Fearful Leaders

Today, National Public Radio (NPR) interviewed Jean Ann Fox, Director of Financial Services at the Consumer Federation of America, about the impact of recent bank failures, mergers and buyouts. The story suggested that with the consolidation of some of the larger banks, consumers have an opportunity now to “reshop the market and see if you can get a better deal at lower cost at a smaller bank.”

There is no doubt that the turmoil in the world’s economic markets and high profile bank failures will contribute to customer churn, especially in some markets. But are small community banks prepared to take full advantage of that churn, or are they approaching the ocean of opportunity with a teaspoon? Many community bankers haven’t taken the time to understand their market; or ensure that their brand is relevant to that market...so they don't know how to reach out to their potential customer in meaningful ways. In fact, in this very moment fearful leaders are busy cutting marketing budgets and putting off strategic growth decisions. They could benefit from advice offered today in Seth Godin's blog:

"Growth is frightening for a lot of people. It brings change and the opportunity for public failure. So if the astrological signs aren't right or the water is too cold or we've got a twinge in our elbow, we find an excuse. We decide to do it later, or not at all.

What a shame. What a waste.

Inc. magazine reports that a huge percentage of companies in this year's Inc. 500 were founded within months of 9/11. Talk about uncertain times.

But uncertain times, frozen liquidity, political change and poor astrological forecasts (not to mention chicken entrails) all lead to less competition, more available talent and a do-or-die attitude that causes real change to happen.

If I wasn't already running my own business, today is the day I'd start one."

Blow Up Your Marketing at the ABA Marketing Conference

Earlier this week at the ABA Marketing Conference, I had the opportunity to join Jeff Stephens from Creative Brand Communications in an episode of his bi-weekly Banktastic podcast Blow Up Your Marketing. Take a look at what conference attendees had to say about the conference.



Blow Up Your Marketing episodes can be seen on the Banktastic blog. Check them out, and watch for future episodes.

Going Green: Social Responsibility vs. Marketing Tactic

On Monday, I had the opportunity to attend the round table discussion “Going Green” at the ABA Marketing Conference. And, having seen a number of institutions jump on the green bandwagon over the last year – I think the conversation missed some important points.

First of all, the complete name of the session was: “Going Green: It’s the right thing to do – so how do we do it right?” While many consider adopting green practices to be the right thing to do from an environmental standpoint, the session focused instead on it being the right thing to do so institutions don’t get “left behind.” As we’ve talked about before, making choices so you don’t get left behind only contributes to the commoditization and sameness we’re seeing throughout the industry. And, these kinds of efforts, especially when tied to “going green” (with the increasing awareness and sensitivity to greenwashing), can really do more harm to your institution than good – a point that was never made during the session.

During the conversation, the point was made that going green can be used as a competitive differentiator – in large part because most institutions aren’t pursuing such efforts. But, this conversation quickly shifted to emphasize the fact that institutions that don’t pursue green initiatives will be at a competitive disadvantage. Once again, rather than encouraging institutions to determine on an individual level whether green initiatives makes sense at their institutions – within the context of their markets and their brand positions, attendees were encouraged to pursue these initiatives as means to stay on a level playing field. This was a big red flag for me.

The most important takeaway from the session was: take incremental steps, and be honest and transparent.

I’d qualify this suggestion though – first, determine if becoming a green business makes sense for your institution. And second, recognize the important differences and implications associated with being a green business versus those associated with an institution working to become more environmentally friendly or sustainable.

While allowing customers to sign up for paperless statements certainly reduces paper and the environmental impact of shipping them (not to mention the cost of postage), it’s simply not enough to promote an institution as green. Take a look at institutions like New Resource Bank, Green Bank, and Alpine Bank (the featured bank during this session) as examples of those that have taken significant steps to become more environmentally sustainable – and they did so before promoting it in their marketing materials and campaigns.

Buzzwords at the ABA Bank Marketing Conference

Over the past few days at the ABA Bank Marketing Conference in Denver, we've heard quite a few ideas and concepts being talked about repeatedly. Some of what we're hearing includes:

• Experience - a concept that we heard a lot about at last year's conference is still on many attendees' minds. Joseph Pine's opening keynote discussed the progression from businesses selling commodities to goods; goods to services; services to experiences; and experiences to transformations. While some institutions certainly pay attention to the complete customer experience, many are stuck simply selling services or goods - which raises concerns regarding commoditization.
• Transformation - as I mentioned above, Joe Pine emphasized the importance of transformation in today's competitive environment; the idea was mentioned in many of the presentations. As Pine described it, beyond creating a customer experience, successful companies will be those that are transformational - those that are able to transform their customers' lives in some respect. The emphasis here raises concerns for me, as many institutions havn't fully grasped the concept of creating and managing the customer experience - which needs to happen before trying to become transformational.
• Differentiation - we've heard much more discussion around the issue of differentiation than we did at last year's conference - which is encouraging. While the marketers here seem to understand the importance, we are hearing a lot of frustration around how to convince senior management and boards that differentiation needs to be part of the overall marketing strategy.
• Segmentation - a topic we didn't hear much about last year, segmentation has certainly become a much more well-known concept, and one that seems to be working its way into many institutions' strategies. I'm impressed with the level that people are talking about the topic. As an example, people were talking about the many segments that make up Generation Y - where last year, the broad group of Generation Y was talked about very generally.

As attendees return home from the conference, I hope that these concepts can make their way into next year's marketing strategies. It's a departure from years past - as none of these concepts offer a turn-key solution - they will vary from market to market, and from one institution to the next.

Young & Free targets Gen Y in Texas, but they're not alone

After reading so much about the successes of Young & Free Alberta in targeting Generation Y, we knew it was only a matter of time before a similar concept would be introduced in the United States. And this week it was; Young & Free Texas was launched by Texas Dow Employees Credit Union.

In reading the news and visiting the site, I initially thought the Texas initiative would generate the same kind of buzz and success, if not more, that it did for Commonwealth Credit Union in Alberta. This is especially true as we havn't seen other institutions going to equal lengths to target Gen Y.

But it looks like Texas-based Resource One Credit Union is launching an extremely similar initiative this week: my life, my money. Not only are these initiatives both targeting members of Generation Y in Texas - but also use social media in their marketing, are offering a similar checking/savings account, and are intending to hire a spokesperson - with nearly identical perks.

It will be interesting to see how both are received and talked about during their respective searches for spokespeople - and in the months that follow.

Update: there are a couple great discussions discussing both of these accounts/initiatives in depth, one on Everything CU and another on The Financial Brand.

Should You Really be on YouTube?

According to a feature in the latest ABA Bank Marketing Magazine you should be. The title of the article You Should be on YouTube raises huge concerns, as it implies that all readers should have a presence on the website. While I was a bit surprised to read such a definite statement, I was more alarmed by the statement that followed:

“If you are not, your competition might beat you to it.”

Who cares if your competition beats you to it? If a YouTube video doesn’t support your marketing efforts and overall strategy, you shouldn’t waste resources developing, posting and managing content – especially for the sake of having a video online before your competition does.

Overall, the article does make good points about blogs and podcasts, but sends the wrong message in being so definitive about being on YouTube. We can all think of institutions who have no business posting videos online; and there are plenty of wildly successful institutions who aren’t on YouTube and aren't worried that their competition is – for many institutions it just doesn’t make sense.

Harris Bank Touts Stability in its Musical Chairs Campaign

I suppose it was only a matter of time before the musical greeting cards concept was adopted by marketers for a direct mail piece; we received one yesterday at the office from Harris Bank.

The mailer leads with the message: “business banking in Chicago has become a game of musical chairs”, and plays “pop goes the weasel” when opened. While the music was unexpected and grabbed my attention, I had to read the content a couple times before I fully understood the purpose of the mailer.

Inside, the piece talks about how “While the rest of the Chicago banking community plays musical chairs – old familiar names disappearing, bankers moving on- Harris remains rock solid. We have had the same name for more than 125 years. We’re here to stay.”

Granted, we did just see the major acquisition of LaSalle Bank in Chicago by Bank of America - which is certainly an example of an “old familiar name” disappearing, but is that enough to make customer think about switching institutions? Bank of America did an excellent job handling the transition for LaSalle Bank customers in the months leading up to the acquisition – sending personalized letters, providing answers to FAQ’s, setting expectations, and welcoming them as B of A customers. These efforts undoubtedly put many of LaSalle’s customers at ease about the acquisition – and it’s these kinds of efforts that we’re seeing the major national and regional players deploying during acquisitions in markets across the country.

And if having the same name for 125 years isn’t compelling enough to switch to Harris, the mailer also carries a $250 promotional offer for opening a new business account; but even then, I doubt it’s enough to move a significant number of accounts.

With a lot of uncertainties around the success rates of direct mail initiatives by financial institutions, I have to question how much Harris paid for each of these pieces – and what it expects as far as a return. And with the amount of money the campaign must have cost for production and postage, I’d like to think that the marketing team would have taken the time to ensure that the pieces were addressed to a specific person at our office - but the piece was simply addressed to “Market Insights”.

Over the last couple years, we’ve seen quite a few institutions promote stability and longevity in markets where acquisitions and mergers are happening – and in most cases, the expected customer run-off from the acquired institutions just doesn’t follow. I expect that the same will hold true in the Chicago market, especially with the well-managed transition of LaSalle Bank to Bank of America. The Harris piece just falls short.

Is your institution committing a “deadly marketing sin”?

The latest issue of BAI’s Banking Strategies magazine features the article Six Deadly Marketing Sins – Financial 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?

What kind of financial guidance are you offering Gen Y?

Yesterday’s Marketing Daily featured the article “Gen Y is Going to Need Financial Guidance More Than Most.” Citing outstanding student loans, credit card debt and lack of savings, it’s easy to see why Generation Y may need some guidance to navigate these challenges.

So, what kind of financial guidance are you offering Gen Y?

The article makes a good point about life-stage goals – with Susan Menke, senior financial services analyst at Mintel giving the example that “Many Gen Y consumers have a picture of where they’d like to be financially by the time they’re 35. Often, that picture includes owning a house, having children and being free of student loan debt.” She goes on to say “They key is to build your model so that you’re targeting both short-term profit and log-term profit potential.”

Looking at Generation Y’s current life-stage (many are high school or college students, or recent graduates starting careers), and the challenges many are currently facing – like the student loans, credit card debt and lack of savings, as mentioned in the article – gives us some direction as to what kind of financial guidance Gen Y needs now, in the short-term. Gen Y needs a plan to pay off their debts; and many need a reason to start saving their money. This is where life-stage goals like buying a car or home, or saving for a vacation or retirement can become part of the financial guidance your institution offers.

And, depending on your market, offering financial guidance to Gen Y may also require that you think beyond the traditional in-branch meeting with a personal banker. As an example, how will your institution offer financial guidance to Gen Y through your website or other venues?

If you aren’t currently offering any overt financial guidance, education or planning tools for Generation Y, it may be time to start thinking about doing so. With Gen Y expected to become more lucrative in the coming years, the relationships established with them now – especially during important life-stage events, like buying a first home, should be looked at relative to both short-term and long-term opportunities.

Online Banking On Its Way Out?

In a conversation with a banker last week, I asked about his intentions to add online account opening capabilities for his customers. And, this sparked an interesting conversation about the limitations placed on his institution's online banking platform by its core processor (the company also hosts his online banking service).

You see, this banker had been considering adding this feature to his online banking for some time – and he really saw the value in making online account opening available to his customers. But he told us he couldn't add it because his core processing company had no plans to offer online account opening as part of its services to its bank customers. I understand that it takes time to develop these technologies, but it was the rationale behind this specific company’s choice not to offer online account opening capabilities to its bank clients that was pretty shocking.

They told the bank's management that online banking was on its way out. That’s right, they told them that the regulators would certainly kill online banking in the near future, and as a result, there was no reason to make the investment in developing the technology which would allow online account opening.

Online banking on its way out? Seriously? I don't think so.

Consumer behaviors are changing rapidly - especially relative to the Internet. And, today's successful institutions are those that embrace the changes and partner with outside companies who do so as well.

Direct Marketing

According to a recent Direct Marketing Association report, American financial services institutions are increasing their use of direct marketing. The $13.4 billion that U.S. banks and credit institutions spent last year on direct marketing advertising generated $178.8 billion in sales. How's that for ROI? These sales are forecast to hit $286.2 billion in 2012, according to the report.

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.

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?

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.

A Bold New Look

There was a news story this morning announcing that Washington Mutual is launching a new version of their website, www.wamu.com. Their stated purpose for this upgrade is to make “the customer's online banking experience simpler, faster and more personalized.” We’ve been talking a lot lately about the importance of relevancy and growth. While I’m not certain their new site gets the job done; I was pleased to see that they are clearly paying attention to two important aspects of remaining relevant: 1) they know that their marketing must remain dynamic; and 2) they understand the customer is at the center of all they do. When was the last time you updated your website? (and yes, by the way, our website is under revision…stay tuned).

One thing their new website does that helps ensure relevancy: they ask "what do you think about the new wamu.com?" They invite feedback. If they have taken steps to show they listen to the feedback they receive, they are well on their way to staying relevant.

Who is setting your customers' expectations?

Trendwatching.com's February Trend Briefing highlights the expectation economy which it has defined as:

“An economy inhabited by experienced, well-informed customers…who have a long list of high expectations that they apply to each and every good, service and experience on offer.”

This includes financial services. And while the expectation economy does not include all consumers, evidence that financial institutions are taking notice of this group is evident in everything from the elimination of traditional teller lines at some banks and credit unions to the installation of lobby coffee bars in others.

Perhaps the most interesting point made in the article, and one which I think is often overlooked by financial services executives and marketers, is that expectations are often set outside your industry - in our case, bank customers' and credit union members' expectations are driven, in some part, by experiences outside of financial services. The article cites “Singapore Airlines’ sense of status, Starbucks’ understanding of indulgence and rituals, H&M’s obsession with making up-to-the-minute fashion affordable, or Apple’s prowess in design and usability” as examples of companies that are driving consumer expectations across the country.

Whether it’s industry leaders like these examples, or a local business in your community offering value above and beyond the expected, it's important to realize that your customers’ expectations of you and your institution are not necessarily driven by anything within your direct control. And, that you recognize opportunities where you can bring the customer experience your institution offers more in-line with these expectations.

We are all consumers; and we all have experiences with retailers, restaurants and other businesses that shape our expectations. Rather than relying on peer-to-peer comparisons to drive decisions (the article also goes as far as to say that “just copying competitors is a race to the bottom), financial services executives and marketers can benefit greatly from understanding their customers’ expectations, not only of financial institutions, but as consumers in general.

Depending on your market and your customers, you may find that their expectations are shaped by experiences like the ease of use and instant gratification of a program like Apple’s iTunes; or, they may be influenced by the personalized experience Starbucks offers in customizing their drink order and calling them by name. Whatever the case, financial institutions can play to these shifting expectations; first, by being more aware of them – and by finding relevant ways to incorporate them into the ways they conduct business.

Buzz is Relative

We talk quite a bit about creating buzz when we’re talking to executives and marketers about their marketing efforts. During a meeting last week with a client in Texas, I was reminded that buzz is relative (small-town-Texas-buzz is very different from Chicago-buzz).

While the concept of buzz may be the same, the process of actually generating buzz depends quite a bit on your market. In the case of this small town client, everyone in town knows everyone else – and word spreads like wildfire. As a result, management of peoples' perceptions becomes very important.

In any case, if your looking to generate buzz, your message needs to be buzzworthy. I first heard the term “buzzworthy” years ago on MTV; the station’s Buzzworthy Blog actually has a great definition of the term:

“speculative or excited talk or attention relating to music and culture of sufficient worth or importance”

In the case of your institution, you won’t be generating excited talk or attention around music and culture; instead, depending on your market, you may generate this kind of talk and attention when you open a new branch; or for your involvement with a Habitat for Humanity project; or because of your financial education program for high school students.

What’s buzzworthy in your market?

Are your marketing efforts communicating something of sufficient worth or importance to your target market? Is it enough to generate speculative or excited talk or attention in your community?

Where does social, mobile and experiential marketing fit into your strategy?

It’s the beginning of a new year; and for many institutions, the New Year brings a new marketing strategy. For some, the strategy will simply be a continuation (or repeat) of last year’s strategy; and for others, new challenges will be met with new approaches, initiatives and expectations.

The cover story of the latest edition of Marketing News Magazine discusses 2008 as the year of social, mobile and experiential marketing. Certainly, awareness has been generated around these kinds of initiatives throughout the financial services industry over the last year – and we’ve seen a few institutions that have recognized the opportunities presented by these initiatives and have put them into play. A few examples that come to mind include: Wells Fargo, ING Direct and Umpqua Bank – but these institutions are far from the norm.

Take social media for example. Over the last year, we’ve talked to quite a few executives and marketers about the opportunities that social media presents to today’s financial institutions – specifically relative to marketing. And, one of the more interesting questions posed to us was: “When is this going to happen?”

Meaning, when is social media really going to start to have an impact on us – as a financial institution? The answer is now; it’s already happening. Whether you’ve given any thought to incorporating social media into your marketing strategy, it’s playing a major role in the way consumers interact with one another and with the companies with which they do business. An example of this can be seen in Wells Fargo’s series of blogs which provides information and an open forum for interaction between the bank’s customers, potential customers and employees.

While we’ve heard the word “mobile” talked about quite a bit over the past year, I think we’re more likely to see a push for mobile banking (Bank of America and Chase come to mind with their big mobile banking pushes) as opposed to mobile marketing in the financial services industry.

While I can certainly see the benefit in banks and credit unions incorporating social and mobile marketing efforts into their strategies, I would say that experiential marketing initiatives will probably have the greatest impact of the three in 2008. In an industry where products are so easily replicated and there is little that distinguishes one institution from the next, those institutions that can create a meaningful experience for their customers and target customers are more likely to stand apart from the competition and attract the customers that can appreciate their unique value added.

The Marketing News article credits Larry Deutsch, Managing Director at Jack Morton Worldwide – a New York based consulting firm specializing in experiential marketing with saying:

“The ideal experiential marketing effort is an ownable, sensory brand experience, a way to make customers feel like a product or service is theirs. Those motivated customers influence family, friends and coworkers to try the product.”

If 2008 is indeed the year of social, mobile and experiential marketing, where do these initiatives fit into your strategy? Traditional marketing initiatives (i.e. advertising, direct mail, etc.) will undoubtedly continue to be the focus of marketing strategies across the country, but marketers must adapt to (or at least pay attention to) shifting consumer behaviors, needs and preferences. Because while companies in other industries incorporate social, mobile and experiential marketing into their strategies in response to these changing consumer behaviors, financial institutions looking to remain relevant need to do the same.