A reader of this blog recently asked my advice on the most economical and effective way to market an Internet bank. The truth is – basic marketing rules still apply.
Like with marketing traditional banks, your primary concern should be who your audience is.
Internet banks attract a very specific kind of banking customer – one that is computer savvy and comfortable doing business online. These kinds of customers are typically open to new banking technologies such as remote deposit capture and online bill pay, for example.
But as with any marketing strategy, the key is reaching these folks and attracting them to your Internet bank.
Ally Bank does a great job with their TV commercials (this is one of my personal favorites: http://www.youtube.com/watch?v=suBGbef5p3g), but I believe there is a lot of waste for them with this media buy. Though the ads are clever, are they really reaching Ally’s intended audience? Many viewers of these commercials don’t use computers or even have Internet access. (But then, Internet banks like Ally don’t have the overhead of a traditional bank branch, so they can afford to have a little marketing waste.)
A more targeted approach would be more beneficial. For example, start by focusing on selling an Internet-based service like remote deposit capture. Identify companies that could profit from using remote capture – companies that collect a large number of checks each day such as apartment communities, retailers, utility companies, large churches, etc. – and go after them.
Target these customers with banner ads on websites they might frequent. Select these websites carefully and make sure they are industry specific. For instance, you could run ads on websites that apartment managers and owners visit such as http://www.naahq.org/Pages/welcome.aspx or websites frequented by church business administrators http://www.nacba.net/Pages/Home.aspx.
Once you identify who your target audience is and where they go online, promote how your services solve their specific business pains. For example, focus on the liabilities of having an employee driving across town every day to make deposits. (If they get robbed and injured, the employee’s family could end-up owning the business!)
In addition to online advertising, use traditional methods such as direct mail, trade shows, magazine ads, and even salespeople making phone calls to target these vertical markets.
People are already moving away from traditional banks because of their high fees. And for banks, overhead is only going to climb. The beauty of internet banks is that once a company or individual puts all of its payables online for bill pay, it makes it hard for them to switch banks!
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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 [email protected].
