How collectible coins stack up: a well-constructed coin program can not only generate noninterest income, but also build brand awareness, drive lobby traffic, retain customers and create cross-sell opportunities.

• Author: Schwartz, Andrew
• Position: Fundamentals: Coin Merchandising

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Them are literally 139 million reasons to consider implementing a gift-coin program. That's the number of Americans collecting coins today, according to the U.S. Mint, Nearly one person in every household has been collecting coins from the popular 50 State Quarters program.

Beyond the numbers, coin programs make "cents" because coins are a natural market for banks: customers get something of value from a trusted source. But collectible coins are much more than an interesting promotion--they can help achieve broader marketing objectives such as building brand awareness, creating cross-selling opportunities, driving lobby traffic and enhancing customer loyalty.

How you merchandise your coin program really depends on your marketing goals. For example, will you use the merchandise to reach existing customers, attract new customers of a combination of both? A good coin partner should be willing to customize a product and tailor a program to match your needs.

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There are many variables, so let's take a closer look at some of the different ways to successfully merchandise a coin program.

Drive lobby traffic

Lobby traffic can be vital for managing customer relationships, yet a challenge for banks is how to be more relevant in customers' day-to-day lives. To get people into the bank, one could argue that banks must become more of a community center, not unlike schools or libraries.

Collectible coins position branches as a helpful customer resource. Best of all, coins draw existing and potential customers into the bank again and again for the latest items. Promotion is easy because, counting all the different coin products, there is a new release, on average, each month.

A huge upcoming coin opportunity, the Presidential $1 Coin program, will be rolled out in the coming weeks (see sidebar on page 48). The U.S. Mint will introduce the first $1 circulated coin, George Washington, in time for President's Day in February. A new coin will be introduced every four months until all of the presidents have been featured--over a period requiring at least 11 years. It's essentially a built-in framework for a multiyear marketing program.

Using marketing materials provided by a coin partner to promote the different merchandise available--from uncirculated coin sets from both mints to "collect them all" set holders--makes it possible for a bank to acquire a turnkey program. The display materials are like lobby art with beautiful imagery. Point-of-purchase displays, lobby posters and brochures featuring the coins appeal to customers and serve as a distraction to make time fly while they're waiting in line.

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