The Stackpile

January 27th, 2009

To DM or not to DM

At last week’s NEFMA conference, amid the usual hubbub about the newest, hottest marketing gadgets (Twitter, Facebook, et al), another, older marketing tool was getting a surprising amount of airtime: direct marketing.

Now, I have nothing against direct marketing. It is, in fact, a great tool under certain circumstances. If you have a special deal or event you want to promote, direct mail is often the way to go.

The problem is that many organizations use direct marketing in lieu of a comprehensive marketing campaign. Promotions are great, but what really drives customer acquisitions is brand recognition. People need to know who you are, and what you stand for—particularly in the banking category, where there is so little perceived differentiation. (In fact, according to the most recent Stackpole Report, the number one reason people don’t switch banks, even when they’re unhappy, is because there is “no difference” between banks and “no better option out there.”)
Junk mail
Differentiation can’t be earned through a single direct mail drop, or even ten. In order to create differentiation, you need brand personality. And the best way to convey brand personality is through broad-reach media like TV, radio, and print—ideally in a coordinated campaign.

You may hear a radio ad on your way to work, skim over a print ad while reading the paper, click past a banner ad on your favorite website, and finally end with a TV spot later that night. If all of these gears are working together with a unique message, the cumulative effect is a passive familiarity that stays with you for a long time. And when you’re finally ready to switch to a new bank, guess which one will be at the top of your list?

Hint: it’s not the one that sent you a coupon for free pizza last month.

Posted by Simon on January 27th, 2009
Filed under Banking, Marketing | No Comments »

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