Steve JohnsonCommunity banks and credit unions hold a unique position in the financial-services marketplace. As vital members of their local communities, these organizations serve an essential role in fostering economic growth, giving them an inside track in building and maintaining trust with their customers and members. However, the financial landscape is rapidly evolving. With changing demographics […]
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Community banks and credit unions hold a unique position in the financial-services marketplace. As vital members of their local communities, these organizations serve an essential role in fostering economic growth, giving them an inside track in building and maintaining trust with their customers and members.
However, the financial landscape is rapidly evolving. With changing demographics and increasing competition from national banks, online lenders, and non-traditional financial-services organizations, community financial institutions find themselves at a crossroads. Identifying new ways to strengthen core community relationships is a key to the long-term success and resilience of these organizations — the lifeblood of their communities’ financial landscape.
Steve Johnson is a managing partner at Riger Marketing Communications in Binghamton. Contact him at sdjohnson@riger.com.
How to engage your communities for greatest impact
Fortunately, as a community financial-institution leader, you have several arrows in your quiver, and it all starts with a focus on localized participation and engagement. Here are some proven ways to establish closer ties with your communities: 1. Understand your community’s needs: Before you can effectively serve your target audience, you must have a comprehensive understanding of their financial needs and challenges. This will help you to both cater your product offerings and align your engagement strategy with your market. For example, if you’re serving a rural region, it makes sense to offer services like agricultural loans and financial-wellness instruction designed for farmers. If, on the other hand, you’re located in a downtown central business district, then offering commercial accounts and small-business loans makes a ton of sense. Start with market research. This can be done informally, by having conversations with local civic leaders, business owners, and your own customers or members. Or you can take a more analytical approach, using established marketing-research methods like focus groups and surveys to gather both quantitative and qualitative data. Or, ideally, you can do both. 2. Develop community-centric programs: Community financial institutions are well known for sponsoring events, nonprofit causes, and youth sports teams in their hometowns. Seek out local, family-friendly festivals, school-based programs, and charity events to increase your visibility and goodwill. Encourage your staff/colleagues to participate in community projects, serve on local nonprofit boards, and volunteer their time to charitable organizations they believe in. You can also sponsor a company-wide philanthropy project and ask all employees to participate. Some popular projects include Habitat for Humanity home builds, Food Bank packing events, and community garden plantings. One of our bank clients does random acts of kindness at holiday time, with bank executives showing up at bagel shops and convenience stores to pick up the breakfast tab or fill a surprised patron’s gas tank. 3. Partner with local organizations: It makes sense to collaborate with local businesses and nonprofits, as it allows you to bask in the reflected glow of their reputation, and leverage a built-in audience to market your own services. You can offer co-branded promotions or financial workshops in partnership with local enterprises. Offer them the opportunity to sponsor or set up a booth at your events, and make sure to reciprocate. This approach helps to strengthen community ties while expanding your current customer or member base. Always conduct full due diligence of any organization with whom you choose to partner. Only consider those that align with your corporate mission and have a stellar reputation in your community. 4. Get hyper-local with your marketing: To reach your target audience it already resides, make sure you are using local media like TV, radio, and outdoor billboards, along with neighborhood social-media platforms like NextDoor. To get the most value out of the major social and digital platforms, implement geo-targeted online ads to ensure you are reaching your desired audience most effectively. Localized marketing and trust-building are essential to strengthening relationships and maintaining strong community ties. In these challenging times, focus on enhancing your current strategies to create a foundation of community engagement and trust for the long-term.Steve Johnson is a managing partner at Riger Marketing Communications in Binghamton. Contact him at sdjohnson@riger.com.