Marketing of Financial services
Farmers bank of Virginia has a long history rooted in the first quarter of 20th century. It has preserved throughout the years the family values so important to its core segment of customers. The traditional values and the personal touch were considered the key advantages of the bank in maintaining customer loyalty. However, it is already 21st century. It means that times are changing, as well as business approaches and even key values that were so important in the previous century.
Nowadays, in order to stay aloft and competitive on the market, it is important to show dynamics, flexibility, to match the emerging demands of the customers, rather than maintain aspire to maintain something that was relevant long time ago. Moreover, loyal customers of Farmers bank of Virginia are growing older. It is not sure that their children and grandchildren will maintain the loyalty to the bank, because times and values are changing, as it was already mentioned.
With respect to everything stated above, the key objectives of FBV appear to be the following:
To increase market share by attracting new customers to the bank.
To change the image of the bank shifting from the traditional perception of conservatism to contemporary approach of flexibility, the ability to change and correspond to the up to date demands of potential and existing customers.
To diversify the portfolio of services provided.
To implement modern technology in order to speed up the operating process and thus improve the quality of service provided, as well as make banking services more convenient for customers.
To make bank a convenient place in every aspect four existing and potential customers.
All those objectives should be achieved in 5 years period. Specifically, the timeline for achieving them look in the following way.
1st year: The bank needs to implement new online banking service. It will enable to expand the services. The online operations are far more preferable for younger audience. Thus, it will be the first step towards attracting new customers, which are more perspective. Moreover, it will also be a small shift towards an image of flexible and progressive bank, rather than conservative and archaic. During the first year, it is also important to enlarge the number of ATM in order to ensure better access of customers towards banking services. It will, in turn, contribute to the loyalty of existing customers, since the survey showed that the low number of ATM is a substantial concern of customers below 45.
The implementation of online banking, as well as the expansion of ATMs should be followed by serious advertising campaign in order to inform people about innovation that took place. Moreover, it is also important that the key message reflect not only the factual technical transformation, but the transformation of the essential approach to business operation, the aspiration towards greater flexibility. It should sound like: “FBV – care and flexibility for your convenience” or “FVB – contemporary approach to traditional values”. In a word, the key message should not drastically change the image and values to prevent losing old loyal customers. However, the advertising campaign should plant the seeds of bank transformation.
2nd year: the working hours should be prolonged to week end, so customers have a chance to bank any time they want. The interior and exterior of the bank should be modernized to make it more appealing and convenient to target audience – people younger than 45. The new services, such as insurance and financial consultancy should start to be implemented.
3rd year: Additional services should be firmly established and start working. At this stage, it is important for the bank to launch substantial PR and advertising campaigns in order to reposition the bank making it more contemporary, flexible and up to date, while remaining the image of trustworthy and caring one. The top executives of the bank should give a press-conference explaining why the changes took place and what those changes are headed at. Moreover, the bank must place several articles in the press read by target audience, explaining the advantages that customers will gain from the nes services and new appearance of the bank. The goal is to convince the old customers to continue using FBV’s services and stimulate potential customers to try FBV’s services. It is also useful to launch some customer loyalty program for potential customers and some kind of bonus schemes for old customers in order to prove that bank cares about its clients.
4th-5th year: During this period it is important to continue PR campaign in order to maintain the feeling of reliability and trustworthiness of the bank, while ensuring in positive transformation that enhance the value of services FBV offers.
In order to implement all the activities mentioned above, FBV has to estimate its budget. The budget might look in the following manner.
The implementation of online banking and new ATMs – $600000
The launch of new services – $1 mill
The extension of working hours – $500000
Advertising and PR-campaign – $2 million
Exterior and interior renovation — $20000
In conclusion, it is important to say that FBV needs serious rebranding in order to stay aloft and competitive. It should change the perception of customers in order to expand market. Yet, it is also crucial that while changing the old image to remain trustworthy and reliable in the eyes of customers. Thus, the five year marketing strategy should include implementation of new services, changing the exterior and interior of the bank, launching serious ad and PR-campaigns.
Cite this Marketing of Financial services
Marketing of Financial services. (2017, Mar 31). Retrieved from https://graduateway.com/marketing-of-financial-services/