Loyalty programs; CRM (customer relationship management) and CEM (Customer Experience Management)?

As financial institutions, we know more about our customer’s activities than most any industry – yet we are one of the most commoditized.  We help our customers manage their money – yet we tend to take the emotion and empathy out of our messages. 

This is why branding is my passion!  It’s about people … it’s about turning “potential-customers” into “customers” and converting “customers” into “evangelists!”

When there is little tangible difference between “Bank A” and “Credit Union B,” can you afford NOT to rebrand in this economy? 

Take care,

Eric

budget cut woes?

If you are a marketing director, you may be experiencing a "recession depression" brought about by severe cuts to your marketing budget. Are you experiencing these symptoms?

• Wondering why you are always the first budget item to be hit?
• Asking why other bank projects are still being funded and your budget is still cut?
• Curious as to why every golf outing is still in the budget?

Well, you are probably not alone. What is the cure for these symptoms?

I suggest a couple of remedies.

• First, sit down with your president and/or CFO and review the bank's goals and priorities for 2009. From where we are today (which is very different than a few months ago), what is it that will help the bank's bottom line the most?
• Review the opportunities you may be missing by not being proactive right now.... are there mergers or acquisitions or bank closings in your market area? Do you compete with some big banks that are struggling right now? How much could you benefit by being out there with an agressive product offer (deposit or loan) right now? Will this opportunity still be there in 6 months?
• Review your media budget. Have you reallocated your marketing budget to reflect today's media needs? Have you reduced your mass media budgets to allow room for email marketing and social media? If not, you are probably overlooking your most cost effective forms of communication with your existing and potential customers/members.
• Review with your president and CFO your marketing plan and together prioritize those items you still want to ensure get accomplished.
• Remember that by being a shining star and contributing to the bottom line now in a meaningful way is the best way to ensure that you get your marketing budget restored to it's former levels for 2010.

The recession will pass and good times will come again. But to ensure that management restores the marketing budgets you want, you need to see this year as an opportunity to be a valued partner in achieving goals with fewer dollars. Communication and joint prioritizing will go a long way to making that happen.

Have a great holiday weekend!

Sharon Litherland-Lovejoy

S.T.O.P.

How many times, as marketers, do we let a great creative idea drive a campaign or program ... OK, I'm guilty of it too.

Next time you sit down for planning, S.T.O.P. and think if you're going to S.T.O.P. your customers in their tracks.

S - Segmentation.  Taking the time to focus your target will save your budget and increase your ROI.

T - Timing.  Is the economic environment right?  Does your target need your product now?

O - Offer.  The delicate balance here ... be impactful, create urgency, don't give away the farm!

P - Piece.  NOW, you can think about the creative piece.  Is it broadcast, print, mail, electronic?  does it break the clutter and deliver a simple, easy to understand message?

Have a wonderful Memorial Day weekend!!!

Take care,

Eric

The Reality of Monday....

Mondays. Half of us say "uggghhhh....already?" The other half simply say, "come on Friday."

However, I want to share a different perspective that I hope helps everyone with the malaise that seems to take over days like Monday.

To me, Mondays are a fresh new start, full of opportunity, and everyone is rested and recharged (some more than others, I will admit!!) from the weekend.

I find that on Mondays, people are anxious for the week to unfold...ready to make progress, quick to make decisions, and looking forward to Wednesday!

Two fun facts for today...

1. The average person has over 1460 dreams a year
2. "The quick brown fox jumps over a lazy dog"...this sentence uses every letter of the alphabet

The lesson?

What were your dreams last night? Your customers dreams? What can you do to make them happen?

And...get creative, sometimes the simplest things (the sentence with all the letters of the alphabet) may be cool!

Have a GREAT Monday...

Cheers!

Bruce

Quick Branding Exercise

Just getting a chance to go through my notes from the Indiana Bankers Association Mega Conference held in Indianapolis a couple of weeks ago. Came across a great tidbit from Joe Sullivan's presentation on creating brand differentiation.

"Take the seemingly inconsequential things that

differentiate your brand and blow them out of proportion."

Sounds like it could be a fun Friday afternoon branding exercise. Spend a few minutes listing those things big or small that make your bank or credit union different from the ones down the street. Make it fun. Think of all of the quirky things that make you different. Think of the little things that customers comment on, like the dog biscuits in the drive-through.

Look at the list and see what you think could really resonate with customers needs today. Now, determine how to market that differentiation to customers as a benefit and you've created something to give your brand the "Wow" factor in a commodity market.

Enjoy,

Deanna

When Is A 33% Confidence Rating A Good Thing?

Gallup recently released a summary of Americans' confidence in banks. While overall confidence in banks has fallen to 18%, on a more positive note, many Americans have confidence in their primary bank where they conduct most of their banking business, with 33% saying they have "Quite a lot" of confidence in their primary bank.

It's pretty abysmal when the majority of banks have a confidence rating that is lower than the final approval rating of George W. Bush (who had the lowest approval rating in history of any politician who was not indicted for something).  While 33% have expressed "Quite a lot" of confidence in their primary bank, it's the other 67% that should be keeping us up at night.

The greatest casualty in this whole financial debacle has been the loss of trust in financial institutions.  Now, more than ever, banks need to step up their efforts to project a message of safety, soundness and stability.  One of the keys is through financial education, which a lot of banks do not do well.  People are scared--how to pay their mortgage, send their kids to college, and have enough for retirement--and they are being overly protective of their precious few resources.  Banks need to do a much better job of outreach to retail and business customers in an advisory capacity to outline financial options that are in the best interest of the customers.  

This seems to be the ideal path to regaining consumer and business trust one institution at a time that will inevitably begin to raise the status of the financial industry as a whole.

7 Ways to Stand Out From The Crowd

According to a recent J.D. Powers and Associates and Novantas study, customer service drives 15%-20% of growth performance at the branch level - accounting for a differential of $50,000 - $90,000 of additional annual earnings per branch.

As a firm who conducts market research and secret shops for banks and credit unions across the country, we empirically know that customer service will provide the differentiation that your institution is looking for.

How do you standout from the crowd?

• Know your competition – what are their strengths and weaknesses?  Who is providing outstanding service in your market?
• Know your markets – your market needs may be different from branch to branch.
• Focus your efforts – don’t expect your staff to be good at all things.  Find your niche and maximize it.
• Train and set expectation levels – communication with the staff is the key.  Tell them what you expect and how to be successful.
• Offer the right products – Do you provide “value meals” that bundle key products together?  Do you offer product packages based on life stage?
• Provide the right tools – relook at your sales process and sales materials.  Remove obstacles and provide targeted benefit-driven materials.
• Track, recognize and reinforce – your team should know, at all times, how they are doing against their goals and be rewarded for success.

With a focus on customer service, you will cost-effectively:

• Support your brand
  
• Increase share of wallet
• Reduce customer attrition
• Increase revenue
• Increase staff retention

But it takes a commitment.  

From the senior management down, every level of the organization must support this effort.  Often, it's best to look to a third party for an objective perspective and to focus on the plan while you manage the day-to-day institution operations.

Take care,

Eric

Top 10 Ways to NOT Think Like a Bank

To be a better bank, don't think like a banker.

If you want to  ...  no, since you NEED to sell more products, look to the business sector that sells the best ... RETAIL!

What does your favorite retailer do that makes you want to spend so much money?

1. They go to great pains to know you through loyalty programs 
2. They train their sales staff to ask questions before they recommend product
3. They make it easy to buy in the store and on-line
4. Specialty shops become your advisor and product expert
5. They package products in "bundles" that make intuitive sense to you (think Value-Meal)
6. They create advertising with a clear call to action that evokes some emotion
7. They sell the relationship ... not the product
8. They empower their employees to think like entrepreneurs
9. They focus on how the product will make your life better ... not the product features
10. The BRAND is priority #1

For more discussion on bringing retail strategies to the financial world, please register for our free Brown Bag Lunch being held on Friday, May 15 at 1:00 PM EST by clicking here.

Take care,

Eric

Ignoring Fear

I was at the IBA MEGA conference this past week....saw Erik Wahl present again. His message and performance is excellent and always on the mark.

One captivating point, especially in the current times. The concept of FEAR. Erik shared a definition of FEAR....it goes:

• F false
  
• E evidence
• A appearing
• R real

There is a tremendous amount of fear in the market place today...some founded in fact and most built from media hype. The solution?

Communication.

You need to over-communicate, if there is actually such a practice. Communicate to your customers, your best customers, your staff, your shareholders, your market....everyone!

Not the "we are safe and stable" message, but a tangible message that is actionable. I heard a radio spot for a bank in Michigan and it was the president speaking and sharing very tangible ideas on how their bank was strong (facts) and ended the spot with his direct dial phone number. That creates tangible comfort!

Remove the fear, communicate, communicate, communicate!

Cheers!

Bruce