TV or not TV.

• Author: Stewart, Deb
• Position: Digital merchandising - Cover story

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Everyone's talking about televisions in bank branches ... at the teller line, in the waiting area, even at the drive-through! Television in a financial institution is sometimes called "digital media" or "digital merchandising." How do you know if digital merchandising is right for your marketing mix? If it is the right strategic fit, where do you begin on tactical execution? And then, how do you maximize its marketing impact and integrate it into the way that your branches sell every day?

Here are some ideas drawn from the experiences of bankers who have made video a part of their marketing strategy. Where they started ... where they thought they would end up ... and where they are today. We'll give information about each of the three major steps involved in implementing digital media:

1. Define your objectives and match these to the right strategies.

2. Understand the tactical considerations.

3. Anticipate the future.

An explanation of each step follows below.

Step 1: Define Your Objectives and Match These to the Right Strategies.

Where is digital happening? In almost every part of a typical branch.

* In the teller zone.

* in the wait area.

* In the drive-through zone.

* In the staff- area.

In addition, "interactive media" is starting to show up, principally in the queue line. More about that later.

To determine which digital media is light for your bank, consider the strategic relevance of each application--then match those against your objectives and marketing plan.

The teller zone

Digital media in the teller zone can provide a number of strategic benefits:

* Shortened wait-time perception. Bill Harrison, director of branch marketing for Citizens Bank, Providence, R.I. (assets: $161 billion; 1,600 branches in 13 states) explains "If you have customers wait for one or two minutes, and you ask them how long they've been waiting, you'll get a pretty accurate response. At three minutes or beyond their estimate will be much longer than reality. Video has proven to significantly shorten perceived wait times, and therefore improve customer satisfaction with that branch experience." Citizens has deployed digital merchandising in over 850 locations, the largest bank video rollout in the world. Here are some of the benefits they have received:

* Improved impact of promotional messaging. The dynamic nature of video engages the customer more than does print.

* Increased shelf space. Promotion of multiple product lines, impossible with a paper-only merchandising system, is viable with digital applications.

* Improved time to market. If you need to quickly change a rate or another element of a promotion, drop a pro motion, make an announcement--that new information can literally be in branch in a matter of hours.

* Improved local promotion. Announcing local sponsorships or introducing local branch associates is easier with video media.

* More cost-effective support for multiple languages. One Spanish language and one English language monitor behind the teller exponentially improves your bilingual strategy.

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Synovus Financial Corp., a bank holding company based in Columbus, Ga. (assets: $31 billion; 39 banks in five states) has used video as a key part of an overall branch transformation initiative. In 2005, Synovus embarked on a complete renewal of its retail strategy, including a rethinking of its merchandising system. Promotion centered on the teller line, the destination of an estimated 92-93 percent of Synovus customers. Paper-based promotion, take-ones (brochures), a Web-enabled kiosk (facilitating demonstration/ Internet banking demos) and video screens support the zone. Digital, paper-based communications and take-ones all support the current corporate-wide campaign. Digital also supports the broader product portfolio.

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Localization of content is a key objective. "Localization" has a complex definition for Synovus as the holding company retains over 20 separate local brands. A mix of market-specific syndicated news, weather and sports is supported by relationships with local newspapers. Affiliate marketing directors and branch managers are empowered to select secondary promotions--bill pay, home equity and so forth, with the intention of...