How We Think

Everyone likes a good David and Goliath story. So I was interested to learn how small banks have been taking aim at bigger firms with bolder messaging than usual. A recent Ad Age article states, “Small banks are declaring war on big banks.” And who can blame them? Small community banks have long been overshadowed and outspent by larger competitors in the marketplace. Unable to compete on scope of service or location, smaller banks have tried to differentiate themselves on attributes like personalized service or community involvement. But it’s one thing to tout your differences; it’s quite another to attack your competitors’ weaknesses. Most banks shy away from this approach, preferring to take the high road instead of engaging the enemy. And I’d be the first to agree that this strategy – if not done properly - could backfire by making a bank seem desperate or downright hostile. Plus, big banks have all the money in the world to launch a counter-offensive.

Yes, everybody knows that millennials have a thing for mobile devices, multitasking, and social media. And it is no secret that when we say “banking,” you probably aren’t saying “extremely successful social media campaigns.” Well put that misperception to bed, because many banks are doing it, and doing it very well.

Here at KHJ, we are always looking for ways to improve campaign performance. We look to optimize message, channel, creative, and even timing. Day-part strategies are nothing new, we’ve been buying broadcast against our target audience’s daily schedules since the beginning. Want to get people to come into a restaurant? Buy evening drive-time radio. Looking to boost sales of coffee? Morning news is your friend.

But what do banks do when they want to target financial decision-makers?

There’s a lot of banking in the community, but how much community is in the bank? Today, people are seeking brands that demonstrate a commitment to the community. So to banks that are pushing product to prove their value, we ask: what’s your community strategy?

What exactly do we mean by a commitment to the community? I am not just talking about your CRA obligation, which belongs in the realm of “need to have.” I am talking about your authentic commitment to community that will make a meaningful difference and get people talking.

Content marketing is one of the digital trends that have been emerging in the past couple of years. As in many other aspects of digital marketing, the largest players in the financial services space have been ahead of the rest of the business world. For example, the OPEN Forum launched in the mid-2000s by American Express is a large-scale content strategy that uses a combination of proprietary and user-generated content to engage and market to small businesses. And in the banking space, Wells Fargo provides on its website a broad range of educational materials to deeply engage visiting customers, including My FirstHome^SM, an interactive tool that educates first-time buyers. The tool requires buyers to subscribe, which provides Wells Fargo with a point of contact.

Yes, it’s important to offer products that appeal to the younger generation. But Millennials don’t have all the magic. Don’t ignore the financial power of boomers – they represent the largest consumer group in the US.

Yes, we understand why companies are seeking the magic fountain of youth. Our country’s demographic profile is changing more rapidly today than ever before. With the aging of the boomer population, the rise of the millennial generation, and the ethnic shift toward a Hispanic majority, companies today must understand how to relate to a more diverse population. Many companies are rushing to appeal to the millennial generation.

We are always keeping an eye on the horizon, staying in touch with not just what is happening now but what is happening next so that we can help our clients meet short term goals while also planning for the long term future. One of the ways we do this is by questioning assumptions. And there are a lot of them.