Colorado bank blends marketing and charity with its coffee bar

Northwestern Financial Review, Jan 15, 2002 by Dullum, Justin

[marketing]

The complexity of bank marketing has increased alongside that of the balance sheet. In an industry focusing more and more on customer service, some banks have integrated coffee bars into the teller line as a way to stand out and offer a service that customers don't expect from a bank. Alpine Bank in Glenwood Spring, Colo., has put a spin on this tactic-they give the proceeds of the coffee bar to local charities. This compounds its success as a marketing idea.

"The coffee bars have been very well received," said Bruce Robinson, regional president of Alpine Bank. "I think ifwe would have done a retail coffee establishment and benefited from the profits, I don't think it would have been embraced nearly as well." By becoming a charitable arm of the bank, the coffee shops serve Alpine Bank as a powerful marketing tool and community service. Radio ads announce the charity currently receiving the coffee bars' proceeds, customers can get a latte at the bank and they also have one more reason to come back-even if they're not making a transaction.

A year and a half ago, Alpine Bank introduced its first coffee bar at its Steamboat Springs branch. The bank's officers had been brainstorming for ways to enhance the customer experience and give back to the community at the same time.

"We looked at how successful Starbucks was moving into Barnes and Noble and thought that moving a coffee shop into a bank might work out too," Robinson said.

Robinson also wanted to find a way to keep people in the bank a little bit longer than usual. Although people don't usually mill around a bank lobby the way they would in a bookstore, Alpine Bank got people to hang around by adding a few overstuffed chairs and refurbishing check stands into Internet kiosks. Before long, Alpine Bank's Steamboat Springs branch had a regular crowd of people coming in for coffee and using the kiosks. "They're able to do their banking, have a cup of coffee and just sort of slow down the pace of the day. That's the concept," Robinson said.

A month after opening the coffee shop, called the "Bean Counter," Alpine Bank presented its first charitable donation to Lift Up-a non-profit which operates a shelter and a soup kitchen for the homeless. "The check was just shy of $500," said Robinson. "Not bad for a month's activity."

Three ofthe bank's other locations, including its main office, added coffee bars soon after. The latest addition in Glenwood Springs will initially be open only in the morning until demand has been established.

The coffee bars are configured differently at each location. In Glenwood Springs, the bank converted the end of the teller line into the coffee service area. In the other banks, it is located off of the teller line.

"We even have our own blend of coffee that is made for us," said Robinson. "We sell eight different blends of ground or whole beans and we have a special blend that is called the Alpine Blend. All the proceeds from the sale of that coffee go to charity as well."

Local Colorado charities are earmarked for the proceeds. The list of roughly 15 organizations that receive money from the various coffee bar's proceeds includes the Advocate Safe House, Animal Rescue League and Youth Zone, an organization similar to Big Brother/Big Sister.

The bank has hired no additional employees to staff the coffee bars. Employees didn't complain about their added duties. "Given the charitable aspect of it, we've had no resistance. And the charities are local, so they touch people here," Robinson said. "Our officers, including myself, all take a shift behind the counter. We cover Mondays and Fridays each week when it's a little busier on the teller line. The teller personnel cover it the rest of the week. We all pitch in, and it works for everybody."