Jun 30, 2008

And I thought ATMs were an expectation

So I went to the bank today and found that the ATMs had been upgraded - they now have check imaging capabilities. And while I’ve heard about the technology that allows checks to be deposited at an ATM without an envelope, I hadn’t yet used one until this afternoon. It’s a pretty slick process: tell the ATM that you want to make a deposit and insert the check directly into the machine. An image of the check appeared instantly on the screen; the computer displayed the deposit amount and asked me if it was correct – I was surprised that the computer read the hand-written amount on the check. After approval, you can select to have a receipt printed with or without the check image, or chose no receipt at all. All of this in a matter of a few quick prompts on the screen.

This was in sharp contrast to an experience we had last week with a community bank in a small town in North Carolina – where a teller told us that the bank was “old fashioned”. Old fashioned is an understatement. Here’s an institution with a large geographic footprint, promoting free checking at its branches, and it doesn’t offer an ATM or ATM card. And, after looking online after our visit, the bank doesn’t have a website either.

While I realize that today’s financial institutions don’t necessarily need to have the same products, services or delivery channels as their competitors, I had considered ATMs to be an expectation rather than an option – especially with institutions like mine upgrading machines that are already fully functional and feature more bells and whistles than most ATMs out there.


So, how long can an "old fashioned" bank continue to conduct business successfully (without ATMs, a website, or online banking) in an environment where consumer expectations are rapidly changing?

Jun 11, 2008

Is your institution committing a “deadly marketing sin”?

The latest issue of BAI’s Banking Strategies magazine features the article Six Deadly Marketing SinsFinancial marketers need to get out of their rut to break through the market’s clutter.

Many of today’s marketers definitely do need to get out of their rut; they need to break through the clutter. And while I agree with the six sins outlined in the article, it doesn’t discuss what I would consider to be an underlying factor of each: the overall lack of meaningful and strategic points of differentiation.

When you have clarity about what distinguishes your institution from the competition, and those points are both meaningful to your target and are leveragable against your competition, you should be able to avoid each of these six sins. As an example, sin #2 is “an avoidance of marketing messages with some personality and attitude.” True points of differentiation convey the unique personality and attitude of your institution. At the end of the day, your marketing messages should all link back directly to your points of differentiation. This linkage allows people to easily see the value added by your institution; and should make it easy for your target market to chose your institution over the competition.

The other sin from the article that I really like is #6: “The illogical view that one print ad, one e-mail or one piece of direct mail is capable of gaining quick attention. The fact is, you need repeated, high-impact communication to build awareness.” While we know that some ads are capable of capturing quick attention – a single print ad isn’t likely to generate the results that many institutions hope for; this is especially true when we’re talking about sustainable results. When we talk about “meaningful” points of differentiation, we’re talking about the kind of points that can be used to develop “high-impact” communications – the kind that build awareness and lets people know exactly what your institution stands for. Another point to be made about this sin is the fact that “repeated” communication shouldn’t translate into simply placing more ads or sending more emails and direct mailers. Rather, your points of differentiation should be reflected in everything from your marketing collateral to your customer experience; from your products & services to your community involvement - giving your customers and the community repeated exposure to your message through multiple venues.

Think about how your institution is different from the competition. Are those points meaningful to your target market? Could they be leveraged as an advantage over your competition?