tag:blogger.com,1999:blog-235433516644980443.post5785369280202743442..comments2024-03-27T05:08:10.195-04:00Comments on Jeff For Banks: Cars: A Lesson in Brand IdentityJeff Marsicohttp://www.blogger.com/profile/12153599647481141591noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-235433516644980443.post-12880764333909551032011-08-17T18:26:54.470-04:002011-08-17T18:26:54.470-04:00Mike,
Using price to get customers and price to d...Mike,<br /><br />Using price to get customers and price to drive down vendor costs is the ultimate commodity-industry behavior. Are we there yet? Can we un-commoditize banking like Starbucks did to coffee? Look what WalMart did to the General Store, and Home Depot did to the local lumberyard?<br /><br />~ JeffJeff Marsicohttp://www.kafafiangroup.comnoreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-45452934949267185772011-08-17T09:27:29.604-04:002011-08-17T09:27:29.604-04:00Jeff - in my opinion, one of the ways we'll st...Jeff - in my opinion, one of the ways we'll start to see that directional change (or at least an attempt at it) is when community bank advertising/marketing stops focusing on pricing as the differentiator. Hyundai's initial attempts were to be the "low-cost" option. When your advertising/marketing is stressing rates or fees, you've taken the same approach. When customers, or prospective customers, only "hear" about you on price, that's how you will be perceived. <br /><br />Unfortunately, many FIs that I speak with still equate price to value. Look at how many still do RFPs, I think that's the ultimate price-driven approach.Mike Bartoohttp://www.gomarquis.comnoreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-59226829431112027932011-08-16T17:52:05.235-04:002011-08-16T17:52:05.235-04:00Tom,
I appreciate you leaving the comment. The ma...Tom,<br /><br />I appreciate you leaving the comment. The manner in which Hyundai attacked the US Market (price-driven) is similar to how financial institutions drive customers to their doors.<br /><br />But with the introduction of their 100,000 mile warranty and the "upscaling" of their vehicles, they are moving from price-driven to value-driven.<br /><br />As community FIs, have we made that directional change?<br /><br />~ JeffJeff Marsicohttp://www.jeff-for-banks.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-21296475544917428762011-08-16T17:00:11.559-04:002011-08-16T17:00:11.559-04:00Personal insight - In our family, we are value inv...Personal insight - In our family, we are value investors, preferring quality in reasonable dollars vs the status of "the name". <br /> <br />Re vehicles, we used to think of Hydundais as cheap Korean cars. Ironically, we now drive 3 Hyundais, preferring high quality, best warranty in the business (they don't make money if they have to pay for alot of recalls), while still very stylish (several Car of the Year awards). We just didn't want to pay $15-$20K more for an "old school name" when we could have the same or better value in a Hyundai. <br /><br />Hyundai is one of the few car companies expanding market share today and others are now copying their marketing. As you say, banks need to view what their brand means to their customers...Tom Saxennoreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-71872064918260375552011-08-16T13:44:06.367-04:002011-08-16T13:44:06.367-04:00Anonymous,
I would agree there are few examples o...Anonymous,<br /><br />I would agree there are few examples of powerful brands in our industry, although Ray Davis of Umpqua Bank and Dave Payne of Westamerica Bank would probably take exception to this. I would also throw Vernon Hill of the former Commerce Bank of New Jersey in that group, warts and all.<br /><br />But there are examples in intangible services businesses where brand resonates so strong that buyers are willing to pay a premium for services. <br /><br />In my own industry, consulting, businesses are willing to throw boatloads of cash on the most august firms just to be associated with those firms’ brands… an enviable position indeed. <br /><br />Can community FIs elevate their brand to achieve similar results?<br /><br />~JeffJeff Marsicohttp://www.jeff-for-banks.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-81314073732975218742011-08-15T22:55:46.305-04:002011-08-15T22:55:46.305-04:00Jeff, interesting take on bank branding and how it...Jeff, interesting take on bank branding and how it reflects on the customer, not vice versa. Here's my logic on the argument...<br /><br />Starbucks makes us feel great because 1) the destination itself is a desirable enough end, without even including the product and 2) it's loaded with more caff than competitors so we feel that much better after drinking it.<br /><br />Do we see any instances in banking where this same phenomenon occurs? I don't think so. Bank branding hasn't reached that level yet... The products don't make us feel good (separated by minuscule basis points) and even the most successful brands (ING, TD, etc) still don't have this impact on the consumer's personal brand level.<br /><br />Is banking brandable on this level at all? I'm not convinced. the product seems too boring to reach this level of brand loyalty. I'd love to see it proven otherwise tho.Anonymousnoreply@blogger.com