Working with an advertising agency: it's all in the relationship.

• Position: Interview

Community banks are often skeptical of the value of working with an advertising agency. Not long ago, Malvern Federal Savings Bank (assets: $658 million; seven locations in suburban Philadelphia) decided to work with an agency. ABA Bank Marketing magazine talked with Scott Sterling, the bank's director of retail banking and marketing, to find out the process the institution went through to find a suitable agency and how it managed the relationship once it was established.

Does the bank need to do any homework prior to beginning a search for an agency?

To achieve the maximum benefits from the bank/agency relationship, both the bank and the agency need to be straightforward from day one about their objectives. The bank's objectives and mission should be clearly communicated to the agency, and the agency's presentation of a plan or idea for the bank should be laid out in a simple, easy-to-understand manner. While the results of a marketing campaign may not be what the bank expects--for example, the rate of return on direct mail may be less than what the bank was hoping for--the bank must analyze why the results weren't as expected, listen to recommendations from the agency and decide to proceed forward with the marketing strategy or change direction. How the bank handles the results is very important, and is a key indicator of whether objectives are being understood on both sides.

Should a marketer just look at an agency for advertising support or should it expect other help beyond that?

While many bank marketers may choose to work with an agency simply for advertising support and assistance with market research and analysis, an additional benefit to working with some agencies is the public relations support and counsel that they can provide. Marketing involves not just selling a product but keeping the public informed of the bank's activities and strengthening relationships with bank audiences.

Malvern Federal has used public relations to keep customers and the media informed on a variety of the bank's recent activities, from community initiatives such as an annual bank-sponsored 5K walk/run, to the bank's recent reorganization to a mutual holding company.

How much time does it take to choose an agency?

The process of selecting several agencies to interview, receiving and reviewing their proposals and or presentations and selecting a winner can easily take two months or more. But it is important to spend the time upfront so you are not faced...