Bank on a Retailer

“Why does it take a catastrophe to start a revolution?”
Jonathan Larson

Why did it take a crisis for banks to start thinking like consumers? In addition to taking the time to build a trust-based brand, banks need to drive consumer relationships every single day. In other words, they need to start thinking and acting like retailers.

Take Commerce Bank, for example. Commerce Bank understood what the benchmarks of successful retailing were. It changed its hours of operation to days and times that were more convenient to its customers (nights and weekends). It opened additional branch locations in areas that were more central to where its customers actually lived. It trained all of its employees to be customer service specialists. It offered valuable incentives and loyalty programs in order to make its customers feel valued. It generated buzz and excitement among the general public the way any retailer would. And thanks to Vernon Hill’s innovation, Commerce Bank truly became a retail banking business – a business that started with one office and nine employees, and grew into a $50 billion, 470-branch bank – because it understood from a retail perspective what it took to drive success.

TD Bank thought they could buy all this when they took over Commerce Bank. All they really bought was a tag line, not an internal, cultural creed. Now, “America’s Most Convenient Bank” has been reduced to attention-grabbing gimmicks. Come on, are free treats for children and dogs really a determining factor in where you do your banking?!

Today’s banks must start operating as retailers if they are going to make it through this economic ‘catastrophe;’ – and I’d love to help them. The result will be loyal customers – and stronger brands – that stand by them even in times of trouble.

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MediaPost: J.D. Power: Customers Not Committed To Their Banks