Showing posts with label retail. Show all posts
Showing posts with label retail. Show all posts

Friday, August 23, 2013

Fashion, Style, and Culture: The Case of US Latinos

Retailers often talk about how Hispanics are different in their approach to dress, clothing, and fashion. There has been coverage in the press about how some shopping centers are morphing themselves into Latino shopping centers to better serve their local communities and stay in business.

From casual observation I know that Hispanics dress up to go out on the weekends and kids are very well dressed to go to church and other activities, even when going on airplanes. The attention to dress and detail to style is apparent in a great number of cases. Many Latinos spend much of their leisure time in stores and malls enjoying their free time with their families and becoming informed about fashion and style. I have observed the more sensual approach to dressing by both Hispanic men and women. What are the attitudes that underlie this attention to style and fashion?

To answer the above question, I used the data from the Experian Marketing Services Simmons National Hispanic Consumer Study, that was collected between January 30, 2012 and March 13, 2013. The chart below shows differences in “any agree” (agree a lot plus agree a little) with the attitudinal statements about style and fashion with which Latinos were more likely to agree:




As observed above, Hispanics are more likely than non-Hispanics to be feel they are opinion leaders about clothes and fashion. They also are more likely to trust top designers and to trade up to newer designs faster than non-Hispanics.

Latinos are more likely to be influenced by fashion magazines and most importantly, Latinos enjoy more the activity of shopping for clothes. And Hispanics are also more experimental in the approaches to clothing and style.

What does these trends tell us? I think that Latinos are now influencers in fashion that need to be carefully watched as their tastes and preferences evolve. Marketers need to be pay attention to these trendsetters as their numbers and influence increases in the US.

Further, the eagerness these Hispanic consumers show to be in style, corroborates that merchandising for them is not necessarily the same as what is traditionally done for the rest of the population. Interestingly, the contrast of the attitudes on which non-Hispanics exceed Hispanics are interesting as documented in the chart below:




As can be seen non-Hispanics are the ones who are more likely to express conservative style and clothing attitudes. This trend adds evidence to the observation that Latinos are more likely to lead in dress, fashion, and style.  In terms of profitability and trend making marketers need to be be aware of the differences that Latinos represent for the future of their brands and retailing activities.

Clearly, examining the trends in the charts above suggests that conservatism is in general a more pervasive trends that leadership and innovativeness.  The percentages of conservative attitudes are higher. Still, where Hispanics excel is in having larger minorities that express an eagerness to change and innovate regarding style.

What can marketers do? Include more Latinos/Latinas in their approaches to marketing, regardless of whether or not their approach is a “Total Market” or more targeted approach. The voice of Hispanics needs to be over-represented in strategies that are forward looking. Further, Latinos need to be considered as opinion leaders and co-opted to represent your brands as they are more likely to genuinely embrace innovation and change.

The moral of the story is that there is no general market and that Latinos are shaping marketing futures.

The data used here is from Experian Marketing Services’ Simmons National Hispanic Consumer Study of adults 18+ -and was collected from January 30, 2012 to March 13,, 2013. The sample of Hispanics contains 7,982 individuals and the non-Hispanic sample has 16,870 people.

Monday, April 1, 2013

USAA ... The Disney of Banking?

As a life rule, many people ask, "What would Jesus do?"  As a marketer, I typically ask myself, "What would Walt do?"  As bankers, we should all ask, "What would USAA do?"

In 2006 I left a Marketing role at a credit union and came to MarketMatch. Still, 7 years later, I'm a fiercely loyal CU member. They have my mortgage, home equity, 2 auto loans, checking, savings, credit card and some investments. But when I decide to leave, I'm going taking my accounts to USAA.

I have USAA home and auto insurance and, to me, they are the Disney of banking. Maybe that's why, in a 2011 Forrester report, USAA was found to lead our industry with 3.5 products per member, with Navy Federal Credit Union close behind with 3.1.

How can you see these kind of results?

Focus on Service, but Don't Forget Sales
USAA averages 3.5 products per member while Wells Fargo, a sales machine, "only" has 2.6 products per customer. What's up with that? In my opinion it's a slight deviation of focus.

I've shopped many a Wells Fargo for clients all over the country and they have an outstanding sales model.  USAA, on the other hand, has an outstanding SERVICE model.

I've been a USAA member for 19 years and in that time, I've NEVER met a single employee face-to-face. Yet, I still consider them the greatest service company that I do business with.

The USAA Way: Like Disney, the primary driver is the member experience. Focus every single member interaction on service first! Service leads to trust and trust leads to sales. Then ask simple questions at every interaction and suggest products related to individual responses. It's that simple. The unspoken steps here are: 1) Listen and 2) Care!


Bundle Products
Customers often walk in the door or come to your web site inquiring about a product.  The successful institutions don't focus on one product at a time, they focus on clusters.

Here are some examples:
Debit cards, online banking and e-statements are not "cross sells" to a checking account, they are access points and should be as assumed as ordering checks.

As soon as your customer closes on that mortgage and moves in, they're going to start filling their new house with ... new stuff!  Help them by bundling a credit card with every mortgage. If they're good for $100,000+, they're also good for a couple extra grand on a credit card. And it should go without saying that your mortgage customers should have an automatic referral to any insurance offerings.

Every single commercial account has a decision maker with a personal account. Do you have them both?  How can you package the two to give you an advantage?


Blowup the Silos
I have a client who, when talking about referrals from the mortgage department to retail, is concerned about getting the customer's "permission" to call. What I sometimes need to remind them is that customers don't bank with a department, they bank with an institution.

Rarely does someone bank with XYZ Mortgage, or ABC Insurance ... they are going to XYZ Credit Union or ABC Bank.

What USAA does REALLY well is communicate internally. My auto insurance contacts may not have all the answers about retail checking, but they're certainly not shy about asking me if I'm interested.

Many of you offer a lot of products. I'm not saying that every employee has to be an expert on every product, but they should know everything that you have to offer and know how to get someone to the right contact within one transfer.

When you want to focus on improving what you do, spend some time at USAA.com.  Look at their Life Stages or their Advice Center.  Notice, though they likely offer a lot more services than you do, how simple their website is to navigate.


Think about it.  USAA has 3.5 products per member among more than 9 million members ... and no branches! They are killing us and they only have the computer and phone to build a relationship. Imaging what we could do with our world-class, face-to-face interactions if we took a few pages from USAA's playbook. We could become the most magical banking place on earth.

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We bring these marketing philosophies to credit unions and community banks nationwide, and would love to bring them to your institution too.  Contact us to see how.

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Tuesday, April 24, 2012

Where Does Marketing Fit in the Org Chart?


Ahh …. What to do with Marketing?!?!

Who should you answer to?  Who are your best friends?  What department are you closest aligned with?

As marketers, we’ve all been called “crazy.”  And you know what?  They’re right!  We’re absolutely, out of our mind, certifiable … in one very specific area … we all NEED split personalities.  We must think like a CEO, CFO, Retail Manager, Lender and Commercial & Investments gurus … and still be the Marketer with the great ideas.  We are the one department who needs to be comfortable in EVERYONE’S office and who should visit each office regularly.

CEO
Everything we do as Marketers needs to be aligned with the business objectives of the bank or credit union.  The very first question we should ask in planning is, “what will our institution consider success at the end of the year.”  Then, we need to track and report the progress against those objectives regularly. 

We also need to make sure that the brand we portray is in line with the direction that the Board and CEO have set for the institution.

FINANCE
We need to think like a CFO.  Based on ALCO decisions, what products do we need to be focusing on?  You should be meeting with your CFO during planning to agree on variables to include in ROI analysis.  Then, meeting regularly to discuss any changes in the financial situations of the institution or market.


As Marketers, you should be able to look at your Call Report and make some educated assumptions on direction and easily gain specific tracking data.

RETAIL/OPERATIONS
Marketing must be involved in branch-level training and processes.  How do your campaigns affect the branch delivery?  How can you work together with Operations to streamline processes and improve the customer experience?  What do the branches see that can give you ongoing insight into changes in market conditions, perceptions and needs?  Does the team need more effective tools to facilitate meaningful conversations and better discuss what we have to offer with customers?

Our branches are often Marketing’s greatest allies.  It’s not just our job to drive traffic to them; it’s our job to help maximize every interaction at them.  A close connection with the Operations people will help you to keep your finger on the pulse of the institution.

LENDING
Certainly it’s our job to increase loans with existing customers and drive new interest from potential customers.  But which loans and to what audience?  A close relationship with your Lending Manager will help you to understand who to target.  Who are you likely to approve or deny … and why? 

COMMERCIAL/BUSINESS DEVELOPMENT
Commercial is a personal sell.  The most successful Commercial and BD professionals leverage one-on-one relationships with businesses.  But communication and targeting are still involved.  Marketing can help Commercial in identifying the best companies to pursue, acquiring new business and growing existing business.  We can provide communication campaigns to specific industries or produce materials for one-on-one meetings.

INVESTMENTS
Like Commercial, Investments are a relationship-driven department.  And, like Commercial, the Investment folks should be partnering with Marketing for more efficient growth, segmentation, communication and measurement.

Between regular meetings with the CEO, CFO and the rest of the Senior Management Team and your continued visits to the branches to talk with front-line staff, the Marketing Manager should rarely be found at their desk.  We are literally the tie that binds all of the financial institution’s departments and initiatives. 

Where does Marketing fit in the org chart?  Smack-dab in the middle!  Driving growth everywhere and being included in most major decisions.

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MarketMatch is a full-service marketing firm, dedicated to the credit union and community banking community.  We utilize knowledge-based strategies to help you FOCUS on the efforts that will generate the greatest  MOMENTUM for your organization and demonstrate RESULTS with our written ROI Guarantee.

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Wednesday, May 6, 2009

Top 10 Ways to NOT Think Like a Bank

To be a better bank, don't think like a banker.

If you want to  ...  no, since you NEED to sell more products, look to the business sector that sells the best ... RETAIL!

What does your favorite retailer do that makes you want to spend so much money?
  1. They go to great pains to know you through loyalty programs 
  2. They train their sales staff to ask questions before they recommend product
  3. They make it easy to buy in the store and on-line
  4. Specialty shops become your advisor and product expert
  5. They package products in "bundles" that make intuitive sense to you (think Value-Meal)
  6. They create advertising with a clear call to action that evokes some emotion
  7. They sell the relationship ... not the product
  8. They empower their employees to think like entrepreneurs
  9. They focus on how the product will make your life better ... not the product features
  10. The BRAND is priority #1
For more discussion on bringing retail strategies to the financial world, please register for our free Brown Bag Lunch being held on Friday, May 15 at 1:00 PM EST by clicking here.

Take care,
Eric