5 Ways Social Media Can Enhance Your Community Bank’s Brand

Social media offers value for most businesses, and community banks are no exception. Social media can provide another opportunity for community banks to engage with consumers. Strategic social communication can boost your community bank’s brand and image – and as more consumers expect you to utilize social networking, your social media presence is becoming more necessary.

  1. Social media helps manage your messaging.

Whether your community bank is using one or more social media platforms doesn’t matter; your consumers are, and they have things to say. Both positive and negative experiences will be shared via social media, and it is up to you to manage the messaging being generated by your consumers. Your audience will have their own perceptions, but without a social media platform from which you can leverage influential stories, you have no control over the direction of your brand. Social media drives awareness, and it is up to your community bank to effectively manipulate the tools available.

  1. Social media provides strategic marketing outlets for promotions.

Social channels give community banks the opportunity to sell banking services and engage audiences at the same time. With a bit of creativity, unique social selling efforts can deliver extensive ROI. Create a referral program for new checking accounts that awards current patrons for every shared post, or simply highlight ongoing sales that reflect the needs of your community. Social media can be used to generate interest in your services and get people walking through the door.

  1. Social media fosters deeper community outreach.

Social media is about connection, which is where community banks can truly excel. Getting recognition for your efforts to be involved in the community can be difficult, but social media makes it easier. Sharing photos of your most recent scholarship recipients or of your team volunteering at a local shelter can foster positive feelings. Showing community support demonstrates who you are as a brand and gives you the opportunity to reiterate what matters most to your banking customers.

  1. Social media humanizes your digital presence.

This is the perfect opportunity to get personal, and we aren’t just referring to shared photos of favorite family pets. Consumers want to also know what your community bank stands for. We’ve seen highly engaging community banks do the following:

  • Allow bank employees to choose a cause of the month and highlight why the cause is important to them personally. For every share, your bank can promise a specified amount that will be donated to that cause.
  • Highlight community involvement, such as a local nonprofit or sports team your bank sponsors.
  • Announce new services, technology upgrades, and specials.
  • Share community news.

Social media is about so much more than selling banking services, because your customers want to know the people behind the bank counter.

  1. Social media marketing boosts engagement.

The most intriguing aspect about social media is the ability to celebrate anything. Consumers love to share exciting news, and you should figure out what you can celebrate with your community today. Is it a birthday of a well-known bank teller or the anniversary of your branch opening? Have customers stop in to share a happy birthday message and a free cupcake. Take note of annual dates in your community that hold importance and acknowledge any historical relevance. Regardless of how you choose to create excitement, share it on social media.

Social media is a powerful tool for community banks, and it is one piece of the larger marketing puzzle. Community banks are known for their unique ability to connect with their customers on a personal basis, and social media takes that advantage to new heights. Consumers already expect that your services are accessible from anywhere, but your entire bank must also be present on popular social channels.

 

Hitting the Right Note with Community Bank Marketing

Community bank marketing requires a comprehensive strategy delivered to a targeted audience, but this is not as simple as replicating the marketing strategies of the banking giants. Forget about advertising the fact that you have technology that every customer expects you to have in the first place. Instead, find ways to differentiate your bank from big banks and competitor community banks. Your strategy needs to emphasize what you do best. What makes your community bank special?

Hyping technology is not effective.

The first effort many banks make with their marketing strategy is to emphasize their use of current technologies. Mobile banking and chatbots are no longer new to the banking industry, and within competitive markets, consumers don’t differentiate among which banks have what technology. They simply assume that all banks have decent technological capabilities, regardless of the size of the branch. And if you don’t, it’s to your peril.

Our ad recall research has even shown that although adults can correctly identify the intent of tech-focused bank ads like billboards, they usually can’t recall which bank the ad was for. So as a result, consumers are simply getting the message: banks are good at technology.  This results in wasted marketing dollars that could be put to better use on a more effective initiative. Your larger competitors are improving the image of technology within the banking industry, which allows community banks to benefit from the net impression that all banks have strong technology.

In addition, our Benchmarks show that technology is not even among the top 5 reasons people are dissatisfied with their current bank and want to switch. Responsiveness, getting the runaround, proactivity, and banking knowledge of the staff are all significantly more likely to drive away customers.  Don’t be fooled when a firm trying to sell you technology tells you that technology is the main reason people choose a new bank.  It simply is not the case. These firms ask consumers leading questions to get that answer. If you think about it, safety and security trumps everything else when choosing a bank, but people do not choose based upon that because they have the tacit assumption that all banks offer the same level of safety and security. Technology is now the same in market after market.  Our Benchmarks currently cover 109 markets and in over 75% of those, prospects see very little technological differentiation in most of the banks (and credit unions).

Market your community engagement.

Community banks are adept at moving their community engagement beyond donations to local charities and local sports sponsorships. But what happens when you are heavily involved in your community and no one knows it? One of the most beneficial marketing efforts you can have is to make sure people know about your involvement in the community.  This is doubly important in attracting the profitable new commercial customers.  Being a strong community contributor is a major reason you might be invited to compete for a company’s new line or loan.  True, no company will pay you an extra 400 basis points just because you support the local homeless shelter, but it can at least get you in the consideration set.

Market to the individual needs of consumers.

How are you managing individual customer relationships? By learning the habits, needs, and wants of your customers and prospects, you can provide better service by recommending products that are useful. Whether customers want to know how their spending habits are affecting their credit or how they can improve their chances of getting a loan to buy their first homes, when you deliver a personalized customer experience, you have the potential to outgrow your competitors by more than 100%.

Consumers don’t want to hear about the latest technology; they’ll assume you have it as a matter of course. What they want is to know that their banks can provide a reliable, knowledgeable service without getting the runaround to find basic answers. Rather than market technology, put your efforts towards a strategy that will have the best returns. Determine what sets your bank apart from others, and market that which is unique about how you do business.

There is enormous opportunity for you to grow your community bank or credit union, but it starts with knowing what existing customers and prospects think of you compared to your competitors. Take action now and request our benchmark study for your region.

2018 Community Bank Marketing Trends

Community banks are cornerstones of their local markets, and the 2018 trends in our benchmarks continue to reveal opportunities for success. Community banks must be ready to embrace changes, particularly in the realm of technology, to step up their competition with the big banks. Size is no excuse, with technology being readily available to banks of all sizes, and lack of training is not a good excuse either. No longer can smaller banks cede the higher ground to the larger banks.

In our latest Prospect Benchmark results, we have seen that the technology gap between big and small banks is narrowing. While this a result of what is happening inside the banks themselves, as the smaller banks continue to improve managed services, there is a tightening of the gap in a place at least as important: in the minds of consumers.

Below is a specific example of what I mean. In New London County, CT, retail customers were asked what they thought the technological capabilities were of all the banks they do not use. As you can see from the chart, they see very little differentiation between the big banks, the small banks, and even the credit unions. Consumers believe more and more that there is little or no difference in tech capabilities between institutions – and they are right.

Chatbots are the future of communication.

By 2020, it is expected that 85% of consumers’ interactions will occur via chatbots. As they can be accessed by any social channel, website, or app, chatbots are essential to communicating with both millennial consumers and the emerging Gen Z consumers. They can also be programmed to provide personalized answers and offer predictable information such as account balances, spending activities, and bill pay reports. Artificial intelligence is at the center of emerging trends for every industry, and banking is not excluded.  Smaller banks need to stay on top of this trend to ensure that, in the eyes of potential customers, they are keeping up with the market.

Micro-moments will determine your reach.

With most consumers checking their phones regularly as it is, your bank should be available to take advantage of customer reach regardless of when your banking information is accessed.  Many decisions are made impulsively, and it could be as simple as someone searching for banking opportunities in your area. Based on our most recent benchmark results, 47% of adults in the Northeast are currently looking for at least one new banking product.  While this percentage varies (with some counties at almost 60%), that means there is a very large amount of potential market share in play right now.  It will be up to you as a community bank to decide who will come up first in the search engine with the right answer: you or the big bank around the corner?

Cross-departmental integration is the key to success.

It’s no longer enough for community banks to rely on separate departments to reach overall business goals. To achieve success, collaboration between departments is an absolute must. With the customer experience, not necessarily the services provided, becoming the center of attention, everyone must work together to meet new expectations. This is particularly important for community banks that do not have the same upper management resources as big banks. Collaboration will be that which evens the playing field.

Over the past few years, we have seen that the quality of what I call “quarterbacking” is becoming ever more important, especially for commercial customers.  A decade or two ago, commercial customers relied on their loan officers to be the font of all knowledge.  And those loan officers very rarely introduced customers to their colleagues.  However, starting with younger business professionals a few years ago, the value of the team started growing in importance.  The commercial relationship managers who were able to display a broad team of experts – as opposed to functioning as one-stop shops themselves – started to become more successful. That is now the case, not just among younger customers, but baby boomers as well. They too see the value of a broad team, instead of a funnel leading to one person. Successful quarterbacking is now one of the major drivers of success for banks both big and small. As an added benefit, if a commercial customer sees value in the entire bank team, they are much less likely to leave if the regional manager moves on or retires.

Digital specialists are what’s missing from your team.

Digital marketing is at the forefront of 2018, and banks would be ill-advised to not invest in this industry. According to the latest benchmark results, when customers begin looking for new banking products, 55% say they start by searching on Google.  This can lead them to you or to your competition.

It is the era of social media, and if your community bank is not present on social platforms and in other digital arenas, you will not show up in searches, and the big banks will drown out all attempts at engagement. Community banks are no longer able to rely on friendly contacts that occur in person, and most consider employing digital specialists that can heighten their online marketing strategies. A digital specialist can also assist in making sense of the data that is now required to fuel a marketing strategy to effectively reach your target audience.  The most progressive banks have dedicated professionals focused on reacting to social media posts and questions, and monitoring what is happening among competitors’ customers.

The foundation is being laid for community banks to excel in 2018, but such achievement will not be realized without effort. Understanding the latest trends will be the first stepping stone towards your business growth and how you can leverage the resources available to you.

There is enormous opportunity to improve your ability to grow your community bank or credit union, but it starts with knowing what existing customers and prospects think of you compared to your competitors. Take action now and request our benchmark study for your region.