M A RK E T ING
Welcome To ‘Business Unusual’ In The Banking World
I
Banks Need To Pivot To A Customer-Centric Marketing Model B Y STE V E SA L LO WAY , S P E C I A L TO B A N K I N G MI D AT L A N T I C
n the recent past, the financial industry practiced years of self-centered marketing approaches that ultimately served to commoditize banking products and services. Then COVID-19 hit. In a somewhat ironic development, these anxious times have seen the advent of a new era of consumer-centric marketing opportunities. The extended lockdown has had a tremendous impact and has produced lifestyle changes, a shuttering of businesses, a huge wave of unemployment, and a dramatic hit to many people’s retirement savings. The virus has changed what consumers need and—equally important— what they expect from their financial institutions. To remain competitive, banks would do well to take notice and respond accordingly. Welcome to “business unusual” in the banking world. Change Drives Change A change in consumer expectations demands a change in marketing strategies. While business objectives may remain the same as before the outbreak, the strategies and resulting tactics must change to meet the challenges of the new normal and to meet consumers where they are right now. Consumers are in pain and marketers have the responsibility to cure that pain and lead their institutions through the marketplace revolution that is occurring. While many brands are responding by quickly producing self-centered feel-good messages that speak only about themselves, consumers are left with the nagging question: “What’s in it for me?” Banks and credit unions should use these challenging times to pivot and become customer-centric, relationshipdriven institutions. Financial brands should be seeking to create a sense of stability, adaptability and provide solutions that are based on actual consumer needs. Consumers have long been in control of the purchasedecision journey and now, more than ever, they expect more. What consumers need and are looking for today are personalized solutions to solve the challenges they face within their current circumstances. They are looking for guidance, accessibility and understanding—in other words: security. Migration Needed Success requires that financial institutions migrate from an institution-centric product-oriented marketing approach that is based on the “4P’s” (Product, Pricing,
Place, Promotion) to a customer/member-centric service model that places an emphasis on their members/customers and consists of Solutions, Information, Value and Access, known as the “SIVA” model. The difference between the two approaches has profound effects that can show real benefits to both customers/members and the institutions that implement them during this crisis and afterward. The service model is entirely based on understanding customer needs and then developing solutions that satisfy them; anything else is just “noise.” Your financial brand can bring about this change and position itself as being a valuable ally to your members/ consumers. How? Start by acquainting yourself with your brand mission, positioning or brand story if you have one. Translate these brand linchpins into customer benefits and solutions and visualize what they look like in a tangible way. Make sure all employees are made aware of what they are and what they mean. Then speak with your customers/members. Take the time to get to know and understand them and identify what they need. Build a bridge between the institution and the customers. This may involve modifying or creating new processes or developing new products or modifying existing ones in the short term. Novel Bundling Reliable access must be guaranteed by leveraging online capabilities and apps, but brands must ensure not only a successful and friction-free environment but a cohesive and consistent user experience across all channels. Remember, customer expectations are higher now and for ISSUE TWO 2020 | BANKING MID ATLANTIC
5
