Mark Arnold > speaking • branding • planning

How Much Marketing Crap Is In Your Branches?



Credit union and bank marketers have a lot of good material. That’s the problem: it’s too much. Over time those good individual pieces pile up, pile up and pile up. Eventually it becomes a giant mound of ... crap. And nowhere is that pile seen more than in the branch.

As part of our marketing audit process we review a lot of financial institution branches. We examine how many marketing pieces you are displaying. Here are the numbers from some recent clients: 15, 22 and 34. Yes you read that right: one financial institution had 34 marketing pieces displayed in one of their branches. Another still had their Christmas loan promotion material displayed (in March).

It’s an easy trap for marketers. We produce lots of material. The problem is when a promotion ends or a brochure becomes outdated we never pull it. Over time our branches become extremely cluttered with
multiple marketing messages and materials.

Here are some ways to alleviate the clutter:

• Look for non-credit union/bank material—It’s amazing to see all the marketing our vendors and partners can put in our branches. Watch out for car dealers, warranty companies, insurance and investment platforms, civic clubs and a myriad of other information that has nothing to do with your organization. Your material should trump theirs every time.
• Pull dated information—Once a promotion is complete we go to the next. But do we pull the old stuff from our branches? It’s nice to think a teller or branch manager will do the updating for you but they are often serving consumers and don’t think to check.
• Reduce the number of marketing messages—Are you drowning consumers in your branches? Count the number of marketing pieces you are currently displaying. You probably don’t need them all out at the same time. Rotate a few of your pieces, store the brochures out of site and use only as a sales tool, and focus on only a few items at once. Less is best.
• Go digital—Do you really need to print and have hard copies of everything? Use digital signage, interactive TVs with marketing messages and other visual stimulants. The reality is consumers probably won’t take the time to read all that copy you are producing.

When was the last time you visited your branches with a critical eye? Maybe it’s time to do it now (think of it as a sort of Spring Cleaning for your branches and marketing).

Are You an Order Taker or an Educator?

Are You an Order Taker or an Educator?

Do your employees take orders or do they educate consumers? What is your employees’ perception to this question? No matter what products or services our organization provides, we want our employees to go way beyond just taking someone’s order. We want them to truly help consumers and change their lives for the better.

The difference between an order taker and an educator is often clear. A recent experience with a car rental company desk agent at an airport in a major Northeast city made that abundantly clear.

After landing and getting my baggage, I took the car rental agency bus to their main facility. A short wait in line soon had me in front of a front-line saleswoman. The exchange helped prove the distinction between order-taker and educator quickly.

Most people that have rented vehicles are familiar with the litany of questions one must endure at the counter. Do you want to upgrade to this? Do you want this kind of insurance? What about a GPS, DVD player, heated leather seats or a dashboard hot chocolate maker? She pinged the questions off me like a submarine sonar.

What was unpleasant about the exchange, however, wasn’t so much the questions as the way she posed them. As an agent, it’s her job to help me get the vehicle I need and maybe an additional product that will help in my travels. What left a sour taste was her presentation and interaction skills.
She was obviously reading off a screen. Her demeanor, unfortunately, was brusque and robotic, cutting me off in several mid-sentences and leaving awkward silences.

I was plainly dealing with an order-taker, someone just trudging through what her supervisor or system makes her do. There was no real interest, charisma or energy in her approach, all hallmarks of the order-taker syndrome.

For any organization, including banks and credit unions, to survive and thrive in our evolving service economy, front-line staff must adapt and take on the role of educators. How do you best cross-sell products and services consumers might not be aware? By asking guiding questions in a way that helps consumers benefit from one your products. The best educators ask the best questions.

This must be done, however, in a polite and sincere manner, not in a stale and machine-like one. Consumers pick up on this and are instantly turned off. Educators dig deeper than order-takers, benefitting both consumers and the organizations that serve them.

Your Real Competition

Every bank or credit union thinks they know their competition: other financial institutions. When making a list of competitors, the usual suspects arise, such as large national banks, other local banks/credit unions and maybe a few Internet or non-traditional sources (like check cashing services). You know who they are: Bank of America, Wells Fargo, Chase, Wal-Mart, Ace Cash Express, ING, and your local market options.

While those are indeed organizations you must battle, they are not your real competition.

Your real competition is yourself.

Your credit union or bank needs to focus on being the best it can be. Don’t try and be better than another financial institution. Be the best you. The better you are, the less competition you have.

Find a unique or lead product you can leverage. Make sure your staff is trained to the best of their ability. Improve your internal processes. Offer a product because consumers want it and not because your competitors are doing it. Develop a true value proposition that details why someone should use your institution.

Yes, you need to know your market competitors. But you need to know yourself even better. While you can’t change your competition, you can certainly change your organization.

The biggest threats to your brand are internal and not external.

Is Multi Tasking Marketing Effective?

As marketers we pride ourselves on how much we are doing.  Ask any marketing executive, manager or coordinator how life is going and the invariable answer is, “Busy; there are so many projects we are doing.” Yes, most marketers are overachievers—and proud of it.

Any good marketer tends to be a multi-tasking expert. And while anyone working in the marketing field must juggle many balls at once, we must be careful not have too many balls in the air at the same time.

John Jantsch, author of The Commitment Engine, says, “The ability, some might say the attempt, to multitask is a curse of sorts. While working on ten things at once may seem efficient, each of those things gets roughly 10 percent of our greatness while we’re doing it.”

This rush to multi tasking is not just a personality or project management thing either. It also affects the way we market our financial institutions. If we’re not careful we can also fall into the trap of “multi-tasking marketing.”

Look at your 2013 marketing plan and calendar. How many promotions are on it? How many products are you pushing throughout the year? Do you rush from debt consolidation loans in January to tax refund deposits in March to home improvement loans in May to summer loan promotions in June to back to school loans in August to new auto loans in October to Christmas loans in November? And wait—what about checking accounts, CDs, mortgages, and youth accounts? We have to throw those in somewhere. You get the idea. If we’re not careful we just throw everything up in the air and hope we can juggle it all.

So how do we avoid multi-task marketing? Here are two tips: 

(1) Move to brand-based marketing. As we noted in the white paper Transitioning to Brand-Based Marketing, “Consumers know Apple. Consumer know McDonald’s. Consumers know Ford Motor Company. But how many can recall specific promotions or commercials of any one of those? An integration of both short-term promotions and brand-based marketing efforts is the more holistic approach towards building long-term credit union brand awareness, member interactivity and success.”

 (2) Prioritize and focus your marketing. When it comes to their plans, marketers tend to add, add, add. Maybe it’s time we cut, cut, cut. Rather than have a list of 6, 8 or even 10 goals for the year it’s best to focus on what is most important strategically for your financial institutions. In all honesty, three to four major goals is ideal (with three being optimal). This requires laser like focus. The more focused your efforts are, the more effective the results are. Focus on your most profitable products rather than all your products. Develop a lead product that differentiates yourself in the market.

Multi-tasking marketing is an easy trap to fall into, but one we should avoid if we want better results.

How to Wham Your Members

“No whammies, no whammies, no whammies,” was a popular refrain on an old game show (Press Your Luck, in case you were wondering). One credit union, however, is actually seeking ways to “wham” consumers in their market.

ELGA Credit Union (Flint, MI) ($310 million; 49,000 members) started a “wham” campaign in January. Through this effort, the credit union empowers its 148 employees to do random acts of kindness for people in the community.

“Our employees have said this is the best marketing campaign ELGA has ever done,” said Cheryl Sclater, ELGA Credit Union’s business and community development manager. “They are so into it.”

Here is how WHAM works:

The credit union gives each employee a few WHAM cards. The WHAM cards say “WHAM!!!! You have just been hit with a Random Act of Kindness. Make it a GREAT DAY!!!”

• The card has the credit union’s logo but nothing else (no website, phone number, Facebook request, etc.)
• Credit union employees are encouraged to look for ways to make someone’s day
• The credit union reimburses the employee after they do the random act of kindness (for example, paying for someone’s drink at Starbucks)
• Credit union employees give the “wham” card to the retail employee who lets the consumer know their purchase is paid for and here’s the wham card
• Employees are not given a set amount or guidelines on how to use the wham cards
• The simple instructions to credit union employees are “make someone’s day…. just don’t be ridiculous.”

Examples of “wham” acts have included:

• Paying for gas when someone’s card was denied at the pump
• Paying for dinner when someone is eating alone
• Paying for a McDonald’s or Starbucks purchase for the next person in the drive through lane

“The whole campaign has impacted so many people,” says Sclater. “From the employees, to the service people at various retailers and then to the people who are receiving the random acts of kindness.”

So what’s the return and ROI on a campaign like this? From a budget standpoint, Sclater allocated two cards per month per employee (or about $1,650 per month). The reality is that not every employee does two acts of kindness each month.

“We knew it would come back to us,” Sclater says. “We feel our ROI is helping individual people. Now word is spreading and we are seeing an uptick in our Facebook likes and shares. People are also sharing their wham experiences on Facebook.”

ELGA Credit Union does not see the wham cards as a marketing tool. They wanted it to seem genuine and not gimmicky—thus no reference to the credit union’s website, Facebook page and no call to action. Just the credit union’s logo. ELGA Credit Union sees the wham cards more as a community outreach (although on a one-to-one basis) tool. ELGA Credit union already performs 2,835 man-hours per year at community events.

“We truly wanted to touch people and make a difference in their life,” Sclater adds. “If it touches somebody, that’s all that matters.”

What Financial Institutions Can Learn from Retailers

I was in Walgreens about a month ago to purchase a sale item. Walgreens had just changed it sale policy, though, and required me to sign up for a reward card to take advantage of the sale price. I’m not a fan of forced card programs, but I agreed because I needed the sale price.

Walgreens did several things right. For starters, it took less than 30 seconds for the sales clerk to find my name in the system and register me for the program. They had my information from when I purchased a prescription probably 10 years ago. Second, Walgreens linked my reward card automatically to an online account I had forgotten about. Third, I got an e-mail about a week later letting me know that linking my online account to my reward card lets me take advantage of sale prices both online and in the store.

Considering how long it has been since I’ve done any substantial business with Walgreens, I was both surprised and impressed with this level of service after a visit to the store.

Tom Thumb (a grocery chain in the Dallas area) has a new program called Just for U, which is linked to its reward card. The program is optional, but those who enroll have the potential to save hundreds of dollars a month. Just for U keeps track of what each customer buys and sends them personalized offers weekly by e-mail. It even compares the personalized prices to Wal-mart’s prices for the same product to show how much money customers are saving.

Financial institutions stand to learn a great deal from these retailers. Imagine how much relationships with members and customers would improve if they received a personalized e-mail after coming into a branch to make a transaction or inquire about a product or service. The e-mail could thank them for coming in for whatever reason they came in and offer them a product or service, an introductory rate on a credit card or information related to whatever service they were inquiring about. Think about how many more loans you might capture if your online banking product could track which pages existing members or customers visit on your website after they finish their online banking transactions. You could send them e-mails or messages through online banking, offering them special rates on loans or just telling them what the current rates are. Members and customers looking at savings products could get a personalized e-mail about savings options or the benefits of saving money.

The technology is available to make this happen. Online retailers do it all the time, and now places like Walgreens and Tom Thumb are capitalizing on this opportunity to build a more loyal customer base. Have you ever visited an online retailer, then logged on to Facebook to find an ad from that retailer? What if your members or customers left your site, logged on the Facebook and saw your ad?

You are not credit union or a bank—you are a retailer. If you want to compete like a retailer, you have to act like one. Make the investment in technology that helps improve customer/member relationships.

When Not to Engage Consumers in Social Media

A recent article highlighting a spat between Twitter titan Oprah Winfrey and a less-than-flattering follower tweet led me to think about one of the core tenets of engaging with fans/friends/customers on social media. Namely, don’t get into an online spat with them because, no matter how right you might be, it’s a fight you cannot win. 

An example straight from the financial services industry comes from 2011’s debit card use fee from Bank of America. The Twitter universe responded loudly and negatively.

For all the many positives social media offers both consumers and businesses in the sharing of ideas, opinions and honest feedback, it also offers an ugly Pandora’s Box of possible nasty exchanges. People are pretty much free to say whatever they want, whenever they want, about your brand, whether it’s true or not.

The question becomes when it’s time to respond and, if so, in what way.

The basic rules of engaging with a consumer in online forum include:

1. Stay on top of who’s saying what about your brand online by setting up keyword Google alerts (e.g., “ABC Bank”). It’s a free service and you can have alerts delivered to your inbox daily or weekly. 
2. If it gets ugly, take the conversation offline. You never want to get into a public online spitting contest with a disgruntled consumer. Simply post something along the lines of “We understand your concerns and ask that you contact us at (555) 555-5555 at your earliest convenience so we may discuss the matter in more detail.” This takes the spat offline and shows other readers that you care enough to respond.
3. Respond to negative comments quickly. Time is of the essence, especially online. Consumers expect rapid response to their concerns posted online. A week’s delay from your organization makes it look like you don’t care about your online brand integrity or your customers.
4. Don’t follow obviously scripted response for every exchange. This becomes transparent pretty quickly to your followers and shows a somewhat callous and disinterested online attitude from your organization towards its consumers. Talking points aren’t necessarily a bad idea; just tweak them to match the specific needs of different exchanges.
5. Try not to take it personally. Remember, people are far more likely to complain about your organization and its people in an online (and less accountable) forum than they are in person. The negativity of their words can also increase online. View negative online feedback as the constructive criticism your organization needs to face challenges and grow.

Social media sites like Twitter and Facebook make it much easier for marketers to reach their consumers and vice versa. The arena is also open to negative posts from customers, whether fair or not. Knowing the ground rules about when and how to respond goes a long way towards establishing your online brand identity and integrity.

What Makes A Good Consultant

For years I made fun of people who consulted with credit unions and banks. And then I became one (as part of what we do at On The Mark Strategies). As Robert Townsend, author of Up the Organization says, “consultants are people who borrow your watch and tell you what time it is, and then walk off with the watch.”

The reality is financial institutions do need help and outside perspective. But how do you know what makes a good consultant? Here are a few key traits:

(1)   Partner—A true consultant is not a vendor. If you feel they are a vendor, then run away (far away). You should do business with someone you can trust. It may sound cliché, but good business is about relationships.

(2)   Expert—You should hire experts, not service providers. If you need help in a particular area (lending, technology, marketing, planning, etc.) make sure the people you are working with don’t just have surface level or buzzword knowledge. Consultants who use all the latest buzzwords and blow smoke are the ones to avoid.

(3)   Real—When working at a financial institution, I had a terrible sales experience from a vendor that wanted our business (see the post “Smarmy Sales Guys are Dead.” If all they talk about are themselves then that is what they care about: themselves.

(4)   Experience—The better they know your business the better they can help you. If a financial institution consultant has never worked a real job in a financial institution then they probably don’t understand your business as thoroughly as possible. And if they need experience, give them an opportunity to work on your teller line for a day.

(5)   Honest—The best consultants will get in your face and not always agree with you. In fact, they will be your frienemy: someone who will love you and challenge you at the same time.

Obviously, I’m biased on the above points (that’s me trying to live point number five!). A really good consultant can improve your credit union’s or bank’s growth. A really bad one can waste your precious resources.

Native Advertising and Your Financial Institution

Remember the good old days of the internet, in the mid-to-late 1990s? The “Wild West” days when the internet was a vast frontier, ripe for exploring, colonizing and settling?

All nostalgia aside, you may also remember two less-than-favorites from that era; the pop-up and banner ad craze. Like the Wild West, the internet was eventually changed.

The latest trend in this evolution is a relatively new concept: native advertising. A recent article gives a terrific run-down of what native advertising is and what native advertising isn’t, along with this doozy of a technical definition:

“Native advertising refers to a specific mode of monetization that aims to augment user experience by providing value through relevant content delivered in-stream.”

Give your mind a minute to rest after trying to digest that (I know my head throbbed for a while after reading it). Now, try the following, simpler definition and consider how it might apply to your credit union’s or bank’s online advertising, especially on your website.

Native advertising is a way to place your relevant and valuable message more seamlessly in places members are more likely to read it.

How can you accomplish this on your website? Here are three ideas.

1. Your blog. Hopefully you have one that is updated regularly with content designed to not only educate and inform consumers, but to help guide them towards using more of your products and services. Nowhere near as pervasive as an ad, your blog can become an important tool in cross-selling and PFI (primary financial institution) endeavors.
2. Target messages within home banking. We’ve talked about this in an earlier blog post. Messages to members from within home banking allow you to maximize the data you’ve collected on them and direct them towards products and services they could use. If they log on to check their account balance and the system notes they don’t have a car loan with your credit union, the message on the screen could highlight your current low-rate auto loan promo. If they are looking to see if a particular check has cleared and the system sees they don’t have a credit union credit card, the message could highlight that product.
3. Social media. While a bit outside the realm of true native advertising, what better way to reach your members than an active presence in places they readily visit daily? A credit union or bank Facebook, Twitter or Pinterest account creates ways to reach consumers with seamless messages in mediums they actively pursue, rather than you trying to catch them.

While still in its relevant infancy as a marketing tactic, native advertising could prove to be the new sheriff on the internet landscape. Don’t let the buzz on it from big corporations and ad executives shy you away from its potential to work for your credit union or bank.

Strategies for SEG-Based Credit Unions

Like most entities found in nature and mankind, the credit union industry experiences lifecycles. These include times of change, growth and contraction. One of the more profound lifecycles to impact the credit union industry in the last twenty years is Select Employee Group (SEG) evolution.

A new white paper (Developing Strategies for SEG Based CreditUnions) published by the CUNA Marketing & Business Development Council explores the strategies and tactics used to develop quality SEG relationships and how the business development position plays a critical role in that development. (note: I’m biased on this white paper because I’m one of the co-authors).

“The biggest changes I have seen are that companies don’t recognize the benefits of credit union membership for their employees like they did in the 1990s,” says Pam Griffiths, VP of Marketing with Railroad and Industrial Federal Credit Union in Tampa, FL (26,000 members, $267 million assets) in the paper. “With all the advertising, the general population now believes that credit unions are just like banks and anyone can open an account. So when our business development staff goes to a company, they aren’t as willing to sign up.”

Chelsie Zima, SEG and Marketing Coordinator with St. Mary’s and Affiliates Credit Union in Madison, WI (4,400 members, $33 million assets) agrees with this assessment, adding an extra element of the human touch to the mix. “I believe the concept of business development has gone from offering the best products and services to being the friendliest and easiest to work with,” she says. “We are all in the same market offering very similar products. The differentiator is making true connections with both SEG
contacts and their host companies. Without these connections, your credit union is just another vendor.”

Some of the key insights include:

• Business development in many credit unions is now being done at the branch level (but these branch efforts need coordination and training).
• For maximum member growth, business development must be viewed as a major strategic initiative at your credit union (and business development is not just a department).
• Creating an experience for a SEG increases their stickiness with your credit union.
• Acquiring an agreement up-front might be difficult but improves your penetration success rate.

The paper also covers:

• Current business development trends
• Strategic issues
• Tactical issues
• Tracking and measuring business development ROI
• Case studies

So as you start your 2013 member growth strategy, read the “Developing Strategies for SEG-Based Credit Unions” white paper and make sure your plans include of these tactics.