LAS VEGAS - Differentiation and distinctiveness were the buzzwords at the BAI Retail Delivery Show, where financial institutions were told to chuck the giveaways in favor of showing consumers why they ought to do business with them.
Such educational sessions on strategy were at least as popular as what has always been a big draw at BAI: the cornucopia of technology on display. Banks worry about at least some of the same things credits unions do: including margin squeeze, pricing products and how to differentiate themselves from the competition. The session entitled "Forget the Toaster: Driving Branch Traffic Through Distinctiveness" noted many financial institutions have had to resort to giveaways in an attempt to bring in new customers/members.
Sherief Meleis, managing director of Novantas, a New York City-based consultancy, said "there is a crisis in banking" due to a revenue crunch the past two years.
"Banks are turning to promotional gimmicks," he said. Copies of print ads Meleis showed the audience included offers of iPods, coolers, cash and even rifles.
There are two major drivers of distinctiveness, Meleis continued: rational/functional distinctiveness, and emotional resonance. "Only a few banks have achieved both," he said.
Paul Kadin, marketing director for Citibank North America, said Citibank is a leader on the global stage, but has a limited U.S. domestic branch network. Citibank is building "hundreds" of new branches to increase access. More importantly, he said Citi's "Thank You" rewards program has been extremely successful.
"We believe the substance of this program is excellent. More than just the stuff, there's emotion."
