Name Your Own Account

In an effort to give its customers a "fun and easy" way to save money, Americana Community Bank (Sleepy Eye, MN) announced the introduction of its Name Your Own Account this week. The account encourages customers to set a specific purchase goal - like a new TV, boat or vacation - and use the account to save specifically for that purchase.

After opening the account, the Bank also plans to send account holders email updates as their savings grow - and they get closer to having enough money to make their big purchase.

The account is the latest in efforts we've seen relative to institutions allowing customers to customize an account - or features of that account. And, while this will certainly allow ACB to engage its customers, I'd like to see how the value of the account will be communicated to both customers and non-customers.

I was disappointed in not being able to find any information about the account on the Bank's website - I read about the account in a press release, but found no additional information online. Nonetheless, I wonder what kind of long-term success the name your own account will have for ACB. Will customers begin saving again for something else (and re-name their account) after their initial purchase is made?

Unlike initiatives like ING's Your Number - where long-term retirement savings goals are the focus, Americana Community Bank's account focuses on relatively short-term goals. And while these short-term goals are certainly important for the customer, especially given the focus on saving the money before purchasing - rather than using credit, the account structure puts those deposits at risk once the savings goals are reached. What will the Bank's follow-up efforts look like with those customers to continue saving?

The account looks to be part of a series of changes at Americana Community Bank - as noted on the Bank's website, it looks like a new site, new products and new look are in the works.

ABA Discussion Topic 5: Branding Across Business Units and Market Segments

The last topic up for discussion from the branding roundtable discussion from this year’s ABA Bank Marketing Conference was branding across business units and branding across market segments. While the topic was not discussed to the degree that the other four topics were, I think it’s worthwhile to offer our perspectives here.

For clarification, the topic of branding across business units was brought up by a woman who wanted to know if and how she should approach bringing together her bank’s brand with its separate mortgage arm – which I understood to operate as an entirely separate business with its own brand. She also asked about branding across different market segments in the same breath, which is an entirely different topic altogether – but I’ll offer my take on both.

Branding Across Business Units

Bringing two business units together under one brand is much like bringing two financial institutions together during a merger. While each situation is unique, it can be expected that there is going to be some compromise. Like any branding initiative, you will need to establish brand standards, train your staff and manage the perceptions of your customers and the community while any changes are happening.

Branding Across Market Segments

I like the fact that the issue of branding across market segments was brought up during the discussion, as I think it’s an issue on the minds of many bank marketers. I think the most important point to make is that your brand is who you are – regardless of whom you are talking to.

While marketers certainly need their message to be relevant to their targets, they must also ensure that their messages do not conflict with one another. I think there is a tendency for some marketers to tell one group what they want to hear, and then turn around and tell another group what they want to hear (and sometimes message #2 isn’t in-line with message #1) – and, this simply can’t be allowed to happen if you’re looking to build a powerful brand with a consistent message.

Whether you’re bringing together business units or targeting different market segments, there will be branding implications to consider. And, like much of the discussion we’ve had since the Bank Marketing Conference, management of your brand during times of change is critical in creating the perceptions your customers and your community have of your institution.

What do you think Jeff?

ABA Discussion Topic 4: Branding and ROI

Like Jeff, I am not surprised that the topic of branding and ROI was brought up at the branding roundtable discussion during this year’s ABA Bank Marketing Conference.

The context in which the topic was introduced to the group is one that I am sure many bank and credit union marketers are familiar with. It goes something like this: “Our brand could use some help – but can’t get budget approval without showing projected return on investment.”

Knowing that ROI will come up in a branding discussion, marketers should be prepared to steer the conversation - and use it as an opportunity to educate their colleagues about brand and the process of branding.

For some direction in reshaping the conversation, check out Ron Shevlin’s post.

I would also like to emphasize a point that Jeff made – your customers already have perceptions of your brand, and every experience they have with you contributes to those perceptions. Rather than allowing those experiences to happen by chance, well-branded companies take deliberate steps to craft and manage the experience their customers will have; this in turn allows an institution to have more control over the perceptions their customers have about their institution. And while some kind of ROI calculation would make many marketers' jobs much easier, it simply isn't going to happen.

Think of Starbucks. Its brand is reflected in everything from the “help us help the planet” message on their coffee cup sleeves to the iTunes free-song download card I received with my coffee this morning (even the song - A Fine Frenzy’s “You Picked Me” was carefully selected). Somewhere along the way, marketers at Starbucks made the choice to include these things as part of the customer experience. And, I would be willing to bet that the marketers didn’t calculate the ROI associated with these choices – and that the same holds true with many of their other choices made in supporting and enhancing their brand.

At the end of the day, your brand is who you are. You can either make the commitment and investment to create the experiences your customers have with you, or you can leave it all to chance. And, you can bet that today's strongest brands aren't leaving much to chance.

ABA Discussion Point 3: Developing a Message to Appeal Broadly

When asked about the most pressing branding issues facing financial institutions, one participant in the roundtable discussion at this year’s ABA Marketing Conference responded:

“We need help developing a message to appeal more broadly.”

In an industry where so many institutions are striving to be “all things to all people” with messages that are already very general and safe, financial institutions should be taking steps to narrow (rather than broaden) their messages – and to clearly communicate the value they bring to their target markets.

Rather than addressing the issue of creating a message with broader appeal, I think the question that more bank marketers should be asking themselves is:

“How can our message be refined to speak more directly to our target market?”

While I can understand the interest in trying to attract more people to an institution, it’s important to remember that the industry is full of so many other institutions trying to do exactly the same thing. And, from the consumers’ perspective, this can only make it more difficult for them to distinguish between institutions in making a choice.

As a result, institutions should be looking to clarify their target market. And, after the target market has been established, it’s important that marketers take the time to understand the needs, values and preferences of that target. This level of understanding will allow messages to be created that have the ability to cut through the noise of other institutions’ more generic messages.

Keep in mind, that while your refined message may resonate loud and clear with your target – it may not be well received by everyone. But this is exactly what you are trying to do – allow people to easily see that you are the choice for them…even if this means that others will have to keep looking.

Be sure to keep your eyes out for Jeff Stephens' insights relative to this topic on The Story.

ABA Discussion Point 2: Branding Beyond Graphic Design

Our conversation from the ABA Bank Marketing Conference continues as we discuss the issue of branding beyond graphic design. Jeff Stephens offers his insights relative to the topic in his most recent blog post, and I would like to expand upon a couple points he made yesterday.

First of all, it’s important that we remember that graphic design most definitely plays a role in creating perceptions about our brands, but it is only one contributing factor in creating those perceptions. At Market Insights, we recognize your brand to be composed of three major elements: the visual, the verbal and the experiential. Graphic design addresses the visual; it may influence peoples' experience with your brand – but it certainly does not address the verbal element of your brand.

Jeff uses the concept of touch points to illustrate this point – which suggests that any interaction with your organization contributes to the perceptions people have about your brand. Perhaps the most important point to keep in mind relative to touch points is that “only a few of them are created by your bank marketing department.”

This is especially important when considering any kind of overall branding initiatives. All too often, bank executives and management teams are quick to place responsibilities relative to branding in the hands of their marketing departments. And while marketing departments should certainly drive these efforts, powerful brands require the involvement of everyone within an organization.

The expectation that marketing departments can handle the entire process relative to branding initiatives may be based in peoples’ belief that branding is all about graphic design (i.e. brand being equated to a logo and tagline). But, like Jeff pointed out, elements of your brand such as your choice of carpet and the way your employees shake hands with your customers don’t involve graphic design at all – and probably are not considered to be the responsibility of your marketing department.

Powerful brands are created when the visual, verbal and experiential elements work together. And, this is usually accomplished when they are deliberately crafted and carefully managed. Graphic design obviously plays an important role in creating pieces that support your brand visually, but don’t let the verbal and experiential elements fall by the wayside.

Continuing the Branding Roundtable Discussion

After returning from the ABA Marketing Conference last week, we decided that we would continue the conversation from the branding roundtable session with our friends from Creative Brand Communications on our respective blogs. Each of us have addressed the first point of discussion – the definition and process of bank branding, and during the coming weeks, we each plan to offer our take on the following discussion points:

• Branding beyond graphic design
• Developing a message to appeal broadly
• Branding and ROI
• Branding across business units and market segments

Jeff makes some great points relative to the definition of your brand. Namely, I think the point about your brand being the total sum of experiences anyone has with your company anytime is one to remember as you consider your institutions brand.

As we have discussed before, it’s clear that the concept of branding is unclear to many financial services executives and marketers. To illustrate that point, I want to use an example that was brought up during the roundtable discussion at the conference.

At one point during the discussion, one of the participants made a statement like:

“I don’t understand why people consider Commerce Bank as having a powerful brand and value proposition – their customers are always coming into my branch and complaining about the service they receive; and, I always see long lines in their lobbies. How does this translate into having a powerful brand?”

And, the point was made that Commerce Bank’s position is not based on service or short lines – it’s based entirely on convenience. The bank touts itself as “America’s Most Convenient Bank”, not as “The Bank with the Best Service” or “The Bank with the Shortest Lines” – the bank’s marketing, branding and delivery choices are made within the context of being the most convenient bank in America.

Commerce Bank is focused on creating the perception of being the most convenient, what perceptions does your brand create?

Branding Roundtable Discussion at the ABA Marketing Conference

Earlier this week, I attended the branding roundtable discussion at the ABA Marketing Conference in Baltimore – which reinforced my belief that branding is still one of the most misunderstood initiatives in financial services. The session was short and the issues presented for discussion were not covered in sufficient depth; so, I would like to continue the dialogue and offer some insights relative to the topic of branding as it relates to today’s financial services industry.

The first issue that was brought up for discussion during the roundtable was defining exactly what branding is; and, clarifying what the process of branding looks like.

While branding has a variety of definitions, we understand effective branding to be the process whereby consumer perceptions are deliberately created and carefully managed. And, this creation and management of perceptions extends well-beyond your name, logo and tagline.

It’s important to remember that people already have perceptions of your institution and your brand. This is important, as many people involved in the branding discussion were talking as if they don’t have a brand because they hadn’t yet addressed the issue or undergone some kind of formal branding process.

With that, the process of branding your institution will look different depending on who you talk to. And, people in attendance at the session gave me the perception that they were trying to compare apples to apples with a discussion of costs relative to a branding project – at some point during the discussion, it was decided by the facilitators that a number between $50k and $150k should be considered a “good deal” in hiring a branding firm to work with you.

While there are plenty of firms out there that are capable of helping financial institutions create more powerful brands, it’s important to understand that their processes are likely very different. And, institutions that simply look at bottom line costs involved in a branding program are likely overlooking very important issues like how much time a firm will spend getting to know you or the scope of work involved (many creative firms will sell you a logo and tagline and call it “branding”).

It’s encouraging to see the issue of branding being discussed among bank marketers and executives – but, I think a presentation, as opposed to a roundtable discussion, could have brought some much needed clarity to the topic.