Bank Marketing Strategy + Ideas

Everywhere you look, the internet is changing the way businesses do business.

The record stores have long since closed their doors; most movie rental stores, like Blockbuster, have gone or are going out of business; and now book stores like Borders are taking a major hit.

At first glance, it might seem that people are no longer listening to music, renting movies, or reading books – but we all know that’s not the case.

The truth is, these familiar stores are being driven out by online companies like Amazon.com, iTunes and NetFlix, which are thriving by delivering books, music and movies over the web. They are serving customers and building a loyal brand – all while saving millions on “sticks and bricks” storefronts.

The sale and marketing of pharmaceuticals over the internet is also growing tremendously. Last year, Johnson & Johnson executives revealed that their company would be shifting away from pitching to primary care doctors in their offices and instead connecting with those physicians over the web.

So what does this mean for the banking industry? Are the same people who are buying and paying for their books, music, movies and medicine over the internet going to look online for all of their banking needs?

To answer that question, all you have to do is look around at all of the people on their phones. We have produced a whole generation of people who don’t do anything without first checking their iPhone!

Even though I grew up with a #2 pencil and a simple notepad, I now use my iPhone’s text feature to check bank balances, debits and deposits. I just type “last” and instantly get a full report on what has transpired in my checking account. I can buy almost anything and pay for it within seconds – all just by using my phone.

So what are these “land-locked” banks going to do? The way I see it, they only have two choices. They either have to go with the flow and embrace internet banking, remote capture and online bill pay, or they’ll need to find creative ways to get their customers and prospects into their buildings.

If they elect to stay in their buildings, they’ll need to offer more than just the traditional banking services. They’ll need to get into the content and education business and find ways to engage and interact with their customers.

Maybe offer classes on a variety of subjects from buying stocks and real estate to choosing insurance and retirement plans. Banks could even teach customers how to research and buy these items online.

Banks need to become the go-to place before anyone invests in anything.

Most banks already have the physical space and every town in America has business experts who would love to share their knowledge and network with other people in the community. And most would do it for free!

Banks need to look at things differently and take action. I had a professor in college many years ago who once said, “Be aware or Beware.”

That bit of wisdom still applies today!

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Neal Reynolds has worked with hundreds of banks and credit unions around the country helping them to grow core deposits and market share without growing their marketing budgets. Contact him at nreynolds@eadshop.com.

I have written a lot in the past several months about all of the competition that traditional banks face today.

In addition to dealing with bad real estate loans and rising FDIC fees, banks are now watching as brokerage and mutual fund firms introduce online bill pay, free checking accounts, and high yield saving accounts.

In an article in the Wall Street Journal last week, several companies offering new banking services were mentioned. TD Ameritrade has introduced online bill pay and ATM rebates, while TIAA-CREF is offering multiple banking services including free checking and high yield savings accounts through its new internet bank, TIAA Direct.

Charles Schwab is also targeting its brokerage clients with no-fee checking accounts and offering FDIC-insured savings accounts through its Charles Schwab Bank.

Fidelity Investments is offering a Fidelity Cash Management Account with many of the same services as the other brokerage companies. The only difference is Fidelity keeps its deposits in traditional banks.

They are also offering free trades to customers with higher levels of deposits.

With all of this competition, community banks have to start marketing their services.

For many banks, success in the past has been credited to location, location, location. But now, with the internet and all of this new competition, banks will have to concentrate on service, service, service!

They’ll need to get aggressive with their marketing and advertising and win the customer over with wonderful customer service.

When was the last time you called your customers on their birthdays or sent them a birthday card? Even my dentist does that. When was the last time you picked up the phone and thanked a customer for his or her business? Have you ever clipped out an article about a local business person from the newspaper and mailed it to them with a hand written note?  Or, more likely, was an overdraft notice the last thing your customers received from you?

Last week, my son put in a contract to buy a foreclosed home from Bank of America. One of the requirements was that he had to be pre-approved by their bank. Since there are three Bank of America’s between his work and his apartment, he stopped at one to meet with a customer service rep.

When he was finally able to meet with someone after waiting in line for almost 30 minutes, they took him into an empty office, dialed a 1-800 number, and handed him the phone.

This was his first visit to a Bank of America and it will be his last.

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Neal Reynolds has worked with hundreds of banks and credit unions around the country helping them to grow core deposits and market share without growing their marketing budgets. Contact him at nreynolds@eadshop.com.

As you know, I spend a lot of time writing about marketing and advertising plans for financial institutions. The most common response I get is, “Great ideas, but where do I start?”  So, today I want to help you put these ideas on your calendar!

January: Start today promoting your IRA and SEP’s. Most people in America are starting to think about filing their income taxes before April 15th and many may be considering these types of products.

February: As the snow begins to melt, many cities hold their annual “home show.” This is a great time and place to promote mortgages and home equity loans.

March: When the weather starts to warm up, boat shows pop-up all over the country. It’s a great time to offer boat loans in all shapes and sizes. The local little league teams will be selling “sponsorship ads” in their programs, so promote the fact that you’re a community bank and there to support them.

April: As we close in on April 15^th, you can run your IRA ads a few more times to get those last minute filers. People are also starting to think about vacations, so you could begin promoting your Travel Clubs.

May: Many high schools and colleges will be holding graduations, so promote the fact that wherever these graduates go in the future, you’ll be there to help. Also this month, since people will be traveling more, it’s a great time to promote car loans. Many people are also thinking about remodeling their home, so promoting home equity loans could be profitable.

June: As kids get out of school, many families go on vacation. Credit cards and debit cards are extremely popular this time of year.

July: As the country celebrates the nation’s birthday, it’s a great time to talk about being a community bank or credit union that supports the local community. Plan a Customer Appreciation Day with a bar-b-que and invite the whole town!

August: As parents begin sending their kids back to school or college, it’s a great time to promote education loans. The local high school will also be selling sponsorship ads in its football programs, so personalize your message for that specific school.

September: Christmas seems to get earlier and earlier each year and September is a great time to start promoting your Christmas Savings Plans.

October: Since Roth IRAs have to be done by the end of the year, October is a great time to begin advertising these. You can also start promoting Health Savings Accounts, since many people will be researching them before the end of the year.

November: Car dealers start promoting their end of year deals – a great time to promote car loans!

December: Take time to say, “Thank You” to all of your loyal customers. It’s also a great time to remind everyone that you are a community bank. Their money stays in their community and any loan decisions are made by people who know them.

Put these dates on your calendar today and get started. You’ll be surprised what a little planning can do!…

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Neal Reynolds has worked with hundreds of banks and credit unions around the country helping them to grow core deposits and market share without growing their marketing budgets. Contact him at nreynolds@eadshop.com.