The power of positioning.

• Author: Motley, L. Biff
• Position: Customer Satisfaction

Results from the ongoing ABA Financial Client Satisfaction Index continue to demonstrate the importance of the human side of banking. Not only is customer service of vital importance to banks' clients, it is something that banks are in the best position to deliver. These facts of competitive life caused me to go back and review the essential elements of product "positioning" made popular in the 1980s by the book "Positioning: The Battle for the Mind" by Al Reis and Jack Trout.

The key to this marketing concept is that consumers have only a few places in their minds (the French call them "creneau" or holes) for product categories; and, that the best marketers carve out a spot for their brand through effective "positioning" of their offering. The classic example in the '70s was 7 UP's "un-cola" campaign, which said there are lots of colas out there, but only one "un-cola," and it's 7 UP. In today's world an effective example of positioning is the campaign by Charles Schwab. This campaign shows photos of "salary only" advisers who tell you not only when to buy stocks but also when to sell them. The campaign goes on to explain that Charles Schwab does not engage in investment banking, so advisers have no conflicts of interest. What Schwab is saying is, "All the other guys are alike (the colas), but we are different and better (the un-cola)." The key to positioning is to take advantage simultaneously of both your strengths and the competitor's weaknesses.

For community banks there is a lesson here. The lesson is, "cherche le creaneau," as Reis and Trout say in the book; or, "find your niche" and then exploit it in a consistent, repetitive and forceful way. The following three action steps may help in developing your positioning plan.

1. Measure and understand what your customers want and how well you are delivering this versus your competitors. My guess is it will not be the very lowest loan rates and highest deposit rates, though your employees will probably claim this. I would be surprised if true customer satisfaction didn't revolve around a constellation of very human attributes like "professionalism," "courtesy," "responsiveness," etc. These are the kinds...