You call the bank with an investment question… the investment customer service rep knows about the loan promotion you read about in the paper and offers to answer your questions. You like what you hear. You walk into the local branch to apply; the branch officer knows about the promotion (…and the details) and has an application package ready for you. As you walk through the lobby on the way out, you overhear a commercial loan officer detailing the promotion to one of his clients….This is unified bank marketing!!
Does this sound like your bank?
Authored by:
Bruce A. Clapp, President, MarketMatch
David Kreiman, Vice President, Director of Marketing, Glenview State Bank
If not, you need to get your entire organization involved—and unified—into the marketing process and delivery.
How can we be more successful in our marketing? We hear this a lot in conversations with fellow School of Bank Marketing and Management alumni. The answer is actually more direct than most people may think. Like most effective programs, it starts with a process. A process is much different than an event in that it starts and continues to evolve and is not a single activity in isolation. To evoke the real change needed, it must happen every time, every place, with every product/service, and with everyone. Please consider and remember that “direct” may not be a synonym for “easy.” The real fundamental answer is when your bank becomes a TEAM!
T…ogether E…veryone A…chieves M…ore
This is an old standby that seems to really sum up the realities of bank marketing today. We cannot isolate ourselves as just business bankers, retail bankers, or marketers. Today’s banking requires an organization to have everyone in a marketing mindset and, further, be on the same marketing page. We need to act together-- unified-- to overcome the obstacles facing our organizations. Competition comes from all angles; some traditional, some non-traditional and all seeking to capture our best customers and prospects. Why fight against our own internal teams when the competition is stiff enough?
We will explode the roadblocks to marketing effectiveness and give you the 7 Signs that unified marketing is within reach at your organization. By detailing the 7 Critical Signs, giving the detail, and providing Action Tips from other successful banks, we want to prepare you for marketing success! If you score 6-7 of the signs, you are a Marketing Leader, if you score, 3-5, you are a Marketing Doer, if you score 1-2 you are a Marketing Follower!! We need you, and your organization needs you, to be a Marketing Leader!
We will look at the 7 critical signs that your bank is on the road to fueling your organization’s marketing appetite and turning the corner to become a Marketing T.E.A.M. Using two “real world” success stories, Glenview State Bank of Glenview, Illinois and Harbor Federal, Fort Pierce, Florida, we will look at ways to infuse these proven concepts into your bank.
First, let’s break several myths of marketing. We know more than crayons, spray adhesive and how to put on a party. Marketing is a core element of success and provides the motivation, rationale and knowledge for the buying behaviors of our customers. Marketing enables a bank to leverage the capital-intensive operation of banking and turn the revenue model in a positive direction. Marketing, for far too long, has been viewed as an expense, a necessary evil, in the world of banking. We know, however, that the successful banks and financial service firms have woven the fabric of their organization into seamless combinations of operations and marketing.
Secondly, marketing is the marketing department’s responsibility. True, but it is also the responsibility of everyone in the organization. The marketing department’s true role is to set the tone and direction of the message and the organization’s true role is to deliver it in unison to the customer and marketplace.
Now, let’s take a look at the 7 signs that indicate your bank is on its way toward this all-important goal….one that will yield tremendous results, increase satisfaction among the bankers, marketers and customers!
Marketing needs to be a driver for the bank and not an afterthought (this alone is another article!) The ABC’s of a senior management commitment ALCO, Being a part of senior management committee, Communication from the top that marketing is a key driver of the organization. This may be easier said than done, but volunteer for leadership committees and for marketing to lead new initiatives. It all plays a part of marketing being a critical link of the bank senior management.
ACTION TIP
Glenview State Bank… If you are not on your bank's Strategic Planning Committee, use your marketing expertise to sell your way on that committee. Put together a proposal or plan of what you would present at Strategic Planning and present it to the powers that be as something you would like to pitch at the meeting. If it's impressive enough, and if you are able to successfully horn into strategic planning, then your success at that meeting should be all you need to make your pitch to always be included.
As for ALCO, I initially simply took the approach that I wanted to observe those meetings. Using that non-threatening approach, I was allowed to attend ALCO meetings without any hesitation. After all, as marketers, we don't want to run the ALCO meetings. However, the need to be intimately involved in the decisions guiding the turns of the bank is important to the marketers. We need to know what to “turn on”, when and to what degree to satisfy our balance sheet needs and then the ability to match that with our customers needs is where marketers earn their keep!
In all discussions, presentations, and reports, promote marketing as an investment versus an expense. Even change your report names to reflect the change. It is a subtle presentation change but a huge change of mindset. Talking ROI, net margins created, reductions in turnover equating to dollars saved, response rates to programs, all help with seeing marketing as an investment in the future of the bank. Create benchmarks for your marketing TEAM. Survey your internal customers and publish the results (but be prepared for the results and leverage the potential outcomes in a positive way), benchmark each program’s ROI, benchmark the “cost of doing marketing business,” prepare information on competitive spending, etc. Capital allocation comes down to ensuring a return on the critical dollars of the organization, if marketing is presented with a return model, the capital decisions begin to include marketing on the front-end and not as an afterthought with remaining allocations.
ACTION TIP
Harbor Federal Bank…..Harbor Federal produces a monthly “Marketing Investments” report that is distributed to all Senior Management. The report details the programs completed in the month, the money allocated in support, and the monetary results. It calculates the impact to everything appropriate for the program; from new accounts, margin created, accounts retained, new balances, comparison to prior years, and more to ensure it all appears in numbers in black and white. Not all reports are pretty, but the reliability and guidance to all Senior Management are indispensable.
Constant, meaningful and targeted two-way communication. Ensuring all areas of the bank know what the strategies are, the tactics created to leverage the opportunities, the time schedule of events, and how each area plays a role will create a TEAM approach to marketing. Everyone has a place, a key role, and understands the greater goals of the organization. “Marketing Hotlines,” where employees can call anytime to check a promotional calendar are invaluable. Survey your internal customers and establish benchmarks of communication scores.
ACTION TIP
Glenview State Bank….. E-mail 'em to death, but always give 'em a place to go to get the information. Some people read and retain e-mails and some don't. Nothing you can do about it. While I will get some employees call me "Mr E-Mail", that's okay by me. The most important thing I do is to use our bank Intranet to put all information for their reference. This way, they can never say they don't know where to get the information. This way, also, I can focus my communications to making sure they know where the information is and keeping the information updated. On the Intranet (in a separate Marketing Section), among other things, I include:
Planning is a look into the future based upon current period assumptions. Always maintain a close understanding of your bank’s balance sheet and areas of need from business-line managers. Maintain the ability to turn on and turn up promotions to leverage opportunities and needs, within the scope of the Strategic Plan. Maintain the plan’s focus but be flexible to meet the needs of the organization. You will win converts when you deliver marketing support to a business-line that needs impromptu, but planned, support.
Planning works best when the involved members have an interest in understanding both ends of the plan— How it will impact the customer and market and how it impacts the back-office. The best marketing plans and programs balance the opportunities and strengths of both sides. Take the time to understand how Operations impacts Retail and vice versa and work that knowledge into your marketing plans. Also share your marketing operation, timelines and needs to your internal customers. If they know how to best work with you everyone can benefit from increased efficiencies. Opportunity awareness is heightened when all TEAM members think strategically and offer ideas and suggestions from their vantage point…normally the best place for great ideas that work well in the marketplace.
ACTION TIP
Harbor Federal Bank…..Harbor Federal holds monthly “stakeholder” meetings with the business line leaders and important areas of the bank, our internal customers, to include their thoughts, ideas, and suggestions to create initial buy-in. We also hold Regional President meetings with the market leaders to ensure each markets' unique needs are being met and planned. We provide an outline for each area to complete prior to the meeting. We want the meetings to be actionable, focused, and complete with a consensus of action to be taken on their behalf…as long as it falls within our overall strategic plan objectives.
Target your marketing dollars. Target your marketing approach. Target your targets. Effective marketing means creating the best results from the investment you are making. Focusing on targeted customers increases the effectiveness, responses, and outcomes of your marketing programs. Use your MCIF, hold sessions with operational and frontline staff to understand the market, know your competition, and know your bank’s strengths. Do your homework!
To continue the investment perception of marketing, you need to tout your results. Tracking results, promoting the program, and discussing the outcome, creates focused programs. Learn from the week-to-week response, and make mid-stream adjustments and modify future programs based upon the information. Reporting helps your fellow Senior Management understand the results, see that the investment is creating a return and keeps marketing on the forefront of everyone’s mind. Reporting success stories can help with cross-pollination of ideas and success. Keep marketing on the forefront of the organization and everyone will begin asking when the next results report will be published.
ACTION TIP
Glenview State Bank…..Glenview measures, reports and measures again areas such as customer satisfaction, call center results, sales figures and more. The results are sent bank-wide. That is the key, send results bank-wide! The GSB team wants everyone to be informed and better yet focused on the results and what they can individually do to improve the overall success. Harbor Federal also produces a scorecard of activities, results and seeks suggestions from all areas. The results are tracked, promoted and updated for all programs. The operations areas are now asking for the results even before they are published! The key for Harbor Federal is to include operations and business line managers in the initial process, ask how to perfect a program operationally and how to properly track results and they let them know the results at the same time as the sales teams!
Effective marketing organization creates a Marketing Organization that yields core customer relationship improvement, revenue streaming, and profitability while leveraging the entire organization’s “muscle” – creativity, brainpower, and opportunity awareness. Marketing with 100 people or more is always more effective than marketing with one, two or three people!
The process can start today! What can you report to Senior Management to show your effectiveness? Who can you involve in your next planning session? How can you communicate better and more often? Questions you can and need to answer…and the sooner the better.
Follow the proven 7-Steps and see your marketing TEAM grow in size, scope and effectiveness!
Creating and reporting your marketing TEAM value to the organization, communicating openly and often, involving the entire organization in planning and keeping it fluid, targeting your efforts, and being an active part of Senior Management will lead your organization to being a more effective and efficient marketing TEAM…and you will enjoy the results at the bottom line.
HARBOR FEDERAL
Overview: Harbor Federal is a $2 billion savings bank with 34 offices on the southeast coast of Florida offering a complete line of consumer and business services.
Vice President and Marketing Director Aileen Pruitt starts her day reviewing the current programs and knowing how the bank is performing. She prepares for the Tuesday morning ALCO meeting and the monthly Management Committee meeting. Taking a cue from her team-developed marketing department mission statement, Aileen’s focus is her internal customers.
Aileen runs a tight marketing ship and the organization feeds marketing opportunities to the TEAM as they are always looking for ways to promote Harbor Federal and their business line. Aileen has built a marketing team that is the center of a greater marketing focus at Harbor Federal.
Over the past three years, Harbor Federal has migrated from an organization mired in retail order-taking, front office vs. back office disputes, and silos of business lines into a group that has regular “stakeholder” meetings with internal customers, Operations playing a big part of promotions, senior management commitment to marketing, and everyone thinking strategically.
How did this migration happen? Four keys. Aileen’s four keys to marketing success.
Harbor Federal has built a marketing team that is self-supportive. MCIF analyst, graphic artist and project leaders work seamlessly together to provide proactive support to the business lines. They pride themselves on “asking the right questions” to make sure a request for support is not just a “routine order taken.” Helping their internal customer see ways to maximize their effort and results has earned the marketing TEAM respect. A shining example: During a stakeholder meeting, an opportunity to make a big splash at a Builder Development was brought to the attention of the marketing team. Keeping a fluid approach to marketing planning, they knew the area was a corporate focus and their need for support was now. In a week’s time, they built a promotion incorporating operations, technology, sales, and marketing. Online credit bureau reviews, certificates of approval, synergy with the developer’s sales staff and expansive opportunities to brand the event worked together to generate $6 million in closed loans in one weekend!
The organizational commitment is evident in structure and delivery. The Marketing Director reports to the Senior Vice President and has a direct conduit to the President of the bank. Aileen produces a Monthly “Harbor Federal Marketing Investments” report for senior management that is a key tool for gaining budget acceptance for her plans.
GLENVIEW STATE BANK
Overview: Glenview is a $800 million privately-held community bank with seven branches in and around the Chicago suburb of Glenview, Illinois offering a community focused consumer, trust, and commercial product offering.
Glenview State Bank (GSB) is not your typical suburban bank. Being privately held offers advantages and challenges. David Kreiman, Vice President and Director of Marketing, employs all the advantages at his disposal…even creating ones where others may see a challenge.
David has successfully lobbied to create a marketing team that funnels most customer communication through the areas under his management. Directing the traditional marketing, call center, and public relations departments, David can effectively control the external-- and internal -- messaging. Being a technology leader on the management team, David has initiated many time and effort saving technologies to enhance communication and cut down on the levels of touch necessary for decisions.
Daily emails, continuous reporting of customer satisfaction, monthly recaps, and live on-line customer service chat all add to a close finger on the customers’ needs and Glenview’s ability to respond.
David and his team employ meetings with their “stakeholders” on a routine basis. The stakeholders include business line managers and staff management, ensuring the customer message is both across and deep into the organization. A key driver for David is organization and ensuring that marketing has a strategic plan and tactical operations but each is maintained in a flexible manner to account for market opportunities and organizational balance sheet needs.
How has David enabled a marketing approach with such depth and breadth? Here is his secret:
Get Involved: Volunteer for planning, make sure everyone knows you are willing and able to work hard to get things accomplished for your department and to help others.
Take a proactive approach- Diagnose the problems and proactively suggest solutions, involving marketing and a unified organizational front to the Senior Management team—before it becomes a crisis.
Make it “calculate”- in the business of numbers and money, marketing needs to generate both. Coordinate reporting of results and create dynamic reporting methods for numbers that “drive” your organization and share it with everyone.
Know thy customer- know your market, your competitors, your competitors’ market and strengths and weaknesses of all parties—including yourself. Use an outside provider.
As VP, Director of Marketing, David reports directly to the President allowing a direct link to important decision-making and a defacto “stamp” that marketing is important at GSB.