Have an idea for us?

After reading about the latest Starbucks training sessions where each of its stores were closed for a three hour training session a few weeks back, and hearing about some of the initiatives it will be launching to get back in touch with its customers, I've been looking for examples of these initiatives coming to life in my trips since to Starbucks stores.

The one idea I particularly like, called My Starbucks Idea (Netbanker has a great write-up of how this can tie into banking) is a website that allows customers to submit ideas and feedback about all things Starbucks. And while the initiative is web-based, I was interested to see an in-store display this morning on the table with the coffee creamers.

The display is a small (8.5X11) table top with a stack of tear-off, business-card sized pieces of paper attached to it. These pieces of paper simply read "Have an idea for us?" - and, I have to admit, it intrigued me. I tore it off, and turned it over, the back simply directs you to mystarbucksidea.com.

It's not a survey. There are no questions. It simply directs you to submit your ideas to the bank's microsite.

I can definitely see the opportunity for financial institutions to offer this kind of feedback loop to their customers - and could easily be placed at teller stations or on check-write tables. In Starbucks' case, because it's such a large company, having the comments directed to one central point is a great way to keep them organized.

It's such a simple way to keep the feedback loop open for customer dialogue.

Will This Year Be the Tipping Point for Mobile Banking?

I guess that depends on who you ask, and how you define “tipping point”.

I read a report today suggesting that 2008 May Be the Tipping Point for Mobile Banking. The article focuses on research conducted by the Tower Group and brings up some interesting points about mobile banking, those likely to use it, and the technology that supports it.

But I’m not convinced that mobile banking will “move into the mainstream” this year as the article suggests. And even if it does enter the mainstream spotlight and increase awareness, I doubt that will translate into mainstream adoption by both institutions and customers.

Sure, I agree with Virginia Garcia, Research Director at Tower Group when she says “the downloads are faster, and the devices are better”, referring to cell phone technology that supports mobile banking. But what about preparation on the bank side? I’d be willing to bet that, while some institutions are planning to introduce mobile banking this year (these being the national and regional players that don’t currently offer it), many more haven’t taken that first step.

The article also quotes Garcia as saying "It's not necessarily for the mainstream customer base, but its going to grow as a factor in retaining and attracting new customers.” And, “As these bigger banks move into the regional markets, the smaller banks will have to develop technological platforms, such as mobile banking, to maintain parity and keep their customers…the competition is on a level playing field, forcing the smaller institutions to respond.”

I agree that mobile banking isn’t for the mainstream customer base. And, I also agree that smaller banks will need to take steps to stay competitive in terms of technology. But, I have a hard time thinking that mobile banking will play a significant factor in today’s institutions’ customer retention and acquisition strategies – or that banks and credit unions need to be worried about adding mobile banking to “keep their customers.”

And, even if the regional and national competition is on a level playing field offering mobile banking, the response by smaller institutions shouldn’t automatically be the addition of mobile banking just because the guy up the street is offering it.

Will mobile banking be offered by more institutions and used by more customers by the end of the year? Without a doubt.

Will 2008 be the tipping point for mobile banking? What do you think?

TD Commerce Bank Stakes its Claim: America’s Most Convenient Bank

TD Commerce Bank, the result of the TD Banknorth and Commerce Bank merger, will adopt Commerce Bank’s tagline and position itself as America’s Most Convenient Bank after the two banks come together.

TD Banknorth’s President and CEO, Bharat Masrani was quoted in a press release today about the bank’s position:

"TD Commerce Bank will own the convenience and Customer service space from Maine to Florida and will live the promise of being America's Most Convenient Bank…We will be relentlessly focused on building a better bank for Customers by staying open longer than our competitors and providing Customers with the WOW! experience they have come to expect."

This begs the question: What does it mean to be America’s Most Convenient Bank?

As far as I can tell, TD Commerce Bank’s idea of convenience focuses on the number of branches and ATMs in its delivery network; it also means staying open seven days a week and having extended hours at its branches on a daily basis. And, I can certainly see how this offers customers that live in the markets served by the bank added convenience – but what about those who don’t?

Would TD Commerce Bank be considered America’s most convenient bank to a bank customer in Savannah, GA? - Or any of the other markets along the East Coast where the bank does not currently have a presence?

The bank has made its intention clear to “own the convenience and Customer service space from Maine to Florida.” And, with convenience at TD Commerce Bank focusing so heavily on its branch and ATM presence, it will be interesting to see how it lives up to this promise.

Will we see TD Commerce Bank embark on an expansion/acquisition effort along the East Coast in the coming months?

And what about the rest of America? I don’t think many people here in Chicago have ever heard of America’s Most Convenient Bank.

ING: On Message Once Again

If you're an ING Direct customer, you recently received an email thanking you for being a customer of the bank. Not something we typically see from financial institutions. Have you ever received an email like this?

But, more important than the fact that ING is using email to stay in touch with its customers, is the fact that the bank recognized the email as an opportunity to reinforce its "save your money" message. Check out the closing of the email:


Much like my experience with the banker/baristas at the ING Cafe in Chicago, this is a great example of how ING is constantly looking for ways to remind us, both directly and indirectly, that the bank is here to help you save your money.

What message are you putting out there?

Person-to-Person Lending Sites Gain Traction with Small Businesses

In recent presentations and conversations with bankers, we've been talking quite a bit about the impact that person-to-person lending sites like Prosper.com are having on the industry. And, it's concerning that many in these audiences - usually bank executives, senior managers and marketing officers havn't heard of P2P lenders, or they have heard about them but don't consider them to part of the competitive landscape.

Yesterday's issue of the Wall Street Journal featured an article about the impact these P2P sites are having on small business lending; the article also provides a good introduction to how the person-to-person sites work. For more, check out Jim Bruene's perspective - I completely agree with him - now is the time to address the threat that P2P lending may pose to your institution.

Yes, we are shaking up the industry

Today’s issue of the Credit Union Times features an article Gen Y Entrepreneurs Shake up CU Industry, Helping to Reveal Authenticity – and, while I am not technically an entrepreneur, I am grateful to have been included alongside four other twentysomethings who are working to shake up the financial services industry.

The article offers a glimpse of what each of us are seeing out there in the industry. And, not surprisingly, there are some consistent points made by the five of us throughout the article:

• If you want to be successful targeting Generation Y, you have to be authentic – this includes everything from your brand to your messages; from your people to your customer experience.

• Technology is already reshaping the industry – from delivery channels to marketing to communications. And, today’s successful institutions will be those that can discern between the technologies that are relevant to their businesses and their markets, and those that are simply the latest hot trend.

• People – today’s institutions need to recognize the value of Generation Y employees’ perspectives. Staying relevant to younger customers and members requires the input and direction from their peers – ask your younger employees what they think, and listen to them.

As consultants, writers, and speakers, the five of us will undoubtedly continue to shake up the industry this year. Please feel free to contact me with any questions about marketing to Generation Y; and, if you haven’t already, check out the other four members of Gen Y featured in the article that are shaking up the industry:

Jeff Stephens - Creative Brand Communications

Brad Garland - The Garland Group

Matt Dean - Trabian

Bryan Simms - Brass Media

Tom Broughton’s small bank is striking it rich

This was the byline from an article about Birmingham, Alabama based ServisFirst Bank that appeared last Friday on CNNMoney.com.

Now, replace Tom’s name with yours in this statement – sounds good, doesn’t it. How are you going to “strike it rich?”

Tom Broughton is striking it rich because his bank is clearly different from the competition; and, most importantly, ServisFirst Bank is offering distinct and real value to a specific target.

The target: “busy small-business owners who want fast, personal service and are willing to pay for it.”

Now, we all know that there are plenty of financial institutions that specifically target small-business owners. And, many of them promise fast, personal service. But much like Starbucks has demonstrated with high-priced coffee, ServisFirst knows there are people out there who are “willing to pay for it” – they’re willing to pay for the real, personal service offered by the bank. And, the bank has used this focus as a framework that informs everything from its products and services to its marketing efforts to its delivery channels.

“At his Birmingham, Ala., company there are no tellers. No ATMs. No advertising. No teaser-rate CDs. No fancy offices. No lollipops in the lobby. In fact, dear customer, these bankers don’t even want to see you in the lobby. Stay in your shop. ServisFirst will come to you.”

ServisFirst serves a specific target with a specific value. And this is a great example of a team that has looked critically at all the elements of the bank and its brand – even those that are often times considered to be an expectation (i.e. ATMs, rate ads, tellers, etc.), and has made some tough, but logical choices to organize around its core value – service for small-business owners at their place of business.

Capital Bank's Tuned-In Checking

North Carolina’s Capital Bank recently launched a rewards checking account offering iTunes downlads to customers who meet a series of basic requirements (ten debit transactions per month; log on to online banking once a month; and receive statements via email).

The Tuned-In Checking Account is similar to other rewards checking accounts we’ve been hearing a lot about recently, but rather than offering a higher interest rate, the account rewards qualifying customers with $9.99 in iTunes gift cards per month.

The account is targeted at Generation Y customers – high school and college students, and young professionals. And this makes sense, as many in this group would probably rather have the iTunes every month as opposed to a higher interest rate on account balances that may not generate significant interest in the first place.


Part of the bank’s marketing efforts for the new account includes the microsite www.tunedinchecking.com. On the site, the Capital Bank image and presence is downplayed in favor of the benefits of the account: free iTunes, free ATMs; and free checking are featured prominently. The animated site speaks directly to Generation Y with its playful visuals, the language used, and the lack of traditional bank website content.

While the site does a pretty good job of promoting the Tuned-In Checking account – and even allows people to apply for the account online, I would like to see the other accounts mentioned on the site (i.e. Savings) have the same online account opening abilities. I’d also like to see the “About Us” section of the website carry the same kind of casual language as other parts of the site – as opposed to using the same language from the bank’s main site.

As we’ve seen many institutions introduce versions of rewards checking accounts recently, I’m sure we’ll continue to see variations on the theme. With this account, Capital Bank has found a way to reach Generation Y with a relevant product and compelling message to not only open the account, but to keep it open and to actively use it.

I wonder if Capital Bank gets a bulk-rate discount from Apple on those iTunes gift cards…I can imagine that they’ll be issuing quite a few in the coming months.

Change the Story

My friends and co-workers all know that I usually begin each day with my favorite espresso drink from Starbucks. I am not just an unapologetic, loyal fan of their coffee and the studiously crafted customer experience that goes with it; I am generally an enthusiast for their approach to marketing. So I am usually on the lookout for references to the company in my favorite blogs. Last week, marketing guru Seth Godin mentioned them in passing while offering his thoughts on marketing in a recession. His blog post stated:

"Starbucks was the indulgence of a confident person happy to blow $4 on a cup of coffee. Starbucks can become the small indulgence for the person who just traded down to a small rented apartment. The challenge for marketers is to figure out how to change the story they are living so that their customers can change the story they tell themselves."

Starbucks can navigate a downturn in the economy because they have become part of their customer's daily life. They can remain relevant because of the adaptability of their "story." Seth's observation prompts me to think about the "story" being told by most financial institutions these days. Do their stories have the flexibility to adjust to the conditions of the marketplace? Do they even know what their "story" is or whether it is relevant to their customer? What do you think?