Is the Sleeping GIANT awake??

Greetings...

By now, I am certain that you have heard... Walmart and American Express are joining forces to reach the "unbanked."  That quake you felt and the flutter of your heart were natural reactions to the awakening of the sleeping giant.

Is the Sleeping Giant Awake???

Let that statement settle in a bit... and while you do...a few quick facts

• The world's largest retailer...with over 4,540 US locations
• 1.4 million US associates
• $316 billion in annual US sales
• Serve 200 million customers annually
• Donated $872 million dollars in the US

These are staggering figures for any industry.  They also happen to be important building blocks to become a successful financial services company.

Now apply them to banking industry.  Wal-Mart would be:

• The 4th largest branch network
• The largest employer
• The largest customer base

So...just what exactly is Walmart doing?  (Here is a link to the USA Today article.)

Changing the game of banking...that's what!

In partnering with American Express to create the Bluebird prepaid debit card, they are attacking-- directly-- a large population of customers and at the heart of our industry's non-interest income engine.  Think about it...and this is a quote from the American Express Group VP..."Every Walmart cash register is the equivalent of a (bank) teller."

WOW.

In ONE fell swoop, Walmart has become the largest banking entity in the country.  I have felt for nearly 12 years, since I first dealt with a Walmart banking lease for an in-store branch, that they were simply biding their time and learning community banking by allowing community banks, mainly, to set-up shop in their stores.  They built a "bank customer" base, provided a service and now that they have their own financial services...I would start looking for those bank branch leases to be non-renewed by Walmart and the space taken back for their own use.

This is truly a "circle the wagons" moment for our industry.  We have to determine the impact and focus our attention on providing what Walmart is NOT KNOWN FOR...and that is service.  Not just "say their name and smile" service...but life-altering, life-stage based service that keeps a customer coming back.

Service is our differentiators and Walmart's kryptonite!  FOCUS...FOCUS...FOCUS...and deliver premium service in a way that Walmart simply cannot-- personally and with 100 years (or more for your institution) of experience and expertise.

Now is the time...and the day is today!  For a great blog on the type of service that you need...  Disney Service in Your Branch.

This is not just an alarm...it is an all-hands-on-deck call.

Let's respond together!

Cheers!

Bruce

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MarketMatch is a full-service marketing firm, dedicated to the credit union and community banking community.  We utilize knowledge-based strategies to help you FOCUS on the right story that will generate the greatest  MOMENTUM and prove the best RESULTS with our written ROI Guarantee.

 

See our story here. (click)

Chat with me LIVE! (click)

Or email me directly (click)

937-832-7894 x101

Four Corners -- Offense or Defense?

Greetings...

I just read an interesting article from BAI entitled "The Segmentation Conundrum."  It speaks to the challenge of identifying and growing profitable relationships and the dual-edged sword of reducing unprofitable relationships.  The article describes Chase's approach to targeting high value/high profit relationships and driving more profit and simultaneously reducing the negative burden of unprofitable accounts.  (here is the article link: http://tinyurl.com/8yasmre)

This is exactly the challenge that was charged with at Bank One, the Chase predecessor, back in 1995 (and won state-wide kudos for the Dayton affiliates approach)!  The program was successful in providing value to our top 20% and driving off the bottom 25%.  We called it the 4-Quartile program.

Unfortunately, the logic stopped there.

We would then quartile our customers again 4-6 months later.  See the fallacy?  There will ALWAYS be a bottom 25% quartile and soon you are attempting to drive away/increase profitability on relationships that were previously core accounts.

I believe that EVERY relationship that a bank has is profitable...you just may not be banking that portion of the client's relationship!  This is a key fundamental belief that drives much of our thoughts and strategies at MarketMatch

Enter the Four Corners...

We use the term 4-corners at lot at MarketMatch.  Typically it is about getting our arms around an issue or challenge and being able to tack down the "4 corners" of the challenge so that we know where we can operate.

The other version of the 4-corners comes to a point...literally!  Its where the best of all worlds come together-- just like when Utah, Colorado, Arizona and New Mexico come together in one pin-point location.  This 4-corner is the ultimate place...

For a bank, its the maximization of profitable customers, loyal customers, and relationship depth.  There are two types of 4-corners approaches...offense and defense.

4-Corners OFFENSE

• Proactive approach
• Positive, value-building
• Geared to win the relationship tipping point
• Built to win "those that should bank with you"

4-Corners DEFENSE

• Reactive approach
• Negative reinforcement
• Attempts to drive off unprofitable relationship

Obviously, we believe in the OFFENSE approach.

Here are the top 4 actions to employ if you want a positive OFFENSE built around the 4-Corners:

1. DEFINE: who has and does not have the five power account builders with you; checking, savings, investment, loan, access... these drive actions.
2. FIVE:  Determine who does not have a mix of the 5 accounts and deliver a proactive marketing message.
3. FOLLOW-UP: with a personal call, note, visit
4. FIND: potential customers in the market that look like you best customers (with the 5) and market to them

The key point is that there are some customers--- perhaps thousands -- that simply are not a match for your bank.  Spend your time, money and resources on those that SHOULD bank with you...and get everyone of them!

Questions???  Call me...

Cheers!

Bruce

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MarketMatch is a full-service marketing firm, dedicated to the credit union and community banking community.  We utilize knowledge-based strategies to help you FOCUS on the right story that will generate the greatest  MOMENTUM and prove the best RESULTS with our written ROI Guarantee.

See our story here. (click)

Chat with me LIVE! (click)

Or email me directly (click)

937-832-7894 x101

Lessons from Congress...

Well...today the stock market is taking a beating.  I usually don't make political comments in our blog...and this one is not a strict political commentary...but I must borrow from the recent political happenings surrounding the debt ceiling.

Congress toiled and toiled and bantered around a political hot potato that is the statutory debt ceiling for the United States.  Finally, at nearly the 11th hour, Congress ratified an agreement that in principle increased the debt ceiling and addressed several other key political points...however, they forgot to ask the rating agencies for their reviews. As you know, on Friday Standard and Poors downgraded the rating on US debt...creating the exact problem that Congress was trying to avoid!

The lesson here is that you MUST not only pay attention to the interested parties in your market (for us...our customers and potential customers) but LISTEN to what they have to say when you actually ASK them for their input.

The customer has keen insights and may see things differently than we do...like the rating agencies seeing things differently that Congress. 

You need to stop and engage your customer and marketplace to determine WHEN and IF the actions that you are considering are going to be accepted and if not...help to determine what you should do!

Far too often, as an industry, we have insulated ourselves in meeting rooms and have a false sense of the customer pulse...the only way to know it, is to take it yourself through customer interactions and asking tough questions.

So, learn the lesson that Congress has not yet learned...ask the questions and be ready to modify your answer or strategy based upon the feedback you receive....in the end, you will be miles ahead and dollars saved!

Cheers!

Bruce

Wow...It's Hot!!

OK...its the 1st of August and it is just PLAIN HOT!  Record temperatures, record number of days in the 90s, and lack of rain... it all rounds up to a tough summer for being outside!

My summer has been hectic, busy and fun!  From great client project work, baseball travels with my son, and a vacation trip to a place in Colorado that I had not been to in 30 years...wow!  But I got to share that along the way the heat was just incredible!

My entry today is about turning the heat into something productive... I know, let me cool down first and then we can talk about doing more work!

The cooling down part is what sounds great...but this time of year, everything is just starting to heat up-- for work that is.  School is starting back, vacations are winding down, budgeting for 2012 is right around the corner, and the 3rd quarter is in full swing!

Here are 5 steps to take to ensure you heat up your institution:

1. Create a back-2-school promotion and have fun with it...
2. Focus on auto lending for the all important September selling season...
3. Prime the HELOC pump for customers wanting to fix the house, repair the AC, etc...
4. Launch a small business campaign, acknowledging the power of small business...
5. Update your marketing plan and calculate all of your ROIs for the first 1/2 of 2011!

These are sure fire ways to get your blood pumping and heat up your hallways at the office (like it needed it!)...

Have a great day!

Cheers!!

Bruce

Think Inside the Box #2

This week, I am meeting with a client in Florida to share our analysis of the MCIF data and review our recommendations for moving the information gained into a knowledge-backed plan!

The key has been helping them see that they have the information they need...but our "filters" based on experience and the expertise we have developed, has opened their eyes to what the knowledge they now have at their disposal to move forward in a very targeted, strategic manner!

Thinking inside the box!

Take a new look at what you have...and then extrapolate that information into tangible cannot-be-ignored knowledge that drives three levels of activities:

1. Organizational level
2. Product level
3. Point-of-purchase front line staff level

Each level in integral to the overall success of your marketing strategy and each level is inter-related to ensuring that the knowledge is moved into action!

in 2011, we are developing a Brown Bag Lunch Series session specifically addressing the "think inside the box" strategy and gives tips and hints into the exact items you need and what questions you should be asking to land at the 'cannot-be-ignored' stage.

Look for more information and the entire 2011 Brown Bag Lunch Series schedule coming out next week.

Cheers!

Bruce Clapp

The world is changing...

I get interviewed a lot... and I love offering my thoughts and comments on all things banking.  One interview I had on Friday was inquiring on Ohio banks and how the majority of them had not yet repaid the TARP money. 

My comment...no incentive to pay it back early, you have to be clearly profitable, and the emphasis on the TARP issue has largely been swept away.

However, in thinking about the larger question, in my mind at least, is what has and what must change in our industry to ensure longevity and success.

Here is my top 5 list...

1. Banker's must adapt to clearly seeing the world from the consumer's perspective and not the banker.  Is your bank ready to put on your "consumer glasses?
2. The customer will choose two options going forward...an online partner and an off-line partner. They could be the same...but they WILL have these...are you ready to be them both?
3. The industry will forever be different in terms of start-ups... denovo's will be a different breed and many will simply buy an institution and work to change it, vs. start new.
4. Regulators will swing back...but it will be a LONG and tiring process...be ready to invest in compliance and legal staff that can help you shorten that curve.
5. The business owner and retail consumer will merge closer than ever and we have to be ready...
   is your focus on meeting both needs?

 Think about each of these five (5) items...kick them around in your head, analyze the impact, think about your institution's readiness...

and then set a meeting within your bank/CU to discuss them.

I think they are game changers...and most certainly HOW we play-the-game-changers!

Cheers...

Bruce Clapp

Ready. Fire. Aim.

It's that time of year again....early August, the dwindling of the summer and the near onset of school for your kids.  It's also probably the post-mid year review and you are either behind pace or you now realize that the 2nd half of the year is a month plus over!

Unfortunately, we still see many organizations with a "Ready. Fire. Aim" philosophy.  The forget that all important planning step...in the hurried frenzy of getting things launched.

Now is certainly the time to launch new initiatives and promote your business.  P&G, the world's largest consumer goods company recently invested an UNPRECEDENTED level of marketing into their organization and customer.  P&G has always been strong investors in marketing, but the most recent quarter and month end was a sign of good things for all marketers.

BATAVIA, Ohio (AdAge.com) -- Procter & Gamble Co. boosted ad spending by $1 billion in the just-closed fiscal year, about $750 million of that in the fourth quarter alone, which helped the consumer-goods behemoth return to share and sales growth.

It was their largest investment in marketing EVER... that should light the fire in your organization, too.  The fact that the world's largest consumer goods company sees light at the end of the tunnel and has made the realization that NOW is the time to invest in marketing.  And you can see from their press release...it positively impacted their share and sales growth!!

However, we need to also realize that they did their homework (the AIM part of the equation) before they invested their marketing dollars.  That is where the planning comes into play.  With an articulated, targeted, and supportable marketing plan (for a product, new branch, or business line) the investment can be supported and will also have a much higher ROI!

So, three key take-aways for you and your organization:

1. Now is the time to invest in marketing
2. Be planned and focused, but be swift and purposeful in your planning
3. Measure your ROI and promote the results

These three steps will lead to a very productive 2nd half of 2010 and help lead your organization forward!

Cheers!

Bruce Clapp

Friday...is it YOUR day?

Greetings!

Today is Friday... I have several sayings that I ALWAYS use on Friday--

• Happy Friday! and, 
• Hey its Friday, it cannot be all bad!

I share these because today is a special Friday...the last one of the month, and it signals also the start to the last month of the 1st quarter.

So...are you where you thought you would be with:

• New deposits? 
• New loans?  
• New customers/members?  
• Retention?
• Overall profitability?

If not...TODAY should be the start to a revisit to your strategic marketing plan and tactics.  Ask yourself:  What is working and why?  What is not working and why?  Who can we better engage to ensure increased success?  What can we do better/faster/stronger tomorrow?

These answers will help you chart a different course starting BEFORE the end of the 1st quarter.  I am sure you have heard of the term "running rate."  When I was at Bank One, that was one of the most important concepts that we tracked.  It has everything to do with where you are today in relation to where you want to be, where you expected to be and what the environment is allowing you to be.  Said succinctly, it means...are you ahead of the 8-ball?

Your running rate should be ramping up....yes, the economy is still shallow.  Yes, the industry has had some regulatory changes recently enacted.  Yes, competition is as hot as ever.  HOWEVER, there are story after story of banks and CUs bucking the trend and making the decision to NOT participate in the recession or downturn. They are simply willing their way through... National Bank and Trust, a community bank in Ohio (and in full disclosure a client) saw their lending increase 40% last year...yes, I said INCREASE.

You CAN make it happen...with the will, energy and perhaps assistance of others.  The 1st step...deciding that you CAN do it!!

Here's to a GREAT Friday...and a Friday that you will look back to and say, that is the day I changed!!

Cheers!

Bruce Clapp

Catering to the Recession Mentality

Good morning!

What a great Monday it is...November is kicking in gear and its the 9th already!  Only 47 more days until Christmas.  That thought leads me to my post today!

In reading the Wall Street Journal today, an article struck me....it is entitled the same as the blog post- Catering to the Recession Mentality. It discusses the reality that many people are still sticky pretty close to the vest when considering spending. In fact, they quote two very telling statistics:

• 74% of people intend to buy items on sale
• 54% intend to use more coupons

If we are in fact retail businesses, we need to take a cue from our retail brethren and follow their lead (and the consumer, too!)  While I am a true value marketer and that may seem to fly in the face of using coupons and having "sale" items.  I am reminded of a time that at Bank One (yep, pre-Chase) we had a display at a technology fair and had t-shirts for sale at $10 a piece.  We did not see ONE shirt the 1st day.  The 2nd day, we got creative...we posted a sign with a $15 price with a slash through it and a note that said "Today only $12".  We sold EVERY shirt we had...and at $2 MORE than the day before!

The consumer is seeking VALUE...and if PRICE is their only sense of value then that rules.  If we can paint of different picture of value through relationships, account packaging, etc. we can address the consumer's need for a "deal" and take a page from our retailing brethren.

So you task is to strategize ways to bring VALUE to your marketing...price is one option...but leave that one for last....

Happy marketing!

Cheers!

Bruce

Thinking...

OK...I am in Minneapolis for a big meeting tomorrow and I am thinking.  Lots of times that is dangerous....give me too much time and I am thinking up new presentations, articles, projects....all really cool stuff!

So tonight I am thinking about 2010.  What will we do that leads us ahead?  What new projects will we undertake?  What exciting new clients will we have the benefit to work with?  What will we reflect back on next December that makes us smile?

The good news is that the answers to each of these are ahead of us...and we can make each of them happen and shape them as we like...with a little forethought and planning.

So that is my post tonight...spend time thinking about the possibilities and the potential and then put a plan in place to make them happen.  Think big!!

I have a favorite saying that I will share with you...."Expect the stars and accept the moon."  The morale of the saying-- think bigger and accept big.  You CAN make it happen!

Here's to charting your 2010...and having success and fun along the way!

Cheers!

Bruce

Cardiac Cats...

Good morning...

What a weekend of sports!  My Buckeyes won (moved to 7th in the polls), my son won his football in convincing style and that brings me to the Bengals.  FINALLY, it is paying off being a Bengals fan!  1st place during the season...something we have not had in a long while!  Not only did we win and beat a division rival but the game helped with my blog post.

My thoughts today surround the team effort and never-say-the-end-is-here attitude.  The Bengals have overcome adversity (read heartbreaking loss to the Broncos and a death of a coaches wife) and tough opponents to maintain a 1st place lead.

YOU have overcome adversity; the economic climate, the state of the industry, probably budget cuts, and more.  Our CUSTOMERS have overcome adversity; potential job losses, stock market losses, economic woes, and more.

Hopefully our customers have hung in there with us...and we with them, too!  Now is the time to circle the wagons as a team and focus on our customers.  Just like the Bengals circles the team wagon after the devastating and unexpected loss of the defensive coordinator's wife.  They focused on the matter at hand, focused on their roles, and gained momentum at each potential turn.  The result? A win!

You need to be the emotional leader of your bank/CU and be the advocate for the customer voice.  How?  Difficult but easy...

• Focus the front-line staff on the "little things" of customer service (smile, quick service, thank you, and simply engaging the customer)
• Focus your marketing on a message of hope and opportunity
• Focus your internal message on teamwork, coordination and communication
• Focus your external delivery on being three-dimensional on your target

With these steps in place...and a little faith in the process, you can not only overcome adversity, you, too can enjoy 1st place!

Marketing is the voice of the customer and emotional leaders....assert you place and deliver your role.  Everyone is counting on you!

Cheers!

Bruce

Don’t Plan to Fail in 2010

Avoid the Top 3 Strategic Planning Pitfalls

Not all strategic planning is created equally. The majority of companies find a mere 63 percent of the goals outlined in their strategic plan are achieved each year. Why leave all of that opportunity on the table?

How can you pull the extra level of growth out of your strategic plan? Make strategic planning an ongoing process rather than an annual event combined with a golf outing or Board retreat.

Most companies see goals fail because their strategic planning process lacks three basic components necessary for success.

• A chain of leadership involvement that extends beyond Executive leadership to include those business leaders actually responsible for producing results.

• A defined accountability program to achieve the goal and detailed process for ongoing progress reviews.

• A platform that includes ongoing monitoring and review to take strategic planning from a onetime annual event to an evolving growth process.

Incorporate these three elements into your planning and you’ll achieve more next year. Or, consider successful planning programs like Best Year Yet®, a strategic planning process that achieves significant, measurable and relevant results by generating alignment to move everyone in the same direction. Best Year Yet is a program that changes behavior, culture and performance to deliver success year after year.

Want to find out more about Best Year Yet – email Sharon Lovejoy at slovejoy@marketmatch.com and plan for success in 2010.

Deanna

Finding a Way...

As you may know, I am a HUGE Ohio State Buckeye fan and also a Bengals fan.  To many, the success of the Buckeyes is great...and the pain of the Bengals is tough to take.  Both, however, have had equal shares of triumph and heartbreak...but recently they have also Found A Way!

My message is about finding a way...finding a way to victory even when the times are tough, the competition seemingly insurmountable and the odds stacked against you.

The Buckeyes and the Bengals both came back from heartbreaking last second defeats from a week ago...both have been pinpointed by many awaiting an even bigger failure. However, they both circled the wagons, talked about the team spirit and rode the wave to victory...DESPITE the odds, the competition and the neysayers...they found a way!

The economy is tough for bankers right now...the budgets are slim for marketers and the demands of customers never bigger...but YOU CAN FIND A WAY to victory.  It just takes three words to be repeated as often as necessary.  This will sound VERY trite, but it is true and it works...ready?

The three words are...

YES I CAN!

Yes you can....

• Make an impact with the budget you have
• Overcome the competition
• Make it through the fall planning sessions
• Grow you loan base
• Positively impact your attrition rates...
• and MORE!

You can do it!!  We have faith in you....but you need to take the 1st step....Repeat after me...

YES I CAN...

If you need a daily re-affirmation...call me...I would be glad to help!  After all, a Bengal's fan is used to saying "tomorrow will be better!!"

Cheers!

Bruce

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

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

Has This Recession Seen It's Shadow?

With all due respect to Punxsutawney Phil, that lovable, furry creature charged with predicting the longevity of our winters, it's hard to predict beyond a shadow (pun intended) of a doubt whether seeing this recession's shadow means six weeks, six months or six more years of this mess.  Of course, when Phil is wrong, no one will demand that he live above ground or perform community service.  Not one iota of the vitriol that would be directed at, say, Treasury Secretary Geithner if his forecasts went awry.  Plus, Phil never forgot to pay his income taxes.

There are signs of an early spring in this recession.  While the stock market has been on a bit of a roll, the credit markets, where this whole mess began, is showing signs of a spring awakening:

• Companies with good credit are borrowing more in the bond market.
• Confidence in the banking industry (especially community banks and credit unions) seems to be returning slowly.
• Junk bonds are coming back into vogue (yields are about 16.5 percentage points more than Treasuries, a large premium for risk).
• The market for securities made from bundles of car loans and student loans, a vital source of credit, has started to stabilize.
• Home buyers are seeing some benefits of the credit thaw as interest rates on fixed, 30-year mortgages fell to the lowest levels on record.

I can't see my shadow, can this be over?

 Wait a minute, like they say about the weather in Vermont, if you don't like this economy, wait five minutes.

• Credit markets are still fragile.  Ratings agencies are slashing the credit scores of such bellwether companies as General Electric.
• General Motors bondholders are bracing for a possible bankruptcy filing.
• If unemployment continues to race higher, or the stimulus package fails to take root and the economy enters a deeper period of decline, many of the tentative gains in credit could come undone, analysts say.
• With the idled capacity in the U.S.--workers, factories, retail outlets, freight lines, bank lending--many economists feel that even if the recession miraculously ended tomorrow, it would take at least three years before full employment returned and output rose enough for the economy to operate at peak levels.

Uh-oh, I think I see my shadow.

It is abundantly clear that it is virtually impossible to predict with any degree of certainty what will happen in the stock or credit markets next week.  Forget about predicting next quarter or the quarter after that.  What is clear is that community banks and credit unions need to forget about looking for their shadow and take advantage of the unique opportunity to grow market share as the negative effects of safety and soundness continue to plague the larger financial institutions.

A recent survey of 755 community banks across the U.S. showed that 55% of those banks had dramatically increased deposits, and 40% had increased loan volume since the beginning of the year.  Is your bank or credit union one of them?  Are you still waiting for that definitive answer of when this mess will end so you can then go back to some form of banking normalcy?

No one correctly predicted the breadth and depth of this economic cataclysm.  And if you're waiting for someone to tell you when it's over, you might as well borrow Phil for a few days.  The banks and credit unions that are acting now to make a positive impact with customers, prospects and their communities will be the true winners before, during and after the economic turnaround happens.

Communications...easier than we think!

Communications can be tricky...it can also be very easy! The challenge is knowing when the communication is clear and when the message is invisible to the recipient! I love this graphic...it tells the story of communication, where the sender has a clear message and the recipient sees nothing! This happens all too often...

I recently came across a string of conversations where both parties were "clear" in their intentions and needs, the challenge was both parties were talking in their own language and not in "universal speak". This is my own term...one that I use to describe simple terms, usually pictures or graphics are involved and there is nothing to "get" or interpret....it is what it is. We have to speak clearly, use common words, paint a picture of our intent, and ensure the recipient understands by asking for an action. This could be see us at www....; call us at...; come into to see us at...; we have to ask for positive action to ensure we are reaching our audience.

To my point on communications. How many times do bankers read other bankers or CU ads and articles and wander "at what point was THAT a good idea??" If you have wondered it aloud, chances are people have thought the same about your communications. In these times of uncertainty, economic pain, and universal distrust, WE have to communicate clearly and leave nothing to interpretation.

I encourage every marketer at every bank and CU to take a 2nd and 3rd look at your current communications...look at EVERYTHING. The web, your brochures, your emails, your memo's, your signage...

• Are you communicating clearly?
  
• Is it the message that is MOST relevant to your customer?
  
• Is the message one that elicits action?
  
• Do you provide value in your message?
• Does your staff "get" your message, too?
  

If you answered NO to any of these...you MUST retrace your message and present it more clearly. We have to be clear now, you have to provide value now, your message must be relevant now....change it Now!

Cheers!

Bruce

In or Out -- Communication is the Key

So I was talking to a girlfriend about how we each work through little everyday issues with our spouses – you know, do you gripe when he leaves the toilet seat up, or when you disagree about whose turn it is to unload the dishwasher, etc. My friend was telling me that she and her husband communicate with each other proactively and don’t let things fester.

I had to admit that my spouse and I tend to be more head in the sand folks when it comes to problem resolution. We tend to pretend everything is roses and sunshine until the inevitable blow out where we clear the air and end up not speaking for a few days. But, that’s a topic to save for marital counseling somewhere down the road.

But speaking of communication . . . I think banks need to look at their communication styles with their customers right now. Are you burying your head in the sand, proceeding with business as usual and waiting for the storm to blow over? Not the best way to build a long term relationship with your customers, even I have to admit.

I troll community bank sites regularly and have seen some examples of banks that are doing a great job of communicating with their customers about the current economic climate and their position. I particularly applaud those banks being proactive in communicating their position on the TARP Capital Purchase Program.

Whether taking the money or not, the important part is that you share where you stand and explain your position. Here are two examples of banks that have done a good job letting customers know where they are and why:

• Arvest Bank – promotes its decision not to seek TARP funds because they are unnecessary
• Citizens Community Bank – explains how it has used TARP funds to provide loans in the community
  

These are just two examples I have found. I know there are tons more out there. Comment and let us know what your bank has done on this issue.

My main point -- Don’t take a reactive stance on this issue. You need to do more than arm a few managers and key frontline staff with talking points for customer inquiries. Only a handful of concerned customers will actually come to you and ask questions.

The majority will assume the worst and move their accounts without ever giving you a chance to explain. And, unlike spouses, you can’t give them a shoulder massage and expect to get back into their good graces tomorrow.

Deanna

The Chips are Down --- Time to Cash Out or Go All In?

Greetings:

Okay, here is a challenge for you experienced marketers. I think you might be able to relate to this one.

I have a company that specializes in a niche industry. This target industry in turn is facing some of the most difficult challenges it has seen in decades. Competition is fierce, failures are everywhere, regulators and the news media are shining a spotlight on everyone and meanwhile, my clients are struggling with the day to day challenges of operating in a highly unfavorable environment.

So, with my target market at risk, what do I as a leader need to do to ensure my own company’s survival?

Well, I have a few options, I guess:

1. Hunker down and try to just hang on until it blows over
2. Get out while I can and expand into a different customer base that is not my specialty
3. Go all in and commit to do everything possible to help my clients succeed and save myself at the same time.
   

Option 3 -- that’s where I am.

After twenty years in the bank marketing business, I stand firmly with you in this mess and believe we can pull through it together and come out stronger.

So, instead of hunkering down, MarketMatch has made a move to strengthen its offerings and bring our clients the resources to succeed in these trying times. We took advantage of the disruption in the marketplace and invested in growing our business and positioning ourselves for the future by acquiring a regional competitor. The acquisition brings MarketMatch new products and adds key executives to our team with significant experience. For more details, read the announcement. (link to release)

Now, here is the parallel for your business. Your markets are disrupted. You and your competitors are struggling to operate in an unfavorable environment. Who will come through the challenges better off – those that hunker down and wait for things to blow over? Or, will those who take proactive action to better position themselves and their clients for the future come out ahead in the end? Obviously, I advocate the proactive approach.

I challenge you to ask “Are we doing everything we can to take advantage of the disruption in our market? “

Clients are concerned and many are moving or considering moving their money. The trust in bank/customer relationships is being eroded every day by the news media’s sensationalist headlines. Are you taking proactive steps to a) secure your current relationships and b) capitalize on your competitors’ weaknesses?

Comment and tell me what you are doing to proactively move your organization forward in this marketplace. Or, let me know if you need help identifying actions you can take to better position your bank for success.

Cheers,

Bruce Clapp

Banks Can Learn From Obama

Barack Obama will become the 44th president of the United States for many reasons.  Among them are his exceptional communication skills.

Obama will become the country's "communicator-in chief" in just a couple of months, in large part because of the way he presented himself in a variety of challenging and stressful communication situations (does the global financial crisis and the loss of trust in banks come to mind).

Obama connected with millions of Americans on a human and personal level.  Persuading customers (or voters) is about more than having logical or sound ideas.  Facts, data and details alone won't motivate and move people. It won't inspire them.  Obama understood this and worked hard to improve his communication style.

It seems like everyone wants to sell solutions today. Actually doing it, however, requires a fundamentally different starting point when it comes to how Marketing creates and delivers customer communications.

Today, the top three challenges faced by traditional bank marketing and sales departments looking to move to a solutions selling approach are:

·       How do we shift from product-centric messaging to more customer-centric messaging?

·         How do we create more solutions-oriented, value-driven customer communications?

·       How do we drive, more consistent, high-quality customer conversations and collateral materials throughout the sales cycle? 

There’s a significant opportunity to avoid parity in your value propositions and set your company apart in the competitive marketplace by truly communicating with customers in the way they want to buy. 

Since product managers often have P&L responsibility, they may charge myopically and parochially into creating the ultimate product training, sales information, marketing content, and customer communications tool kit -- extolling the virtues of their particular offerings.

Essentially, they equip business development people to tell the customer: “Here’s what it is. Here’s what it does. Here’s why it’s good for you. And, here are some ways that we think we’re better than the competition.”

Does this seem to be the typical outline of a product launch and sales kit at your company?

If product management or marketing is going to help a business development person create and sell a “solution” for a customer – whether in a conversation or presentation – then they will have to show how their product, or particular features of that product, can be applied to help the customer accomplish a real business goal, or solve a business problem.

Unfortunately, too many product marketers, while having a good grasp of their products, don’t know enough about their customers’ problems or goals.  Ultimately this “company-centric” view can trickle out to sales and service people. As a result, aligning products and capabilities with real-world customer needs is left to chance with only the most intuitive business development people doing it naturally – the trait that sets them apart as successful consultative sales people.

The opportunity is to “codify” this intuitive solution selling approach and begin to pre-build marketing messages and sales content in an attempt to clone the best customer conversations and collateral materials for your overall sales staff,  whether it's retail or business banking.

This requires a transformation of your sales coaching and customer-facing communications.

One way to think about it: as organizations we need to move from traditional company product-centric messaging to customer problem (or goal)-centric messaging.

The key lesson here is communication...communication...communication.  It's taking the good products and services that your bank has developed and communicating to the customer or prospect how they have relevance to their particular needs today, tomorrow and in the future.

Whether or not you voted for Obama, he continues to offer valuable communication lessons to any professional who must persuade, motivate and inspire others.

Cheers,

Nick Vaglio, CFMP