Innovative marketing

Northwestern Financial Review, Sep 15, 2001 by Crews, Jennifer Goepfert, Dullum, Justin

Breaking from traditional mediums leaves a lasting impression

From a marketing perspective, making a bank stand out is instrumental in a campaign's success. "It is likely that if you do what is traditional you will not be remembered," said Jerry Rossow, president of Northern Lakes Marketing, a Minnesota firm that handles marketing for several community banks.

Rossow has seen first-hand the positive results of non-traditional marketing. As president of a firm that likes to interject humor and fun into its campaigns, he knows that in order to stand out, a bank has to take chances. "Face it. Sometimes banking is boring. You don't want to turn your bank into a museum," said Rossow. "You want it to be a community space. You have to be professional but you also have to be approachable and so you should have some fun."

Rossow and his staff in the Twin Cities suburb of Minnetonka work with community banks to help them develop marketing campaigns that are unique. In an industry that traditionally projects a staunch image, Rossow sees more bankers approaching marketing with an open mind.

"I have been doing this for 30 years," he said. "What I have seen changing is the banker. Ten or 15 years ago, bankers were more traditional and conservative. Today we are seeing bank presidents who have a marketing orientation. About one-third of the clients I deal with are open to humor."

Banks that are trying innovative strategies are seeing results. A unique marketing campaign will sell itself, as well as the bank, through word of mouth and possibly media coverage. Of course, the first step in creating an effective campaign is to find a medium that will make people stop and take notice.

Exceeding expectations

First American Bank & Trust, Sioux Falls, S.D., has found its medium. A champagne-colored Chrysler PT Cruiser, dubbed the "BankMobile," provides the town's first and only bank courier service. Each day the car makes rounds picking up noncash deposits and delivering financial documents as a free service to First American's business and trust customers.

The $111 million bank, which has one location in Sioux Falls and five others in South Dakota, instituted the courier service in response to repeated requests from several Sioux Falls customers for more locations or a drive-up window. Though First American was not ready to add more brick-and-mortar buildings, it responded to the requests.

"We listened to the customers," said Debra Draayer, vice president human resources and marketing for First American. "They told us, `Here is what we think, here is a suggestion, here is what we would like you to do.' And we did it. Not the way that they had asked, but we had an alternative answer."

The bank purchased the PT Cruiser in April and had it painted. Vinyl graphics displaying the bank's Web site and address were added to the doors. The bank hired Al Rickert to drive and operate the mobile bank.

The courier service helps offset the need to add more branch banks in Sioux Falls-and the car's high visibility is an asset.

"We figured if we were going to have the vehicle out and about calling on customers and picking up deposits or handling other business transactions, we might as well have it be a traveling billboard for us," said John Eikanger, vice president and manager of business banking. "It's marketing the bank while we are doing business."

In order to operate the vehicle, First American had to get the same regulatory approval that a bank would need to open a brick-and-mortar branch, from both the South Dakota State Banking Commissioner and the FDIC. The car doesn't carry cash but Draayer said if a cash transaction needs to be made from a remote location, the bank would make alternate arrangements. The courier service is geared toward business and trust customers but the bank also provides mobile services to individual customers who have trouble getting out of the house to conduct their banking.

"In the short period of time that we have been doing it we have been getting a great response," said Eikanger. "Existing customers love it. We can do business with someone virtually any place in town without having brick and mortar on every street corner."

Though First American doesn't charge its customers for the service, the bank is seeing payoffs.

"This has gotten so much publicity that we haven't really had to do our own marketing," said Draayer. "It is such a novelty that we have had television stations calling us and publications wanting to do stories on us."

"We have seen new deposits and we have also seen added business from existing customers," Eikanger said.

The bank plans to use the PT Cruiser during parades, fundraisers and sporting events. The bank also has incorporated the car into its signage and mailings. The value of the Cruiser has exceeded everyone's expectations including customers.

"When you ask bank customers if their expectations have been met, nearly everyone says yes," said Rossow. "It is my belief that their expectations are too low. They have not expected more from their bank and the bank is only doing what is traditional. Banks need to go beyond and find out what a customer needs but might not be asking their bank for."