Every day, your clients and prospects are requesting credit from an some financial institution for a car, home, and home equity, etc.  Who are they?  Would you like to know? 

Even better...would you like to get an offer in the mail to these folks who are "in the market" tomorrow?

I would be more than hapy to help you understand this credit trigger program, along with other proven direct marketing solutions we offer.  In an age when getting loans has never been more important, we have seen some spectacular results. 

J 

3. Profit

Marketing is about driving revenue and “Profitable Growth.”  Tying marketing results to profit growth is the next Mega-Trend. 

Unfortunately, Marketing is most often squishy, feel good stuff without action or provable results.  The fact is…Marketers must deliver more in profit than they spend to get it.  In the words of “Friends” TV character Joey Tribbiani, “How you doin’?”

Radio, TV, Billboards, Yellow Pages (really – still?) and print are important for branding…but should not consume your marketing budget.  Why?  You can’t prove that any of these things has any impact on revenue or profit growth. 

Smart Financial is one institution that has embraced the philosophy that marketing must deliver measurable results.  How are they doing it?  Direct Marketing.  Over the past few years, an increasing percentage of Smarts’ marketing budget has gone to hyper-segmented direct marketing, all of which can be and is measured.  Where growth and ROI come from is obvious now and proving to be the best marketing decision they have possibly ever made.  Good for them.  Profit is good.  Even for a Credit Union.  They get to leverage this new margin into providing even better opportunities for their members - a real win-win scenario.

If you are sending more than 50% of your budget on non-track able marketing events – you may never get measurable profit growth from marketing.  

Marketing has to be monetized into profit.  How you doin’?

J

2.Cynicism

It appears that buying habits have been impacted by the fact that virtually every adult has been “taken” by slick advertising and broken brand promises more than once.  This feeds the cynic in each of us.  We wonder what we can believe.   

Feeding into this cynicism, and calling it out or making light of it can actually bring credibility.  Talking about the perception of bait and switch, or the deal is never as good as promised…aligns your institution with the idea that you are “keeping it real.” 

AllyBank is leveraging this concept today.  They are clearly making fun of banking by exaggerating perceived banking flaws.  I think it is easy to see how a cynical public would find how AllyBank is positioning themselves, to be appealing. 

What can you learn from this?  Can you leverage the cynicism in your market?  

J

1.  Collaboration. 

Think of Apple.  There’s an App for that!  Sure, Apple makes I-Phones and I-Pads…but thousands of developers have collaborated with Apple in creating an amazing volume of Apps.  By working with others, Apple has found a way to build their brand through collaboration.

How can Banks and Credit Unions collaborate?  I was talking with one banker from the mid-west, who has partnered with school districts and local governments in small communities to create personalized “School/Community Spirit” debit cards.  Within the framework of the relationship, each of the schools and local governments that participate (by getting employees/parents/the entire town - to get and use their special debit card) get a piece of the debit card income stream.  What school or local community government wouldn’t like to get in on that action?  Good for the banker, great for the community. 

This is just one example of how collaboration can be leveraged within banking.

Can you think of any others?

J

Marketing strategies should be targeted based on the needs and wants of different segments. Target marketing is the way to increase retention, enhancement and acquisition. However, all marketing activities should also help achieve strategic business objectives; and each activity should be measured in terms of return on investment (ROI).

The First Pillar: Retention. Focus on identifying who is a valuable client and build a retention strategy around them. Focus on your best segmented/targeted opportunities. Identify and attack areas where you may be “at risk.” Allocate 50% of your available marketing resources to this phase.

The Second Pillar: Enhancement. Make your existing client relationships more valuable. Sell them more products that they want and need. Help them use your services and delivery channels more efficiently. Re-price the products that may be money-losers to improve the profitability of low-profit client segments. Allocate 30% of your available marketing resources to this phase.

The Third Pillar: Acquisition. Acquire client relationships that look like the ones you have success with today. Focus new business development on areas where you can impact or own a niche in the market. Allocate 20% of your available marketing resources to this phase.

As you establish your marketing budget this fall, how will these three pillars be represented?

J

Has anyone felt the tremors from the CFPB as of yet?  There has been a great deal of sound pollution, but so far, so good.  Yes, I realize that it is early.  And let’s be clear, I think the whole thing is a colossal waste of effort and money. 

Did smaller institutions make some bad decisions before the meltdown a year or so ago? Yes.  Yet none of them could bring down the economy or was deemed “too big to fail.” 

What additional scrutiny has been placed on the SEC class, mortgage companies and syndicators – not to mention the largest banks in the land?  Not much.  And if the CFPB doesn’t help with these folks…then why is it around?    

Just saying?

J

Today we can look at the weather across much of America and ask, “When did it get so freakin’ hot?”  And when will it go away.  Can’t anyone get me some relief?

The same sort of thing is going on with the stock market…stuff is happening that we can’t control.  Up 200 points, down 500...when will it end? 

Should we talk about the changing regulations and what they may bring? 

What can you control?  Plenty.  And you need to remember that.  It is easy to lose sight of your objectives in the fog of war (as some call it.)  If you can stay focused on achieving and measuring what you are doing throughout these anxious times, you will be better positioned on the other side. 

You can do it. 

J

Are you “in it to win it?”  I will bet you are.  But what is the prize?  Awards or rewards?

Marketers can be extremely creative.  And when you are (I am not a creative person, so I can’t be in this conversation…) it is nice to get amazing recognition as result.  Some get prizes, like a sparkly golden trophy?  Is this on your bucket list?

The real prize in marketing is not Awards - it is Rewards.  Response rates.  Results.  Proof that the marketing campaign you designed, developed and executed generated real, measurable results for your institution.  Invest $10,000 in a creative, personal and relevant direct mail campaign and generate $1 million in revenue. That should be the on the bucket list!

And results my friends, are the only award (reward) you should seek.

J

I am in Durango, Colorado with my family.  Cool

weather (compared to the 100+ everyday in Dallas)

and lots to do.  We set out to canoe last Sunday

afternoon.   It was a glorious day.  Then the call

came.  (What is the business metaphor?)

“Jay”, I heard loudly but muffled through the wind.  

“Go get Steve!”  Steve is the hard to forget,

excitable black lab we met just a few minutes

before.  The dog had apparently jumped into the

lake to follow his now kayaking human father. 

And Steve was way out there.  Yet he was

slowing down and not getting closer to the

kayakers.  Steve’s mother was panicking on shore. 

That was the reason for the call out for Jay’s

canoe rescue team.

The team consisted of my 13 year old son, one

of my 10 year old twin girls, and me.  Off we went,

without a plan.  It was tough going, into the wind. 

We didn’t seem to be gaining much ground in

catching even a tiring black lab.  Finally we dug

out 30 sharp strokes and found ourselves near

enough to get Steve’s attention.  Now what? 

Here we were in the middle of the lake, with a

tired lab by our side, and just enough room for

three in the boat. 

Nice going canoe rescue team leader.  You have

taken your team into the danger zone without a

plan.  Ever been there?  Ever snapped to a

decision without thinking through the process to

the end?  Ever once launched a marketing ad

because someone bellowed “insert your name here,

we need deposits?”  And then you respond without

knowing how you will measure the results or what

to expect from having spent your precious

marketing dollars?  

It is always important to map out a thoughtful

strategy that enables you to establish goals and

measurable activities with anything you do in

marketing.  You can’t just heed the call and act. 

You must heed the call, act using a measurable

activity and then prove how what you have done

has delivered on the “call.”  Otherwise you will

have to defend how you spent the money, and

can prove nothing as a result.  Too late now, you

are in the middle of the lake.

Our story ends with the rescue team leaning one

way, my grabbing Steve by the collar and hauling

him into the canoe, and paddling back with a wet,

tired and I’d like to think thankful dog.  I know

Steve’s human mother was thankful. 

Imagine how thankful your management would be

if you proved your ROI.  In marketing, if it isn’t

measured, it never happened.

J

It is unfortunate that the vast majority of senior management is afflicted with ignorance about the power and value of marketing.  To inoculate them from this disease, I have written a book, “Change Your Marketing, Change Your Results.”  It is available on Amazon, but if you call me, I would be happy to send you one – on me.  That is, as long as you put it in front of your senior management. 

Everything in marketing must be measured.  Yet why then are only about 37% of marketers asked to prove their results?  This is part of the problem.  The other end of the challenge resides in helping management understand what marketing can and should be doing to drive measurable revenue and profit growth. 

Read the book.  I doubt that anyone will debate the facts.  They are both compelling and troubling. 

J

In just a few decades, the number of community banks has halved.  Now at 7,000, experts predict the number of banks (under $1B in assets) to be at under 4,000 by 2020.  That is only nine years. 

Will your institution survive – or Thrive?!  As discussed in my recent book, “Change your Marketing, Change your Results” bankers must embrace profit focused, data driven marketing as the proven solution for thriving banks.  You can find the book on Amazon.

Credit Unions have not been immune.  Many of them share the same balance sheet issues that banks face.  How can credit unions thrive?  Same story. 

The more a financial institution embraces what marketing can and should be doing to drive leads, profit, revenue, cross-selling, retention… the more assured it can be to remain one of those standing…as the ball drops in NYC come 2021. 

J

It will come as no surprise to many, that marketing and compliance don’t always see eye to eye.  Some of you have a great relationship with your counterparts.  Many don’t.  Regardless of the differences, you need to work together.

One great way to establish common ground is to have marketing pull together a series of “compliance focus” direct mail projects.  OK, so what might that look like?  Let’s agree that there are only X number of CRA qualified loans available in your market.  How are you going make sure that you get more than just the share that will ask…?

There are a host of direct mail segments and concepts that generate substantial lift in the number of CRA qualified applications into your door.  Why wouldn’t you want to do this?  Why can’t you work together on this? 

If you aren’t sure exactly how to approach it, call me.  We can help you leverage your marketing to the benefit of compliance also!

J

Most would argue that the sales team must be accountable for revenue…and that would be true.  But so should marketing.  Specifically how leads contribute to revenue.  The quandary is that for marketing to determine the kinds of leads and the number/response of each - they need direct input from sales. And unfortunately, without mutual cooperation and communication…both sales and marketing can fall short of expectations. 

Clearly management has a role to play here, as well – as they need to be clear about your institution's strategic objectives.  And they need to articulate this vision thoroughly. 

Take a moment to examine how you are working together.  What can you do better?

J 

If you have not embraced direct mail as your “go-to” revenue generator, then you are missing out.  In these times especially, marketers must prove that what they are doing to generate leads is turning into sales.  Direct mail is the surest, most proven and easiest method of delivering results.

Yet if you are new to direct mail – or don’t consider yourself an expert – there are things you must understand to unlock the potential success available from direct mail.  There are nine essentials to direct mail success.

·          Data analysis, segmentation - target marketing

·          Offer

·          Creative (branding, delivery of visuals)

·          Variable messaging

·          Marketing channels (multichannel messaging)

·          Testing & control groups

·          Call to action (PURL, QR code, phone, in-branch)

·          Communication with Sales

·          Measuring

Look for a new white paper to be posted in the days ahead - on our white paper section of the web-site.  It will outline what each of these elements mean and why they are essential to success with direct mail.

In the end, you need to get results with your marketing.  And direct mail simply works.  Nothing else matters!

J 

WOW!  Thank you to all who had the opportunity to join us in Ft. Lauderdale for the 2011 edition of the MARQUIS National Conference.  Great Speakers!  Informative Topics!  Incredible peer interaction!  Fun events!  And for some, hard hitting training!  Yet it would be the same without you!

All of us at MARQUIS look forward to this event each year.  And it never fails to provide unforgettable moments at what we like to call, the MARQUIS family reunion.  We like being your partners.  We relish your friendships.  We value the time we get together.  It is just always too short!

If you missed the event, we are sorry you did.  It may have been the very best ever.  Make your plans now to be at next year’s edition of the event, where we will once again bring Marketing and Compliance together for continuing education, inspiration and fun. 

For everyone at our place who played a part in pulling it all together – a giant thank you!     

J

In just a few short days hundreds of marketing and compliance professionals from across this great land will descend upon Ft. Lauderdale Florida to “get thee understanding.”  We are proud to bring together another exceptional group of speakers to share the latest regulatory guidance and marketing based - revenue generating ideas.  That said, it wouldn’t be a conference without those in attendance.  To each of you, my sincerest thanks. 

Everyone at MARQUIS is anxious to get to PIER 66 and renew long-standing friendships and build upon new ones.  We hope that the entire event: the location, the hotel, the event, the speakers, the topics and the fellowship exceeds your expectations! 

Not to raise expectations…but we think this will be the best conference ever!

 J

Let’s start by defining success in marketing. After all, that’s what we’re all after. Then we’ll look at crafting a message that drives success. And along the way, we’ll discover the key elements that will make you seem like your marketing message is everywhere – and in ways that really count.

What is success in marketing?

Financial marketing should create profitable revenue for your institution.  Pretty simple, right? When you break it down, this involves four key areas:

1.       Mitigate attrition of your top members.

2.       Cross-sell marginal members.

3.       Acquire new members.

4.       Compete in a global, highly regulated, well funded, fast paced, extremely competitive environment.

What are the first steps?

Success in marketing is not about Facebook or Twitter or catchy tag lines or slick advertisements. It’s about defining your institution and then crafting solid messages across various channels.

Why is good messaging so important? Because it allows you to cut through the clutter.

Let’s look at one hypothetical example. XYZ Credit Union is located in a small Midwestern city. The Marketing Director, Suzy Sellers, is being pressured by the Board of Directors to increase profits. But she has no idea where to start. One day, an idea comes to her. An auto loan campaign! That will do it! We need Postcards! Radio Spots!  Television! Eureka!

Now, Suzy’s auto campaign may bring in a few loans. But she is approaching the problem backwards. Rather than starting with a product offer, she needs to step back and evaluate what it is that sets XYZ Credit Union apart. They are not the biggest financial institution in town. They don’t have a huge lending department. But they do process loan applications within 24 hours. They make their decisions locally. And they take time to be sure the members understand their options.  They care. That’s what makes them different.

Notice that we didn’t talk about price, rates, toasters or Facebook pages. Everybody can do that. Suzy has a set of strengths to build upon, and once she knows what those strengths are, she can deploy a unified message across various product lines and through various marketing channels, like direct mail, email, personal URLs, QR Codes, Billboards, On-line banking messaging,.....

Has a Convergent marketing force just been born?

J 

Things are shifting in America’s demographics…  For example, married couples are now a minority.  Only 21% of “families” in America are represented as “couples with children.”  Interestingly, 27% are singles living alone.  How about changes in ethnicity?  Dallas, where MARQUIS is HQ’d, will be majority - minority within the decade. 

Need help not only understanding the shifting demographics and what they mean…but how to reach out and connect with “people who are not like you?”   

I highly recommend the book by Kelly McDonald (which is available for pre-order on AMAZON right now!)  The book, “How to Market to People not Like You” can be found following the link below.

http://www.amazon.com/How-Market-People-Not-Like/dp/0470879009/ref=sr_1_1?s=books&ie=UTF8&qid=1298480789&sr=1-1

Having known Kelly for years, and having enjoyed reading her research and hearing her present it - she gets the new marketing reality of hyper segmentation.  She uniquely explains the way things are now, even though through our own experience, life looks like we live down the street from the Brady kids, or Beaver and Wally Cleaver.

Using real-world examples from successful business owners, How to Market to People Not Like You demonstrates how to create a deep, emotional connection between your products and new consumers. Forget “spray and pray” promotion. It’s time to narrowcast, to get to know, and then deliver a welcoming message to a specific group.

Get the book.  Apply the message.  Get results.

J