Great Idea: The Boardcast

So, what really happens during Board meetings at your financial institution? The Board of Directors is responsible for making decisions that not only affect the institution, but also those that affect the customer. Yet, as customers, we are rarely exposed to topics of discussion in these meetings, and even more rarely given the opportunity to bring up issues directly to Board members. Well, this has changed at UFirst Federal Credit Union (Plattsburgh, NY), where the Board of Directors has created an open forum with its very own blog.

The blog, called The Boardcast, looks to have been established on January 1, 2007 and is giving UFirst members the opportunity to not only learn what topics are discussed during meetings, but to also learn how the Credit Union is addressing problems and changing to meet member needs. In addition, and perhaps the most impressive feature of doing this through a blog, is that members have the opportunity to post comments and ask questions directly of the Board members – for everyone to see; individual Board members can also be contacted directly from the blog.

In today’s financial services industry, where many people have no idea what a blog is, institutions with blogs are defiantly amongst the more progressive. UFirst Federal Credit Union is taking innovative thinking a step further by creating an open forum between members, management, and the Board which offers a real opportunity for connection and could be leveraged to create a more loyal following.

Great Idea: HSBC BankCab

I was reading trendwatching.com’s “Being Spaces & Brand Spaces” today, and as I read about the innovative being spaces and brand spaces that companies like Starbucks, J. Crew, and Nokia have created, I began to think about how this type of thinking could be applied to the financial services industry. Then, as I scrolled further, I was presented with two great examples of how financial services have applied these ideas; and, not surprisingly, the examples showcase ING and HSBC.

We are always stressing the importance of communicating your message consistently and effectively, and after reading about HSBC’s BankCab program, it’s obvious that Renegade Marketing Group (the brains behind the idea) had the same thing in mind when developing the campaign.

The campaign seems pretty straight forward on the surface. HSBC branded some 1982 taxi cabs in signature red and white colors, and sent them out to drive the streets of Manhattan; the cabs not only exposed the HSBC brand to a countless number New Yorkers, but offered free rides to HSBC customers to anywhere in Manhattan. The idea was developed to support HSBC’s tagline “The World’s Local Bank,” and this translated into having the taxis driven by New Yorkers who not only knew how to get around the city, but also were knowledgeable about restaurants, shows and all things local.

Another article on brandchannel.com tells of the calm experience in the cab, where the taxi drivers exhibit patience and politeness that would otherwise be non-existent in any other NYC taxi. And if this wasn’t enough, after the buzz was created, HSBC offered the free cab rides to non-customers as well for a twelve day period to give them a taste of the HSBC experience.

This is the type of innovative thinking that separates ordinary companies from the extraordinary; and, I agree with the statement from trendwatching.com, in that “we think this is an idea still ripe for copying.”

BankerSpank.com: Credit Unions Continue to Push Customer Service

If you haven’t yet checked out BankerSpank.com, you should. The website has been established with the purpose of communicating the message that Credit Unions provide a better level of customer service than banks. This is the story that Credit Unions have told for quite some time; and, while it used to be enough to separate Credit Unions from Banks – it isn’t anymore.

In today’s industry, with talk of Banks using customer service training from the likes of Walt Disney and Ritz Carlton, it’s obvious that Banks realize the importance of customer service – service that goes above and beyond “good” or “expected” customer service. In fact, many financial institutions are raising the bar on customer service and striving for customer delight, not mere satisfaction.

The customer service gap that traditionally gave Credit Unions a competitive advantage over Banks has essentially disappeared. The bottom line is that customers demand more from their experiences with you, and this starts with customer service that does more than simply get the job done.

Even Kleenex has to Differentiate

Everyone knows Kleenex; the popular brand name is practically synonymous with facial tissue. However, as reported in today’s Wall Street Journal, even Kleenex has to take steps to differentiate. The recent influx of generic, low-priced tissue products has put the pressure on Kleenex to do something different. Sure, Kleenex has been around for a long time, but in this case, customers aren’t driven by the amount of time the product has been around – especially when they can’t identify real value added between Kleenex brand tissues and lower-priced generic tissues. As a result, Kleenex shifted focus to innovation and added real value to a commoditized product by introducing an anti-viral tissue.

The issue facing Kleenex is essentially the same as an issue facing many financial institutions, especially community banks. Longevity alone does not necessarily translate into a competitive advantage. Many community banks attempt to use their length of time in a community as a way to communicate value added; while this may have worked in the past – it’s becoming less important to the customer and prospective customer, especially with younger generations. Just as Kleenex’s answer to the pressure involved product innovation; bank’s need to look for ways that will differentiate their institutions from the rest, while providing real value added to the customer.

Will that be cash or credit?

We all know there are fundamental differences in the way various generations use cash, credit and debit purchasing options. But how much are you really aware of what these differences are, and why the different generations use the products they do?

As I was reading the Monday January 15th edition of the Creditunions.com newsletter, there was an article called: “Gen Y vs. Gen X: Is There a Wallet Difference?” The article explained that the employees at Creditunions.com took a quick poll around their office of employees under the age of 30 and over the age of 30. This poll asked a few key questions about how these employees spend money. One of these questions was “how much cash is in your wallet right now?” and the other was “how do you pay for everyday expenses?”. They then asked why.

These are two pretty basic questions but it makes you think, how often do financial institutions (or any other service companies for that matter) actually check in with customers and ask meaningful questions like these? I am not just talking about running customer satisfaction surveys, I am talking about asking actual, meaningful questions about customers’ banking habits, want, needs and spending behavior.

It is often overlooked, but actually being in touch with customers and asking questions will provide a wealth of information about what types of products and services they use. What is the point of offering 10 types of checking accounts if you find out, after asking the customers, that 90% of them use only two different types?

Communicating with customers is a great way to help tailor product and service offerings to what they are actually using. You may begin to see trends emerge with the types of customers that bank with you and the types of products they are using. These trends might tell you some valuable things about who you are as an organization, and how you are different from your competitors.

The alternative might be monitoring competitors to make sure you are matching their product offerings. But, wouldn’t that defeat the purpose of differentiation?

Find out what customers are using, find out what they want, talk to them; after all, you do provide the best personal and friendly service right? Well, it seems to me that the best way to offer personal service is to find out what your customers want by talking to them…personally.

The Silver Bullet

I have been hearing a lot about it lately; the highly sought-after, and non-existent silver bullet. Recently, it seems to be on the minds of many management teams looking for the quick-fix to the complex and pressing issues facing today’s financial institutions.

Whether it’s marketing to a younger demographic segment, growing deposits or differentiating your institution from the competition, there is no one size fits all solution. In fact, addressing these issues demands careful evaluation of factors that are unique to your institution. Your situation, as it relates to your position, your market, your targets and your competition, is unique – and you have to consider these factors before letting someone else’s successful initiatives drive your institution’s growth strategy.

We would all like an easy button that actually works like the one in the Staples television commercials; but, that would be too easy. The pressing issues facing today’s financial institutions are just as complex and involved as their solutions need to be; there is no silver bullet.

Does your ATM have more personality than your tellers?

The New Year is here; and with the New Year comes new desk calendars. Upon returning to the office on Tuesday, I opened my desk calendar from the Onion to January 2nd to find this brief article.

Automated Teller Has More Personality Than Human Teller

SEATTLE—Waugh Street Washington Mutual's new ATM has more personality than Janine Byrd, one of the branch's human tellers, sources reported Tuesday.

While it is the Onion, the situation is one that I am sure we can all relate to; unmotivated bank personnel that go through the motions without exhibiting any kind of personality. Sure, this may have worked in the past, but today’s demanding customers want personal interaction; they want an environment that is welcoming and stimulating.

Furthermore, the advancements in technology are allowing ATMs to personalize the customer experience. It makes sense that the heightened personalization of the ATM experience would be reflected in a heightened personal experience with real bank personnel. Personality is important and your customers expect it; take a look around and pay attention to the “personality” of the ATM machine next time you use it – it shouldn’t have more personality than the bank’s staff.