Is your bank’s brand on parade?

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.

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?

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.

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.

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.

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.

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.