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Today the mag strip, tomorrow the computer chip! Smart cards are currently being consumer-tested across the country. Refillable mediums for cybercash and potential repositories of personal data - imagine bank [...]

Community banks have a secret weapon in their arsenal of marketing strategies that other banks covet: It's the image of down-home friendliness, local ownership, personal service and civic involvement. These [...]

Aggressive competitors are slicing into the small business market and many bankers are finding they have to serve up some attractive products and services if they are to hang onto [...]

Banks that offer consumer education programs not only contribute to the community but improve their image and increase their customer base. Examples of these programs include the women's banking issues seminars of Community First National in Fargo, ND, homebuying seminars of the American National Bank of Terrell, Texas, and the children's banking education program of Geneva State Bank in Geneva, NE., Consumer education is a significant way that banks can 'give back' to their communities - while raising customer awareness and receptivity for financial products and services. Marketing, as we all [...]

Bank marketers should be involved in the strategic planning process of banks due to the relationship between management and marketing decisions. Marketers aid banks in developing a set of goals and objectives by providing information on existing market conditions and competition. They can also be involved in various aspects of the plan, such as distribution, sales environment, profitability and product offerings and customer trends., Participating in the strategic planning process can mean enhanced credibility and respect; for bank marketers up to the challenge. The strategic plan of a bank combines corporate vision, mission values, [...]

Small banks are developing more branch outlets and alternative delivery systems of services to effectively compete against larger banks. These branches offer retail services that are designed to answer the specific needs of customers. On the other hand, alternative services such as ATMs, interactive video systems and online banking allow banks to widen their distribution networks at a lower cost., Giving customers what they want, when they want it, and how they want it - simple, right? Well, maybe. The interaction of location and branch type is a complex dance. [...]

Many firms, such as banks, cannot afford to devote much time for employee and management training so, if they can afford the cost of outsourcing training, they should not hesitate to hire an outside expert group to handle the activity. Others may only need to add onto their existing in-house training programs. Whatever the training needs of a particular bank, costs involved in training should be considered as investment., Training is a vital part of any organization, and banking is no different. In an industry where survival depends on employees delivering quality service based on strong sales skills and [...]

IMPROVING SALES AND SERVICE IN YOUR BANK CAN BE FUN FOR YOUR EMPLOYEES IF YOU TAKE THE TIME TO FIGURE OUT THE REWARDS THAT YOUR STAFF WILL WORK HARD TO [...]

The same strategies apply to both big and small banks alike that face a merger/acquisition - plan well, communicate often and never forget to take care of your most valuable [...]

They are the generation that changed a nation and as the baby boomers march into their 50s, they show no signs of slowing down. Some experts predict baby boomers will [...]

When employees of Solomon Friedman Advertising, Bloomfield Hills, Mich., learned their agency had won an EFFIE award for a campaign for Franklin Bank, Southfield, Mich., business stopped and a cheer [...]

Platform automation is creating new sales opportunities for bankers by providing immediate access to more information during meetings. Information is power and banks are developing platform automation systems that bring [...]

Outsourcing certain core marketing projects of a bank can help bank marketers save on technology and staff costs. Moreover, it frees them to spend more time on strategic planning. This is why an increasing number of bank marketers are outsourcing their functions. The most common outsourced activities are product promotion, advertising, direct mail, market research and corporate literature. Activities usually done in-house are likewise being outsourced, including market planning, product development, recognition programs, sales support and strategic planning., Downsizing, mergers, improving efficiency ratings - in today's competitive environment, sometimes getting the daily tasks done can be a real challenge, and tackling any special projects can seem almost impossible. [...]

Telemarketing is increasingly becoming the preferred direct-response marketing tool of bank marketers. It enables them to establish contact with clients, deliver customized messages and answer their questions. As a result, they get better efficiencies and increase their response rates. Bank marketers are taking a variety of approaches with their telemarketing programs. Some use advanced call management systems that rely on predictive dialers while others utilize customer service centers as inbound telemarketing fulfillment centers. Yet others combine inbound and outbound telemarketing., Bankers are finding both inbound and outbound telemarketing can significantly improve response rates to marketing campaigns as well as reduce costs and increase profitability. Here's how. There's is nothing like [...]

Having satisfied customers doesn't always mean your customer retention programs will be successful. In fact, a big difference exists between satisfied customers and loyal customers. Knowing the distinction can create [...]

Image campaigns are becoming an integral part of brand management. This is also one of the many components which banks consider in establishing their own identities. Brand identity is an all-encompassing factor containing a careful mixture of media and non-media elements impressing the consumers. Strong brand identity is built by the branch appearance, customer correspondence, bank's accessibility, product, pricing, employees' appearance and customer service., Banks have moved beyond trendy image campaigns to integrated training, advertising and culture philosophies. The glue that holds together these philosophies is a strong brand. Image campaigns are not just [...]

The '1994 Bank Card Industry Report' made by the American Bankers Assn. indicates that more than 208 million Visa and MasterCard accounts were recorded in 1993. It could be said that the golden era of the credit card has been reached. However, customers jumping from one issuer to another is a competitive concern. Cobranding, affinity cards and market expansion are factors contributing to the credit card market growth. Banks are more likely to retain credit cardholders by working on loyalty-building campaigns., This may well be the golden era of the credit card. Consumers are continuing to take on new credit cards, adding to the hundreds of millions of cards already in [...]

Most banks would like to use marketing databases as they are powerful marketing tools. However, the wide range of prices and the differences in many features may make the selection of a marketing database difficult. Banks may facilitate the selection process by conducting a needs assessment and categorizing needs into those that all database vendors can satisfy, those that no vendor can satisfy and those that only some vendors can satisfy. The experiences of four banks in selecting a marketing database vendor are presented., Choosing a database marketing company can be like trying to pick one sweet in a candy store. With so many companies offering dazzling features, picking the best system can be [...]

Banks have become more proficient in using a wide range of market research tools to identify customer needs and to classify them into market segments. Moreover, effective market segmentation has allowed banks to reduce costs related to service delivery and to increase customer satisfaction. However, bank marketers admit that they still need to develop other market research approaches to increase their understanding of customer behavior. A discussion of the different approaches undertaken by several banks to determine customer needs is presented., By using a variety of market research tools, banks are doing a better job of targeting narrower customer segments. But there's still more to learn. Customers come in all shapes [...]

Banks have come to realize the usefulness of maps as competitive and marketing tools. Maps present specific and comprehensive demographic data on neighborhoods and customers, including lifestyle, income and buying power. Banks are required by the Community Reinvestment Act to use maps to identify and provide services to low- and moderate-income areas. Among the innovative uses of maps include identification of trade areas, determination of ATM locations and identification of customer groups in direct mail promotions., Sometimes a picture is worth a thousand words. But when the picture is a map of a lucrative market, it can be worth thousands of dollars. Once used only for [...]

Stored value cards have tremendous potential since they could eventually evolve into a viable alternative to cash. Not surprisingly, these cards have become the focus of ambitious product development projects by financial services firms such as MasterCard International, Visa International, Midland Bank, National Westminster Bank and Electronic Payments Services. Among the projects underway are MasterCard and Visa's global stored value card program, Midland and National Westminster's Mondex card and Electronic Payments' experiment in linking stored value cards with a point-of-sale debit function., Beyond credit cards and debit cards, financial services players are developing the smart card - one card that will fill all consumers' payment needs. When all the nickels and dimes [...]

Bank marketers seeking to improve the quality of customer service should implement total quality management and consider the needs of their customers. Internal and external operations should be examined and employees must be empowered to participate in decision-making. The three critical components in total quality management programs include technological efficiencies, ongoing service quality measurement systems and the human element., With a solid foundation of service quality, success can be reinforced from the bank's internal departments to its front-line employees. Total quality management represents a formidable challenge for bank marketers [...]

MCIFS have become standard bank equipment so that database marketing is given a new dimension. Marketing strategies are being developed using sophisticated modeling techniques and of information about customer buying behavior. Bankers also need to become customer marketers rather than product marketers. This can be predicted by using account balance and transaction information. Database marketing has aided banks in developing acquisition, retention, cross-selling and profitability strategies., Now that MCIFs are standard equipment in many banks, database marketing is entering a new dimension where time and relevance are key components in developing marketing strategies. Sophisticated modeling techniques [...]

Commercial banks have started to enhance their services and improve their operations to compete effectively with nonbank rivals and satisfy rising customer expectations. They have either used computer technology to market cash management products online to customers or offered credit and investment products that were once available only to big corporate customers to its small business clientele. Bank of America has chosen the fist approach while Western Bank opted for the latter strategy., Bank across the country are offering innovative financial products to keep their commercial customers happy. Banks making inroads into the commercial market are not reinventing the wheel when it comes [...]

A study conducted by Prophet Market Research and Consulting has shown that around 20% of investment product salesmen fail to notify their clients about the absence of FDIC insurance in the products and services they sell. Furthermore, this deliberate withholding of information, which is illegal, has been resorted to especially if the client was a woman. In this light, banking institutions need to correct such a situation before damage to long-term customer relations occurs., Investment product salespeople must disclose that their products are not insured - to comply with the law and to win the trust of customers. Banks have suffered their share of [...]

New merchandising technologies allow branch banks to better communicate with their customers. These technological innovations are reconfiguring bank branches and redefining the way they relate with their clients. Huntington Bancshares in Columbus, OH, for instance, boasts of a high technology banking office that provides 24-hour banking access to customers. Sunwest Bank in Albuquerque, NM, meanwhile, has installed automated teller machines serving as mini-branches, which take merchandising messages to clients. A Mellon Bank in Philadelphia, PA, has personal bankers that assist clients like store sales clerks., Merchandising has gone far beyond signage and kiosks to get the bank's message out. With the touch of a button at a two-way video banking platform, a loan applicant at [...]

Database marketing offers tremendous benefits to superregional banks. Among others, it can be used to help these large regional banks stay focused on the individual needs of their bank branches. Database marketing can also be used as a competitive tool for developing special programs tailored for the needs of key markets. Most importantly, it can be used to drive customer service programs so that they become more responsive to the preferences of important customer segments., No matter what season or which product, superregionals can coordinate their branches' marketing using their databases. Customers come in all shapes and sizes and identifying how different they are and [...]

The implementation of excellent service quality has become an important pursuit for banks as they try to find ways to set themselves apart from the competition. Today, it is no longer acceptable for these businesses to merely satisfy customer expectations. Rather, most banks are intent on surpassing the expectations of their customers. According to quality expert Bob Romano, the first step in exceeding customer demands is the relentless commitment toward the identification of what customers think about the service they are being provided. He also avers that service quality should not be a one-shot program but a continuing process. He cites infrastructure, training, and organization and development as the three components of service quality. The quality efforts at Chicago Bank, Compass Bank and Marquette Bancshares Inc. are discussed., When it comes to implementing today's service quality programs, nice guys don't always finish first. Sure, a warm smile, firm handshake and a greeting by name go a long way [...]

Direct marketing provides banks with direct insights on who buys what and when, and gives a wide range of pertinent information about customers and their financial needs. Because of this, an increasing number of banks are allocating bigger funds for their direct marketing activities. Present direct marketing efforts no longer focus on direct mail. Instead, they employ other advertising channels to complement and improve the response rates of direct mail. One technique, what is known as integrated marketing, even involves the use of multiple media to increase the probability of response. In direct marketing, the database is an important instrument in helping direct mail programs better target prospects. Mass media advertising with a toll-free number also helps direct marketing efforts by identifying prospects that cannot be located through database analysis. Direct marketing initiatives of TCF Bank, West One Bancorp, Fifth Third Bank and AmSouth Bank are discussed., Taking the direct approach to marketing can be a real eye-opener. Unlike any other advertising medium, it gives direct answers to who buys what and when, and reveals all sorts [...]

Stiff competition in the bank credit card business requires a marketing strategy that will lure a creditworthy consumer away from a rival. One way to do this is to offer low introductory rates for transfer balances. The special interest rate is usually effective from six to 18 months and comes within the range of 7.9% to 8.9%. Another effective technique for attracting holders of competitors' cards is to develop substantial card value by giving consumers an incentive for using a card. Rewards may be goods, interest back feature, purchase rebates and cash. A third approach in gaining a comfortable market share in the credit card enterprise is to create co-branded cards. One fine example of a possible co-branding partner is a local service agency or a community cause. While busily seducing customers away from competitors, banks should not forget their existing customers who may themselves be lured by rivals., If there is one secret that is the most guarded in a bank's arsenal of competitive strategies, it is credit card marketing. Here's what banks are doin to retain customers. [...]

Business customers represent a lucrative market for the banking industry because they often generate large volumes of business and high profits. These customers are heavy users of credit services, as well as deposit and retail products. In many instances, a bank can derive as much as 80% of its profits from just 10% to 15% of its business customers. Because these clients bring in a lot of business, banks are realizing that it makes more sense to retain profitable business customers than to find new prospects. An important part of any customer retention program is identifying the accounts that the bank cannot afford to lose. By segmenting the customer base by profitability, the bank can make better use of its marketing dollars because its efforts are tailored to suit the different segments. Another useful retention strategy is to determine the satisfaction level of the various customer segments. Banks must learn what customers want and need and should endeavor to provide them., Retaining profitable business customers can be as important as finding new customers. Here's how banks are doing it. Stakes are high in the competition for business customers. This lucrative market [...]

Telemarketing provides banks the opportunity to establish personal access to customers. In this manner, this marketing technique can become a powerful instrument for banks to boost their sales returns as well as improve their customer service. Despite these benefits, however, some banks remain hesitant to adopt telemarketing because customers can easily reject offers through the telephone. Nevertheless, there is a way to soften the blow of rejection. It involves positioning the call not as sales pitches but as an avenue to tell what the bank has to offer. This approach builds rapport and thereby encourages customers to accept calls the next time a telemarketing agent contacts them. The successful telemarketing programs of First Union National Bank, Union State Bank and South Carolina National Bank are discussed., This powerful marketing tool is not for everyone, but it can net impressive returns. Here's how it can be used effectively. When it comes to targeted marketing, the telephone can [...]

Banks are increasingly outsourcing many of their technological services. Transferring such functions as item processing and electronic funds transfer processing provides banks with many benefits, including scale economies, technological expertise, lower costs and product differentiation. However, banks contemplating the outsourcing of certain services should carefully consider the pros and cons of doing so, since pulling out of an outsourcing contract can be very expensive. Examples of banks that have parlayed outsourcing into a banking strength include Rock Savings Bank in Wisconsin, which uses an imaging service provided by FIServ for its check processing system, and Lone Star Bank in Texas, which hired Affiliated Computer Services to develop a geocoded mapping service for pinpointing loans in compliance with the Community Reinvestment Act., When, where, how, and which services to outsource can be as mind boggling as sorting through the theory of relativity. According to consultants, there are at least 18 technological services [...]

Developments in home banking have pushed the banking industry to develop its communication technology and have triggered an increasing number of alliances with credit card services, banks and communication technology vendors. Electronic delivery of banking services is becoming the popular term for home banking due to the numerous access devices available to consumers. Screen phones will be made available by Ameritech and Citibank as its telephone banking service. An alliance with Crestar Financial Corp., Visa U.S.A. and U.S. Order will create a system integrating bill payments, shopping and home banking into a single system. MasterCard has launched a home banking program which includes MasterBanking, which can utilize access devices such as interactive television and personal digital communicators. Home banking is likely to grow even more as bank marketers explore their customers'needs., Banks are rushing to offer customers home banking--via phone, PCs, and television. As the lanes and byways of the information superhighway lead to more neighborhoods and homes, banks are joining [...]

Branch merchandising is an area of bank marketing which has not been given much attention. Consultants say that banks must start concentrating on how they advertise, such as the use of posters in the lobbies and brochures at teller windows. Merchandising has to do with creating product awareness by understanding consumer behavior and planting it in the customers' minds through visual aids. The three stages of developing a successful merchandising program are improving awareness among customers, making minor restructuring, such as making areas and service representatives easier to reach and completely redesigning the branch wall to wall. Some innovative merchandising techniques include the use of television networks or electronic merchandising which are proving to be cost effective. Personal computers are also used to reach customers who are difficult to reach., Whether banks use simple signage or elaborate technology, branch merchandising helps them reach more customers. If there is one area of bank marketing that hasn't gotten much attention, it is [...]

More and more banks are looking to their marketing plans as a tool for achieving their strategic goals. In some instances, the marketing plan is used in the development of the strategic plan. In other instances, the marketing plan dictates where the bank will be operating. Yet in other instances, the marketing plan is actually the strategic plan itself. However, this does not mean that the direction the bank will take is not totally controlled by the marketing department. It only serves as a catalyst for other departments to think of possible routes that the bank should take. In harmonizing the various bank divisions, marketing plans address the future while taking into consideration the day-to-day developments in the market. Usually, these marketing plans are flexible enough to allow adjustments. The marketing plans of Intrust Bank, Northern Trust Co. and Peoples State Bank are discussed., 'Some banks are still shooting from the hip and reacting to market changes, but more are taking planning seriously and at least putting a framework for activity on paper,' says [...]

An increasing number of banks are discovering the value of database marketing. More than ever, this marketing tool is being used for a plethora of purposes: to increase profitability, to develop branching strategies, to retain customers, to track their performances and to develop their market in particular areas. Through the use of such tools as mapping technology, geocoding, advanced MCIFs and sophisticated modeling techniques, database bank marketers are able to perform these activities. They are able to get a more focused view of their customers, their buying habits and financial needs. Among the banks that have successfully implemented database marketing programs are Bank IV, Premier Bancorp, Glendale Federal Bank and Leader Federal Bank. Their database marketing approaches are discussed., Mapping technology, geocoding, sophisticated MCIFs and more refined modeling techniques are creating a sharper image of a bank's customers and bringing customers' buying habits and financial needs into sharper focus. [...]

Bank marketers should carefully choose agencies that will handle their advertising requirements. To do this, they must first assess the advertising needs of their banks. The results of the need-assessment process will then serve as the criteria for selecting an ad agency. Aside from this, the degree of involvement required from an agency should also play a role in the decision process. When choosing from among a list of agencies, bank marketers should study each prospective agency. This requires the identification of the personality, philosophy and work ethic of the agencies on the selection list, which should complement those of the bank. Other factors of import are expertise, size, creative experience and responsiveness. After an agency has been chosen, bank marketers should then strive to create an effective working relationship. The selection process at Bay View Federal, SouthTrust Bank, Comerica Inc. and Valley Bank are discussed., Are you a traditional bank marketer intent on presenting the proper image? Or maybe you have an assertive, down-to-business attitude? Do you like to be on the cutting edge? Knowing [...]

Bank re-engineering is an undertaking that involves restructuring in a way that reflects a bank's relationship with its customers. Because marketing is the 'voice of the customer,' it therefore follows that it plays a major role in the re-engineering process. Among its responsibilities are providing leadership in the segmentation of the customer base and the identification of profitable segments, assisting in the development of products that are based on customers' needs and finding avenues for the delivery and communication of products and services to customers. Because re-engineering is a highly customized and individual process, banks take vastly different approaches in their restructuring initiatives. This is evident in the varied methods taken by NationsBank, Norwest Corp, First Commerce, United Nebraska and First Chicago. The re-engineering methods of the five banks are discussed., In this, the second of two articles, five banks describe how they have implemented re-engineering strategies. Sweeping changes are occurring in the way banks approach their customers, develop products and [...]

An increasing number of banks are realizing the value of mystery shopping programs to their bottom line. Shopping surveys are now included in most compliance, training and sales programs, and are being used to help support marketing initiatives. They are also being employed in designing merit and reward programs, in establishing comparative measures for branches and in setting competitions to reach quality standards. Banks interested in implementing mystery shopping programs should avoid five things: measuring one dimension only, shopping without training, expecting perfection, frequently changing shoppers and ignoring the competition. They may also consider the successful strategies taken by such banks as CoreStates Financial Corp, Bank One Denver and First Security Corp. The mystery-shopping programs of these banks are discussed., There is nothing mysterious about quality service, and bank marketers using shopping programs know it takes more than a quick test of employee skills to build a successful corporate culture [...]

Re-engineering is a term that has been gaining substantial attention in the financial services sector as well as in other areas of the business community. Advocates claim that banks need the process to ensure continued survival, while others have reservations and warn that it may not work for everyone. In any case, it cannot be argued that re-engineering is definitely reshaping bank management. It is a customer-driven process that calls for a comprehensive examination of how a bank serves its clients and markets, regardless of its organizational structure. It emphasizes timely delivery and the alignment of work teams with customer niches. Re-engineering's focus goes beyond the customer, and includes risk analysis, business analysis, market research, and cost cutting measures in the process. Experts agree that re-engineering, although considered risky, is a key to sustained competitiveness in the banking industry., Re-engineering is a term that is used a lot, but what does it mean? How does it work, and who's doing it? Consider some of the business buzzwords for the [...]

Banks of all sizes are finding new markets by establishing in-store branches. Unlike early pioneers who ventured into supermarket banking, newcomers can benefit from their predecessors' experience and knowledge. Successful [...]

Today, trust departments work closely with other departments to offer new products and services. Trust departments are shedding their staid image and donning a more sophisticated look that includes offering [...]

Banks are increasingly lending their support for women-owned business enterprises in the form of much-needed loans and guidance. Bank officials explain that such trend is driven by the fact that the scope and strength of women-owned businesses are growing at an accelerated rate. As of 1993, women-owned firms account for 30% of all businesses and are expected to grow to 50% by the year 2000. However, the National Assn of Women Business Owners (NAWBO) reports that this sector remains to be underserved by banks. To address this situation, NAWBO and other similar organizations conduct educational programs to help women establish financial relationships and support network. For their part, some banks support women's organizations and also conduct seminars for education and technical assistance. Programs of five banks targeting women-owned business are profiled., More banks are making critical loans and offering valuable guidance to the lucrative female entrepreneur market. When Phyllis Hill Slater went to apply for loans for her engineering company in [...]

The small business sector represents one of the most competitive areas of banking services. Banks that exited the market during the recession, as well as non-banking competitors, are actively pursuing small businesses. The competition is so heated up that marketing strategies have become crucial in successfully enticing small businesses. However, as a result of common misunderstanding regarding small businesses, maintaining market share with the sector is a difficult undertaking. Nevertheless, marketing experts recognize that this segment requires creative and inventive marketing campaigns that are focused, purposely aimed and personal. Moreover, direct and honest marketing messages, and relationship-oriented campaigns are most effective for small businesses. The marketing approaches taken by such banks as First Tennessee Bank, Village Bank, Associated Commerce Bank, National City Bank and Harris Bank in targeting small businesses are profiled., The small business market is hot, so hot that bankers may have trouble holding onto their market share. This market could be banking's final frontier. Not only are many banks [...]

Technological innovations are changing the way credit card issuers and banks are managing their collections recovery operations. Recovery departments are increasingly adopting state-of-the-art systems that can create better efficiencies, recover more dollars and boost productivity. There are recovery software packages that are so advanced that they can automatically determine what needs to be done with an account. Source Data's Recovery One, for instance, automatically segments accounts into four areas: those that should go to law firms, those that should be sent to collection agencies, those that should remain in house and those involving bankruptcies. Developers of recovery programs continue to search for ways to bring recovery automation to new heights. Quite a number of vendors are exploring the area of scoring, something that can be used to predict the probability of repayment.

Bank marketers have discovered the potential of bank account statements as a target marketing vehicle. They believe that statement-based marketing can be highly advantageous for their cross-selling potential and market penetration capacity. Marketing personnel in several banks are already urging data processing departments to make statements more flexible and more accessible for marketing messages. Moreover, several flexible-formatting softwares that allow statements to be redesigned as a marketing device are readily available in the market or from service agencies. Statement-based marketing becomes even more potent when integrated with matrix marketing and data base marketing capabilities. This allows marketing messages to be directed at selected groups of customers only. Bankers are already expecting profit increases as a result of statement-based marketing even though its benefits have not been fully established., Customers' monthly account statements provide a no-cost vehicle for targeted marketing. The once-lowly monthly account statement is causing quite a stir in many marketing circles. Some bank marketers are so [...]