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:

• Café 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.

Targeting Small Businesses with Lemonade

Jeff Stephens points us to the latest from Umpqua Bank – a campaign centered on perhaps the smallest and most basic of small business, the lemonade stand. “The Lemonaire” campaign, as the bank calls it, uses a variety of media to expose small business owners to the bank’s latest small business initiative - giving entrepreneurial youngsters the opportunity to start their own lemonade stand with the basic supplies and $10 business loan to get their business started.



Like Jeff, I find the campaign website interesting in that there is no overt attempt to sell and it’s minimally branded. You’ll notice that the only real message communicated in text at the bottom of the screen is not an attempt to sell product, but one of the bank’s philosophy – “We believe in encouraging entrepreneurs.” This, in combination with the fun and different presentation reflects Umpqua’s messages and overall brand, and will likely drive many small business owners to consider the bank for their needs.

Visit the lemoniare website and read what the New York Times has to say about this campaign.

Change Your Mindset #3 - Focus on creating a customer experience rather than on customer service

Think of any visit you have made in the last year to any store (retail or otherwise) that stands out specifically in your mind. What did the establishment do to make this visit stand out to you? Chances are the visit stood out because it was more of an overall “experience” than merely a visit. And, the chances are that the visit stood out only because it was an experience. On the flip side of this question, think of how many visits you’ve made to establishments that you would just as soon forget, or have forgotten altogether.

Creating a customer experience does n0t mean just creating a beautiful branch facility that has a fluid floor plan, is very modern, and has plasma television screens. On the contrary a customer experience is none of those things. Creating a great customer experience is about all of the seemingly insignificant things that you do to connect with the customer from the moment they walk in the door.

An example of this would be having your concierge stand up, shake the customer's hand, ask them how their day is going, ask them what they need assistance with, and then walk them to the department where they need to be; instead of sitting behind a desk, saying hello, and pointing them in the direction of one of the departments.

Umpqua Bank is one of the most successful banks (large or small) in creating customer experience. Umpqua is currently running a program called LocalSpace that allows customers to use a networking service through Umpqua’s website to find local vendors and merchants for any variety of needs. This creates a feel of commitment to the local community with which customers can connect and creates an “experience” that is very specific to the local community on a branch by branch basis.

Another program that Umpqua has initiated is the Discover Local Music Project. Umpqua spotlights local bands and music in their markets, and allows the customer to sample the songs and even create a CD of their favorites. All of this is directed towards connecting with the customers and creating an experience at the branch that is memorable and stands out from the mundane daily task of visiting a bank branch.

Customer service is a standard and is expected. Very rarely will a customer recall that they had “good” customer service for any reason, but they will definitely remember if the did not receive good customer service. Therefore, quality service is the standard at which everyone must operate. In order to truly stand out you must create the “experience” that will connect with your customers, get them talking about your bank, and keep them coming back.

Change Your Mindset #14- Community involvement means more than serving the community – become visibly involved

It is typical of community banks to assume that they are involved in their community, simply because they have a local branch serving the area. While most financial institutions claim to have a commitment and involvement in the community, the question remains what is considered true community involvement?

Community involvement goes beyond sponsorships and donations. These monetary contributions need to be reinforced with visible community activity that requires time and hands on volunteering, working side by side with members of your community.

By becoming visibly involved, banks can begin to stand out and gain the attention of the local community. It is important to choose a community activity that matches your bank’s message and goal as an institution. For example, if your bank’s objective is to help customers achieve home ownership, it would make sense to become involved in a community project like Habitat for Humanity, where the bank is helping others realize the dream of having a home. Community activities can turn into an opportunity, for essentially, free publicity. Local newspapers or television stations may publicize the event, and you will be able to showcase your involvement and commitment to the community.

Umpqua Bank is an example of an institution that has taken the spirit of community involvement above and beyond monetary donations and sponsorships. Umpqua offers a true commitment of employee time and not only community involvement, but a since of community unity. The community service motto is “together making a difference where we live and work”. The phrase creates a feeling of connectedness within the community and provides a sense that it is everyone’s responsibility to make the community better.

Umpqua created the Connect Volunteer Network, which provides full time employees up to 40 hours of paid volunteer time a year during work hours. The volunteer programs are focused primarily on youth, education, and community development. There is a running tally on the website that shows the number of hours bank employees have given to the “communities we serve”.

Umpqua is an example of a large institution, but it can be accomplished on a smaller scale. Iowa State Savings Bank in Creston, IA (assets of $112 mil.) is an example of a community bank that focuses its efforts on becoming visible in the area. The tagline throughout the website is “Bankers make great volunteers”. In this way, the bank’s ongoing community commitment is showcased on every page of the website, as opposed to being buried in the “About Us” section.

Iowa Sate Savings Bank realized that education issues were very important to their customers, so it began participating in community projects to improve youth development. The Bank partnered with Youth Plus and created the Excellence in Education Program, to reward people who are helping to improve education. It also started a program to send employees to volunteer in reading programs with local schools at the end of the work day. While it may cost the company some time during the day, the program allows bank employees to become visible within the community and to create a link between the bank and local educational programs.

The importance of community involvement can not always be measured in monetary expense and gain but rather an investment of time and effort in the community. The benefit of this level of involvement extends well beyond name, recognition to include public relations opportunities, reinforcing and crafting perceptions of your brand, and ultimately having a meaningful and tangible impact on your community.

Change Your Mindset #20: Pay Attention to Marketing Outside of Financial Services

Today’s most successful companies are those that market themselves effectively; they connect with their target audience, communicate a clear value proposition and deliver with consistency. And in today’s crowded marketplace where consumers are exposed to thousands of messages a day, financial services marketers must pay attention to marketing initiatives both inside and, perhaps more importantly, outside of the industry in order to stay relevant and effective.

Many financial marketers rely heavily on the traditional marketing playbook with initiatives like local newspaper-ads, sports team sponsorships and in-branch flyers to promote products; and while these initiatives may contribute to success at some level, they are often-times predictable and easily overlooked by consumers. In order to create the kind of buzz that will generate real results at the bottom line, institutions need to get noticed and focus on integrating their efforts effectively across various channels; this works to introduce, reinforce and keep your message in front of your audience.

While buzz can be generated in a number of ways, it’s important that you remember that you want to be noticed for the right reasons. This begins by identifying what message or characteristics you want to emphasize in your marketing efforts and ensuring that all of your initiatives work to support them.

An example of this kind of thinking can be found in many of Umpqua Bank’s marketing initiatives where it has borrowed from the retail industry in creating an environment that is much more like a retail store than a traditional bank branch. Umpqua generates buzz with initiatives like its Discover Local Music Project where the Bank supports local musicians, creates compilation CD’s and sells them in their branches and online. This initiative reflects Umpqua’s dedication to being involved in the communities it serves and is in-line with their brand and messages; this allows the initiative to both create and sustain a buzz over time.

Overall, financial services marketers need to watch for trends and shifts in their target audience and reflect those shifts in the marketing initiatives. We see great opportunities for institutions to expand upon their online presence with social media like blogs and podcasts; to run campaigns that connect emotionally with the audience as opposed to emphasizing product and/or rate; and to leverage community involvement as means to reinforce an institution’s messages and brand. And while many of these kinds of initiatives have had successes in other industries, there’s no reason why they shouldn’t or couldn’t be successful in financial services. With that, we ask that you pay attention to marketing outside of financial services and be open to the kind of unexpected initiatives that can get you noticed and have a real impact on your bottom line.