A splashy distinction.

• Author: Lantka, Noelle K.
• Position: Company overview

Seven years ago, many people in Greater Scranton, Pa., could not tell you what Fidelity Bank was or what it represented. Now after rebranding and internal culture change, the institution is more visible and has differentiated itself through the creation of a dynamic customer experience. And the bank's financial numbers are up too.

IN 2003, FIDELITY BANK, SCRANTON, PA., discovered the fact that it had no unaided awareness in the marketplace. Although the bank is 107 years old and has assets of $555 million, prospective customers didn't know what Fidelity was, what it stood for, or what made it different from competition.

In response, bank managers initiated a rebranding campaign. Through a review of key influencers in the market, trends in retail and commercial banking, interviews with management and staff, and competitive analysis, the bank determined that service, not price, would be the distinguishing brand factor. While many think "service" is so commonly used as a brand theme that it's virtually impossible to distinguish the various brand messages, Fidelity Bank wanted to offer a level of "service" that could only be achieved through a comprehensive internal cultural change.

"We needed a model that would separate us from the pack while still appealing to our shareholders and customers and providing value back to the organization," says Daniel J. Santaniello, president and CEO.

The bank began changing its internal culture slowly but consistently through training and implementation of behavioral standards. Early on, employees were cross-trained in basic product and service knowledge. This meant that when people walked into a branch, whether they interacted with a teller or manager, they would all experience the same level of knowledge and professionalism.

The bank implemented a staff dress code: Frontline staff was required to dress in black or navy suits at all times, a practice intended to reinforce images of trust, security and reliability--to develop consumer confidence.

The bank also disassembled and rebuilt almost every component of day-to-day banking. Existing products were simplified, eliminating confusion for both staff and customers.

The bank also developed a lifestyle segmentation plan in order to target high-profit customers. The bank started this project with an in-depth analysis of the bank's current marketplace. The bank determined that there were multiple opportunities for growth in specific demographics based on certain characteristics: age, income and the presence of children. The bank realized that it could not be everything to everyone--without overstretching its resources. Instead, the segmentation strategy helped the bank to focus its marketing and sales efforts on households that have the greatest profitability potential. Internally, the bank refers to this demographic category as "high priority households."

Bank branches were remodeled and new ones re-engineered to invite open dialogue between staff and customers. Gone were the traditional teller counters of old, replaced by what the bank calls pods--freestanding desks with rotating computer monitors. A pod is similar to a traditional teller counter except that it allows the customer to be in the same "space" as the teller. With a revolving...