The pandemic has impacted the way we think about our finances and our banking behaviors in a myriad of ways. For many of us, it has made us take stock in our lives, our careers, even our financial situations. So, it should come as no surprise that we’re taking stock of our financial institutions, as well.
Considering so much change and consumer reflection, community banks and credit unions need to move toward a higher purpose when it comes to branding as customers, especially those in younger segments, have seen their worlds rocked and will be looking to corporations to step up because of a lack of faith in the performance of governments and other social institutions. Transparency is key, communicating who and what your FI supports.
When it comes to your brand positioning, consider the following steps:
Redefine the Mission
By now, we all know it’s not what you offer or how, it’s WHY you do what you do that makes a difference. Customers buy the WHY, the difference an FI makes in the financial life or situation of its customers, businesses, and communities. This why becomes a differentiator as to how you will provide long-term value for your shareholders and your customers. If your mission is feeling a little stale or doesn’t connect to the current environment, make it a priority to evaluate and redefine your mission to better communicate your purpose to your audiences.
Move from transactions to financial betterment
Most people don’t get truly excited about their checking accounts. In many cases there’s not much to differentiate one account from another in the eyes of a layperson who doesn’t live and breathe banking products and services (sometimes even if you spend your days immersed in accounts, checking accounts seem overwhelmingly… all the same). The accounts are only a small piece of why a customer chooses one FI over another. And the pandemic has afforded the opportunity to re-state your value in terms that consumers want to hear. In a recent Galapagos survey, 26% of respondents stated that the single most important thing their bank or credit union could do for them was to provide the products, tools, and advice to help them make the most of their money. That was followed by 24% of respondents indicating that they wanted their FI to make day-to-day money management easier. Money is an emotional topic for a lot of people, and it’s beneficial to pinpoint what it is your customers truly need. Maybe it’s less stress about finances, or to make saving simpler so they can feel prepared for their future.
Differentiate through customer experience
Today, it IS the customer experience that delivers the brand value proposition, not advertising or promotion. For your brand to differentiate, so must your customer experience. And the only way to tackle this is to examine, in detail, the journeys your customers take to bank with you and identify places along that journey where you can better meet their needs and deliver more value to them.
Prioritize key growth segments
Previously the rallying cry was, “Millennials! Millennials!” And yes, the Millennial generation is still a focus, but your efforts should include Generation Z. Over the next six years, balances in Gen Z households are expected to increase 4.7x. Most individuals in this segment aim to achieve a higher standard of living than their parents and desire not only digital convenience but a meaningful, advisory relationship with a money expert to help guide their planning.
Small businesses are recovering from the sometimes brutal impacts of the pandemic, and new startups are on the rise. The needs of business owners have changed post-pandemic, which requires a broader service approach and network of advisors, on top of the usual credit, payments, and cash management services. And within this segment, some industries are showing significant growth because of the pandemic: cleaning services, delivery services, drive-in movies, grocery stores, liquor, and wine, meal prep, canned/jarred foods, game makers, fitness equipment, landscaping, bakeries, coffee subscriptions, gardening supplies, mask makers, telehealth services, tutoring businesses, used cars, behavioral health, furniture, and home health companies.
Is your brand clearly defined for your market? To your internal teams? Is your brand aligned with who you are and how you do business? If not, it may be time to consider a refresh or a rebrand. To find out how we can help you get there, give us a call or submit the form below.