What it takes to be Carnac the Magnificent.

As marketers, we are always looking into our crystal ball, reading the tealeaves and flipping the tarots. 

Whatever it takes to be the industry's Carnac the Magnificent.

"Who needs our product?  Who will buy?  What will they buy?  When?"  

As we discussed on August 12, a great deal of focus in the magical, mystical world behind the marketing curtain is spent in segmentation. The scientific and not-quite-so-scientific methods of running human being's through a filter to better manage our time and monitory resources.

Recent blogs have yakked about segmentation from topics like: 8 life stages that you should market to and Mirror Modeling and Birds of a Feather methodologies. These are all great ways to plan for today and the near future. (And they're absolutely brilliant prose!)

But how can you look a bit further out? Elementary, my dear Marketer ... watch the schools.

The 2004 NEA research paper, K–12 Education inThe U.S. Economy: Its Impact on Economic Development,Earnings, and Housing Values, discussed these findings:

"With regard to effects on economic development, one statistical study found that cutting statewide public K–12 expenditures by $1 per $1,000 of state personal income would reduce the state’s personal income by about 0.3 percent in the short run and by 3.2 percent in the long run. They also note that another study found that such a cut would reduce the state’s manufacturing investment in the long run by 0.9 percent and manufacturing employment by 0.4 percent. Similarly, another researcher found that a decline in educational quality, as measured by a 10 percent drop in standardized test scores, would lead to a 2 to 10 percent reduction in home values.They also cite a study that found a 10 percent reduction in school expenditures could yield, in the long run, to a 1 to 2 percent drop in post school annual earnings."

My simplistic, "If-Then" interpretation: When schools are managed poorly and/or necessary levies are routinely voted down - the level of education suffers. When the education suffers - people choose to move other places. When people move other places - so do business. When businesses move - so do jobs ... then the community truly can't afford the levies to fix the schools and the snowball gets bigger.

So, when you're trying to decide where to build a branch, or what region of your footprint should demand your attention, or where the future opportunity is ... of course, look at the current demographics, employment and economy ... but also look at the schools. They hold the key to every city's future.

We bring these marketing philosophies to credit unions and community banks nationwide, and would love to bring them to your institution too. Contact us to see how.

With more than 255,000 visits worldwide, we hope that you enjoy this blog.  If you find it helpful, please share it with your colleagues. Also, check out our YouTube Channel for short video blogs about financial marketing.  

MarketMatch is also a nationally and internationally requested speaker. Contact us to bring our marketing ideas to your next conference.

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937-426-9848

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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

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

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

What's A Nursery Have To Do With Financial Education?

Actually, not much (well, maybe a little).

However, I made my annual spring visit to my local nursery to beautify my property and provide an expensive meal for the marauding deer that wreak havoc on anything I try to plant.  Anytime I buy something at this nursery I am treated to an unrehearsed tutorial on everything I could possibly want to know about the care, feeding and nurturing of the deer food I'm about to plant.  On the drive home I suddenly realized that I get more of an education from my nursery store than I ever received from my bank in the last 20 years.  Something's wrong with that picture.

Considering the financial quagmire we continue to be engulfed by, where many people are afraid of any type of investment, why aren't banks falling over each other to provide free financial education to both retail and business customers and prospects on the merits of prudent financial habits?  Instead of gathering dust after 3:00 pm, why aren't more bank branches teeming with people listening to bankers educating them on everything from commodity products to saving for college, retirement and everything else in between?  Why aren't bank websites, which tend to look like electronic product brochures, carrying more financial education so that people feel like they have some of the necessary information to make sound decisions on where to put their hard-earned money?

It seems like we have been talking about this forever.  But now is the time for more action.  The customer or prospect that we work hard to educate today may just be the long-term customers that we all need to remain viable and prosperous tomorrow.

Nick Vaglio, CFMP

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

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.

I Think; Therefore I Am...[Not]

The simple meaning of French philosopher, Rene Descartes’ phrase is that if someone is wondering whether or not he exists, that is, in and of itself, proof that he does exist.  However, too many banks and credit unions ignore the inherent value of the voice of the customer (VOC) in their product development and marketing processes.

Consumers want a marketplace that is in direct parallel to their lifestyles, and one that puts them more in control of their buying experiences.  They want to share their personal insights so that companies will be better equipped to respond to their specific needs.  Consumers don’t want assumptions made about their needs and preferences.  They want companies to hear their voice and to make more relevant decisions in their product development.  And their personal preferences are the deciding factor in the choice of products they deem to have relevance to their lifestyles.

Consumers want to be part of the process.  They want to participate in the creation of their products.  They have the power because through technology they already know what many of their options are before they walk into your financial center.

Who do we talk to?

Current customers are the first source of information if the product is aimed at the current market. Potential customers are the primary source of information if the product is aimed at a new market. In addition, talk with competitor’s customers. They provide a good source of information on the strengths of competitor's products and why they don't buy from you.

During customer discussions, it is essential to identify the basic customer needs. Frequently, customers will try to express their needs in terms of HOW the need can be satisfied and not in terms of WHAT the need is. This limits consideration of development alternatives. Development and marketing personnel should ask WHY until they truly understand what the root need is.

Challenge, question and clarify requirements until they make sense. Document situations and circumstances to illustrate customer needs. And then address the priorities related to each need. Not all customer needs are equally important. Use ranking and paired comparisons to aid in prioritizing customer needs. Fundamentally, the objective is to understand how satisfying a particular need influences the purchase decision.

Incorporating the VOC is the key to deepening existing relationships and gaining new ones.  Whether it’s through focus groups, customer advisory boards or surveys, banks and credit unions need to be more proactive in order to stay relevant to their customers.  Consumers are more than willing to share their insights and needs.

As Rene Descartes once said, “Divide each difficulty into as many parts as is feasible and necessary to resolve it.”

Carpe Diem,

Nick Vaglio, CFMP

Making our Own Demand

I travel a lot...and one of the "fringe benefits" is the ability to read the USA Today every day. Lots of info and timely little charts, graphs and stories.

Community banks and credit unions are facing a tough economy but more opportunity than ever! There is "push down" coming from the big banks and creating growth in both deposits and loans. Customer are re-evaluating everything...their bank relationships, their loans, their accounts-- everything! And they are coming to us!

However, the consumer themselves are being very conservative...here is where the USA Today graph comes into play. As you can see from the survey, completed by Harris Interactive, many respondents said credit needs (for the identified items) may not be high on their lists of "to-dos".

The point? We need to create our own demand!

How do we do it?

Work with your best customers. Now is a buyers market and your best customers realize it and more than likely are exercising their ability and capitalizing!

Another area....refinances. Many people bought cars in the past 3 years and you may be able to refinance these loans away from the GMACs, Honda's, etc. as people may be looking to lower payments.

Be aggressive in advertising and marketing. The "noise" in the market is less than it ever has been...so your message can be help X times more than usual. Its time to invest in your bank/CU!

One last idea...small business. Small business is the engine to our economy and many small businesses are both capable of strong growth during this economy and also many are starting, based on displaced executives.

Seek the opportunities. Be creative. Know that you must create the demand.

The industry has been stretched in the past 5 years and the rubber band has snapped back...never again to be the same shape. We MUST be proactive!

Cheers!

Bruce Clapp

Don't Throw $$$ Down the 18th Hole!

Golf hole sponsorship -- $250

Spring Soccer League Sponsorship -- $400

Getting quantifiable ROI from any of these sponsorships – Doubtful


Stop right there! I urge you not to process that pile of sponsorship requests until you stop and answer some direct questions about why you are doing them and what you expect to get in return.

Yes, every company must support its local communities through charitable donations. However, sponsorships, as opposed to donations, mean you should get something back in return -- and a 5 inch one-color logo on a t-shirt just isn’t enough.

Take the time to look at all of your sponsorships with an objective eye and see if there aren’t better ways for you to build in a return on investment (ROI).

I used to do PR for McDonald’s and I can’t tell you how many sponsorship proposals came across my desk promising to give me logo exposure on banners and t-shirts. Well, there is a McDonald’s restaurant with huge golden arches every 4 miles or so in this country. We really weren’t looking for more logo exposure.

So, I rewrote the proposals and built in exposure that brought strategic value to McDonald’s. I used sponsorship of a community walk to promote a new line of salads and healthy kids meal options. I used sponsorship of a museum exhibit to showcase McDonald’s grants and activities in local elementary schools. Basically, I got strategic and creative and it paid off.

I urge you to look beyond logo exposure and build business drivers into your sponsorships.

• Can you showcase cash management products like desktop deposit scanners to all of the small business owners at the golf outing?
• When you sponsor the Spring Soccer League can you provide a bounce-back coupon for a free soccer photo frame to everyone who opens a child’s savings account?
  

Here are some questions that might help you be more strategic about your next sponsorship request:

1. What audience do I have access to with this sponsorship? Why is this audience important?

2. What do we MOST want this audience to know about us and what makes us different?

3. What business driver can I build into this sponsorship that will allow us to have another opportunity to touch this audience?

• “We have innovative business products that save time for small business owners” – have a business banker on hand to showcase your business products
  
• “We have online technology that saves Mom’s time paying the bills” – giveaway item that drives traffic to your online bill pay demo
  

4. How can I measure response to this sponsorship?

5. What plan can I put into place for my salespeople to follow up on these leads?

The bottom line – if you are creative you can do something good for the community and something good for your business at the same time. Make sure you take the time to make your sponsorships a win-win situation.

Post a comment and share great sponsorship ideas you’ve seen or implemented.

Deanna

Plastic-The Next Crisis?

In the 1967 film, The Graduate, Mr. McGuire is counseling Ben Braddock (played by Dustin Hoffman) on what field to go into now that he has graduated college.  The dialogue went like this:

Mr. McGuire: I want to say one word to you. Just one word.

Benjamin: Yes, sir.

Mr. McGuire: Are you listening?

Benjamin: Yes, I am.

Mr. McGuire: Plastics.

Benjamin: Exactly how do you mean?

Mr. McGuire: There's a great future in plastics. Think about it. Will you think about it?

Not exactly the same plastic that banks ventured into.  But their type of plastic (credit cards) had an equal promise of a great future.  But is this the next financial tsunami?  Are we destined to be swamped by a sea of molten plastic resulting from the next financial meltdown that is now being talked about in hushed tones in the corridors of America's banks, while the media begins to turn up the volume.

A recent story on CNN said, "major banks have been hit hard by bad mortgages. Now, fears are growing that troubled financial institutions are going to have another consumer headache to deal with: credit card defaults."

"There have been no shortage of warnings about the business as the economy continues to sputter."

"Just last month, Bank of America CEO Ken Lewis warned lawmakers at a high-profile Congressional hearing on the government's $700 billion rescue plan that he had no doubts 2009 would be an "awful year" for the credit card industry."

Fearing a wave of credit card-related losses, banks have been aggressively setting aside funds to help cushion the blow. One problem, note analysts, is that banks aren't quite sure just how severe the losses will be.

Industry charge-offs, or loans a bank considers to be uncollectable, climbed to a historic high of 7.73% in December. Most analysts expect that figure to head higher as more and more people find themselves out of work.

Unemployment rates, widely viewed as the most reliable indicator of future credit card losses, climbed to 8.1% in February - its highest level in 25 years.

A widely used rule of thumb is that charge-offs typically climb to 1 percentage point above the unemployment rate. And many expect the unemployment rate to keep rising throughout the year.

Of course, this is not the first time that credit card issuers have had to contend with relatively high unemployment. During the recession in the early 1980s, the jobless level peaked at 10.8% in late 1982. But some experts point out that this is a much different time for the industry.

Not only did a much smaller slice of the American public own a credit or charge card, the amount of credit issued by the industry was just a fraction of what it is today. As of January 2009, the amount of outstanding credit in the industry totaled just under $1 trillion, compared to just $70.5 billion in 1982.

But some analysts point out that the magnitude of any future credit card problems will be mitigated by the fact that most banks' credit card businesses are a fraction of the size of their ailing mortgage portfolios.

"You are not going to have a complete redo of the subprime mortgage mess because it is simply not the same scale," said David Robertson, publisher of the industry trade publication Nilson Report.

What is also encouraging, notes Robertson, is that banks' credit card operations have become much more adept at adjusting to tough economic times after years of practice, including the downturn that followed the dot-com bubble earlier this decade.

Well I hope David Robertson is right.  We had a pretty good day today--the Dow was up 5.8% and Citigroup said they made a profit in the first two months of this year (although we'll wait and see how much of that is left after the charge-offs).

I guess the whole point is that we can't become paralyzed by fear of the next disaster.  We have to continue to take care of our customers as best we can so we can begin to recover and prosper together.

Cheers,

Nick Vaglio, CFMP

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 Future Isn't What It Used To Be

Children are the world's greatest dreamers, exploring the outermost reaches of imagination.  Remember back when we were all young, dreaming perhaps of being an astronaut, a fireman, a doctor or, dare I say, President of the United States.

And as we got older we turned to more tangible dreams of getting married, having children and getting that dream house in the tranquil suburbs with the vegetable garden and the white picket fence.

And later we dared to dream of the day when we could safely retire--maybe even early--and do all the things we never had time for until we ran out of road.

We now know that some of those dreams need a reality check.

Being President of the United States isn't all that it's cranked up to be.  Who would want the job of dealing with the worst financial crisis since the Great Depression or festering tensions in the Middle East.

And all those foreclosure signs on all those pretty houses with the white picket fences in tranquil neighborhoods all over this country has turned that dream into a nightmare.

And forget about that early retirement!  People have seen their retirement nest eggs get decimated and are now planning to work well beyond their expected retirement date--if they can keep their jobs.

Five million people unemployed and millions of homes in foreclosure.  The numbers are staggering, yet impersonal, until you start putting faces and names to the numbers.  It's family and friends, business acquaintances and former college roommates, and people you see in the supermarket.  Its all those former children who dared to dream and the present ones who wonder what a dream really is.

If financial institutions truly want to regain the trust that they lost in this financial crisis, it's time that they begin to treat people as more than account numbers in their databases.  Because, if the community erodes around you then the long-term prospects for any community bank will cease to exist.  Being the last man standing in this reality play is not the place to be.

Many banks have instituted outreach programs to better serve their communities.  Consider the following programs:

• Coordinating food and clothing drives to assist families going through hard times
• Opening the branches after hours to provide financial advice and counseling to customers and non-customers
• Allowing community volunteer groups to use bank meeting rooms for outreach programs
• Helping to create a vehicle that enables people to make donations that can go to purchasing home heating fuel or other necessities for families in need

This list can go on and on.  The point is that the government bailout program may work in the long term, but this battle will ultimately be won by assisting people on a one-one-one basis in the communities in which we live and work.

They say that time heals all wounds.  And perhaps there will be a time when we can finally begin to forget these tumultuous times in which we live.  But one thing is for certain--people will never forget those who have helped them in their time of need.  Trust is a definite offshoot of character.  And true character can only be demonstrated through actions, not words.

Let's all do something to make a difference.

Cheers,

Nick Vaglio, CFMP 

No Time for Silence

A colleague was researching an article about advertising expenditure levels during a recession. I was struck by some advice referenced in the article insisting that now more than ever, financial services companies should not even consider dropping to the ground and going silent.

Customers are facing tough financial decisions and feeling unsure about their ability to navigate the suddenly choppy financial waters. Many are facing financial challenges they have not seen in their lifetime and desperately looking for help, but feeling unsure where to turn or whom to trust.

Will you be there when they need you most, or is this the time you will choose to duck and cover and wait for the storm to blow over?

Much of the current financial problems were created because many consumers did not fully understand the financial information being shared with them. Confused by financial jargon and misled by some unethical representatives, some customers saw everything they had worked for disappear along with their trust in the bank as their partner.

To regain that trust we need to be proactively reaching out to consumers to help them better understand their finances now and in the future.

Here are some simple things you can be doing to position yourself as a trusted financial partner to your customers:

• Train your staff to discuss underlying financial issues with customers when they see problems, and empower them to take the time to help customers learn how to better manage their finances in the future.
  
• In all of your communication, both in person and in writing, leave out the jargon and speak to customers in language they can understand.
  
• Promote products showcasing real life benefits to customers, show how bank products can help them improve cash flow, make paying their bills easier or help them set aside money for an emergency fund.
  
• Reach out to your customers and community to provide financial expertise in a non-threatening setting by hosting small group seminars or open coffee sessions to discuss financial topics in your branches.
  
• Partner with a local community newspaper to provide a column of down to earth financial advice for today’s tough economy.
  

The most important thing is not to stop reaching out to customers at a time when they need your help the most.

Thanks for pondering with me!

Deanna

How A Marketer's Life Imitates The High Hurdles

If there's one thing I've learned as an elite high hurdler in USA Track & Field's Masters Division, it's that the fastest or most agile opponent doesn't necessarily win the race.  To be truly successful the hurdler must master the five fundamental skills: speed, agility, flexibility, focus and endurance.  And in a race that is sometimes decided in hundreths of a second, failure in one of the five elements will leave you off the medal stand.

As a marketer, I always try to look at both myself and the company through these five filters in everything I do.  Because a subpar performance in any of these five areas can quickly derail even the best laid plans.

Speed:

In today's world, information flows at the speed of light.  Technology has changed our world forever.  Does the corporate culture and management structure at you institution allow for fast innovation as market or competitive situations arise?  Or is it the corporate equivalent of turning an oil tanker?  It used to be that the big ate the small.  Now the fast eat the slow.  As a marketer, it is incumbent upon you to look for ways to streamline processes that will allow for your institution to quickly react to market conditions whether it be to communicate with customers, introduce new products or to promote your standing in the marketplace.  Transform your institution from being innovative to one whose being is innovative!

Agility:

Changes in the financial marketplace are a daily occurrence--whether its interest rates, TARP news, deteriorating trust in banks, etc.  How agile are you and your institution to these changes?  As a marketer, do you wait for direction from your ALCO committee or are you part of the process?  Are you ready to go to market quickly when faced with a declining or rising interest rate environment?  Are you proactive or reactive?  Are you ready to deal with these hurdles before they happen?  If you assume and prepare for the worst-case scenarios you will be ahead of the curve--and the competition.  And as the old saying goes: "unless you're the lead dog on the dogsled team then the scenery never changes."

Flexibility:

For financial institutions, new deposit generation is king in terms of liquidity and funding loans.  And like in today's real estate market, deposits are a buyer's market.  Now, more than ever, you need to retain and grow your best customer relationships to ensure future profitability and institutional viability.  Do you have the flexibility to offer your best customers better value for their business loyalty in the form of discounted or relationship pricing based on their account balances and number of products?  Do you coddle and nurture your best customers to make them feel special?  Do your marketing plans have the flexibility to adapt to rapid market changes?  Are you creating those barriers to exit for customers so they won't abandon you for 25 bp?  Not being flexible in today's business climate is the equivalent to showing the customer the exit door.

Focus:

Keep your eyes on the prize!  With all the chaos in the financial marketplace, focus on the two most important elements to success: giving your customers a compelling reason to stay and your prospects a compelling reason why your institution is their best choice.  And that involves three critical factors: innovative products and services, outstanding customer service and instilling a high level of trust as a financial advisor in customers and prospects.  In short, treat people as you expect to be treated--with respect and trust, and reward them for their loyalty!

Endurance:

Today's financial battlefield will be a protracted event that requires the utmost endurance in order to survive and prosper.  There are no magic wands, silver bullets or quick fixes.  Even if you mastered the other four disciplines, the lack of endurance will cause you to stumble over the final hurdle.  Long-range strategic plans and yearly marketing plans will need to endure through all kinds of financial events--both known and unknown.  Nothing can be set in stone. As you eye the finish line, never lose sight of what lies between the starting blocks and your ultimate goal.  And with that, I'll leave you with this quote from the Chinese Taoist Philosopher, Lao Tzu, "If you do not change direction, you may end up where you are heading."

Cheers,

Nick Vaglio, CFMP