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

Instant Issue Technology as a Total Marketing Tool

Instant issue technolgy for debit cards is a meaningful tool for community banks. With Capital One advertising the concept for you ( you know, "I want my mother's picture on my card") the ability to create and issue debit cards on the spot is a tool that we would expect only the largest of banks would be able to implement affordably. Not true! This piece of technolgy coupled with an imaginative marketing program, can truly be the foundation for new sources of income for the bank.

You can issue debit cards that are totally personalized for each customer (how fun!) . Your customer can upload the photo they want on their card (family, baby, pets, whatever). And they get their card today instead of 2 weeks from today so they can be using the card sooner (which makes you more money). And they get replacement cards sooner, so you don't have 2 weeks of downtown with no card usage. The biggest banks can't do this across a large distribution network without spending a large hunk of money... not likely to happen with their financial positions today. This can be a real competitive advantage for community banks and credit unions. Your cost to implement will depend on whether you want one central location that can print the cards or one in each banking office, but a single location can be implemented for between $20-30,000.

But even more than this, you can create affinity card programs with local schools, universities, major employers, and much more. These local relationships can be coupled wtih some creative sponsorship opportunities and marketing programs to create true, local partnerships that will move the market share needle in your market for some time to come. Loyalty becomes a given and competing with the big banks is made EZ.


If you are thinking about implementing instant issue technology and a creative marketing program with it, you may want some outside assistance. At Market Match, we can help you through the maize of creating a fail safe program. Read how others are doing this at http://www.instantissuance.com/. Call me, I would love to have a discussion about how these programs work with you. Find me at www.marketmatch.com.

Have a great week!
Sharon

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

Know Your Customer Now -- They've Changed

So, you've done your due diligence and done a big customer research project within the last year or so, right? You know, it was probably when you did a new branding push or were going through a name change. You really honed in on who your customers were and how they felt about your bank.

So, good for you -- you have a clear understanding of what your customers wanted then. What about now?

A great deal has changed in the last 12 to 18 months in the banking industry, so assume a lot has likely changed with your customers too.

The turmoil in the industry has jumped from Wall Street to the front page of the newspapers and landed smack in the middle of Main Street. Customers can't help but be affected by all they are hearing about the banking industry.

Obviously, many now have questions about the safety and security of their funds. Here's a startling fact from a recent customer research project conducted for one of our banking clients. For the first time ever, safety and soundness and reputation of the bank was selected as more important than location and convenience in determining where to bank.

Not only are more customers focused on the safety of their funds, but many have also seen a dramatic shift in their needs. Suddenly the financial landscape has become very scary and customers who once thought they didn't want a lot of guidance or hand holding from their bank may now be looking for a much more involved financial partner. Are your employees positioned to step from product pushing to the role of an advisor and partner?

Your challenge is to find out what has changed with your customers and prospects today so that you know where and how to spend your limited marketing dollars wisely. Leveraging a small portion of your marketing budget to research so that you are really targeting your messages can offer significant payback in ROI.

I also value the touch point that research gives to the customer. Being contacted to provide feedback lets customers know you value their opinions and are working to meet their needs. It also demonstrates you recognize the significant changes that have taken place in the marketplace and want to remain relevant.

So ask yourself, how well do you really know your customers now? Well, maybe its time to become reacquainted.

Carpe Diem

Is it possible?  Is there a light at the end of the recession tunnel?  

A slew of economic reports released last week may be hinting at some possible good news.  Out of 12 reports released last week, 7 were better than expected and 2 met expectations.  And investors responded by sending the stock market to a healthy gain last week.

Heck, I watched the news last night and hardly saw anything bad about bankers!!!

The point is that as the economy begins to turn a corner, so will the public eye and focus.  As your community's hometown financial institution, have you done everything you can to capitalize on the mistrust and negative perceptions of the larger banks?

Soon J-Lo or A-Rod or some other far too wealthy person who doesn't use their whole name will do something stupid and, as Americans, we'll focus on the next shiny object that comes along.  People will forget that big banks "are bad," and then the large banks with their enormous marketing budgets will begin to gobble up market share again.

Seize the day, fellow community bankers and credit unioners!  Don't wait.  Get your piece of the market share pie while we still have a competitive advantage!

Happy Trails,

Eric

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

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

Blog Series #2 -- Making Marketing Relevant

Relevance. Webster's defines it as "connected to the matter at hand. Pertinent." I believe relevance means that "it ties to my life." Relevance is also in the eye of the beholder. However, as a marketer, we know that we can influence relevance and that without it...we are a complete after thought -- if that much.

Being relevant starts with understanding who your audience is...from an internal and external perspective. Determining what their needs are (asking them) and then communicating in a manner that resonates. Resonates is an important word when it comes to relevance. Your message has to "hit home" to create relevance and connect to your target audience's life.

The concepts you need to analyze for your organization....

• who is our target?
• what is their need (individual and collective)?
• what is their reference point?

Once you determine these items...you can begin to craft a communication tone and message. the last item is perhaps the most critical...their reference point. This simple (yet complex) idea is that each of our customers and prospects has a reference point for us. It may be through a parent, their work, their friends, or through media. The reference point is the fulcrum of their balancing point with us...the starting point to creating, enhancing or cancelling a relationship with us. We have to know their reference point to better understand their needs, buying behaviors and the influences in their life.

The relevance of our marketing starts and ends with our communications. Facebook. MySpace. ING. Zappos. There are new breeds of communication delivery everywhere...some include a financial implication directly, but all impact us in some way. If we chose to target the millennials...and we decide to use Facebook. We could be committing a major misstep. The new communication tools come with a new set of rules. Get to know them.... talk to millennials that work for you, bank with you, or have a reference point with current customers of you.

The best relevance message includes:

• clear connection to the reference point
• clear connection to their need
• clear connection to the future

You have built the uniqueness of you, your organization and your brand....now take that uniqueness and ensure it is relevant to your target.

In these times, relevance matters. Being at the right place at the right time matters, too. Here is an article about being a community bank in today's economic times...this is the RIGHT place and RIGHT time for community bankers!

Cheers!

Bruce Clapp