Bank Marketing Strategies

Insights and trends to facilitate financial marketing success

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Thursday, October 21, 2010

The Sales Funnel Revisted

For my whole career, both in marketing and sales, I have understood the concept and importance
of the sales funnel. Conceptually speaking, the traditional sales funnel starts with awareness
being generated at the top of the funnel (the widest part) and then having the prospect work
down the funnel through the stages of interest, consideration, commitment and eventually having
a sale made at the narrowest part of the funnel. The funnel framework worked fairly well in
providing the foundation for understanding what metrics should be concentrated on and where
resources should be deployed.

But what happens in a world where prospects have so many more tools at their disposal to
evaluate your offerings on their own or where they skip stages of the process all together?
Read more »

Posted by Jim Marous at 4:41 AM 1 comments

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Labels: acquisition, cross-sales, demand generation, small business
Tuesday, October 19, 2010
Banks Need to Build Foundation for Effective Multichannel Marketing

While the BAI Retail Delivery Conference in Las Vegas doesn't officially begin until today,
hundreds of attendees participated in a series of pre-conference workshops, including a session
entitled, "Improving Acquisition, Onboarding and Cross-Sell Effectiveness with Multichannel
Communication" which I was lucky enough to present with Matt Wilcox from Zions Bank and
Tal Harry from Richter7. The workshop was attended by representatives from banks of all sizes
and in various stages of multichannel marketing development.

During the session, we had several formal and informal surveys to determine where this limited
cross section of the banking industry was with regard to their marketing mix.

Read more »

Posted by Jim Marous at 5:45 AM 0 comments

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Labels: ATM, direct marketing, email, Facebook, mobile, multi-channel, onboarding, Twitter,
YouTube
Thursday, September 16, 2010
New Smart Card Geared to Convenience and Safety Conscious Consumers

As banks continue to innovate around the use and rewards structure of both debit and credit
cards, the penetration of smart cards in the United States has lagged other countries. That may
soon change, however, after Pittsburgh-based Dynamics, Inc. won the first prize ($1,000,000)
'DemoGod' award at this week's Demo tech start-up conference in Silicon Valley.

Leveraging a programmable magnetic stripe that can be changed at any time (but still able to be
read at today's magnetic stripe POS readers) the MultiAccount card can carry different card
accounts on one piece of razor thin plastic.
Read more »

Posted by Jim Marous at 5:07 AM 2 comments

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Labels: credit cards, debit cards, innovation, payments, rewards, security, technology
Friday, September 3, 2010
What's in Your Wallet?

In the past, bank marketers have relied on models based on demographic, geographic,
psychographic and purchase variables to better understand their customers and prospects. Some
financial institutions even use attitudinal, lifestyle or customer value segmentation to improve
the targeting of their marketing communications.

As consumers are provided more and more options as to how to transact business and make
payments, however, a better way to segment may be achieved by using advanced behavioral
segmentation based on payment decisions. In other words, when consumers open their
checkbook, reach for their wallet, turn on their computer, or use their phone, what payment
option they choose may help bank marketers improve targeted engagement, channel and
relationship expansion communication.
Read more »

Posted by Jim Marous at 5:28 AM 0 comments

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Labels: credit cards, debit cards, financial services marketing, modeling, payments, segmentation
Sunday, August 29, 2010
Demand Generation Essential for Effective Lead Management in Banking
One of the biggest challenges facing small business bankers, mortgage loan officers, corporate
bankers and trust officers is the ability to keep pipelines filled with qualified, sales ready leads.
While marketing may execute programs that feed the funnel at the top, sales teams within the
bank are still tasked with determining which leads are qualified and nurturing these leads in an
environment where buyer behavior is less predictable and the evaluation of alternatives is being
done more and more online and through social media.

In many cases, bank marketing and sales team are executing with conflicting strategies while
working toward a common goal of generating sales. Leads are often provided by marketing
before they are 'sales-ready', while sales is accused of not closing enough leads generated by
marketing. This creates departmental conflict and lower sales team engagement due to the
expectation of poor lead quality. In most cases, if a lead is not immediately sales-ready, no
nurturing of the lead ev ntakes place resulting in program failures.

Read more »

Posted by Jim Marous at 1:16 PM 0 comments

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Labels: B2B, demand generation, small business
Friday, August 27, 2010
Post Financial Reform Checking: Fee, Free or Wait and See?

With August 15 in the rear view mirror, the impact of the new regulations around overdraft
protection (Reg E) are beginning to be played out in the marketplace. While most of the larger
banks, such as Bank of America, Chase and Wells Fargo have declared an end to free checking
without stipulations, most small and some regional banks such as US Bank, Suntrust and Capital
One have left the product unchanged while many of the large regionals such as PNC, KeyBank
and others appear to be adopting a wait and see approach.

In fact, according to research released this week from Moebs Services, only 63.6 percent of the
largest banks currently offer free checking compared to 92.6 percent in 2009, while community
banks’ use of free checking declined only declined from 78.3 percent to 71.7 percent.
Read more »

Posted by Jim Marous at 5:19 AM 0 comments

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Labels: BAI, checking, Durbin, engagement, Free Checking, Reg E, rewards
Thursday, August 12, 2010
Small Business Acquisition Strategy Should Correlate to Potential Value

According to Barlow Research, a small business customer

($100K to $10MM in sales) will bring about $5,173 in Net Potential Revenue to a bank each
year. This revenue estimate is based the value of short-term and long-term loans, demand deposit
accounts and other business banking products balances and fees paid by a small business in
2010. Based on these revenue estimates, a shift in one percent of primary bank market share can
increase the Potential Customer Lifetime Value of your small business banking portfolio by
approximately $577 million.

Even with this potential, most banks are viewed as underserving the small business market
according to research from Barlow, Aite Group, JD Powers, Greenwich Associates and others.
The perceived brand of large banks (assets of $50+ billion) became especially tarnished due
to big banks' questionable financial stability, slower responsiveness to small business requests
and perceived dwindling appreciation for the small business customer. As a result, more small
businesses than ever state that they are willing to consider a change in financial institution
partner.

Read more »

Posted by Jim Marous at 5:01 AM 0 comments

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Labels: acquisition, demand generation, financial services marketing, small business
Friday, August 6, 2010
IAB Study Discusses Optimal Marketing Channel Allocation
Gone are the days of the Mad Men, when the marketing channels were limited and mass media
was king. Today, there are more marketing channel options available and the attention of the
consumer is more difficult than ever to capture.

As a result of this fragmented marketing mix, measuring the effectiveness of media spend and
optimizing this spend is more complicated than ever. In fact, with the interactive channels
(including social media) playing a vastly increasing role in establishing brand and product
presence, and with tools like the DVR giving the consumer more control over their consumption
patterns, the need to understand how to allocate budgets across marketing vehicles has never
been more important.

Read more »

Posted by Jim Marous at 8:54 PM 0 comments

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Labels: financial services marketing, integrated communication, mass media
Tuesday, August 3, 2010
Zions Bank Integrated Strategy Yields Results

I recently spent a couple days at a Marketing Summit with the Zions Bank direct marketing team
and their interactive agency Richter7 in Salt Lake City and it was exciting to see the great results
of their integrated marketing communications programs.

Not only have they lowered an already industry low attrition rate with their multi-touch
onboarding program that uses direct mail, email and phone contacts of customers over the first
90 days of the relationship, but they have also seen a strong increase in account engagement,
cross-sales and balance enhancement. Even using very conservative estimates, the ROI of the
program far exceeds 400%, with enhancements still being introduced to improve these results.
Read more »

Posted by Jim Marous at 6:13 AM 0 comments

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Labels: cross-sales, integrated communication, multi-channel, onboarding, social media
Saturday, July 31, 2010
Post August 15 Reg E Strategy Provides Opportunity

For the past several months, every bank I visit has been working
tirelessly to educate and encourage customers to opt-in for OD coverage in response to Reg E.
Multi-channel communications, including direct mail, email, outbound phone, statement inserts,
online banners and in-branch literature have all been focused on helping customers understand
the potential impact of the regulation while hopefully limiting the lost fee revenue associated
with the regulation.

While the regulation took effect on July 1 for new customers opening accounts, banks realize
that the real impact will be felt after August 15, when transactions are denied and overdraft fees
can no longer be collected from current customers who have not opted-in. So what are your post
August 15 strategies for customers who have not opted-in?
Read more »

Posted by Jim Marous at 2:07 PM 0 comments

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Labels: attrition, fee income, opt-in, overdraft, overdraft protection, overdraft solution, Reg E
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Blog Archive
• ▼ 2010 (82)
○ ▼ October (2)
 The Sales Funnel Revisted
 Banks Need to Build Foundation for Effective Multi...
○ ► September (2)
 New Smart Card Geared to Convenience and Safety Co...
 What's in Your Wallet?
○ ► August (5)
 Demand Generation Essential for Effective Lead Man...
 Post Financial Reform Checking: Fee, Free or Wait ...
 Small Business Acquisition Strategy Should Correla...
 IAB Study Discusses Optimal Marketing Channel Allo...
 Zions Bank Integrated Strategy Yields Results
○ ► July (11)
 Post August 15 Reg E Strategy Provides Opportunity...
  Bank 2.0 is a Bank Marketer Must Read
 Can Banks Find Ways to Make Deposits Work Harder?
 Responding to the Self-Directed Bank Customer
 Newly Acquired Bank Customers Need to be Onboarded...
 Are Prepaid Cards an Emerging Threat to Traditiona...
 What Bank Marketers Can Learn From Apple
 Onboarding Needs to Reflect Bank Customers' Divers...
 Disconnect Seen Between Small Business Needs and A...
 What is the Future of the Branch?
 Cross-Selling is Key to Bank Revenue Growth
○ ► June (12)
 Onboarding Communication - How Much is Too Much
 Optimism and Better Results Reported in Recent DMA...
 Drop in Loyalty and Impact of Premiums Should Conc...
 Thinking Like Your Customer
 Ten Steps to Onboarding Success
 The Mobile Banking Response to Reg E
 Effective Onboarding Begins with Good Insight
 Mobile Banking Can Improve Customer Acquisition by...
 PNC Uses Social Media to Support Reg E Efforts
 Mobile Banking Summit Illustrates Topic is Hot
 Chase Introduces Instant Action Text Alerts to All...
 Alternatives to Online Bill Payment May Drive Stro...
○ ► May (10)
 Reg E Opt In Results Better Than Expected
 Use of Online Banking and Bill Payment Continues t...
 Interchange Amendment Could Change Reward Programs...
 Banking on Social Sites Unlikely
 Comparing Results to Industry Norms
 Be Careful of 'Mental Opt-Out' With Email Marketin...
 Banks Can Accelerate Revenue Growth by Managing Di...
 Seven Predictions for the Future of Banking
 Innovation as a Growth Engine
 Is Cash Really King?
○ ► April (9)
  Online and Social Media Emphasis Grows
 Cardlytics Introduces Bank Statement Innovation
 Wells Fargo Promotes Online Statements
 SIFMA Asset Management Account Roundtable Recap
 Chase Uses Safety Message to Promote Signature Deb...
 BAI Checking 2.0 Executive Forum Recap
 Banks Introduce New iPhone and iPad Applications
 U.S. Bank Introduces Customizable Small Business R...
○ ► March (9)
○ ► February (7)
○ ► January (15)

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