Indiana Bankers - Research Refine and Reposition

Research

Refine &

Reposition

three steps to a more effective marketing strategy in today’s marketplace

rethink

Restating the Obvious:

THE WORLD HAS CHANGED so have your customers, your

markets, your competition, your challenges, and your

opportunities

“Americans’ Confidence in Banks Not Improving” July 23, 2010

"The banks got bailed out, we got sold out!“ Occupy Birmingham protesters - 10/15/2011

attitudes

Source: Associated Press, Economic Stress Index , December 2010

Source: Mint.com“How do Americans feel about the Recession?”

October 27, 2010

Source: 2010.Census.gov2010 Census Data

“ The current financial crisis has saddled banks withmany burdens, not the least of which is a wave of

government regulation not seen since the 1930s.”

Source: ‘Riding the Regulatory Wave’ BAI Banking Strategies - September 1, 2009

20062006

11,40011,400

20102010

8,5508,550

Source: Novantas LLC, FDIC

AverageIn-Branch

TransactionsPer Month

behaviors

Meanwhile,Consumer Expectations are Growing

Brands are barely keeping up with consumer expectations now. Every day consumers adopt and devour the latest technologies and innovations, and hunger for more. Smarter marketers will identify and capitalize on unmet expectations. Those brands that understand where the strongest expectations exist will be the brands that survive - and prosper.

From: ‘10 Branding and Marketing Trends for 2010’ By: Robert Passikoff, President of Brand Keys

What is the single biggest change you’ve seen in your

markets?

Write it down:

How will you respond?

“Community and regional banks face a series of daunting challenges, but there is ample opportunity for those that pursue strategically aggressive approaches in marketing and branding and that differentiate meaningfully. These banks will break out of the sea of sameness and become leaders in the community banking landscape.”

David Ascher, Transom Consulting Group

taking advantage of opportunities requires strategic choices and

strategic action

1. Research 2.

Refine 3. Reposition

three steps to taking advantage of opportunities in today’s marketplace

Research

know your market & know your customers

How much do you really know?

psychographics

demographics

competitionproduct usage &

demand

• who are my best customers?

• what are they like?• where can I find them?• How can I reach them?

answer these questions:

• Brownsburg• Fort Wayne• Columbus

sample markets:

Brownsburg – Main & 267 (3 Mile Radius)

Fort Wayne – Coldwater & Coliseum (3 Mile Radius)

Columbus – National & Herman Darlage (3 Mile Radius)

Demographics

CY Population Percent Pop Growth CY to FY Percent Pop Growth 2000 to CY CY Households Percent HH Growth CY to FY Percent HH Growth 2000 to CY CY Average HH Inc CY Housing Units, Renter Occ CY Housing Units, Owner Occ CY Own Occ HUs Median Value Total number of Businesses2010 Population by Age Count % Count % Count % CY Pop, Under Age 21 9,396 28.49% 20,267 28.20% 10,674 28.25% CY Pop, Age 21 - 24 1,731 5.25% 3,458 4.81% 1,546 4.09% CY Pop, Age 25 - 34 5,386 16.33% 10,554 14.69% 4,686 12.40% CY Pop, Age 35 - 44 4,980 15.10% 11,216 15.61% 5,121 13.55% CY Pop, Age 45 - 54 4,630 14.04% 9,322 12.97% 5,237 13.86% CY Pop, Age 55 - 64 3,392 10.28% 7,146 9.94% 4,388 11.61% CY Pop, Age 65 - 74 1,886 5.72% 4,237 5.90% 3,081 8.15% CY Pop, Age 75 - 84 1,150 3.49% 3,509 4.88% 2,086 5.52% CY Pop, Age 85+ 430 1.30% 2,159 3.00% 961 2.54%2010 Households by HH Income Count % Count % Count % CY HH Inc < $15,000 1,166 9.51% 4,865 15.44% 1,924 12.47% CY HH Inc $15,000 - $24,999 1,049 8.55% 4,997 15.86% 1,885 12.21% CY HH Inc $25,000 - $34,999 1,138 9.28% 5,104 16.20% 1,875 12.15% CY HH Inc $35,000 - $49,999 1,631 13.30% 6,475 20.55% 2,510 16.26% CY HH Inc $50,000 - $74,999 2,935 23.94% 6,041 19.17% 3,187 20.65% CY HH Inc $75,000 - $99,999 1,980 16.15% 2,246 7.13% 1,726 11.18% CY HH Inc $100,000 - $124,999 1,122 9.15% 976 3.10% 1,083 7.02% CY HH Inc $125,000 - $149,999 638 5.20% 348 1.10% 555 3.60% CY HH Inc $150,000 - $199,999 399 3.25% 206 0.65% 335 2.17% CY HH Inc $200,000 - $499,999 189 1.54% 225 0.71% 296 1.92% CY HH Inc $500,000+ 14 0.11% 21 0.07% 56 0.36%

44,665

152,5281,032

71,867-1.91%-3.87%31,505-1.26%-2.48%

54.92%

N2 - FORT WAYNE3 mile 3 mile

45.08%

32,98111.31%36.06%12,26212.37%39.92%

73.47%79,2964,437

Market Overview (Cy=2010, FY=2015) N1 - Brownsburg

68,35526.53%

15,4321.07%2.77%

N3 - COLUMBUS3 mile37,7811.20%2.73%

127,2001,784

60,81933.36%66.64%

Psychographics

Node 1 - Brownsburg

Code Segment Title Count %Comp Count %Comp Count %Comp Count %CompY1 Upwardly Mobile 149,526 5.98 1,410 11.68 1,125 3.55 815 5.36Y2 Metro Mainstream 211,347 8.46 1,402 11.62 2,460 7.74 1,074 7.03Y3 Fiscal Fledglings 189,711 7.59 455 3.77 5,610 17.67 1,773 11.61F1 Flourishing Families 115,443 4.61 857 7.11 200 0.62 666 4.36F2 Upscale Earners 277,361 11.08 1,755 14.51 1,475 4.66 1,284 8.4F3 Mass Middle Class 449,362 17.97 2,174 18.03 5,662 17.83 1,554 10.18F4 Working Class USA 439,486 17.56 1,212 10.04 9,424 29.69 3,706 24.27M1 Financial Elite 53,230 2.12 327 2.71 128 0.4 370 2.43M2 Wealthy Achievers 131,764 5.27 686 5.69 691 2.17 778 5.09M3 Upscale Empty Nests 116,056 4.64 588 4.88 813 2.56 959 6.27M4 Midscale Matures 241,332 9.64 901 7.46 2,312 7.29 1,189 7.78M5 Retirement Blues 126,662 5.07 306 2.53 1,846 5.81 1,103 7.22

Total 2,501,280 100 12,077 100 31,742 100 15,271 100

State of Indiana Node 3 - ColumbusP$YCLE Segment Node 2 - Fort Wayne

Psychographics

Competitiontalk about your

Historical Deposit Growth by Market (2008-2010)

Market Potentialtalk about your

1-Year & 5-Year Projections

Projections: Product Breakdown

Deposit Products 5 yr. Projection Product Mix (%) 5 yr. Projection Product Mix (%) 5 yr. Projection Product Mix (%)Retail - Non-interest DDA $1,414,815 3% $1,856,320 4% $1,346,828 3%Retail - Interest DDA $2,164,077 5% $1,966,923 4% $1,745,924 4%Retail - Regular Savings $8,258,908 19% $7,586,470 15% $6,882,768 17%Retail - Money Market Savings $3,506,030 8% $2,977,238 6% $2,920,189 7%Retail - IRAs $17,955,716 42% $16,428,700 32% $17,262,575 42%Retail - CD/Time $6,572,315 15% $6,515,125 13% $5,975,197 14%Comm. - Basic Business DDA $2,562,683 6% $11,018,047 22% $4,430,064 11%Comm. - Business Savings $566,642 1% $2,436,232 5% $979,544 2% Totals $43,001,187 100% $50,785,055 100% $41,543,090 100%

Investment ProductsInvestment - Stock $9,816,638 47% $7,558,846 43% $8,551,656 45%Investment - Mutual Funds $5,780,482 28% $4,386,806 25% $4,765,305 25%Investment - Bonds $929,226 4% $950,275 5% $1,050,716 6%Investment - Annuity $4,292,570 21% $4,487,030 26% $4,518,214 24% Totals $20,818,916 100% $17,382,957 100% $18,885,892 100%

Loan ProductsRetail - First Mortgage $37,379,715 67% $30,226,670 36% $24,892,156 50%Installment Loan $697,562 1% $1,049,828 1% $614,171 1%Retail - Auto Loan $2,992,260 5% $4,010,781 5% $2,742,199 6%Retail - 'Credit Card $2,540,425 5% $3,315,989 4% $2,347,337 5%Retail - Checking Overdraft $316,678 1% $386,328 0% $326,245 1%Retail - Home Equity $1,513,207 3% $998,126 1% $909,750 2%Comm. - Bus. Term Loan $1,083,600 2% $4,658,850 6% $1,873,200 4%Comm. - LOC Loan $5,572,800 10% $23,959,800 28% $9,633,600 19%Comm. RE $3,599,100 6% $15,474,038 18% $6,221,700 13% Totals $55,695,347 100% $84,080,408 100% $49,560,358 100%

Brownsburg - 3 mile Fort Wayne - 3 mile Columbus - 3 mile

“The true power of research is in the insights and action.”

Jeff Rosenblum, “Why data is ruining this industry” Ad Age, March 2011

Refine

make choices

Name one company that serves a specific

segment of the market

Share with your neighbor:

Targeted Marketing

JOE SULLIVAN| MARKET INSIGHTS 36

to reach consumers based on various traits such as demographics, purchase history, or observed

behavior

Targeted Marketing

the act of making the right offers to the right customers at the right time

Targeted Marketing

the alignment of marketing efforts with the benefits sought by individual

market segments

We are the bank for ___________.

We are not the bank for ___________.

New Account Openings by Segment

Channel Usage by Segment

Reasons for Switching by Segment

“ING Direct has built the fastest-growing bank in America by saying no. When customers ask for a credit card, the answer is no. When they ask for an online brokerage, the answer is no. When they ask if they can open an account with a million dollars in it, the answer is no. ING wants to keep things simple. That’s why the bank offers just a few savings accounts, certificates of deposit, and mutual funds – and that’s it. “

Jason Fried & David Heinemeier Hansson, Rework

What are your bank’s strengths?

Write it down:

Which of those strengths are currently

unique?

Write it down:

Are any of those

irreplicable?

Write it down:

It’s all about focus and choices:targeting specific market segments who live in a

defined geographic market area, that have certain

delivery channel preferences & product needs, and can easily see and value how we’re different from our competition.

(Re)position

take action

alignment

customersneeds

valuespreferences

products

delivery channelsmessages people

services

experience

“One of the most powerful principles in building a brand is focused alignment. The result of alignment is coherence; the result of non-alignment is wasted resources.”

Marty Neumeier, Zag

characteristics of strong positions: strong positions are differentiated & relevant; they communicate value in a meaningful way; and they inform the entire customer experience.

strong positions are:

• ownable• leveragable • sustainable • extendable

3 kinds of differentiation:

• transient • circumstantial • strategic

strong positions are not generic, broad, hollow, easily replicable, easy to develop, or easy to deliver.

If your bank’s brand were a famous person, who

would it be?

Write it down:

If your bank’s brand could be any famous person,

who would it be?

Write it down:

What action steps will need to be taken to move from your current position to your refined position?

Share:

The 4 P’s of Marketing

• product • price • place

• promotion

And now…

• people • partners • processes

Alignment

• product • price • place• promo.

target market

market opportunities• people

• partners• processes

your brand position

marketing

“I don’t think you can be very successful in leading your company on a path to growth if you don’t pay a lot of attention to the market you serve and how your company markets itself…a leader’s vision for the future of the company must be based on a clear understanding of what is happening in the marketplace.”

Ray Davis, CEO of Umpqua Bank

thank you.

contact:jsullivan@formarketinsights.com

twitter: @mi_sullivan

800-348-0220 | 312-961-0188

www.formarketinsights.com

view & download this presentation with slideshare: www.slideshare.net/marketinsights

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