Steps To Brand Power For Any Bank
Branding is very important in any industry.Brand equity is strategic and it is an asset that can be a source of competitive advantage. Most research studies have shown that banks and financial institutions are among the least liked brands.
The strong bank brands command high loyalty rates and they get more market share than those brands whose reputation is moderate. Satisfaction and customer loyalty will increase if banks significantly improve their reputation.
Most social media analysis of bank brands has shown that banks typically follow a product and channel centric model whereby the customer is viewed as a consumer of various banking products that are needed at a certain stage in life that can be sold through a channel. And when the customer has purchased the product or service, the cross-sell and up-sell engine is put into action.
The problem here now is that this product centric nature of business prevents the banks from forming good relationships with their customers. A brand in banking is not just a name. A brand should have a relationship with customers and should stand out.
The first step for a bank brand to stand out is to determine and align customers on priority segments. Many banking segments fail because of high emphasis on affluence. Affluence is just one section of a more actionable and complete view of existing and potential customers.Banks should have a customer needs segment and should understand their attitude, motivation and differences in order to be able to prioritize and align services and products.
The next step to brand power is clarifying the brand frame of reference and understanding how customers buy products. Here you are required to determine whether your bank is competing for financial and security returns only or it is competing on control and convenience. Find out how customers know about the bank, the kind of research that they carry out, their experience in opening accounts, the keys to establish loyalty, how performance compares to other competitive brands, how the brand is successful in taking potential clients through every stage without losing most of them and so forth. This research can help you find out major flaws with service or product delivery which needs to be redesigned.
The next step to brand power is refining brand positioning to align it with the current market understanding. Based on the requirements of the main segment and buying process, determine the relevant advantages that you want your brand to convey. The advantages can be inspirational, functional or emotional. With this you can be able to make your brand unique.
The finalstep to brand power is developing the strategy of the brand and supporting the broader marketing objectives. Identify the brand and its sub-brands and other extensions at the product level. Treat your brand as a strategic asset through differentiating it compared to your competitors and ensuring that you deliver more benefits. You can also come up with an overall way of measuring the performance of your brand in order to know where you need to put more effort.