Rabbit Season, Duck Season

“ObamaCare...”

“RomneyCare...”

“We’re growing...”

“The sky is falling...”

Blah, Blah, Blah

We are smack-dab in the middle of the 2012 episode of “Rabbit Season, Duck Season!”

Think about it … no one really knows the truth, there is no compromise and, in the end, you know someone’s going to get their duck bill blown off.

There’s a similar Rabbit Season, Duck Season that’s been playing for years with credit unions and community banks.

In full disclosure, we help both credit unions AND community banks to improve their marketing.  And, aside from some basic, structural and colloquial differences, we are all VERY similar … and VERY concerned about each other.

From one perspective, I get it.  There are roughly 15,000 total banks and credit unions in America.  Of those, about 12,000 are classified as either community banks or credit unions:

• More than 5,000 community banks (Independent Community Bankers of America)
• More than 7,000 credit unions (Callahans’ Peer-to-Peer)

From a sheer numbers perspective, there is a lot to be concerned about.

However, combined, credit unions and community banks only hold about 15% of all assets in the US:

• $1.2 trillion for community banks (Independent Community Bankers of America)
• $963 billion for credit unions (Callahans’ Peer-to-Peer)

While the “Big 4” banks alone: Bank of America, Citi, Chase and Wells Fargo hold 39% of consumer deposits. (Federal Reserve System)

So, today’s discussion … do we spend time and budget resources fighting for 15% of a market against a competitor who’s VERY similar to us, or do we position ourselves against the big, “impersonal” Goliaths and try to get a slice of the larger pie?

The answer, as always, will differ from market-to-market:

• Who has the market share?  Review the FDIC and NCUA deposit data and see who your market is banking with.
•  Are there growth trends?  Is there a mid-level payer who is building branches, increasing online access and making waves in your market?
• Measure awareness.  With a quick phone survey, you can understand who your market thinks of when they think of banking.  Are you in the top 3?
• What’s the marketing activity?  We will never have the total marketing budget of Wells Fargo or Bank of America, but what are the competitors doing in YOUR neighborhood?  If Chase is dropping a huge media buy in your market, you need to consider how to compete against it – or to simply ignore it and focus elsewhere.

In the end, you have to pick your battles and you’ll ultimately have to steal business to grow.  Who has the member/customer-base that you want?  Which one or two institutions should you position yourself against?

As community-centric institutions, credit unions and community banks will ALWAYS have a story to tell compared to the big-banks.

With more than 115,000 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.  

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

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

Here are the conferences where you can find MarketMatch.

-------------------------------------------------------------------------------

MarketMatch is a 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)

937-426-9848

Dip your toe before you jump in

We have a client who's opening a new branch in an existing market and using this opportunity to test some new marketing strategies.

Looking into the future, I'll bet you have some great ideas that you'd like to try:

• Edgier look
• New products
• New packaging
• Bundling products
• Relationship pricing
• New sales delivery
• Refined message
• Tweaked pricing
• Unique customer segmentation
• Guerilla marketing

With our help, our client is trying all of this out in one of their markets. When successful, they plan to roll it out on a larger scale.

If you have big dreams but are challenged by budget or approval constraints, try the "dip your toe" strategy. Test out your ideas in a market that makes the most sense. Then take the best of what works and expand it out. The risk will be diminished and the rewards will be great!

October Doesn't Have to be Scary

October Doesn't Have to be Scary

Can you feel the chill in the air? The foreboding feeling of things to come? Yes, it's planning season...

But planning for 2011 doesn't have to be scary. Just take planning in bite-sized chunks.

1. Build a knowledge-base. I know you have a smart management team and Board. But unless your target is old dudes in suits, you may need to talk to your market before planning. This can be as fast and cheap as branch intercept surveys (you know, like the clip-board-toting folks at the mall) or as robust as statistically relevant, quantitative research that's cross tabulated across multiple data fields ... or anywhere in between. The key is to try to understand what you want/need to know and research accordingly. Click here for more information about research strategies.
2. Gather before you hunt. In many cases, the most prudent planning starts with your existing customers/members. Understand how your customers use you and why. What do your most profitable customers look like? Where do they live? What makes them profitable? We often recommend starting with customers with 2 or 3 products with you already (as opposed to targeting single-product households). These folks have started building a loyalty with you. Often times single-product customers are single-product for a reason and hard to convert. The bottom line is that you will get the biggest bang for your marketing buck if you focus on building share-of-wallet instead of acquiring new customers.
3. Don't forget your Halloween night strategies. When I was a kid, I had a 3-pronged approach to trick-or-treating: 1) First hit the houses that knew me. They were more likely to throw in a little extra. 2) Go to the bigger, more expensive neighborhoods, they usually had the full-sized candy bars (remember when people used to give those away?!?!) 3) Before calling it a night, hit the houses that knew me again - they often would dump whatever was left in my bag. Who knew, at 7 years old, what a great marketer I already was!?! 1) Target by proximity to those who are most likely to be aware of you and have a positive perception - they will be more open to your message. 2) Target those that have the highest propensity to be most profitable. In banking, this isn't always the biggest houses. You can analyze by census-tracts where the opportunity lies. (If you can't, we can do it for you!) 3) Keep talking to those that know you best. They're more likely to give you more.
4. Go into planning thinking about ROI. Too often, institutions only use ROI as a follow-up -- like a report card of sorts. It is a powerful planning and budgeting tool. Demonstrate how your department and your efforts will add to the bank/CU's bottom line.

Take care,

Eric

Follow us on Facebook

Get our Tweets

Have us work for you

Color your market, market your color...

Where do you begin when choosing colors for your marketing materials? What were your reasons for making that particular choice? Was it because you liked those particular colors? What did the colors you chose, say to you? Do you know what your choice of colors say to your audience.

Yes colors do talk! In fact they say more than you might think. The choice of your color palette not only enhances the appearance of a poster, website or brand mark, but in fact they also influence our behavior.

Take for instance a hospital. Hospital walls are usually covered in colors such as white, green and blue. White is the most common color to be seen on a hospital wall due to the peaceful and calm mood it provides as well as denoting cleanness. It implies sterility, which has the effect of making patients feel reassured. Blue and green are considered to be the most relaxing and refreshing colors, promoting peaceful atmosphere, which encourages concentration and healing.

Another example…fast food restaurants are decorated with vivid reds and oranges... Studies have shown that reds and oranges encourage diners to eat quickly and leave - and that's exactly what they want you to do.

Keep in mind - Not all colors mean the same thing throughout the world. Different cultures have different meanings. In Brazil purple signifies death or a loss, Yellow signifies sadness in Greece, and red in Asian cultures, is a traditional color for celebrations or weddings. So they key is to know your audience and know the culture before finalizing any color choices.

“Color is an intense experience on its own.”

Jim Hodges

Here is a listing of the most common colors and their meaning according to North American mainstream culture:

Red --excitement, strength, passion, speed, danger.
Blue -- trust, reliability, belonging, coolness, calming.
Yellow --warmth, sunshine, cheer, happiness
Orange -- playfulness, warmth, vibrant
Green -- nature, fresh, cool, growth, abundance
Purple --royal, spirituality, dignity
Pink -- soft, sweet, nurture, security
White --pure, clean, mild.
Black --sophistication, elegant, mystery
Gold -- prestige, expensive
Silver -- prestige, cold, scientific

“Colors, like features, follow the changes of the emotions.”

Pablo Picasso

What do you want your message to say? Do you want to calm your market and let them know you are stable and secure? Do you want to scream in their faces and tell them that you have the best rates around. Color can be a huge factor, in so many ways, it is sometimes overwhelming and can make or break a response. If you need some advice or information on how to put this information to use, just give us a call.