Retail Banking Shows Us How To Brand in a Commoditized Industry

By the way, there are lots of similarities between the issues faced by the commercial printing industry and the issues faced by the retail banking industry. Retail banking is just further ahead on the curve. Banks went through a period of years in which retail banking became viewed as a commodity and “all banks are alike” so “just give me the best rates”. As much as banks tried toaster giveaways, nothing worked. As much as banks screamed “we provide great service”, nobody listened. Only in the past couple of years have banks learned that with an integrated rebranding effort they could attract new customers. In their world, they began to distribute banking access to smaller retail outlets closer to their retail customers (which is why there seems to be a bank going up on every corner!) and they began to use their retail space as selling space...that is, as a store (not just a waiting line with ropes and maybe a few chairs to wait in). Today, a contemporary bank is fully branded with visually integrated sales materials, site layout, building design and furnishings, logos, signage, advertising, and programmed digital communications in the bank - all geared towards selling and cross-selling. While retail banking is a far cry from industries such as commercial printing, it does demonstrate that the future is bright for traditional industries that can embrace technology , leverage branding concepts and adapt to changing customer needs not only in the services they sell and production processes, but also in how they communicate. Successful banks are moving away from the threat of commoditization. It can be done in other industries facing commoditization.

Spiral of Expectations

I've spoken often on the topic of the "Spiral of Expectations" in marketing and customer service. My use of the phrase evolved from the "Rational Expectations" theory of economics. As it relates to marketing, it is intriguing to note that consumer expectations continually spiral up. We've all seen it. We all do it. Once a company offers better service, better prices, faster delivery, extra toppings, larger quantities, fresher ingredients, bigger guarantees (and on and on) we come to expect that level of performance from all companies. Not only from other companies in the same category, but from companies in other categories. If Hertz can check me out and process payment right at my car without a visit to the counter shouldn't the airlines be able to scan my ID as I board without my ever needing to stop at a counter or gate check-in? If the grocery store lets me use self checkout for my convenience (is it really for my convneience?) shouldn't I be allowed to self-scan at Lowes or Home Depot ( I can). I can't wait for the day when I can self-serve at the dry cleaner rather than wait for the clerk to search for shirts (which always seem to be at the other end of the automated hanger rack).

As marketers, we need to be aware of what is happening in the lives of our customers across all categories, not just our own. Consumers don't segment their lives into our product categories. We shouldn't set our service expectations by our category definition. It's a trap.