Feb 25, 2008

A Branding Conversation with Tom Asacker

In a recent post, I talked about the ABA New England Marketing Chapters' Branding Symposium that I attended last month. The presentations, lead by Tom Asacker, author of A Clear Eye for Branding, offered some great insights and really challenged attendees to think critically about their brands.

After attending the symposium, I contacted Tom with a series of questions in hopes that he would offer his insights and perspective relative to branding and financial services. His responses to my questions follow.

BW: Why is the concept of branding so misunderstood?

TA: Great question Brady. I’ve been trying to answer that one myself for years. Kierkegaard wrote, “Concepts, like individuals, have their histories and are just as incapable of withstanding the ravages of times as are individuals.” Well, individual’s bodies may be incapable of withstanding change, but their belief systems are more than capable. And that’s what has happened with the concept of brand and branding. Many people locked onto the original marketplace concepts -brands and branding as marks of ownership and later as trademarks, logos and image advertising - and built their reputations around those concepts; e.g. logo designers, identity consultants, advertising agencies, etc. Their mindsets and business identities are now tied to those out-dated concepts, which absolutely preclude a change and serves to perpetuate the misunderstanding.

BW: Why is a clear eye for branding important?

TA: It’s not simply important, it’s critical. What is a brand? It’s something or someone that a customer chooses to be associated with, be it a brand of music player, politician, motorcycle, retail outlet, financial planner, or bank. Branding is everything a person or organization does to create and maintain a strong feeling with customers so that they are predisposed to continually choose and recommend them. Drucker wrote, “There is only one valid definition of business purpose: to create a customer.” Understanding how and why customers choose, as well as how to appeal to that decision-making process, is what having a clear eye for branding is all about.

BW: What does it mean for today’s banks and credit unions to have a clear eye for branding?

TA: Ultimately, it means that they have a visceral understanding of how to intelligently invest their time and money to attract and retain customers, with everything from the design of their outlets and web sites, to their employee training, marketing communications, product and service offerings, and community outreach. Today’s is a much more challenging marketplace than even the recent past. And given the latest economic outlook, and the fact that more than 95 percent of the households in the United States already have an active banking relationship, organizations that fail to recognize and adjust to the new consumer mindset are destined for failure. Or worse, they’ll become one more of the living-dead, with a relentless and stifling focus on cutting costs and downsizing. As a long-term brand strategy, operational efficiency is seldom the path to greatness.

BW: What companies – and specifically financial institutions, do you see demonstrating this level of thinking in terms of brand?

TA: I find it interesting that no financial institution springs readily to mind. What could possibly be more emotionally compelling to customers than their futures and financial well-being? Coffee? That being said, there are a few who are pushing the idea of fanatical commitment to "wowing" its customers and employees, for example Umpqua Bank and Commerce One.

BW: What barriers to you see facing community banks and credit unions when it comes to branding? And, what steps can executives and marketers take to overcome these barriers?

TA: The only true barriers are mindset and will. Seek first to understand, and then have the audacity to do what you know is right.

Feb 20, 2008

Sleepy Markets and Tired Brands

I have spent the last few days at the ABA National Conference for Community Bankers in Orlando (which is a welcome break from winter in Chicago).

During my conversations with some of the bankers here, I’ve heard quite a few refer to their markets as dead, stagnant, slow, or sleepy. The attendees at this conference are community bankers, and many serve small communities, so I’m not surprised that they’re using these words to describe their markets - they're all over the country.

But, it was interesting to hear one banker in particular banker talk not about his "sleepy market", but about his "tired brand". I found this interesting for a couple reasons.

First, tired implies exhaustion, like his brand has been allowed to go unchanged for too long (In our experience this is extremely common – the “if it ain’t broke, don’t fix it” mentality). It’s exhausted, outdated, dull, mediocre and in dire need of a refresh, a jump-start, a critical evaluation. As a result of being tired, his brand isn’t having the impact he would like; it’s not creating the right perceptions; and it’s not allowing his customers to have the experience he would like them to have. I'd bet that his tired brand is becoming irrelevant to his market.

Perhaps more interesting than describing his brand as “tired”, is the fact that this guy recognizes that his brand is not as strong as it could be, or should be. Keeping a pulse on your institution and your brand, or taking the time to critically evaluate each, is critical to your institution’s success – especially in today’s marketplace where changes are happening faster than ever.

Over the last year, we have all seen branding become a buzzword – and I’ve seen a lot of bankers simply dismiss the idea or write it off as an industry-fad. In fact, I have seen it here at this conference – with bankers saying things like “I know branding is what everybody is supposed to be doing this year.”

It’s is not a one-time deal. As long as you’re in business, you have a brand that needs constant attention and the occasional refresh to keep it awake and relevant to the markets you serve – regardless of if your market is sleepy or not.

Feb 6, 2008

Umpqua Bank's Innovation Lab

Last week, I had the opportunity to check out Umpqua Bank’s latest branch concept – the Innovation Lab, and overall, I was pretty impressed.

From the press release Umpqua Bank put out about the branch:


“The store will serve as Umpqua’s Innovation Lab, showcasing emerging and existing technologies that foster community and redefine what consumers can expect from a banking experience. As a testing ground for new initiatives, the Lab will change regularly to feature new technology, products, services and community events.”

Complete with huge 25-foot interactive touch screens, merchandise on display for purchase, and customized computer stations, the branch looks quite different from the traditional bank branch.

Some of the more notable features include:

  • CafĂ© style tables that serve as both a traditional table and as a computer station. The table top can be lifted open to give customers access to a laptop inside. The design gives customers the privacy they need while banking online in the branch and keeps the branch looking clean when the computers are not in use.
  • The community table in the center of the lobby seats about 12 people and can be used as a meeting place for organizations or groups of people who need to get together. The branch manager told us that the table is used about 6 nights a week.
  • You can’t miss the two huge interactive touch screens when you walk into the branch. One serves to display product information; the other is community-based which displays photos that customers submit themselves – it’s like a modern-day community bulletin board. The best part about the screens is that they are used for Nintendo Wii tournaments; the night of our visit, the bank was hosting a bowling tournament.
  • Merchandise. Walking into the branch, you can’t help but run into the tables in the lobby displaying Umpqua Bank t-shirts, hats, and coffee cups. And, one table is set up to display the merchandise of local businesses/artists – which, I would imagine, is changed on an ongoing basis.

Overall, I was impressed with the branch – its layout, look and feel, and incorporation of technology. I think a lot of people visiting the branch (or seeing it in the news) will also be impressed; which raises a red flag for me. While Umpqua Bank has taken steps to explore the use of new technologies like the touch screens in its branches, it's an approach that simply won't translate well at many community banks across the country.

Like ING Direct with its cafes, Umpqua Bank is pushing the envelope in terms of its branch design and customer experience with the Innovation Lab. And after visiting either, you can see how each is aligned with their respective brands – and how the individual elements they’ve included in their branch designs (i.e. coffee bar with baristas, touch screens, etc.) simply will not translate well in other markets with other companies.

Umpqua Bank and ING Direct have given people something unexpected - and something for people to talk about. And while we've seen many bankers attempt to incorporate elements of either company's branch design into their own, successful financial institutions will be those that can generate buzz with something new, unique and reflective of their institution's brand and market.