22 Industry Leaders Provide New Year's Resolutions for Bank Marketers

This is the third installment of my financial institution marketer resolution series which I started two years ago with 'Ten Bank Marketer Resolutions for 2011' and followed up with 'Ten Resolutions that Bank Marketers Can't Ignore in 2012'.

Unsurprisingly, there are similarities from year to year as bank marketers continue to be challenged by increasing regulations, new competitors, expanding channels and products, new technologies and a much higher emphasis on measured results. In addition, the need to focus on the customer experience and find ways to generate additional revenue has become a requisite for bank and credit union marketers.

As I did for the marketing resolutions in 2012, I collected ideas from my travels across the country meeting with banks of all sizes in addition to asking industry leaders to provide insight into what they believe bank marketers should focus on in 2013. I appreciate the fantastic response I received from almost two dozen blogging, tweeting and LinkedIn friends in the U.S. and abroad who provide me with insight and inspiration on a daily basis.

Here are the resolutions that industry leaders believe are most important for financial institution marketers in 2013:

Improve Focus

The fact that I have fewer resolutions this year than in the past is intentional. While I could have easily presented 10, 13 or more resolutions for 2013, it has become apparent that the inability to focus is hampering the ability for most financial institution marketers to accomplish what is required. The noise created by multiple (sometimes conflicting) initiatives is distracting financial marketers and making it difficult to move the marketing needle for many organizations.

Tim McAlpine, president and creative director of Currency Marketing says it best in his response. "Retail financial institutions should resolve to focus. This could be a focus on a singular product or a singular type of customer. Don't forget about everything else, just put 70% of your energy into one big thing that your institution can be the best at in your marketplace."

In the same vein, Ron Shevlin, senior analyst from Aite Group and publisher of the Snarketing 2.0 blog states that, "bank marketers should resolve to NOT fall in love with every new buzzword that comes along." Knowing Ron, this would include, but not be limited to 'big data', many concepts around social media and even some marketing roles/titles. Before moving to the next 'shiny object', make sure you are doing the basics well.

Being focused should not come at the expense of flexibility, however. As Matt Wilcox, senior vice president of Zions Bank and proficient financial blogger points out, marketing plans should remain nimble and fluid. "Marketers should not fall into the trap of making a detailed calendar that must be followed at all costs. Consumers have changed and so should marketing. Seasonality will always play a role, but cater your marketing to your opportunities and go after the business that supports your overarching objectives."

Grab the Low Hanging Fruit

In the quest to deliver the next great technology or to respond to the competitor down the street, bank and credit union marketers sometimes forget to optimize the acquisition, activation, onboarding, cross-selling and retention processes that are the foundation for success.

Bradley Leimer, Vice President of Mechanics Bank and publisher of The Discerning Technologist suggests that marketers need to focus on the account opening, engagement and onboarding processes. According to Leimer, "Online account opening for new customers can be easily improved, mobile account opening (like we see at USAA) can be added, and ways to get people to the point of commitment and get them onboarded as simply and quickly as possible is imperative." He adds, "We must make it easy for existing customers to add new accounts and accept automated offers, which in turn will help to address the lost revenue from compressed margins, lower fee income and the nibbling of payment income streams by start-ups and payment networks."

Cross-selling existing customers was also seen as important from industry leaders as it has been in the past. Bill Secrest, director of Datamyx reminded financial marketers that some of the best sales opportunities are those that are both easily accessed and easily responded to on a regular basis. He emphasized that credit data can be used to identify customers shopping for a new loan. "The best way to grow and retain your portfolio of credit worthy consumers is through the application of trigger data," states Secrest. 

Additional 'no brainers' from a financial marketing perspective are the pursuit of new movers, the encouragement of utilizing available credit, refinancing loans that have higher rates, eliminating paper statements, encouraging the capture of email addresses and mobile phone numbers and building a strategy for retaining profitable relationships.

Think Digital First

Financial service delivery options are changing faster than ever, with consumers using more devices, more often, and to do more interacting than ever before. As a result, financial marketers need to adjust their service delivery and marketing in an innovative, customer centric manner. Serief Meleis, a partner at Novantas submitted that, "Bankers must resolve to reposition their organizations to be successful in the new digital universe, where people often pick their financial partner based on online research as opposed to the location of the nearest branch."

Jim Breune, CEO and founder of the Online Banking Report and founder of The Finovate Group reaffirmed the thoughts of Serief by saying, "Every product enhancement, marketing initiative, branding play, pricing adjustment, customer service tweak, security improvement and even new brick and mortar investment should be viewed through an online/mobile lens in 2013 and beyond."

David Gerbino, digital product, marketing and strategy manager at Provident Bank in New York went even further with his recommended resolution by saying that banks need to say 'goodbye' to the web as we have known it. According to Gerbino, "Whether a customer uses a tiny screen mobile device like an iPhone, a small screen device like an Android phone, 7 inch tablet, 10 inch tablet, all the way up to an old fashioned laptop or desktop computer, one website needs to support them all through responsive web design."

Bryan Clagett, the chief marketing officer at Geezeo concurred when he mentioned that the entire online banking experience needs to be holistically reviewed. According to Clagett, "The digital user experience needs to take precedence, with the definition of a 'banking website' being re-written."

Integrate Mobile Capabilities

With smartphone penetration crossing over the 50 percent threshold, the importance of serving customer's mobile banking needs seamlessly between channels is imperative. It is also important to view mobile as more than just a delivery channel, but also as a revenue generation opportunity as was highlighted in the October 15, 2012 Bank Marketing Strategy post entitled, 'Monetizing Mobile Banking'.

Fred Hagerman, CMO of FirstMark Credit Union out of San Antonio, TX emphasized that marketers must make all channels work together. "A disjointed online and mobile experience will be one of the fastest ways to lose existing customers. But it goes beyond that - if you can't provide expert advice to customers on the phone and in person when they contact you regarding their online/mobile questions - it's over," stated Hagerman.

Jeffry Pilcher, publisher of The Financial Brand, emphasized that bank marketers need to accept the fact that consumers only want new additional channels, not new replacement channels — something to keep in mind while the industry wrestles with mobile and social delivery options. Pilcher states, "Branches aren't dying anytime soon. Neither is the call center, ATMs or online banking. Consumers want more and more and won't settle for less." Pilcher warned, "Try taking a channel away and see what happens." Pilcher also believes that marketers need to begin to look to mobile marketing opportunities as well in 2013.

With so much emphasis on mobile delivery and marketing opportunities, Brett King, author of the new book Bank 3.0 and founder of Movenbank provided a very succinct resolution for retail bankers . . . "Appoint a head of Mobile."

Enhance the Customer's Experience

No resolution was as unanimous among the industry leaders I contacted this year than the importance of enhancing the customer experience on every front. This was also the overriding theme at the Marketforce Future of Retail Banking conference in London where I was both a speaker and a co-chairperson. The difference this year than in previous years is that institutions seem to be ready to put actions behind their words, with the goal being to exceed rather than just meet customer expectations.

"In 2013, innovative disruptors and intermediaries will be putting even greater emphasis on user experience in an all out assault to position themselves at the center of the consumers financial life," mentioned Nate Gardner, vice president of strategic partnerships at Provo Utah based MoneyDesktop. "Financial marketers need to help spearhead smart technology decisions that attract Gen X and Gen Y while making existing account holder loyalty a no-brainer," he added.

Mary Beth Sullivan, managing partner of Capital Performance Group, LLC supports the theme of laser focus in building a better customer experience by sharing, "Retail bankers should resolve to define exactly what makes a specific group of customers better off for doing business with their bank versus another, and then invest resources to improve this advantage in an extremely crowded marketplace."

Andy Will, senior vice president of deposit products and card services at BMO Harris believes that a component of an enhanced customer experience is to create better product and service solutions to support conversations the field has with customers. He also believes that banks need to improve the ratio of sales to non-sales staff expense which has moved unfavorably over the past several years.

Innovate and Differentiate

Over the past couple years, many U.S. banks have stood on the sideline as non-bank competitors and financial institutions in other countries developed new and exciting products and services. As opposed to taking a wait and see approach, several industry leaders believe it is time for financial organizations to 'get into the game' by testing new ideas that support an organization's overarching goals.

Alex Bray, retail channel solutions director at Misys in London believes that institutions should focus on a larger number of smaller beta tests as opposed to tackling larger innovation challenges. In an interview, Bray stated, "We've seen so many fantastic ideas in retail financial services this year - especially in the mobile payments space - but so few have originated in big banks. With the green shoots of recovery slowly becoming more robust, retail bankers and bank marketers need to do better than the new entrants. They need to prepare for an improving economy were providing the best service and functionality will once again set the market leaders apart."

Bryan Clagett from Geezeo added, "I hope to see more brick and mortar banks forming 'innovation labs' and similar means, to spark new thinking and methods to enhance relevance and differentiation."

A great analogy was provided at the Mobile Commerce and Payments Innovations Summit last year by Karen Webster, CEO of Market Platform Dynamics when she said that banks need to approach innovation as if they were playing roulette, "Retail bankers should place bets on several smaller innovations hoping that one of the ideas will hit it big."

The fallacy that big banks or community institutions can't innovate or differentiate themselves because of legacy operational systems or existing infrastructure is being proven false by start-ups like Simple, Movenbank, Square, Paypal, Bluebird and Google that are differentiating offerings despite using much of the back office already provided by traditional banks.

Serge Milman, CEO and founder of Optirate believes that differentiation is the key to survival for many organizations. He is tired of the lip service of “great service” or “community involvement” or “local decision making", etc. and believes that the core of differentiation for banks - and particularly community banks - lies around the concepts of understanding and anticipating customers’ needs by offering the right products before the need arises. Milman believes banks can stand out by offering service when, where, and how customers prefer to engage.

Given the increasing number of choices consumers have for financial service providers, Emily McCormick from Bank Director Magazine also believes bank marketers need to prioritize the differentiation of product offerings, branding, and even the branch. McCormick adds, "Social media, with a well-thought strategy for engagement, needs to come off the back burner."

Humanize Analytics

With so many marketing channels available to marketers and consumers, all of the industry experts agreed that the industry needs to do a better job of turning data into decisions on the individual customer level. This does not necessarily mean digging into 'big data' (both structured and unstructured), but using data readily accessible to build better algorithms that will lead to optimal results. 

Nicole Sturgill, research director at CEB TowerGroup believes that 2013 needs to be the year that financial institutions 'humanize' analytics. According to Sturgill, "Analytics have to move from IT to the front line, improving the experience for each individual customer rather than broader customer segments."

Jeffry Pilcher from The Financial Brand also believes that financial marketers must resolve to take data analytics seriously. According to Pilcher, "The results of good analytics helps marketers win points in the C-suite and get invited to the decision making table."

Finally, Mark Zmarzly, vice president of financial services for ACTON Marketing emphasizes the need for a singular focus on a test and learn philosophy. He warns, "Be careful not to rely on broad industry trends or 'vanity metrics', especially with regard to social media, and it is important to build a much stronger awareness and capability around attribution, cohort metrics, etc."

Build Partnerships and Take Action Now

Unlike typical resolutions that are individually focused like 'losing weight' or 'stopping smoking', none of the resolutions compiled for 2013 can be accomplished by a bank or credit union marketer in a vacuum. Each needs to be done in partnership with fellow employees, outside providers and/or the organization's customers. This dynamic reflects the expanding complexity and importance of the marketing function within the financial services industry.

As Bryan Clagett from Geezeo stated as part of his bank marketing resolution input, "There will be a significant increase to the scope of marketing in the years to come, as the industry comes to terms that it has the means to build consumer centric experiences. To develop more complex solutions, however, technologists, marketers and even customers will need to finally unite in this effort."

Jelmer de Jong, global head of marketing for Netherlands based Backbase and editor of the BANKNXT blog probably summarized all of this year's contributions the best when he recommended that retail bankers take advice from Nike and 'Just do it!' Jelmer proclaimed, "There is a lot of talk about new channels, an improved customer experience, better mobile apps, paradigm shifts around measurement and fancy innovation. To succeed, bank marketers need to stop talking about what needs to be done. Instead, they just need to get real and do it!"

Is there another resolution (or two) you believe should be added? What should the priority order of the resolutions be? I would love to hear additional thoughts from readers.

10 Resolutions Bank Marketers Can't Ignore in 2012

2011 was year that many bankers, and especially bank marketers would love to forget. Not only was focus diverted by the need to respond to new regulations for the second consecutive year (this time it was the Durbin Amendment), but the image of our entire industry was challenged as foreclosures and bank failures continued to be in the news. 


We didn't do ourselves any favors in 2011 either, as some of the larger banks learned the power of social media when they decided to increase (and then rescind) debit card fees, or when the industry fought internally with Bank Transfer Day. 


The biggest impact of all of this noise was that attention was diverted from what should have been accomplished in 2011. As I reviewed my post from last year, Ten Bank Marketer Resolutions for 2011, it is clear that most bank marketers lacked the time/focus to make much progress on any of last year's goals. So, in writing this year's Bank Marketer Resolution post, I could have simply posted the same resolutions from last year (similar to what I do with some of my personal resolutions). Instead, I reached out to bank industry leaders from across the globe for their ideas. There was surprising uniformity in their suggestions, and a sense of urgency around the need to achieve much more than last year.


So here are the resolutions bank marketers should not ignore in 2012 according to industry leaders:


1. Validate The Value of Marketing Through Measurement: As highlighted in my recent post 100 Years Later, Marketers Still Have Difficulty Measuring Up, there is still a tremendous gap between what bank marketers implement and what is measured. Not only are there almost 20% of marketers who don't find measurement of results imperative according to recent research by Ifbyphone, but less that 50% of any channel is measured. Dan Marks from First Tennessee says, "Bank marketers should resolve to measure and optimize true marketing ROI – having the courage to seek out the unproductive part of the marketing mix and replace it with other activities that generate real shareholder returns." Serge Milman, CEO of Optirate states, "In 2012, bank marketers should resolve to have a more diligent focus placed on business drivers that can help manage and grow the bank," while Bradley Leimer, vice president of online/mobile strategy at Mechanics Bank said that,  "The number one resolution for bank marketers in 2012 must be to 'put data first,' since the proof of any program resides in the measurement of results." 

Jeffry Pilcher from The Financial Brand added a common sense resolution that is not always followed . . . "stop doing things that don't work." It is clear that if only one resolution can be accomplished in 2012, the measurement of attribution and program results is the most important.

2. Don't Confuse Channel Economy with Channel Effectiveness: One of my resolutions from last year that needs reinforcement is that bank marketers should leverage the measurement mentioned above to ensure that the right channel (and mix of channels) are used for the right customers. While social and digital media seems less expensive, it doesn't work as well on its own as it does when mixed with traditional channels. In fact, recent research discussed on this blog has shown that for financial services, many of the traditional channels are more desired and effective than new media. In addition, many bank customers are not reached at all with phone, email or social media programs. As mentioned above, 2012 should be the year of improved measurement and improved attribution analysis, which will help to answer the questions around which channels should be used.

3. Be Customer-Centric: Ron Shevlin, senior analyst from Aite Group and author of the book and blog Snarketing 2.0 stated in a recent post, “banks need to be perceived as doing what’s right for their customers and not just their own bottom line.” One of the banks I work with stated it best when they said that customer centricity means:

• Know who the customer is and what they want
• Look out for the customer and help them make the right decisions
• Reward the customer for their patronage with tangible and intangible benefits

Saying you're customer-centric is not enough, though. "When claiming your bank is customer-centric, actions speak louder than words," warned Elizabeth Lumley, special projects editor at Finextra. This was especially evident in 2011, when many large banks made fee changes that created an uproar in social media, resulting in reversals of those decisions. To this new phenomenon, Chris Skinner, author of the Financial Services Club Blog suggested, "Bank marketers should resolve to make 2012 the year where good communication and real transparency ensures that we don't get screwed by social media campaigns."


4. Build a Social Media Strategy That Complements Your Overall Marketing Plan: Instead of engaging in social media because other industries are doing so, it is time to treat social media like other channels, with defined goals, strategies and expected ROI outcomes. "While simply having a Facebook page or Twitter account may have been sufficient in the past, customers are expected to utilize these channels to connect with their bank even more in 2012," says Karen Licker, financial consultant and social banker (independent) for J.D. Power and Associates. "Given the public nature of these contacts, bank marketers should have a resolution to be aware of these conversations and direct customer outreach, and be equipped to respond quickly to questions or issues raided via these channels." 

Nicole Sturgill, research director for delivery channels at TowerGroup, suggested that bank marketers should resolve to engaging the front line in social media since many don't realize they are being talked about. Alex Bray, managing consultant at IBM recommended, "Bank marketers should create a clear vision for social media based on a genuine customer value proposition while killing vanity projects that don't add value." Added John Owens "In 2012, bankers will need to understand the role and importance of social media to better serve clients and receive feedback."


5. Leverage Big Data for Better Conversations: There is a lot of discussion in the marketplace about the use of 'big data' to transform customer communication and the customer experience. There are very few places where more customer insight is available than in the financial services industry, where we not only have access to demographic and financial service ownership data, but also transactional insight that gives us a view into financial and purchase behaviors. But big data is nothing new, and should not be overwhelming in an environment where the ability to process data has also grown exponentially.


Unfortunately, as was found by Ron Shevlin from Aite Group earlier this year and in a soon to be published report, bank marketers are still not very comfortable with communicating online or through mobile channels using available insights. This may require new talents and new teams according to Brett King, founder of Movenbank, and author of the best-selling book and blog Bank 2.0. "In 2012, bank marketers should have a resolution to build a team that can create compelling customer journeys in real-time," states King. "Marketing is no longer about 'pushing' messages," continues King. Fred Hagerman, CMO of Firstmark Credit Union adds, "Bank marketers should have a resolution to combine web analytics and database knowledge to drive even more relevant communication."


6. Build Customer Value From Day 1: While there has been a great deal of discussion around the cost of a checking account since the December 9 American Banker article on the subject, there is no disputing the fact that fees alone can't make a relationship profitable. As a result, it is imperative that bank marketers look at customers as valuable assets to the bank that need to be nurtured and grown through increased engagement, relationship expansion and retention. As stated by Matthew Wilcox from Zions Bank, "2012 is a year when all bank marketers should resolve to have multichannel new customer onboarding programs as well as highly targeted relationship growth initiatives. To not have these programs in place would leave valuable money on the table and risk losing potentially valuable relationships."


7. Build Bank Value Daily: The past few years have been difficult for our industry, with the faith and confidence in many leading financial organizations being shaken. In 2012, consumers will look for solid value in products and services with every purchase and decision they make. Those organizations that don't reinforce the value they provide - every day - will be challenged. Dan Marks said that bank marketers should resolve to "refine, renew, and reinforce the bank's key brand distinction across the entire enterprise – everyone should know and exhibit how the bank uniquely serves customers’ needs." Steve Cocheo from the ABA Banking Journal suggested a rather straight forward resolution, "Bank marketers need to accentuate trust and value in the communications they develop and strategies they build." Bank consultant, Lori Philo-Cook seconded this resolution when she recommended, "Bank marketers should resolve to find new ways to communicate with customers in order to rebuild trust and strengthen relationships."


8. Innovate: Plain and simple, 2012 is a year where bank marketers should try new things and support innovation done in other areas of the bank. Bryan Clagett, CMO and investor at software services provider Geezeo put it best with his recommended resolution, "Bank marketers should not be afraid to experiment and think outside the box in 2012." For those organizations where budget, philosophy or other variables may make true innovation challenging, payments pro Scott Loftesness provides a suggestion, "Bank marketers should prepare to be a fast follower, especially in mobile for 2012, unless they have the budget to be an innovator."

9. Focus on Personal and Professional Development: While the skills needed to do effective bank marketing remain pretty much the same (targeting, messaging, measuring, etc.), the channels available have definitely increased. Therefore, bank marketers can no longer rest on their laurels and hope to succeed in the new marketing environment. More than ever, there needs to be a dedication to becoming familiar with the changes in the marketplace from a product and channel perspective. As stated by bank consultant Jeff Marsico, "The goal for bank marketers is to earn a place at their bank's strategic planning table and to be more than just an ad budget." Being aware of the changes in the marketplace can help earn this respect.

For me, I find that following industry leaders on Twitter and subscribing to industry blogs (like mine) are a great way to keep up to speed. Throughout this post, I have provided links to some of the industry pundits who share valuable insights and research on Twitter. Following them will go a long way towards keeping you in the loop. Watching who they follow will further expand your depth and breadth of knowledge. Bob Williams from Harland Clarke put it well in his suggested resolution, "Bank marketers should resolve to listen, discuss, think, read, and write. In short, they should be part of the conversation." Community banker David Gerbino provided a more basic, yet important resolution that, "Bank marketers need to resolve that they will understand finance, financial reports, and know how to calculate product profitability."

10. Don't Be Afraid to Break From The Herd: The banking industry is notorious for having a 'herd mentality', following each other's lead as opposed to thinking independently. In the past, the logic for doing this was usually based around risk aversion. Today, following other bank's can be both risky and can inhibit value creative. Look at the events around the raising of debit card fees by Bank of America, where many large banks followed the strategy of Bank of America only to have to follow the bank again as they rescinded the fee. The same can be said for the jumping into the social media waters without a defined strategy. While almost all banks are doing something in social media, very few can define the value it is bringing to their bank or what the ROI on this investment is.

2012 should be the year of breakout opportunity for those bank marketers who want to embrace the challenges associated with change. It is definitely not 'banking as usual', but is the environment where market leadership is gained and disruption creates new business models and customer segments.

I doubt if any bank marketer will succeed at all of the above resolutions. There may even be better resolutions than the industry experts provided above. If you have one that we missed, let me know. If you think some of the resolutions above are not valid, let me know as well.

I look forward to your comments and to a very exciting 2012.