“Being relevant”  determines everything about a business — what it sells, how it sells, how it prices what it sells — but especially should it impose a discipline on customer-facing communication.  So, how are you doing with your customers?

Here’s how you find out if you’re relevant – or not.

Evaluate your company’s communication.  A majority of companies large and small fall into three categories listed below, each with an example from actual Twitter and Facebook posts: (more…)

Filed under: Bank Marketing & Advertising, Business At Its Best, Communication, Public Relations, Small Business Services, Social Media by Zack Self
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There’s a great opportunity to help hundreds of people in your market.  Some of them are likely your customers. What’s that?  Head off a mortgage loan scam in your market.

People who prey on the  uninformed are vile. There’s a simple, cheap way your bank can help: allocate prominent space on your website home page to (1) warn about mortgage loan scams, (2) link to a page where you clearly outline the dangers, (3) make available an email address and phone number to give more information, and finally, (4) link to government sites like the FDIC, FTC and similar pages where more help can be found. What an OUTSTANDING way to help customers, help yourself, and not spend very much money.

Once you’ve got your web page together, perhaps you could tweet your customers (and the media) every time you update the information. Make sure you let customers know about your page with statement notices and across the teller line hand outs – things you’re already doing, right?

Remember, it doesn’t always take a ‘grand gesture’ to do your customers some good. Often times, little things count just as much.

Here are some links to get you (or your compliance people) thinking:

Featured Articles from the FTC:http://www.ftc.gov/bcp/edu/pubs/articles/naps03.pdf

FDIC Tips on Avoiding Mortgage Foreclosure Scams: http://www.fdic.gov/consumers/loans/prevention/rescue/watch.html

Filed under: Bank Marketing & Advertising, Bank Operations & Compliance, Public Relations by George Self
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Recently, a Bank of America branch manager insisted that a man, Steve Valdez, born without arms and who wears prosthetic devices, provide a thumbprint before it would cash his proffered check.  He had two forms of identification, both with pictures; the check he wanted to cash was written by his wife.

Nevertheless, the bank still required Valdez to give up a thumbprint.

Why does this happen?  Three reasons, and every bank CEO, SVP and Board Member should think seriously about about how their bank stacks up:

Reason number one: the bank cut the training budget because they needed to generate as much profit as possible — likely to satisfy Wall Street.

Reason number two: the bank was preoccupied with other “more important stuff” so they simply were not paying attention to customer service.

Reason number three: most banks are “rule” oriented, not “people oriented”.  They train their staff that it is better to follow a rule to hell than stop, engage brain and think.

Now, you say, “No, no, this was just a happenstance.  Any bank can have a bad day.”

OK, you say that if it makes you feel better.  But, I don’t believe it.  I spend a big part of my life in and out of big banks, surveying and researching customer service.  Big banks don’t really believe in customer service.  Why? Because they don’t have to.  If they lose a customer, no big deal.  They’ve got plenty more.

What can your bank do to stay out of the paper with kind of disastrous publicity?

SWOT your bank’s customer service. Here’s how you do that: (1) Institute the changes your SWOT uncovers; (2) Set up mystery shops and customer surveys; (3) Incent your staff in a meaningful way for positive customer experience; take the incentives back for negative experiences.

This is simple ‘blocking and tackling”.  But, you’re probably busy, so call us.  We can help you get it going.

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Filed under: Bank Marketing & Advertising, Public Relations by George Self
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What do you do when your ad budget is in tatters, but you need to get the word out?

You reflect on Mr. Adnan Kashoggi’s comment above: Doing well is the result of doing good.

And, to help stimulate your thinking, I have a press report about the E-ONE Company and how they did well by targeting a give-away at a market segment closely tied to their  business.  (The entire release appears below.)

Here’s the story

E-ONE manufactures fire fighting equipment. To promote themselves at a recent fire equipment convention, it came up with the idea to give away a fire truck to the fire department that got the most votes as the “most deserving” department in the country. Of course, getting the most votes would take a lot of work and a lot of conversation about E-ONE’s equipment. So, E-ONE was smart about their give-away. The interesting things to me about this promotion is:

• The winning department was from Powellsville, NC, population 259!  (Powellsville is located in the middle of nowhere, about 50 miles west of Elizabeth City, NC.)
• The Powellsville VFD managed to get 7,000 votes – out of the 16,000 (yep, 16,000) total. That’s a lot of buzz about E-ONE.  (I’d say the Powellsville VFD has some pretty plucky friends who love them intensely.)
• There were 650 fire departments that entered the contest.  I don’t know how many VFDs there are in the country, but I do know that 650 prospective fire truck purchasers is a LOT of prospective fire truck purchasers.

So, what do you think? Did E-ONE get a bunch of publicity? Yep. Did they get publicity on the cheap? Well, the fire truck they gave away was “valued” at $170,000, which, I think, means that E-ONE has less than $100,000 in the deal. Based on what I know about advertising costs, I’d say E-ONE  got maybe $250,000 in press for $100,000. Not too shabby. (And there were other sponsors involved and they may have cut E-ONE’s cost even more.)

So, is there a lesson here for a banker?

Would any of you like to talk about it? Maybe, you’d like to do something similar? Call me. We can help you do this.

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Filed under: Bank Marketing & Advertising, Business At Its Best, Public Relations by George Self
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Many financial institutions find themselves mugged by circumstances. The recession has tried men’s souls.  In turn, those men have concluded “the banks” must be responsible for all their problems. Even long-standing customers have become suspicious.

Core deposits are stagnating. In some cases, a bank may have had to disclose bad news, bad earnings, bad loans and, shudder, even the dreaded ‘capital impairment’.

One way out of this is to re-brand the bank. Change the name. Change the look. Re-decorate the building, inside and out. For many financial institutions, this may be a really, really good idea.

But, before you pull the trigger and call in the design consultants, you should do four things first:

1. Survey your employees. You need to know where your institution stands with your employees. So, find out what they know about your customers you don’t; take the pulse of their concerns. Ask them “who is the competitor in the market you think is better that our bank, and why?

2. Survey your customers. Segment your best deposit customers, your best loan customers and your best commercial customers — the customers who pay you the most fees, or provide the cheapest balances. Find out where else they bank and why. Ask them, straight out, these three questions: (1) What is our institution doing that bugs the heck out of you? (2) What are we not doing that we ought to be doing? (3) Would you recommend our bank to your best friend? Close family member? If you would not recomend our bank, which bank would you recommend? Why?

3. Survey your competition. Take a long, hard look at all the banks, thrifts and credit unions that compete for your customers. Figure out where they are (literally and metaphorically). Make solid, sensible and realistic estimate of their strengths and weaknesses.

4. Do a SWOT. Now that you know all the above, figure out where you are Strong and where you are Weak. Determine your Opportunities and the imminent Threats to your success. Decide how you are going to change. Formulate a road map, a strategic plan and the implementing tactics to leverage your knowledge into a successful re-invention of your institution.

Now, and only now, after performing those four steps, can you re-brand the bank. Until you know (1) where you stand, (2) how you need to improve and (3) how you’re going to get there, re-branding isn’t going to be possible.

Oh, yes, you can do a new logo.  And, yes, you can come up with a catchy slogan.  You can also redecorate.  Even bring in a hot shot motivational guy to pump up the troops.  But, none of that is re-branding.  Customers won’t buy it — and it’s very likely they’ll be offended because you tried to fool them, putting a new dress on an old pig.

Lao-Tzu said it best, “The way to do, is to be”.  George Self says, “You can’t “brand” if you can’t “be”.

We know branding. We know SWOTs. We can help your institution re-invent itself. Call us, 800-521-0236.

Filed under: Bank Marketing & Advertising, Public Relations by George Self
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According to the Saturday, April 18 Wall Street Journal Delta Airlines is shutting down its use of India call centers.

In what I like to think of as a rare outbreak of common sense, Delta said “it stopped routing calls to India-based call centers over the first three months of the year. Customers had complained they had trouble communicating with Indian agents”

The article also quoted a certain Ben Trowbridge, chief executive of Alsbridge Inc., a Dallas-based company that advises on outsourcing.  Mr. Trowbridge delivers a Blinding Glimpse of the Obvious when he says, ”It is fundamentally cheaper to do it in India, but there’s also the question of whether it’s better to do it cheaper or better to do it better in terms of the relationship with your customers.”  Fortunately, it is now obvious to Delta Airlines.

It reminds me of the sign over the cash register in my grandfather’s shop (he was a gunsmith, knife sharpener and an expert on cheap bourbon) which said, “We’ll do it for you cheap, good and fast.  Pick two.”

OK, in our modern day, Indian call center iteration, the pitch to modern business space cadets (and their boards of directors)  is, “I’ll answer your customers’ phone calls for one-sixth the cost you’re paying now.  I’ll answer the phone on the second ring and if I don’t, nobody will have to be on hold for more than 90 seconds.  But, whether or not I know how to use your customer’s language, or whether or not your customer will have any idea what the heck my call center people are saying is (entirely) another matter.  And by the way, I can’t guarantee you my call center staff will know the difference between “idiom” and “idiot.”  But, don’t forget, I’m CHEAP and your company will SAVE A LOT OF MONEY.

Good grief, when you think about how much it costs to actually GET a customer you wonder just how much CFO Kool Aid it took to convince management that it would be a great idea to save money by letting a bunch of idioms talk to their customers and, worse yet, make decisions that have a big impact on how customers were treated.

Fortunately, for all those who fly Delta, somebody has finally concluded that some things are worth whatever they cost.

Of course, there is the whole political issue.   For banks — PARTICULARLY banks who have taken TARP money — sending jobs overseas, or keeping  jobs overseas, is a needless risk to its public and political reputation.  Just imagine the flack that would ensue if a bank, headquartered in a state where unemployment was north of 10% — and that’s a lot of states — had to announce some “employee cutbacks” and were later discovered to have a call center outside the US.  Ouch!  Truly, there are some things that are so cheap they can’t be afforded.  Period.

Most of you won’t know Pogo, nor will you know his creator, Walt Kelly.  But, you will readily grasp this famous proverb, penned by Mr. Kelly: “We have met the enemy.  And, he is us.”

SIDEBAR: want to know more about Pogo and Walt Kelly?  Go here.

Filed under: Bank Marketing & Advertising, Public Relations by George Self
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There has been a lot of heat, and very little light, about the “bailout of banks.”  What is clear to me is that almost nobody understands how banking works.   That’s too bad — for bankers.   Less than .001 percent of people understand (1) how banks make money, (2) how federal policy regulates what banks can do to make money, and (3)  what the heck a bank is and isn’t. And, whose fault is it that banks are so widely misunderstood, if not actually reviled?  Here’s a clue: banks spend less than 1 percent of their assets telling customers what is good about the bank.  Why is that so?  Because banks don’t think their shareholders want them to waste money on frills, like PR.

There’s a maxim in the PR business: spend some time every day making sure your customers know why you are important to them.  Even if your products are very similar to your competitor, never, never, never stop convincing your customer that your bank is better than any other bank because of WHO you are.

So, now that the proverbial excrement has hit the fan, banks everywhere have to endure a public scourging mostly because the public doesn’t understand anything except what they read in the paper — or see on the internet.

And, where, you ask, are the banks now?  You’d expect them to be out there explaining why they aren’t part of the problem.   You’d expect them to be running ads, hitting the rubber-chicken circuit, writing letters to the Editor making their case about why they are victims of the economic crisis, not the perpetrators.

The answer is, they are nowhere.  Their excuse for not getting the word out is a variation on the theme.  Now it is “Our shareholders don’t want us to spend money we don’t have on advertising.”

And, what is the result of all this?  More people hate bankers this year than last year.  More people hate banks than hated them 60 days ago.  Nobody can think of one reason why their bank is one bit better than any other bank.  Nobody can think of even one example where their bank has demonstrated a willingness to help be part of a solution.

Except the credit unions.

I know bankers hate credit unions.  I know all those reasons.  But, the simple fact is that credit unions are winning the PR war.  When you read the news, you read lots of stories where customers praise their credit unions for working with them. Politicians, reporters and editors alike praise the cooperative spirit they find in the local credit union. And those same worthies seem to take delight in damning the bankers. 

Here’s a recent example: Arianna Huffington, writing in the Huffington Post  has fulsome praise for small banks — except she’s mostly talking about Credit Unions — read it for yourself here:  http://www.huffingtonpost.com/arianna-huffington/heres-a-switch-some-good_b_186455.html.

So, whose fault is it that the press seems to love Credit Unions and hate banks?   Who’s responsible for the fact that there are virtually no stories about what a bank has done to help anybody (but themselves)? Who has done virtually nothing to move public opinion the other direction?  (Editors Note: There was, actually, a sort of positive story in the May 12, 2009 NY Times about community banks.  It said they were “dull, but profitable.”  Not exactly fulsome praise.)

Do I really have to answer that question?

Filed under: Bank Marketing & Advertising, Public Relations by George Self
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Customers punish banks that don’t communicate with them.  At least, that’s the conclusion I come to when I read a bank customer survey that is just out from Crain Communications.

In other words, if you’ve got good news, say so.  If you don’t have a good story to tell, then, by all means, get one!

Whatever the case, DON’T LET THE MEDIA control what your customers (and your community) think about YOUR bank.

http://adage.com/article?article_id=135391

Banks Went Mum as Trust Dropped: PR Survey

Advertising Age | Published: March 19, 2009
By Michael Bush

Only 8% of Consumers Have Full Confidence in Financial Service Cos.

NEW YORK (AdAge.com) — Only 8% of American consumers have full confidence in banks and other financial service companies, according to an alarming new study from independent PR shop Waggener Edstrom Worldwide and RT Strategies.

Whether it’s all AIG and Bernie Madoff’s fault, the entire industry has been painted with the same brush and labeled as greedy and indifferent to the daily struggles of everyday consumers. And part of the problem is that these companies aren’t communicating with their customers.

The study shows that most people have either heard nothing from the industry or don’t really like what it is they are hearing.

Almost half (44%) of the 1,000 consumers polled between Feb. 28 and March 2 said they have heard something from the industry, either through traditional or new-media outlets, but felt more negative about the industry after hearing it. Another 38% said banks and financial institutions haven’t communicated with them at all. A mere 11% said they actually heard something from a bank or financial services company that made them feel better about the industry after hearing it.

“They are clearly in the midst of what has been a fairly negative media environment,” said Torod Neptune, senior VP-global public affairs at Waggener Edstrom. “Americans are listening to what banks have to say right now there’s just not a lot being said.”

Mr. Neptune said the study revealed that there was actually a window of opportunity for the industry to earn back the trust of consumers. That window, however, is closing fast he said.

“It’s an extremely hostile environment and it’s very unique in the midst of such hostility that consumers are still giving the industry somewhat a benefit of the doubt,” he said. “There are actually some pretty hopeful signs here they just need to take advantage of these opportunities.”

He’s referring to the study’s finding that not everyone thinks that the banks and other recipients of federal funds were using that money for bonuses. More than a quarter (28%) of those polled said they felt “banks are using the recently acquired federal funds to make consumer loans,” another 23% said “they were using the funds to make business loans” while 27% felt “they were holding the funds in reserve.” Only 21% said they thought companies were using those funds to pay salaries and bonuses.

So just who exactly do consumers think is doing the best job of addressing the current financial crisis? An overwhelming majority (69%) believe President Barack Obama is doing more to address the situation, while only 12% think the industry is taking the lead

Mr. Neptune said he still thinks the industry has a chance to do right the ship.

“The industry hasn’t been written off entirely,” he said. “But in the absence of their doing something and engaging in some type of dialogue their opportunity is going to disappear pretty quickly here.”

Copyright © 1992-2009 Crain Communications

Filed under: Bank Marketing & Advertising, Public Relations by George Self
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Here’s the story:

April 14 (Bloomberg) — Bank of America Corp., the largest U.S. bank, is rescinding an increase in overdraft fees announced earlier this month. The bank will also waive monthly account fees for people who have lost their jobs, a spokesman said. Read the entire story here…

…and here’s how you should think about this:

While there are certainly pressures on bank earnings, and while overdraft fees (for example) are an attractive place to boost revenue, the times may demand more finesse.  I think BofA is smart to postpone the fee increases – and keep in mind they were also in the news that same day for INCREASING their credit card rates and fees and then DECREASING available credit lines.

Remember: Fees and charges are strategic.  They have a purpose beyond bank revenues.  They can also buy you market share and positive share-of-mind.

Filed under: Bank Marketing & Advertising, Public Relations by George Self
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http://www.palmettoscoop.com/2009/04/17/barrett-booed-at-greenville-tea-party

Banks who have TARP money should give the story above some careful reading. Why? Because TARP is becoming a four letter word to an increasing number of people, some of whom have completely freaked-out over it. If you’ve got customers in your bank who are like the good folks in Greenville, SC, (who completely and thoroughly dissed their congressman this past Friday) well, maybe you need to start thinking about how your bank will fare when these people turn their attention to you.

Apparently, the recent tax protests, Tax Day Tea Parties, have struck a deep chord with people. Given how they treated SC Congressman Barrett, they’re good and mad about the bail out and they are beginning to aggressively confront the people they perceive as responsible. First, it’s the politicians. Next, it may be the bankers.

Here’s what happened:

According to The Scoop (http://www.thescoop.com/) Congressman Gresham Barrett, a Republican, attempted to speak before an estimated crowd of 4,000 people at a Post Tax Day Tea Party in the Upstate only to be greeted by boos from most everyone in attendance. Protesters screamed “go home” and blew air horns during the duration of Barrett’s five minute speech. Some even turned their backs to him. Messages on dozens of signs and hundreds of fliers also expressed a similar contempt for ‘Bailout Barrett.’ None of the other speakers — including Gov. Mark Sanford, Sen. Jim DeMint and Lt. Gov. Andre Bauer — were booed.” So much for Southern Hospitality.

So, what are the potential implications for a bank that has TARP money?

Implication Number 1: I think there’s a 15-25% chance that a significant portion of a bank’s customers are harboring resentment toward the bank because they accepted “bail out money” for which they have observed no direct community or customer benefit. The percentage could well be higher if your bank is in a big Republican area.

Implication Number 2: your bank should strongly consider undertaking a survey of your customers and your employees to figure out just where your bank stands with your customer on this tarp issue.

Implication Number 3: if you’re a TARP bank, and you can’t demonstrate that you have put the money to work in your market, you are courting a PR disaster.  Get those TARP funds out there and document what you’ve done.

Implication Number 4: if there are banks in your market who did NOT take TARP money, you should be thinking about how you should respond to any advertising they come up with. So far, the anti-TARP crowd has been pretty smug. Worse, TARP banks have let the them get away with it.

Implication Number 5: you should be thinking about ways to quickly provide credible information to your directors, managers and employees that explains why your bank elected to take TARP money – and most importantly, what you plan to do with the money and WHEN you plan to do it.

It would be smart to get in front of this phenomena. Do it now while it will cost less and when you’ll get credit for being a good guy who was willing to help.

Here’s what I think any TARP bank should be doing to mitigate any resentment in its market:

Phase One: make sure you get the message out there that your bank is actually paying the government for the money (and paying for FDIC insurance, too). Make clear that the government is going to make a nice return on the TARP money. That will make the Tea Party people happy – hopefully.

Phase Two: (1) get some loans out on the street, (2) provide some foreclosure assistance, (3) provide some money to organizations (like local food banks) that will be used to help local people in need and (4) be sure you don’t do this under a basket. Get credit for it.  This is not a time for reticence.

Resist the temptation to do what bankers usually do: have meetings about the problem, fuss, fume and complain, and, then, put off a solution, hoping it will go away. It won’t.

Get your TARP Response program going. Do it now. It’s the smart thing to do. It’s the right thing to do. And, it will never cost less to do than it costs now.

Filed under: Bank Marketing & Advertising, Public Relations by George Self
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