A Simple Concept to Guide Your CU’s 2013 Marketing Plan and Budget

by: Mark DeBellis, President, PSB Integrated Marketing

When it comes to next year’s marketing plan and budget, many of you are somewhere between ankle-deep and nose-deep. So many things to consider but generally with less funding than you’d like.

Projections from industry publications show that there are actually some industries, like high-tech, that are expecting to see increases of 3 – 6% for next year. After years of decline, we can only hope that the financial industry will start to follow suit.

The days of automatic increases and autopilot spending programs are long gone. Companies want to know what their return on investment will be for ALL FUNDS.

That’s why today’s marketing conversation has to move from what has been an overreliance on impressions and brand imagery as a priority, to harder sales-based strategies and tactics.

Every business has as its lifeblood two primary areas that fall into the marketer’s domain. If your marketing team presents relevant business plans within the context of these issues, and provides strong rationale for your ideas and expectations, a progressive management team will respond…and maybe even grant you greater funding for next year.

The simple building blocks of all businesses are summed up with two simple concepts…how is what you are doing going to impact client acquisition and client retention?

Building your budget recommendations around these simple philosophies will help you streamline your thinking and reinforce the core reasons why marketing exists.

Client Acquisition
The most expensive of marketing efforts fall into this area. Acquiring new clients is a low-percentage game and the large total costs often make it unprofitable in the first year. But you have to do it. Keep in mind that new client growth must be considered as an INVESTMENT, just like a new branch, new product, or new employee. It takes a while to have all of them fully operational.

Marketing programs in support of this area should be tied to INCREMENTAL SALES CREATION through: Business Development/Direct Sales; Product Development; Direct Marketing; Community Outreach Print and Internet Advertising (featuring Promotional Rates and Teaser Fees or Freebies).

What are the things you need next year to help you compete? Is your team outfitted with effective materials? Is your pricing competitive? Is your sales team trained effectively? Do you have people in key places to address these opportunities?

Client Retention and Development
In a hyper-competitive market, like financial services, much of your marketing budget should be focused on maintaining those high-value clients.

Most businesses forget to spend appropriately on existing business. Once the new client is in the door they are left to their own devices. This is where both HYGIENE and NURTURING TOOLS can be employed to enhance and improve the relationship.

Hygiene tools are those elements that keep your clients from looking elsewhere. Things like a pleasant, well-run operation. Friendly staff. Convenient hours. Ease of access to ATMs. Easy to navigate web site. Fair pricing. Good communication through the newsletter. Awareness of product and service promotional offers through all communication channels.

Nurturing tools help move the client towards a path of greater significance and development within your organization. Here is where you need to employ ongoing outbound cross-sell and up-sell initiatives.

In a world where the client is being romanced by so many other alternatives, you have to assume that your clients won’t seek you out. Instead you must create a robust program that includes email, direct mail and direct sell components to reach out and nurture undeveloped clients.

If your efforts in the marketing plan aren’t contributing to either client growth or client retention you really have to challenge yourself as to why you are doing it at all.

Mark DeBellis has spent over half of his life in the Marketing profession and in the promotion and management of consumer brands and services. He seeks new ways to provide value-added services and product marketing strategies for PSB’s financial service clients. As a full-service provider, PSB Integrated Marketing offers creative concepts, graphic design and layout, in-house prepress, and on-site lithographic/digital printing, bindery in addition to secured mail house services in their Orange County, CA facility. Mark DeBellis is President of PSB Integrated Marketing and can be reached at markd@psbonline.com; www.psbonline.com.