Doing more with less

I am guessing that a few of you (or more) have been asked to cut your budgets for 2009. So what are you going to give up? Do you have to give up anything? Can you maybe just take the slack out of the line and do more with less? ABSOLUTELY!

Let's make this blog short today...Here are some areas for you to review before you panic too much!

1. Take a look at your media buys. Do you invest in television spots? Are you getting enough airtime to really get noticed? Do you get premium spots or mid-day on TBS? If you aren't getting the airtime to make a difference, think about cutting here, or applying it to a media that will garner more exposure.

2. Donations. You all make them. But how many times a year do you donate to the United Way? Do your branches have a discretionary budget for market-specific donations? Are they all giving to one organization but at a lesser amount that will generate less publicity? What if you tighten those reigns a little and make one substantial donation (which may be less in total!).

3. Chotchkis. One of the greatest potential threat to your budget. You know those pens, pads, suckers, dog biscuits, mending kits and water bottles you buy to give to people (sometimes for no good reason)? I understand the concept of price breaks, don't get me wrong. But in TOTAL, you may pay less per pen, but have a bazillion more pens than you need and a higher bill to pay. Your staff does not need a scratch pad with the bank logo on it, and the dogs and kids will never miss the suckers (and neither will the owners/parents!). Take a good hard look at your inventory...think about a "just in time" inventory system rather than having things on hand. And you don't have a to have a new t-shirt for every parade your employees walk in!

4. Have everyone brush up on their people skills right now. You will be amazed at how far a smile will take you during tough times!

And remember to be extraordinary today!
Jenna

ALCO is not dog food (and other great survey responses!)

Q: What is an ESOP?
Survey Answer: A Greek who wrote a series of fables.

(Real asnwer: An Employee Stock Ownership Plan)

I am not trying to be either facetious or pretentious here. But these are some actual survey answers given by employees at my former bank when we did some internal testing of bank acronyms and product names to see if we ourselves knew what we were communicating to employees and customers.

The companion survey for customers resulted in an even more dismal response. It became apparent that the chosen few inside the bank had become so comfortable in our banking nomenclature that no one was clear what we were communicating. Even the new, exotic names we had given to some standard products were failing to connect to the customers because they lacked an educational component that was paramount to relating relevance to customer need.

Remember this. The Wall Street Journal is written for an 11th grade education. The New York Times for a 9th grade education. These newspapers never assume that the reader is up on all the acronyms that are used in everyday business and life. Or that the average reader knows what is meant things such as credit default swaps which has garnered much ink during the current financial crisis. They painstakingly educate the reader so that the articles have relevance to the lives of average Americans (who also happen to be your customers).

Others, such as Jim Cramer, host of Mad Money, use analogies to make their point. Last week, Cramer described a credit default swap this way: “It’s like taking out an insurance policy on someone that you are going to kill. And it’s all legal.”

We need to take a lesson from these newspapers and insure that all of our communications—direct mail letters, product literature, etc.—contains a modicum of education so that our customers can make an intelligent decision about the relevance of a particular product or service to a specific need.

This is an interesting time and one where Community Banks can gain incredible ground...if we use communications focused on stability, use words that create understanding and messages that create connections.

Cheers!

Nick Vaglio

Don't Lose Focus

Insurance \in-ˈshu r-ən(t)s\ n: coverage whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril

We are definitely facing specific "contingency and peril" lately. Help guarantee you won’t lose market share.

Adding to an already crazy bank marketing existence, the recent “bail out” plan increased the FDIC and NCUA insurance maximum from $100,000 to $250,000 for deposits. It’s understandable that we need to communicate this important message to our customers, but should it be our main message?

The key to marketing is still differentiation, and when I look around, nearly everyone is either FDIC or NCUA insured.

When you talk stability and security, focus on what differentiates your institution:

• Have you been in the market longer than the competition?
• How does your institution DEMONSTRATE that you’re a pillar of the community? Do you help build local business? Do you donate a newsworthy amount to local charity? Have you helped keep neighbors in their homes? Have you helped finance a life-saving surgery?
• Are you the market share leader? If so, you can make a case that you’re the “most trusted.” If you’re not the market share leader, what do you do better than the leader?
• Find an evangelist – you know, that customer or member who loves everything you do – and create a testimonial. You’ll strengthen your relationship with the customer and have a more compelling story to tell.

Be creative, talk to your front-line staff – they have stories. But in the end, don’t lose focus on what really differentiates your institution.

Take care,
Eric

Short-term Memory....loss? Or gain!!!!

Greetings...

Today is Columbus Day and most of you are hopefully spending time with your kids, doing some early shopping for Christmas, or just enjoying the bank being closed!

I am taking today off...and enjoying every moment of it, too!

However, this past weekend was a little rough. You see my son is a 9th grader and starts on offense and defense for his High School freshman football team. On Thursday night, they had the biggest game of the year...the annual battle with our rival Centerville! He was so excited for the game...he could hardly stand it. And now he hardly remembers it...

On the 1st defensive series, he got hit in the head with a knee...and he saw stars! He didn't tell anyone and stayed in the game. Later in the 1st quarter, he hit helmet to helmet with a running back (great tackle) but rung his bell again! Watching him in the stands, I could tell he looked a little woozy, but I thought the trainers are right there...they will say something is he is too bad!

Well...after the game (we lost 48-30) he walked off the field and I met him at the gate...he walked with a tilt and had glassy eyes! No one ever said anything...and he was obviously not thinking clearly! He played the whole game with a severe concussion!

He is on the track to clearing the cobwebs and is in on "brain rest"....(sounds like what I need!) and will be OK. It just will take some time to get back to his baseline, which we know because the school tested all athletes before the season...just in case of such a situation. He will be fine and is looking forward to baseball season now...he will miss his last 2 football games, but in the long run...that is a very small price to pay to make sure he is OK. He took a biology chapter test today...much to my amazement that he could think clearly enough...and got a 100%! He's going to be fine!

Now the dramatic connection to banking....

We ALL feel a little woozy, walking with a tilt, and seeing a little fuzzy right now with the battering the industry has been taking over the last several weeks....actually last several months! However, now is the time to remember that we will ALL be OK. Its time to stay aggressive...stay in the game, and know that it will all be worth the effort. We need to all go back to our "baseline" results and share them with our staff. We are still strong. We are still capable of getting a 100% on tests...those tests are just different now.

Our tests now come with comforting our customers, informing our staff's, working with the local media, and ensuring stockholders that we are, indeed, a strong industry. Just like Casey stepping up and getting a 100% on his biology test when I did not think he could, you, TOO, can step up and hit a home run for your organization.

Now is the time for marketers to be front stage and leading the bank forward. We need to be visible, communicative, and leading the charge to ensure we EXCEED the customer experience that our customer's expect. Now is the time to step up and excel...when no one thinks we can. Now is the time to make the points of difference in your market. Now is the time to runs ads and educating staff and customers alike. Now is the time to go for it...

You can be a difference maker and the extra focus and effort now will pay double dividends once the economy and market realities turn around...

Now...let's get out there and play hard!!!

Cheers!

Bruce

Why are we loyal?

My office is located about 2 miles closer to the FedEx Store than to the UPS Store. I also don't have to contend with stoplights and traffic when I go to the FedEx store. It's made me faithful to them for no reason other than a couple selfish conveniences.

Recently, I was trying to ship two amazing Eric Wahl paintings that were created live at the ABA Marketing Conference in Denver. The canvases were HUGE!!! I went to the FedEx Store and asked to buy a box. Their box was custom made to fit the dimensions of my artwork (wish I could actually take credit for them!) and a fragile stamp would be put on the exterior of the boxes. It all sounded great...customized boxes...handled with care...just what I wanted! Then the hammer fell. It would be $20 per sheet and each painting would take anywhere from 3-5 sheets. That's $100 a box! YIKES. I asked about alternatives, here's the response I got:

"There's an art and framing store over off of 120th called Aaron's Framing something-or-other. I send my clients there because you can get boxes for a lot cheaper than you can get them here. I will hold on to your shipping labels for you so that when you bring them back in the boxes from Aaron's, you won't have to fill everything out again."

Imagine my excitement! That was exceptional customer service. Until I showed up at Aaron's Framing place and was told by the store manager that not only do they not have boxes, they don't even keep the boxes frames were shipped to them in. Oh, and they also send all of their clients to the UPS store. UGH!

So, I went to the UPS store holding out little hope of finding a box. And then it happened. The nice woman said that not only do they have the box for me, but they have boxes specifically made for artwork and they will wrap the paintings in plastic (in case it rains where they are delivered) and make sure they arrive in one piece.

It was amazing. And the icing on the cake came when the clerk (Mary) said, "here, take my card, next time you have a shipping challenge like this, just give me a buzz and I can help you out before you drive all over town looking for shipping materials."

From now on, I will drive 2 extra miles through stoplights and traffic to get assistance from Mary. Mary is my shipping expert.

I don't need to spell out how this relates. But to keep you thinking in this marketplace, how many of the big-banks are in your marketplace? Do you think their customer service reps are happy? Do you think they hand out business cards and tell customer to call them next time they have a problem? NO WAY! They can't even guarantee their doors will be opened tomorrow.

This is your opportunity to capitalize on a tremendous opportunity. A guarantee to your customers that you are the expert and you will be there next time they need help. And all you need is a business card and a smile. It doesn't get any better than that!

Be extraordinary today!
Jenna

Assumptions... the greatest form of evil??

Okay, there are instances where things are rather obvious. If you see someone in your office walking down the hall with a newspaper tucked under their arm you have a fairly good idea where they just came from. And you probably want to avoid shaking their hand. But not all assumptions are as obvious.

There are these two young fish swimming along, and they happen to meet an older fish swimming the other way, who nods at them and says, “Morning, boys, how’s the water?” And the two young fish swim on for a bit, and then eventually one of them looks over at the other and goes, “What the hell is water?”

(If at this moment, you’re worried that I plan to present myself here as the wise old fish, please don’t be. I am not the wise old fish...just a guy with good eyesight and marketing vision!)

The immediate point of the fish story is that the most obvious, ubiquitous, important realities are often the ones that are overlooked in everyday life and business.

Sometimes, as employees that serve the public, we fail to remember that we are exactly like our customers before we come through the office door. You have high demands and expectations, too! The coffee we pick up on the way to the office had better be perfect. The dry cleaning must be perfectly pressed. And your financial planner had better be devising a long-term plan that is in your best interest.

And then, in the case of some bankers, something happens when we take our positions behind the teller desk or on the other end of the phone. Too often, we make assumptions about what is on our customers’ minds and what it is that might provide the most relevant solution to their most pressing problems. Too often, the conversation at the point of sale is dominated by what is in the best interest of the bank.

Sometimes the solution is simply to put yourself in the customers’ shoes, ask the right questions and exceed those same expectations that you demanded before you walked through the office door. By asking, “how’s the water?”, you might be surprised by the amount of information that your customer or prospect is willing to tell you.

For me, its about alinging marketing with sales, our actions with our customers and our banks with our marketplace...

I am pleased to be joining MarketMatch and you can look forward to many more thoughts and anecdotes through our Blog in the coming weeks and months.

Cheers!

Nick Vaglio

Carpe Diem

Carpe diem. Seize the day.

Today is an historic day. Not just in American history but in the world of banking. With all of the buyouts, mergers, acquisitions and failures making the news today, your customers are scared. They are scared because they don't understand.

Again, carpe diem! You have the opportunity to help your customers not only understand that you aren't going anywhere but that you can help them get ahead of the curve.

Many of you are reading this blog from small-town America. A place where when your neighbors say they are going to "the bank," everyone knows they mean you. Sure you have competition, but you also have loyal customers. Customers who don't say it out loud, but are secretly worried that their bank will be gobbled up "just like the rest of them have." What they aren't understanding is that you are here to stay. You didn't dabble with sub-prime lending. You haven't over extended credit. You are safe and sound.

Now is your chance to put your customers' minds at ease. Don't do it in a letter or a statement stuffer. Talk to them. Write an article for your local newspaper. Do something charitable that will say to everyone "We are here to stay. You are our family and we love you and we aren't going anywhere."

You have a tremendous opportunity in front of you. Not only for maximizing existing relationships but for capturing new customers. Those customers of the bank down the road who haven't been told that the doors will still be opened tomorrow and they will not be selling out in the foreseeable future.

When you communicate your safety and soundness, your community will listen...and respond.

Carpe diem,

Jenna