How do you combat negative headlines?

MERRILL CEO’s DECADENT $1.2M REDECORATION. . .Thain forced out of BofA
Huffington Post - Jan. 22, 2009

Banks Foreclose on Builders with Perfect Records
NY Times – Jan. 19, 2009

Bailout is a Windfall to Bank, if Not to Borrowers
NY Times – Jan. 17, 2009

Loss of confidence in banks causes huge shifts in deposits
USA TODAY Nov. 11, 2008

The articles that followed those headlines were even less flattering. These headlines and articles could be just the beginning of things to come. . . especially as the public turns its frustrations to the banking community. Bank marketers may not be hit from just the traditional media. The increase in bloggers and new blogs gives voice to a whole new grassroots communications sector. Rather than promote products, bank marketing departments could be hit with the possibility of defending their institutions.

First, I’d be cognizant of what products I was advertising. Right after the foreclosures started raining down, some bank marketing departments still proudly pushed their interest only mortgages with the obligatory disclaimer for a looming huge balloon payment. Were the bank marketing execs asleep at the wheel?

Second, be sensitive to the consumer’s perspective right now. Many are currently angry and it’s NOT business as usual. Even if your financial institution is pure as the driven snow in regards to the financial disaster, you’re being painted with one broad brush. You can’t ignore the situation. Have you seriously reached out to your customers. . . not just with a curt “don’t worry about us” letter loaded with FDIC logos. Keep those valued customers that you fought so hard to obtain updated. Use your consumer newsletter to the fullest. Shoot them an email. But be sure you are giving them relevant information. How about providing good, solid consumer help. . . . such as explaining the loan process, FICO scores or how a couple can have up to $3 million in FDIC coverage at your institution. Be honest. Be upfront. Isn’t it a company’s responsibility to educate the buying public about their products? Now’s the perfect time.

Third, don’t pull back on the budget. Don’t eliminate that newsletter or other advertising. If you “go away”, your customers may also. They could perceive it as a trouble indicator. In the end, if you stay on top of the headlines, you may not be buried by them.

These cartoons are worth a thousand words!

I’m not sure how to grade this one. . . thumbs up or thumbs down. Consumers Union, the nonprofit publisher of Consumer Reports, held a “Dangers of Debt” Editorial Cartoon Contest. On their website, creditcardreform.org, Consumers Union encouraged young people to think about the dangers of debt. In their intro, they also noted that “credit card companies on virtually every college campus are luring young people into debt that could spell financial ruin at a young age.”

Amateur illustrators, age 15 – 25, could submit cartoons until Nov. 3 and then the public was invited to vote for their favorite until Dec. 5. You can see all the cartoons and the voting results. The cartoon garnering the most votes won $500, while a panel will award a grand prize of $1,000 to one worthy participant.

On one hand, you could argue the contest is promoting responsible handling of debt. On the other, it definitely gives the credit card industry a black eye. Would you conduct such a contest?

Would someone defend your financial institution with passion?

If you haven’t read Detroit Free Press sports writer Mitch Albom’s impassioned piece for Sports Illustrated (Jan. 7,2009), it’s a must read. Albom, is also the author of the best-selling books, Tuesdays with Morrie, The Five People You Meet in Heaven and For One More Day. In his SI article entitled, The Courage of Detroit, he passionately defended his city of Detroit, the Lions and the auto industry. He also did an interview regarding the article for the Charlie Rose Show on PBS. His interview was even more compelling.

This got me to thinking whether anyone would stand up and be counted if their local bank simply disappeared one day. . . whoosh. . . gone in an instant. Would anyone stand up and plead your cause? I’m not talking a closure due to mismanagement where there would be mass outrage. I’m more interested if you’ve become so entrenched in your community that one branch would be truly missed.

There have been articles and broadcast coverage of how catastrophic it would be if some of the car dealers in smaller communities went out of business. First, because they are the only dealer for miles. And second, they’ve become part of the community’s fabric. They have a history there. They are the community. I’ll admit that the loss of a bank in a small town would definitely cause attention. But in my suburb there are 10 branches within a 1 mile radius. Would anyone plead their cause like Albom did for his state’s industry? While you may say, some of my employees are involved in various community activities, I ask, "Are they truly involved or they they just networking to gain more business?" If you chose one community activity or charity to hang your hat on or become a leader in that endeavor, would that endear you to your community. . . your neighborhood? Let’s say, you’ve become a solid advocate for (you name the organization, i.e. your local fire or police dept., the Red Cross). . . an organization that would become synonimous with your financial institution, would that up your standing?

Do you have a champion for YOUR financial institution . . . one like Mitch Albom?

Again, if you haven’t read “The Courage of Detroit”, please do so.

Are you connecting with customers?

Billionaire Mark Cuban had a great post in his blog, Blog Maverick, a couple of years ago. Cuban is the owner of the Dallas Mavericks, an NBA basketball team, and chairman of HDNet, an HDTV cable network. His remarks are especially relevant now when consumer confidence is low and sales are slow. Banks need to pull out all the stops to attract and retain customers.

Take away points (whether you’re the CEO or marketing manager):

• Customer service starts with the CEO.Treat customers like they own you, because they do. Remember YAHOO when dealing with customers, because they will. YAHOO stands for You Always Have Other Options.
• Get out there and experience your product/service like your customer does. Stand in the teller line with your customers and test the service. See what they see. Don’t rely on someone else doing it. Do it yourself!
  
  (In my experience, these next three points are especially critical. While the suggestions seem obvious, I’ve seen CEOs, as well as marketing execs, do the opposite and insulate themselves. )
  
• Make yourself accessible. Post your email so customers can reach you. The CEO who doesn’t listen to direct customer feedback will never take the institution as far as it can go.
• Communicate with your customers. A happy customer tells one person, but an unhappy one tells 20.
• It’s better to be proactive than reactive.
  

Read Cuban’s entire blog post, “Success and motivation - Connecting to your Customers.” The comments on the post are great, too.