Rebounding from recession.

• Author: Hatch, Cary
• Position: Communications Q&A

Q: How can I successfully maneuver my bank marketing activities through the economic uncertainty, despite cutbacks in the marketing budget?

A: Because the competition in the banking industry is fierce in a slowly improving economy, it is important for your bank to demonstrate stability and build up a brand image that will win you long-term customer loyalty. The following tips should help.

1. Don't Fall Silent.

   Customers will forget your brand messages unless they're reminded--repeatedly. Improve top-of-mind awareness and retention with a steady schedule of advertising.

2. Monitor Sales and Market Share.

   Sales alone don't tell the whole story--include market share considerations. Companies that reduced advertising budgets during the recession in the early 1980s increased their sales by only 19 percent while those who maintained or expanded their advertising almost quadrupled sales, according to a McGraw-Hill analysis.

3. Eat Your Rival's Lunch.

   Economic uncertainty offers aggressive advertisers an optimal environment for stealing market share. Multiple studies confirm that a pro-active campaign can yield measurable results.

4. Get Bang for Your Buck.

   Historically, banks have been content to spend modest amounts on advertising. A few years ago a study about the impact of advertising on brand power identified the financial services industry as the one with the lowest brand recognition. The study also showed that advertising in this industry does buy substantial brand power per dollar spent and proves to be much more efficient than in other industries. Certain strategies have proved more effective than...