“Despite what you might have heard, free checking accounts aren’t dead.”
That’s the first sentence of a one-page article in the respected Consumer Reports magazine. Titled “Free checking: How to clear the hurdles,” it tells readers to look for ways to avoid the fees some banks apply to checking accounts.
With the mega-banks throwing their free checking customers under the bus, and several other banks joining in, it’s always refreshing to discover a large bank that refuses to place fee income ahead of the needs of its customers.
Needless to say, I was excited upon learning that senior management at Huntington Bank recently made the very wise decision to not only keep its free checking account but also to simplify its checking product menu.
One marketing component gets little attention, yet, if used properly, can be meaningful. It can state your entire agenda.
I’m talking about a tagline. I see plenty, including those from financial institutions. Many are vague and unimpressive. It’s almost like the company thought it needed a tagline so it came up with something innocuous so as not to offend anyone and avoid saying anything they might have to live up to later.
Generally, when we think of a corporate halo, what immediately comes to mind are activities like charitable donations, food drives during the holidays, employees donating their time in the community, scholarships, and local sponsorships. A majority of these outreach activities involve helping those less fortunate living in our communities.
There is an activity which you can add to your corporate halo which not only has a much broader reach, it attracts traffic to your branches, and it helps address a growing problem affecting millions of Americans.
Some financial institutions think it’s beneath their dignity to participate in “frivolous” community events — events that show the organization cares about the community. But I can give you examples of other “straight-laced” institutions that prove you don’t need to put on a stern face for the public.
What sort of organization or business would have a more solemn, upright and proper image than banking? How about a hospital? Or a funeral home?
So companies often resort to gimmicks. Little twists meant to give customers a new reason to try an established product again. Distinctions without a difference. But before you dismiss them as meaningless, lets take a look at a few.
Who knew auto loans could be so productive.
Both my blogging colleague Steve Topper and I have written about the advantages of prospecting for new and refinanced auto loans. A new report crossed my desk that shows there’s a distinct side benefit from this same marketing initiative.
In spite of the lingering recession and ongoing foreclosures across the country, many homeowners are still making plans to remodel all or part of their home. In fact, the home across the street from me is undergoing a major remodeling job while the house down the street is crawling with workers doing a complete landscaping job on the front yard. With many contractors looking for work, most have reduced their prices for remodeling and landscaping work.
Over the past several months we’ve seen a major uptick in new and used car sales. And with high gas prices we’re seeing a jump in used car sales – especially for cars getting high gas mileage. As gas prices continue to escalate, we can expect a lot more churn in the car and truck market.
Before any marketing campaign for a product hits the mail, my staff steps into the branches and trains the front line and the entire office on the campaign about to begin, and the importance of selling the benefits to those would be customers when they walk in the door. Sure, we also emphasize the importance of cross-selling, but what’s more important is we actually give your staff the tools to do it effectively.
That’s why even before the campaign begins we see an increase in account openings. The training alone opens more primary and secondary relationships.
The more I think about cross-selling the more I believe the issue isn’t expensive training for reluctant branch employees – it’s direct response training for the marketing team responsible for online and mobile banking…or better yet, hiring one or more veteran direct response copywriters.
Now that banks and credit unions are under intense pressure to find ways to replace lost fee income, many of them are, once again, looking for ways to improve their cross-selling efforts. This usually means an expensive branch training program.
“Shocking Discovery — Businesses Underserved!”
If I were a tabloid writer that might be a headline I’d write for the story.
This is a pet peeve of mine, but I’m sure it’s a problem for prospects, even customers, who check some financial institutions’ websites looking for specific information.
Admittedly, it’s usually an obstacle with larger banks and credit unions, but the basic principle can apply to other types of information on your own company’s website.
I don’t know about you but I am still shocked that sometime between now and the end of 2013, the very successful online bank, ING Direct, will have a new owner.
This can’t be good news.
Sometimes when I talk with financial services marketers and their colleagues, I get the impression they think consumers are as sophisticated as they are about banking. Of course, that’s not true.
A large portion of consumers only know the basics…like how to use their checking account, debit or credit card, online banking, and so on. They don’t understand some of the features and nuances. Ask for details and you’ve stumped them.
Actually, as I see it, there are three major problems with cross-selling inside bank and credit union branches.
One, most branch employees don’t like to sell. They feel uncomfortable selling. And they don’t want to be trained to sell.
Two, over the years many branches have come to rely on part-time employees who aren’t hired for selling.
“Creative by Committee” is the bane of any marketing department. You’re required to pass around your project to others who show their authority and self-importance by indulging in unnecessary and unwanted changes.
See if this idea can help you.
Financial institutions are scrambling to find new sources of revenue. News reports focus on fee increases and benefit decreases. What you don’t hear about are more and more attempts to cross-sell current customers.
Cross-selling is a hot topic with a low profile. You don’t see it mentioned in the industry press, but our training department staff tell me that lately they’re asked about cross-selling methods everywhere they go.
Perhaps the toughest sell today for retail bankers is the ubiquitous credit card.
Compared to today’s paltry rates being paid on checking, savings, and CD deposits, you can’t very well use a rate offer for your credit card. Besides, when you get into promoting your rate, there’s always a competitor or two with a lower rate offer.
You can’t compete on fees as there are way too many fees associated with credit cards.
Of all the forms of everyday advertising you can use, which do you believe makes the most personal impression on your prospects? I say it’s mail and I’ll explain why.
One of my colleagues gave me a postcard her friend received that announced the opening of a new tanning salon. The card upset the recipient, who has had skin cancer, because it seemed inappropriate considering those past health issues.
Would a grand opening announcement for the tanning salon get the same reaction if seen on an outdoor sign? TV or radio commercial? Newspaper ad?
These secrets enabled a credit union to write over $1.4 million in recaptured auto loans the first week of its campaign. $1.4 million in the first week of the campaign is not a misprint!
This was no small feat given the fact that today’s auto lending business resembles the gold rush of 1849 as everyone is jumping into the business hoping to find auto loan gold.
