First reported on Tuesday by the folks at The Wall Street Journal, we’re told that the company’s executives determined their paid ads had little impact on consumers’ purchases of the company’s products.

Ouch!

This news must come as a serious blow to a company that is about to launch a much-anticipated IPO.

It’s one thing when a smaller company makes such a dramatic move - it’s quite another when the decision comes from one of the country’s most famous brands and prolific advertiser.

The concern here is the lemming effect.

When America’s third-largest advertiser jumps ship, it could set off a mad rush for the exits.  Only time will tell.

Adding insult to injury, in yesterday’s edition of The Sacramento Bee I encountered an article in the paper’s business section titled “Ads on Facebook rate low in survey.”

The opening paragraph reads: “Facebook’s reach is wide but not deep.  Few users surveyed in an Associated Press-CNBC poll say they click on the site’s ads or buy the virtual goods that make money for it.”

According to poll results, “83 percent of respondents said they ‘hardly ever’ or ‘never’ click on ads Facebook serves up.”  You can read the entire CNBC article here.

This information does not bode well for the thousands of smaller companies - community banks and credit unions included - that have shifted much of their marketing efforts away from traditional marketing channels to join the social media stampede.

Hopefully, this information will serve as a wake-up call to the nation’s marketers that perhaps they should revisit some of the traditional marketing channels that have worked so well in the past - particularly targeted direct mail.

No, you don’t need to completely abandon your social media efforts.  Just don’t put all your eggs in one basket.

By the way, for those of you still wondering about the identity of the large advertiser that jumped ship - it’s General Motors.

According to the WSJ article, GM spent $10 million a year on paid Facebook advertising.

If GM can’t be successful at the $10 million level, there’s little hope for those marketers spending much less.

To be fair, the GM folks commented that the company will continue, at least for now, its Facebook marketing efforts on those pages where content can be displayed at no cost.

The problem with a statement such as this is that there is no such thing as “no cost” marketing efforts.  At a minimum there are “opportunity costs” involved in that the time spent on such efforts might be better spent on traditional marketing channels.

And there have to be creative costs involved in developing the content for these no-cost pages.

If I was still employed in the marketing department of a bank or credit union, while everyone else was busy focusing the bulk of their time, effort, and money on social media, I’d be busy developing campaigns using the lesser-used traditional marketing channels such as direct mail, outdoor, and perhaps radio.

This guy should be delivering your marketing message!

It’s much easier, and less costly, to cut through the message clutter using these old-school channels.

By the way, good luck with your Facebook efforts.  Hopefully, you’ll get lots of people to “like” your bank or credit union for what that’s worth.

About Direct Mail

Consumers do respond favorably to the marketing mail they receive at home.  According to the April 2010 release of the FY2009 U.S. Postal Service Household Diary Study conducted by NuStats, 8 of 10 households, or 79%, of the participating households say they either read or scan the advertising mail received at home.  51% of the households usually read all or some of this mail while 28% scan this mail.  One out of five, or 21%, report that they usually do not read their advertising mail.  For some reason unknown to me, data for FY 2010 is currently not available online.

Joking aside, let’s look at this important marketing topic. The incentive system your financial institution uses can mean the difference between success and failure for your customer acquisition efforts.

After my post last week, Which Acquisition Incentive System is Better?, where I wrote about the advantages of awarding a premium immediately — instant gratification — my blogging colleague Steve Topper and I talked more about premiums.

Steve got right to the core of why the immediate reward works so much better than the delayed reward that arrives after the customers complete all the trials the marketers lay out for them. He mentioned a bank’s test where the marketers offered prospects a free gift or a cash bonus of equal value. He said the gift won “hands down.”

It’s not surprising because the customer could leave the bank with the gift (instant gratification). The bonus was merely a transaction that was deposited later into the customer’s account. It had no substance, therefore, it wasn’t entirely real to the customer.

That’s the way cash offers work. I don’t recall any offers I’ve seen where the teller or account manager pulls crisp twenties out of a drawer and slides them across the desk. It’s all done by deposit. The deposit might be real, but the “money” seems imaginary to the customer.

People generally choose an incentive they can hold in their hands and get as quickly as possible. Both the premium and the cash have perceived value, but the value is greater when you can see the incentive and touch it.

Here are a few more points, negative and positive, about incentive programs.

The Who-Pays? Factor. You can’t fault marketing departments for trying to save money. But when merchandise is used as a campaign incentive, the cost of the premiums likely comes out of the marketing budget. But, if a bonus cash offer is the incentive, then likely the branch takes the hit. Branch managers seldom have a voice when campaigns are created.

Laziness. Would you rather tote around cases of premiums or use invisible money in your branch? Do you want to build a display to show off the premiums, or instead, hang a promotional poster? Where do you store those cases of premiums? Who inventories and reorders them? I guess you can see why many branch managers and staffs would rather avoid premium gift offers.

No Branch Awareness. If you have a premium like cookware, duffle bag, beverage cooler, you can stack them and create a display in your branch that all your customers can see. They’ll ask how they can get one of the gifts (the referral program). When a prospect walks in and sees the display, it’s reassuring to know she’s come to the right place and she doesn’t need to demand the premium she was promised. I seriously doubt you’ll ever see stacks of money similarly on display.

Breakage. I mentioned this factor in my earlier post, but I’ll include it here for completeness. When you open 50 accounts, you give away 50 gifts for instant gratification. If you open 50 accounts that require multiple steps before the client gets the gift or cash, not everyone reaches the finish line. A premium you don’t give out for this reason is considered breakage. Money you didn’t spend. Customers you didn’t satisfy.

Out of Sight, Out of Mind. If you want your premium to have the greatest impact and generate the greatest goodwill for your financial institution, then instant gratification is the system to use. Most multi-step systems give the customer 30, 60, even 90 days to complete the requirements. Then the FI gives itself another 30 or 60 days to deposit the money in the account. This isn’t even delayed gratification. It’s simply forgotten. Little or no impact or goodwill.

Pride. The customer can show people the gift. Sort of a “look what I got for nothing” event. Few people will brag that the financial institution put invisible cash into their accounts. Even if they buy something specific with the cash, the “gifting” is forgotten or ignored. Again, no immediate or residual goodwill.

So, instant gratification or delayed reward? Cash or premium? I believe the physical gift given at the time the account is opened generates the best goodwill, excitement, and appreciation. It can produce greater customer loyalty in those new accountholders and likely attract more prospects.

If your financial institution has had different experiences, if you’ve tested premiums, or been involved with a premium survey, I invite you to tell your story in the comments section.

In other words, your mega-bank friends threw you under the bus.

If you’re like most consumers, you don’t put the time and effort that goes into researching the best brand of car to buy into researching a new place to bank.  You simply keep your eyes and ears open for relevant information - placing these tidbits onto the new mental list you started.

During the past few days you’ve discovered that one local bank has introduced a new checking account which it calls Boomerang Checking.

Just coincidentally, you received a mailing from a credit union offering you a choice of its checking accounts named Value Checking, Preferred Checking, and Interest Checking.

And then over the weekend you pass a bank with a huge “Free Checking Here” sign in the window.

If you’re like most consumers, the “Free Checking Here” bank jumps to the top of the mental list you started a few weeks ago.

Depending on how fed up you are with your mega-bank, the free checking sign may be all that’s needed for you to make your decision.

Most likely, you don’t even take the time to do online research for this new Boomerang Checking account you heard about on the radio.

It’s only after you’ve opened your new free checking account at a local community bank that a friend tells you that she opened a new Boomerang Checking account and is delighted that it, too, is actually free of a monthly fee and has no minimum balance requirement.

“You mean it’s free checking” you ask your friend.

If you’re like most of us, the next thing that pops into your mind is “wonder why her bank didn’t name it Free Checking or Boomerang Free Checking or even Free Boomerang Checking?”

I first learned about Boomerang Checking when ACTON Marketing’s creative director included me on the distribution list for an email containing a link to an online article about this new account.

My first thought was this bank must be located in Australia.

It wasn’t until I read the article - actually it was a straight reprint of the bank’s recent press release - that the reason for the cute name came into focus.  It’s an account that offers both a cash back benefit in addition to a points program tied to debit card use.

Hence the name boomerang - by paying out money in your account some of it finds its way back to you.  The marketing folks at the bank must be extremely proud of coming up with the word “boomerang” for the name of its new checking account.  I wonder how long they high-fived themselves over it?

While you could argue that it’s a catchy, memorable word, I find it rather vague, and too subtle, to be effective for the purpose intended.

In reading the press release I was shocked to discover that the bank was introducing a new “free” checking account.  Unfortunately, the person writing the press release, and those approving it, never quite refer to it as free checking.  Here’s how it was described in the second paragraph:

“Sun National Bank remains committed to providing customers with a robust array of desirable banking services, including a checking option with no minimum balance and no monthly service fee.”

What?

Why not simply state the obvious - Sun National Bank is proud to offer consumers a new free checking option.

About the middle of the press release the bank’s President and CEO was quoted:  “Sun’s Boomerang Checking account can be entirely free, because customers can eliminate minimum balance requirements and unnecessary fees.”

You might want to read that quote again.

I find it somewhat confusing.

First, I’m bothered by use of the word “can” twice in this sentence.  It suggests that perhaps the account isn’t actually free but “can” be free should the customer make it so.

It’s either free or it isn’t free.

Second, perhaps I’m nitpicking here but what’s the difference between “free” and “entirely free?”

Bottom line, here’s yet another example of a community bank offering free checking yet failing to name it Free Checking and refusing to refer to it as free checking when describing the account.

It’s as if the name “Free Checking” carries too much negative baggage for some bankers and their employees in the marketing department.

I sure hope this malady doesn’t reach Amazon and all those other online retailers offering free shipping.

By the way, you can read the bank’s entire press release here.

No, that’s not what the postcard says. It’s my interpretation of the “personalized” message one of my colleagues found in his mailbox, sent by a local bank.

Front and back of this 5x7 postcard.

Click on the image to enlarge.

This bank changed its logo after 100 years. Yes, that’s a big deal. I went through a similar campaign at the insurance company where I worked when it changed its corporate name. However, except for the employees and some policyholders, no one cared that our company name changed.

Likewise, a logo change is exciting for the bank’s staff. Maybe for customers (but I doubt it). Why would non-customers care?

Now, I’ve written about finding new angles to approach the public (your prospects) with your message, so I’m not criticizing this bank for using the logo change as an opportunity to communicate. But the key is to have a real marketing idea behind the surface reason.

That’s where this postcard fails. The closest it comes to convincing a prospect to become a customer is with a sentence about “quality customer service” and another about “trusted relationships.”

Come on. Everybody claims that. You can probably get those same lines from BofA (2011 Customer Service Hall of Shame list’s #1 offender). Vague insinuations don’t impress your audience. What can you really offer me at your bank? (By the way, the line about “Knowing your name” falls flat when you address your postcard to RESIDENT.)

Tell me you have a checking account that’s better than the one I have now. Tell me I can get the loan I need at a low rate. At least show me a product list or tell me you’re throwing a party to celebrate your new logo. Offer me an incentive. Give me at least one reason why I should become your customer.

Otherwise, you’ve wasted your marketing money because your postcard will quickly fall into my recycling bin. You haven’t given me a reason to care. You haven’t told me why I should come to your lobby.

So look for opportunities to reach out to prospects in your communities. Make them aware of your bank or credit union. But no matter what reason you use, whatever angle or tactic…be certain there’s a marketing message and a call to action behind it.

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Here are some examples where marketers created an event to promote a marketing message.

Keep in Touch — In Memorable Ways

One-Two Punch for Event Marketing (follow additional links at the end of this one)

Two Marketing Ideas from One Self-Mailer

And here’s a place where your ideas become real.

The reference to BofA’s “ranking” came from Steve Topper’s post, Putting Lipstick on a Pig?

In Tuesday’s blog I mentioned that during 2011 Bank of America donated $24.6 million dollars to nonprofit organizations in California.

How do I know this?

It was displayed in a giant, full-page newspaper ad in The Sacramento Bee as you can see below on the right side of the page.  The upper and lower parts of the ad are missing due to scanner constraints.

Portion of full-page ad appearing in The Sacramento Bee

My first reaction to the $24.6 million dollar figure is that perhaps the bank would have been much wiser to spend this money hiring more employees to handle the avalanche of mortgage foreclosures, short sales, and mortgage modifications in the bank’s queue.

Or perhaps it could have spent the money hiring more customer service people or training existing staff.  Remember, BofA was at the top of the list in MSN Money-Zogby’s 2011 Customer Service Hall of Shame.

Instead, the decision was made to punish many of the bank’s customers in order to continue its community outreach efforts.

Now I’m sure there are blog readers who would argue with me on this issue but the people who really matter here are the millions of disgruntled customers who perhaps would have received better service had this $24.6 million been spent trying to help them versus some local charities.  How do you think most of these folks would have voted to spend this money?

Maybe I’m selfish but if I was a BofA customer being continuously hassled about a mortgage modification my vote would have been to divert this money to help the customers.

Sometimes, charity begins at home and this is an excellent example of when this makes sense.

Thanks to this expensive newspaper ad, and others like it over the past year, many of the bank’s customers now realize the bank continues providing millions of dollars to local nonprofits at their expense.  Given all the negative publicity about Bank of America I view these donations from a very skeptical perspective.  The bank’s continued donations remind me of the old adage about trying to buy your way into heaven.

While I’m positive the nonprofits are giddy about receiving the money, the bigger issue here concerns priorities.  My point of view is that the bank’s senior management has placed a higher priority on protecting its fragile image among the movers and shakers in the community over serving the needs of its customers.

At issue here is the bank’s corporate halo - its good deeds done in its local communities.  Fellow blogger Joe Swatek has written several blogs about the importance of a corporate halo.  The most recent one is available here.  At the bottom of his blog you’ll find links to five earlier blogs about the corporate halo.

While few would argue the importance of a corporate halo, there should be a spirited debate within any bank or credit union about how the organization’s money is spent.  In the case of Bank of America, it’s who comes first - local charities or the bank’s customers?

Usually, I ignore anything sales guys say to me. (Just kidding.) When I looked through my files, I didn’t find anything written on the topic. But what a great idea for a blog post.

I think the issue comes down to two factors:

1. Instant Gratification
2. Reward vs. Effort

Let’s begin with the first.

Factor 1, Instant Gratification. Under the typical free gift offer that’s been a mainstay for financial marketers for decades, the individual opens a new account at the bank or credit union and walks out the door with the free gift.

Simple. That’s why it’s a classic. There’s no additional work for the financial institution’s staff. No extra steps for the new customer to take to get the reward.

When the prospect takes the step to initiate the sale (in your case, the account opening) and gets the reward immediately, that’s instant gratification. It’s not only easy to fulfill, it makes the new customer most happy.

Instant gratification is good for a business, too. The customer mentally connects the premium and the exhilaration of getting the free gift with your company. One-to-one connection.

So, your financial institution probably gets the greatest “bang for the buck” when instant gratification is enjoyed by your customer.

Those are the positives. In this simple form, I don’t see any negatives. I suppose cost could be a factor. If you’re in a highly competitive market where competitors give hundreds of dollars as incentives, then it costs you to keep up. But plenty of premium gifts can be purchased at a wholesale rate from premium vendors. You pay about $10 per item and the prospect perceives the gift as a $20 or greater value because that’s what it costs in a retail store. Even higher dollar, higher profile premiums come at a discount rate.

Factor 2, Reward vs. Effort. Here’s the scenario I’ll use. A bank offers a pricy gift as its incentive, but in order to get the gift the customer must complete a number of steps.

Let’s address the good points first. The big-ticket premium, like an iPod, iPad, Nook, etc., or even a large cash reward, makes a big splash, especially on the cover of your direct mail, on posters and print ads. It draws attention to your product, which is the whole point.

However, there’s no instant gratification. This becomes a quest. And like Indiana Jones pursuing the Holy Grail, one wrong step and your prize disappears down a deep, dark hole.

How does the customer feel after she’s completed four of the five steps and misses the last one? Disappointed? Angry? Does she feel like it was a trick?

Not everyone fails the quest for the same reason. Some can’t complete the steps. Others run out of time. Plenty become tired of the process or the effort it takes. The prize that seemed to call them like the ancient siren’s song loses its appeal. It’s too much to handle.

And often, that’s exactly what the financial institution hopes happens. It’s called “breakage.” Retail stores rely on this idea. They advertise a low price, but you get that price only after you apply the rebate. Only a low percentage of people fill out rebate forms.

Breakage is a money-saving factor for campaigns, but what does it do for your financial institution’s reputation? Will those “cheated” customers open other accounts or take you up on another offer? Disillusioned, they might easily be lured by a flashy new offer from your competitor.

Data from our decades of clients’ customer acquisitions show an average checking account customer will open another 2.35 accounts. Often, the purpose for the multi-step redemption is to force customers to open additional accounts or services. But the statistics show that’s not necessary. Happy customers do it anyway.

So in my estimation, the instant gratification of a reward, even a modest one, generates more goodwill among customers than a flashy, multi-step fulfillment offer. I hope this rationale helps you decide what incentive system your bank or credit union should offer. And I hope all the sales guys out there find this useful when they’re asked the question.

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I covered similar, but different issues in Restrictive, Anti-Offer Trend.

This is a high-perceived-value premium that costs you a fraction of the amount.

The brief two-sentence alert reads:  “Bank of America has shifted brand advertising duties to a WPP team from Omnicom Group’s BBDO, according to two executives familiar with the matter.  WPP will be responsible for the rollout of what the company [BofA] was internally calling the development of a ‘North Star’ to help repair its tarnished image.

Tarnished?

Doesn’t BofA mean trashed?

When I think of “tarnished” what comes to mind is a bit of dirt that’s easily removed.

BofA is dealing with Category 5 tornado damage here.

The first thought that entered my mind after reading the email is that WPP’s effort could turn out to be like applying lipstick to a pig.  I’ve also heard it as putting perfume on a pig.

Regardless of the beauty product being used, the odds are it will be an effort in futility.

Based on everything I’ve read about BofA over the past four-plus years, it needs much more than a new branding campaign.

Hardly a month goes by that I don’t encounter another article describing how BofA had to pay some huge fine for wrong-doing.  Leading the punitive fine race is the February 9, 2012 announcement of the $11.8 billion fine as part of the national fraudulent mortgage settlement with the states.

While $11.8 billion sounds like a ton of money, I don’t think it has nearly the consumer impact as being ranked #1 on the 2011 MSN Money-Zogby Customer Service Hall of Shame list.  BofA ranked #2 on the 2010 list.

For 2011, 39% of respondents ranked BofA’s banking service as “poor” while 41.4% ranked its credit card service as “poor.”

But, it gets much worse.

Are you familiar with the name Matt Taibbi?

Taibbi is a journalist and Contributing Editor for Rolling Stone.

The title of his March 14, 2012 Rolling Stones’ feature article is titled: “Bank of America: Too Crooked to Fail.”  It’s an excellent, well-researched article which you can read here.  It’s investigative journalism at its finest.

He wrote another article about Bank of America which he distributed at the Occupy Wall Street day of action on February 29, 2012.  It was posted on the truth-out.org website with the following headline:  “Matt Taibbi: Bank of America Is a ‘Raging Hurricane of Theft and Fraud.’”  You can read the article here.

Taibbi has a very strong following - especially in the financial services industry.

Given his detailed descriptions of Bank of America it’s hard to imagine a branding campaign being successful.

In fact, I can’t wait to read what Taibbi will someday write about Bank of America and its attempts to burnish its “tarnished” image via a new branding campaign.  I’m sure it’ll be brutal.

What I find very interesting is that over the past year or longer BofA has been spending millions of dollars on full-page ads in magazines and newspapers in an attempt to change peoples’ attitudes about the bank.

In fact, one such full-page ad appeared in the Sunday edition of The Sacramento Bee.  I’d love to show it here but it’s not possible to scan it on my scanner.  It measures roughly 34″ x 11 ½.”

The headline reads:  “WE’RE HARD AT WORK ON WHAT MATTERS MOST IN CALIFORNIA.”  The ads are mostly white-space with some data provided in boxes in the middle.  In this particular ad, the bank informs readers that it:

• Loaned $1.27 billion in new credit to California small businesses in 2011.
• Worked with 223,660 California homeowners facing financial difficulty since 2008, to modify their mortgages.
• Contributed $24.6 million to California nonprofits in 2011.

Apparently these ads have failed to have a positive impact on the public as evidenced by the selection of WPP to roll-out yet another branding effort.

It’s possible that the folks at WPP have been handed an impossible assignment.

You can bet they’ve been spending lots of time reading and discussing Matt Taibbi’s articles about the bank.

I’m ending this rant with another favorite swine saying of mine:  The creative folks on the WPP team will have the impossible task of trying to make a silk purse out of a sow’s ear.

Slumberland Furniture sends these petite, cardstock self-mailers to prospects at the beginning of their birthday months. On the outer panel, it says, “Happy Birthday.” The mailer measures 6.25 x 4-inches when folded.

The image below (click on to enlarge) shows the inside of the mailer with the lower, short-fold panel folded against the middle panel so you can see the $25 shopping card. The third panel is die-cut so the upper half of the shopping card extends above the remainder of the panel. A micro-perf around half the card allows the recipient to remove it before a shopping trip.

My only criticism is the long validation period…a full year. It removes the urgency and allows the prospect to toss aside the card until later. Often, later never arrives because the card is forgotten. However, furniture shopping isn’t an everyday event, so the retailer can justify the long grace period.

I’ll leave it to your imagination to come up with a way to use a die-cut format. Remember, a die-cut project comes with increased production costs and often takes longer to complete. Get your price estimates before beginning the design and add extra time to your completion schedule.

Now here’s the second marketing idea from this self-mailer example. Birthdays, account anniversaries, and any other special events are great reasons to contact your customers or members and even, as Slumberland Furniture chose to do, contact prospects.

Here are a few advantages anniversary-style mail campaigns offer you:

• Tied to a special occasion, it makes the “reason” valid. People pay attention because it’s about them.
• Allows you to drop small quantities. Your staff might handle the mail drops in-house.
• Spreads out redemption. That’s helpful for time-consuming tasks like opening a loan.
• Allows you to spread some marketing costs over the entire year.
• Low-maintenance program, it runs in the background of your other campaigns.

As a negative, small quantities won’t qualify for postage discounts. The Slumberland mailer did, but it’s probably dropped in multiple cities.

Both anniversary and event campaigns can use all types of formats and media. The self-mailer shown above is only one example. If your theme is a special event (founder’s day, customer appreciation day, local community event), most of your marketing takes place at one time and can include print ads, radio spots, direct mail, posters, statement stuffers, and so on.

Make notes on the thoughts these two ideas generate for you, then find ways you can use them to increase account openings.

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Here’s another self-mailer that uses an event theme.

See an example of event marketing. There you’ll find lots of links to other examples.

After all, a personal checking account serves a very specific, very limited need.

The purpose of a personal checking account is to hold a customer’s money until it is needed.  As these needs arise, the bank or credit union transfers some portion of this money to another party or to the account holder if it’s a withdrawal request.

And in the vast majority of cases, there is always sufficient money in the account to cover these ongoing disbursements.

So, given this simplicity, why is there a perceived need for a variety of checking accounts?  One should suffice for all customers.

The proof in this statement can be verified by at least three major banks:

• USAA Savings Bank
• Ally Bank
• ING Direct (now part of Capital One)

Most interesting is that all three banks offer free checking even though USAA is the only bank naming it Free Checking.

On the other hand, prior to the great recession a case could be made for offering a choice of two unique checking accounts - one that earns no interest and one that earns interest.  Unfortunately, the Fed’s decision to keep interest rates artificially low through at least 2014 negates the value of a checking account where the balance earns interest…at least for most consumers.

Have you taken a close look at the interest being paid on interest-earning checking accounts these days?  It’s a disgrace.

A handful of enlightened banks have solved the two account dilemma by offering one account that pays interest.  Case in point is Ally Bank’s Interest Checking account that is also a free checking account.

BancVue’s “Rewards Checking Account” is another example of a “one account fits all” approach.

Somewhere along the line in the history of the checking account a banker decided to differentiate his checking account from those of his competitors by adding features - features that have nothing to do with the basic role, or function, of the account.  Over the years these features have come to be known as “bells and whistles” which seems an apt description of their value - simply noise makers to draw attention to the account.

At another point along this time continuum the idea of market segmentation was introduced.  Now it was deemed important to design a checking account for each unique market segment.

The problem here is that regardless of the segment, the basic role, or function, of the checking account remains the same.  The only things that differ are the bells and whistles hanging from the account.

At some point it dawned on a bank marketer or two - or perhaps it was some consultant - that by varying the number of bells and whistles they could charge different monthly fees.  It wasn’t long before a number of banks rolled out extensive checking account product menus with an assortment of different fees and features - each appealing to a mythical market segment.

But the bottom line remains the same - a personal checking account serves a very specific, very limited need.  Everything else is just window dressing.

Fortunately, one of the many outcomes of our great recession appears to be a move towards a more simplified checking account menu.  Disappearing are the product menus offering seven to eight different checking accounts.  They’re being replaced by menus offering two to three checking accounts - still too many but a step in the right direction.

For example, today Bank of America offers two, basic personal checking accounts - eBanking and MyAccess Checking - and some hybrid named Prima with Tiered Interest Checking.  Prima is being renamed Advantage with Tiered Interest come May 18.

Fast-growing Capital One offers three personal checking accounts - High Yield Free Checking (which ironically has a minimum balance requirement), Rewards Checking, and Premier Rewards Checking.

Remember, all three checking accounts perform the exact same function - only the bells and whistles differ.

Perhaps in the not too distant future we’ll wake up one day to discover that all banks and credit unions offer only one basic personal checking account free of ephemeral features.

In the meantime, USAA Savings Bank and Ally Bank are market leaders when it comes to product line simplicity.

By the way, I realize USAA also offers a Teen Checking Account but I consider such an account an anomaly due to its extremely limited target audience.  It is not available to the entire population.

If you’re unfamiliar with TAFs, or even if you’re using a TAF program, you can pick up some ideas from this marketer.

Omaha Steaks is one of the most prolific national advertisers you’ll find. Ads for the company’s products appear in magazines and newspapers around the country. It has an extensive direct mail program and telemarketing program that offer sales and discounts.

Omaha Steaks mailed an invitation-style envelope package in mid-April. These coupons were inside.

If the image looks familiar, it might be because you remember the package from a sample image in my Idea File blog post. But when I saw the new mail package, I noticed a difference immediately.

There are still four tickets — one for the mail recipient and three to give to friends. Each ticket continues to give a 40% discount on all selections. But this time, the three friends tickets are black instead of burgundy.

Why the difference? I’ll speculate it’s to make each ticket seem more valuable. The customer who receives the package notices his or her ticket is a different color. Now, it’s obviously not something to give away. My ticket is special and I’ll give it more consideration. I’ll be more likely to use it.

There are all sorts of meanings for the color black, but let’s guess the change in the ticket color happened so the recipient also feels this friend ticket is more valuable. It’s not like a store coupon for dog food or snack bars. The new color seems to enhance the ticket’s value. (Tickets, we know, have value and give special access.)

How can you apply this idea to your own TAF program? Color changes aren’t likely an option. I’ll use our own clients’ TAF forms as reference. Typically, the gift’s photo dominates the front of the coupon. It’s the attention-getter. You’re likely not promoting multiple gifts, like Omaha Steaks is selling its thousands of food items, so the specific photo helps your efforts.

The added importance to your TAF coupon comes from the way your customer or member receives it. Don’t slip it in anonymously with other transaction materials. Don’t let tellers hand it over without a comment.

Make the coupon stand out by verbally drawing attention to it. Tellers should say something like, “Here’s a chance to get one of the new gifts we’re giving away.” When your account reps open new accounts, they should hand the new customer five or six TAF coupons and explain how they’re used. Indicate gifts change over time, so if the sno-cone machine doesn’t appeal to the individual’s taste, maybe the emergency roadside kit coming up next time will be more desirable.

No marketing program works if your own company and staff members ignore it. You must promote your products and promote the campaigns that generate interest in your company, your products, and your services.

You have an advantage over Omaha Steaks because your TAF program is promoted face-to-face in your offices where you can show off the premiums in a display. TAF programs are known to open accounts. Many accounts, when promoted.

If your company and your staff don’t make an effort, don’t blame the program if it doesn’t generate successful results.

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Here are more in-depth descriptions of Tell A Friend programs, with examples shown.

Format Variety for Your Friends

Tell Your Friends — This Idea Works

If you’ve eaten lately, then it’s safe to check out the Omaha Steaks website. Ummm.

Decal on tailgate of author's big red truck

At the beginning of the article we are told this isn’t simply a list of the top ten banking brands.  It’s much more.

It’s a list of the ten greatest bank brands that other bankers should study and learn from as they are considered the most innovative banks in the world.

As a long-time USAA member, I’ve written about it on several occasions - including the November 2010 issue of the ACTON Marketing newsletter “Banks Need to be More Innovative.”

With a few updates, here’s what I wrote about USAA:

Unlike its competitors, USAA depends almost exclusively on ongoing technology innovations to provide service to its growing customer base.

Innovation is a necessity as USAA has only one branch in San Antonio, Texas, yet serves active and retired military customers around the world.

Since its start in 1922, many members of the military have insured their vehicles with USAA.  In 1983 USAA introduced USAA Savings Bank and began offering credit cards, followed by traditional checking and savings accounts.  Today, millions of active military and veterans throughout the world get their banking, insurance, and investment services from USAA.

Until recently, most USAA checking customers had to rely on direct deposit or mailing their checks to San Antonio for processing.  Many others kept a local bank or credit union simply for their checking account and ready access to a local ATM network.

USAA changed this by being the first consumer bank to offer remote deposit, introducing Deposit@home on December 6, 2006.  On August 10, 2009, it was again the first bank to introduce remote deposit via the iPhone - launching USAA Deposit@Mobile.

Within a little over a year, 1.5 million checks totaling nearly one billion dollars were deposited by USAA customers using their iPhones and Android mobile devices.

Today, a number of big and small banks and local credit unions offer remote deposit for their retail consumers.

Meanwhile, the folks at USAA continue innovating to serve their growing customer base.

In his opening sentence to USAA customers in the “Message From the President” letter at the front of the Fall 2010 issue of the USAA Magazine, CEO Joe Robles writes, “At USAA, we innovate for one reason - to make your life easier.”

He goes on to introduce USAA’s latest innovative new products, Auto Circle^TM and Home Circle^TM.  Both products offer customers a one-stop, online research to help them research, find, finance, and insure a new car or home.

Bottom line, as a result of continuous innovation, USAA has become a full-service financial services company serving millions of customers worldwide.

Out of necessity, USAA Bank has become a role model for bank innovation.  This reminds me of the oft-heard idiom “Necessity is the mother of invention.”

Now for some really good news - USAA banking services are now available to non-military consumers.

Elsewhere in TheFinancialBrand article the author mentions that USAA Bank has a loyalty factor no other bank has as a result of serving military members worldwide.

Adding to this loyalty is the fact that since the beginning, the CEO has always been a high-ranking, retired military leader.  You might say it’s a company led by the military for the military.

I know I look forward to the occasional email notice from the current CEO, Major General (Retired) Josue (Joe) Robles Jr.  Below is a copy of the 2011 Report to Members I received on Wednesday, March 14, 2012.

You can read TheFinancialBrand.com article about the country’s most innovative banks here.  The November 2010 issue of the ACTON Marketing newsletter about banks needing to be more innovative is available here.

I mean they’re impatient with their advertising. Too quick to toss aside good advertising without a good reason.

That’s why my headline says marketers should show control over their emotions and use a control as a way to measure actual advertising results.

So the question is, what’s a control? And of course, how does it work?

Control packages have been around since the early days of direct mail marketing — before the phrase “direct mail marketing” was invented. An advertiser would have its ad agency copywriter create a letter that promoted the product. Remember, back then, mail advertising was made up mostly of letter packages.

If that sales letter was successful, the advertiser continued to use it. But along the way, the copywriter would prepare another letter. This would use a different message or different approach. Sometimes there would simply be a different headline as a test. Sometimes the carrier envelope changed. Sometimes the offer.

This second package would be injected into a campaign and the response results would show which version — the original control package or the new test package — pulled best.

If a test package showed significantly better results than the control package, it became the new control package and the original was likely retired. Testing would continue on and on with new test packages vying against the control. Some control packages would last 10 years or so.

Too often today, people in the advertising department (or executive department) get tired of seeing the same mail package used over and over. They assume, incorrectly, their prospects feel the same way. That doesn’t take into account the simple fact: Prospects don’t care if you send the same package. They’re interested in the product and offer.

There’s the story about automaker Henry Ford. He told his marketing agency he was tired of seeing the same ads for his autos and they should come up with something new. One of the marketers pointed out the ads hadn’t yet run in the newspaper. All the time Ford had seen the ads, they were in various stages of preparation.

So do yourself and your company a favor. Don’t throw away good advertising that’s giving you results simply because you’re tired of looking at it. There’s no assurance the new great and glorious creation will produce the same or better results.

Instead, test. Make your current advertising a control and see if the new and “improved” can beat it.

Take control. Show control. Use a control.

If you don’t want to test, then continue using the same advertising materials until you see response decrease over time. Never abandon good advertising without a good, logical, real reason.

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If you feel you must tinker with something, try to improve your offer. As you’ll see here, your efforts will get better results.

This may, or may not, include the senior marketing person.

This disease manifests itself in decisions that are made relative to products offered and the extent to which they are marketed.

Sometimes the disease results in jumping on a bandwagon and throwing lots of time, money, and effort at something new in order to be viewed as an early adopter.

At other times, the disease prevents the aggressive marketing of a product or service that is in high demand by consumers.

The poor, maligned free checking account is an example of the latter situation.

At one point in the not too distant past, the free checking account was the most popular checking account in America - perhaps it retains this distinction.

Yet, even during its prime, you could find banks and credit unions that:

• Refused to offer free checking.
• Offered free checking but refused to name it free checking.
• Offered a “Free Checking” account but did very little to aggressively market it.
• Offered free checking and abandoned it at the first opportunity.

What would cause normally rational bankers to behave like this?

I believe one reason is the dreaded cocktail party disease.

You see, the cocktail party disease creates a sense of embarrassment about offering an account like free checking.  It can bring about a feeling of inferiority that comes from being chided for aggressively marketing such a working class product.

Remember, free checking was shunned by the nation’s biggest banks for many years before reluctantly offering it in the late 1990s.  And we’ve witnessed how quickly they dropped it when the economy went south.

Given all the negative press about free checking over the past couple of years, the cocktail party disease remains a concern for many bankers.

Ironically, there’s a flip side to the cocktail party disease.

An excellent example is the recent mad rush by bankers to jump on the social media bandwagon before knowing if there’s a payoff down the road.

After all, you don’t want to be at the cocktail party trying to defend why your bank or credit union is still using newspaper ads and direct mail while everyone else is throwing gobs of money at Facebook in an attempt to get more people to “like” the bank.

It’s both shocking and disappointing that so many senior-level bankers are more concerned about peer pressure than what really works best.

If you’re not familiar with the cocktail party disease, perhaps you know it by another name - the country club disease.

Regardless of the name, it can make usually rational people do some strange stuff.

Since no one pays me on that basis, I’m here to share with you some of my thoughts about branch banking.

I came across an article that quoted a Chase Bank executive who made much the same comment as you see above. The executive was talking about the viability of branch offices. He made the point that branches are still feasible to Chase because these are places where the bank can personalize service for its affluent customers. A variation on the old “wine and dine” idea.

When I read the quote, I remembered some extensive research we did at ACTON Marketing in 2004. We studied how financial institutions could better serve minority customers.

The “special” office set up for the affluent customers the Chase executive referenced and the “special” office set up for minority marketing are much the same.

We found that minorities often come to the bank or credit union as a family unit. The best way to serve them is to offer a quiet office space where they can conduct their account openings in private, with personalized help from the office employee. We recommended that our clients set up family friendly office space with lots of chairs for family members. It should be an atmosphere where people can relax.

This doesn’t only apply to today’s Hispanic and Asian minorities. Immigrants from Europe and elsewhere fit the description.

And what about today’s young mother who comes to a branch to open a checking account or apply for a loan? She has her young children in tow. She would appreciate a quiet space where she doesn’t feel like everyone in the branch is staring at her and her impatient kids.

So here’s my point. Your  bank or credit union can cater to those affluent customers that everyone drools over. You can give them their special space in your branches so they can hide from the prying eyes of the bourgeois rabble lined up at the teller windows. But unless you’re serving them crumpets and caviar, there’s little difference serving the personal relationship needs of the affluent and any of your other customers.

Create an office atmosphere where any consumer feels comfortable. Offer everyone personal service. Have private corners where anyone can open an account or get a financial appraisal.

If you’re going to have full-service branches, make them full-service for all. You don’t need to do much different no matter what the financial affluence of your customers.

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In my personal opinion, many branches could be scaled back into “pocket branches,” much smaller with fewer employees. Something like a supermarket branch, but with a drive-up window. Practical and a cost-saving measure.

Read more on the topic of branches in these blog posts…

A Bleak Future for Branch Banking

The End of Consumer Banking as We Know It

No Longer a Need for Bank Branches

What’s the Fate of Branch Offices?

…and in these newsletters…

The Changing Role of the Retail Branch

The Changing Face of Consumer Banking

In the case of FREE Checking it’s either FREE or it’s not FREE and this message should be consistent across all marketing channels.

A classic example begins with the newspaper ad below.

Lincoln Journal Star March 25, 2012

Here the bank offers a checking account that pays interest and names it Smart Checking.  I immediately visited the bank’s website and on the Smart Checking landing page there was no reference to it being free checking.

I only know it is free because the bold ad headline includes the word “FREE” to describe the account.

What baffles me, and I’ve ranted about this in previous blogs, is why didn’t someone at this bank insist on the word “free” in the name of the account?  They should have named this account Smart FREE Checking.

So here’s the situation today.

Readers of the newspaper ad see that the bank is offering a free checking account.  Below the body copy there’s a link to a landing page on the bank’s website.  It’s not the basic Smart Checking landing page mentioned above but another landing page with additional information about the account.

Well, guess what?

I tried all day yesterday to access this landing page and got a “Page not found” message.  Maybe you’ll have better luck after reading this blog.

But, let’s revisit the basic Smart Checking landing page.

Nowhere on this landing page will a visitor learn that the account is a free checking account.  Carefully reading the copy I discover that while the account has no minimum balance requirement there is no mention of the presence or absence of a monthly service fee.

So, is it free or not?

As mentioned in the fourth paragraph above, this account pays interest - currently at the rate of 3.53% APY as long as certain conditions are met:

• Must have at least 12 Visa Check Card purchases post and clear during the month.
• Must access online banking.
• Must agree to e-statements.
• Must have a least one direct deposit, bill payment, or automatic debit post and clear during the month.

These requirements have no effect on whether or not the account is free.  They exist solely for the purpose of earning interest each month.  You might recognize this as what a number of participating banks and credit unions call “Rewards Checking.”

This account enhancement is ideal for differentiating a free checking account.  But for this to work, you must either include the word “free” in the account name or, at a minimum, always refer to the account as being free in every marketing channel and in every marketing communication.

The hidden message in this particular newspaper ad is two-fold:

First, our bank offers you free checking.

Second, our bank’s free checking account is better than our competitors’ free checking account.  It pays interest when you meet some very simple requirements.

I just don’t understand why so many bank marketers and senior management members find it so difficult to provide consumers with a simple, straightforward checking account offer.

They’re all guilty of marketing malpractice!

By the way, the ad shown above includes five lines of disclosure copy that were not picked up by my scanner.  There was no mention of it being a free checking account in the disclosure nor was there any mention of a monthly service charge.  Besides, I’m probably the only person who actually reads this mice type.

A few weeks ago, a Mitt Romney senior campaign aide made a comment that was picked up by the national media. Eric Fehrnstrom said, “Well, I think you hit a reset button for the fall campaign. Everything changes. It’s almost like an Etch A Sketch. You kind of shake it up and restart it all over again.”

Opponents and political wits jumped on the statement and it made news across the country.

Instead of ignoring the comment or acting offended, Ohio Arts, maker of the classic toy, used its unexpected national spotlight appearance as a marketing advantage. The company rushed into production a new version of the toy based on the political comment. It also released print ads that build on the political theme.

The toymaker’s 15 minutes of newfound fame continues to be extended as politicians reuse the Etch A Sketch reference in their political rhetoric.

The markets where your branches are located are like the political campaign trail. You’re competing against rivals to win favor with the public. Instead of votes, you want new customers and more opened accounts.

So when something happens in your market to shake up the status quo, what do you do? Ignore it? Or take advantage of the situation like Ohio Arts?

Suppose another financial institution buys one of your competitors? That typically means a higher than usual number of unhappy customers will be looking for a new place to bank. Other disruptions to the marketplace include elimination of popular accounts like free checking or the announcement of new fees.

These and other situations are your marketing advantage. Like Ohio Arts, you should promote a product or service you have that gained the spotlight when your competitor made it a public issue.

These opportunities rarely happen — but happen more often lately. Don’t miss the chance to expand your customer base by sitting by and letting the market tremor fade away. Strike quickly.

You might want to prepare disruptor marketing ideas you can have in a planning stasis that you activate when the situation is right.

There are businesses in all industries that, like the toymaker and its Etch A Sketch, never let a sudden, unexpected marketing opportunity pass by. Your financial institution should have the same attitude and marketing strategy.

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There are disruptor marketing programs you can use.

Here are two additional new Etch A Sketch ads. Click on the images to enlarge.

Apparently there’s enough buzz in the blogosphere about the uncertain future of bank branches that last week’s AmericanBanker.com poll addressed the issue of whether or not bank branches are going the way of the buggy whip.

Here are the predictable results.

Are Bank Branches Going the Way of the Buggy Whip?

71% of those taking the poll believe that while branches might become fewer and smaller, they remain important to consumers.

To put these results in their proper perspective, imagine the results of a similar, yet hypothetical, poll taken during the third quarter of 2005 where the question would have been something like this:  “Do you believe we are experiencing a major housing bubble that might burst at any time?”

At the time, it’s likely that as many as 90%+ of the poll taking bankers would have selected “No.”

And we all know how the housing bubble turned out for all of us - especially the banks.

Bottom line, results such as these are basically meaningless and definitely not actionable.  They should not be taken seriously.

Why is this?

One reason can be found in a familiar Upton Sinclair quote: “It is difficult to get a man to understand something when his salary depends upon him not understanding it.”

Another possibility is the old quote about not being able to see the forest for the trees.

We’ll never know the reasons why the 71% currently believe that branches will remain a viable component of consumer banking in the future.

The real question here is whether or not the future of consumer banking includes brick and mortar branches of any kind.

The idea that branches might become fewer and smaller is more than an idea - it’s inevitable.  It’s already happening.  The only open issue is the pace of such change.

Perhaps we can find a clue across the pond in England.

According to Movenbank’s Brett King, UK branches have dropped by half since 1990.

As I see it, the issue here is consumers’ perceptions about the purpose of bank branches.

Historically, branches were places where consumers went to deposit or withdraw money, apply for a loan and make loan payments.  Oh, and keeping stuff in safe deposit boxes.  Today, most consumers no longer need a branch to perform any of these activities.

Now that the need for bank branches is being questioned, we encounter blogs and articles where the authors are attempting to make the case that the branches are needed for cross-selling and consultation and privacy.  Instead of a place to open checking and savings accounts and apply for a loan, the product line has shifted to insurance and investment products, estate planning, and financial counseling.

At issue here is whether or not the masses believe bank and credit union branches are the best choice for acquiring these products and services.  After all, they’ve been available from a variety of other providers for some time.

And then there’s the issue of employee quality and qualifications to sell these more complex products and services.  Ask yourself this question: Would you visit a local bank branch for estate planning or for financial counseling?  Be honest!

If you wouldn’t, then why would you expect millions of other consumers to do so?

After all, what’s being proposed is a dramatic change in consumers’ perceptions of the role of the neighborhood branch.  Personally, I doubt that it is possible.

It would be a bit like McDonald’s shifting its menu from burgers and fries to steaks, lobster, and fine wine.

Which gets me back to why 71% of the poll taking bankers believe branches will remain viable.

I have some thoughts about the reasons for their selection:

One, some actually believe that branches are here to stay in some form or other.

Two, others want to avoid the self-fulfilling prophecy belief which goes like this - if we avoid talking about the demise of branch banking then it won’t happen.  In other words, let’s not create a bandwagon effect.

Three, some feel it’s always safer from a career perspective to go with the flow.  Don’t rock the boat.

Four, there’s a group who’ll immediately remind us that we’re still writing checks, using land-line phones, and shopping at neighborhood grocery stores in spite of predictions about their ultimate demise.

Five, some people simply refuse to consider any major changes - especially those that would impact their livelihood.

And finally there’s the issue of costs.

Imagine the huge increase in branch costs from adding the high-salaried people qualified to sell insurance, investment products, and provide estate planning and financial consulting services - not to mention the cost of marketing these products and services.

One thing is certain - the future of branches remains uncertain and a lot more dialog and experimentation is required before we know the ultimate outcome.

In the meantime, remain skeptical of survey results like those shown above.

Of course, to keep customers and members on your email list, you must offer something of value in your messages to them. I have an example of one bank’s email that satisfies the kind of value people expect.

Here’s a promotion for a special event the bank organized for its customers. Shred Days are popular with consumers because of the fear of identity theft. Now, this could have been just another announcement like so many others you find in your inbox, but when you click on the image above to enlarge it, pay close attention to the red bullet copy.

Let’s back up for a moment and look at the layout of the email. Headlines tell you everything you need to know. Just like the old newspaper rule for a good story, you get the who, what, when, where, and why in those three lines. The large graphic makes this a no-miss message even for readers who simply scan their emails.

Copy is brief. No one wants to read a long story in the body of an email without a good reason.

That brings us to the bullet points and the core value of this email message. The bullets could have been a reminder of the sort of personal items customers should shred. It could have reiterated reasons for shredding. Those and other lists are helpful.

But the bullets in this bank’s email are links to greater information:

• Get event details
• Check out the Shred Day video
• Take the Identity Risk quiz
• Get tips to prevent becoming a victim
• Union Bank & Trust on YouTube

Notice the last one? They slipped in a link to videos of their TV commercials. There’s your soft-sell cross-selling angle — and no one is going to opt-out because of it.

In fact, many customers will be grateful they have a chance to take the quiz and read the tips.

Value. That’s what customers want if they allow a business to send them email messages.

So now you have an example that shows it is possible for financial institutions to successfully use email as another avenue for marketing promotions.

There’s the idea. So what’s your plan?

As an avid follower of bank and credit union marketing, I’ve come to the conclusion that most marketers believe the mere presence of the Free Checking account is sufficient to grow checking account market share.

As a result, these banks and credit unions fail to put adequate - if any - marketing effort behind their FREE Checking accounts.

Here’s a marketing tip: Free checking is not a marketing offer - it’s a product.

Having a FREE Checking account as part of your checking product menu is simply the first step in launching a successful marketing program to grow checking account market share.  It’s the first piece of the puzzle.

By the way, the FREE Checking account has been around for many years - long before its breakout in 1982 with the introduction of the High Performance Checking Account Marketing Program anchored by the Totally Free Checking account.

What changed the face of Free Checking wasn’t the account itself - it was the turnkey marketing program banks used to aggressively promote it.

This turnkey marketing program consisted of several very important components:

• An appealing offer of Free Checking and a free gift
• A checking product menu consisting of seven unique accounts
• An ongoing direct mail campaign using a proprietary prospect list development tool
• Frequent, detailed response reports for management
• Exterior Free Checking banners
• In-branch promotional materials including free gift display
• A tell-a-friend program
• Check buyback of checks from previous bank
• Mystery shops
• Sales training

What made this program so successful is that most of the work was performed by experienced marketers working for the direct response marketing vendor that created the program.

Since its introduction in 1982, a number of changes have been made to this turnkey program to ensure its continued success.

Fast forward to today, many of the banks and credit unions offering Free Checking have either stopped using the turnkey program or have never used it.  Others continue using a modified version.  While offering Free Checking still gives them a leg-up over the competition, it does not deliver the volume of new customers available from using an aggressive marketing program of some sort.

Today, we find many bank marketing people pulled away from the traditional direct mail channel and into the arms of the social media octopus.  While social media can play a role in a comprehensive marketing program, it should not be the sole channel for marketing Free Checking - or any product for that matter.

Taking your Free Checking account to the next level requires marketing money and a robust marketing campaign that includes the traditional direct mail channel.

What’s so important about the direct mail channel?

As Joe Swatek covered in yesterday’s blog, it’s the LIST.  And not just any list.

Today, when it comes to aggressively marketing your Free Checking account, the absolute best list is the TASC-generated list available from ACTON Marketing.  It’s a list approach that is the result of over 29 years of marketing free checking across the country.

The Case for Using TASC

You can learn more about the TASC predictive statistical list model here.

Click here for an overview of ACTON Marketing’s turnkey checking account marketing program.

Differentiating your bank or credit union from your competitors requires not only an account like Free Checking - it also requires a unique marketing approach like that available from ACTON Marketing.

ACTON Marketing holds the missing pieces to the Free Checking puzzle.

If you have the guts (and resources) to reinvent your narrative, here are the things to think about as you redesign and redefine your story:

• You are not the main character in your story…your story (updates, cover photos, apps, etc) needs to reflect your customers, not your bank.  People identify with those like them (more accurately: with people slightly better than themselves), not with their bank.

Who are the main characters in the stories below?  Which story would you rather read?

• Your voice needs to be authentic.  Every time I see a scripted wall post that’s repeated over and over “Thank you for bringing this to our attention. Please contact us at customerservice@anybank.com so we can look into your issue and work with you to resolve it.” I want to jump right into my laptop screen onto the Information Super Highway and drive down to a town I like to call Shoot Myself. Yes, discussions about personal account level data need to be taken offline but this voice is your narrator and he/she is inauthentic and not engaging.  Amber Farley from Financial Marketing Solutions adds, “Not only does the voice of the bank need to be authentic and relevant, but it needs to be reflective of the bank’s overall brand. Banks shouldn’t jump into social media pretending to be something they aren’t.”

• Learn from the great writers around you…not just any random writer/reader out there.  It’s good to listen to what’s being said about your brand online, but it’s not good to let your story be controlled by others.  You control your brand; your story is a part of that journey.  Listening, engagement, and moment of relevance have all become buzz words for social media justification but they are not justification for the new story.  Reader interaction is good for a Choose-Your-Own-Adventure tale but only 12-year-old boys like those.  If you choose to accept my challenge, good fortune (and sales) will come to you.  If you choose not to accept the challenge, turn here.
• Get out of your routine to discover new stories.  I was reminded of this just yesterday by Dave Martin’s new American Banker column: Get Out of the Branch, Go Visit Local Businesses.  Characters at rest tend to stay at rest.  Similarly, your stories don’t hatch in the conference room; you need to unearth them by getting into motion.
• Practice different forms of writing: short story, long form, anything between.  I love Embassy Suites’ new 366 days of more campaign.  It has a great voice (copy, visuals, and actor in perfect synergy), a reinforcing story (more, more, more in the pitch and at their hotels, and has a story ending in mind (Feb 28, 2013).  Readers and authors don’t want to get trapped in long, winding stories…most don’t have patience to be on either end of that equation.

www.youtube.com/watch?v=iHvCWImNtFw

I don’t expect you to scrap you current social media offerings today, but do expect those of you out there who are in control of your Financial Institution’s story to view Facebook’s new changes for the game changers that they are: storytelling is the new black…or the new 30…or something like that.

All of the elements of a good story need to be incorporated into your social media efforts: good characters, authentic voice, visual elements, plot twists, and an ending or climax of events.  Conflict is also good, but I think I just provided that to most of you.

A timeline is a great record of where you have been but it doesn’t foretell your future.  Your story can go in any direction as of today.  Tell your story wisely.

Read more about the new Facebook changes here:

Facebook, “Tell Your Story with Timeline”

Social Media Examiner, “Seven New Facebook Changes Impacting Businesses”

TheFinancialBrand.com, “10 Things Financial Marketers Need to Know About Facebook’s New Timeline Features Right Now”