Delayed in Dallas

As I was sitting at the Dallas/Fort Worth airport (delayed for four hours), I had a chance to reflect on the past week. It has truly been my pleasure to serve as a class officer. I hope everyone enjoyed the networking events - and little extras - that we put together for you. It was our goal from the start to provide you with fun and exciting activities during your week at school. I'd like to thank you for your participation and enthusiasm.

I wish my 2010 classmates all the success and happiness that they deserve. I will miss all of you. To the class of 2011, good luck. Appreciate this opportunity you have been given, and have fun with it.

It' really the last time.... Chris has been saying this all week. I just got on the Radisson Shuttle for the last time this trip. Headed to Stan's Blue Note for the graduation party. Thanks to the ABA staff, instructors and class officers for all their work! And congrats to Penny - you will represent us well.

Class of 2010 ROCKS! Put the 2011 ABA marketing conference in your budgets next year!

Congratulations Graduates!

To the class of 2010 - THANK YOU for making the first year students feel so very welcomed throughout this entire week! I think I can speak for most of our class when I say that you guys did an amazing job at networking, mentoring and involving each one of us on a daily basis. What a bittersweet moment it must be for all of you to wrap up your School of Bank Marketing experience tonight at your graduation ceremony and reception. Good luck to each one of you. I hope you take the knowledge, skills and network you gathered from this experience and apply it with such passion in your organization that it becomes contagious to every member on your team.

Tonight - we celebrate you and your accomplishments. Let's get this party started!

-Amber Farley

Awesome Bank Marketers!

Bank B-4 Score @ The Door

Click to see how we scored Sandi - our community regulator:

http://sendables.jibjab.com/view/o3kwnOQDBuij9FgW

Sandi Rocked!

We, in the "B" Community think this says it all!

http://sendables.jibjab.com/view/rJ06GlPpKLhcpWYv

The final day

Had a great time this morning with Jack Hubbard, Chief Experience Officer for St. Meyer & Hubbard, Inc. What Jack brings to the table is hard to commit to words on paper. I gave up on taking notes and just started tagging websites, books, blogs and other bits of info he shares. Note to Year One students - bring a laptop with you to class next year! You'll be light-years ahead when you go back to the real world.

Community A just completed the shareholders presentations and we're about to cut loose and prepare for dinner. It's been a fast an furious week. Congratulations to Jack Hubbard on his 25th anniversary of teaching at ABA SOBMM, and also to Candy - who told us she's been part of the school for 29 years!

Cheers to the Class of 2010 and good luck to those who will follow behind.

Banker bowling on a Sunday night in Dallas. Smart money is on Lori Gazzillo!

Anxious Moments

We are moments away from the final results in BankExec! Whatever the outcome, I'm so proud of the Double A Bank management team. We're a mix of personality styles on the Disc assessment, and developed good procedures for making decisions. Tick tock, tick tock.....

What are the leadership challenges for bank marketers?

We're currently in the "Effective Marketing Leadership" class taught by Sara Watkins. She shared with us some findings from Forrester Research showing three top marketing challenges:

1. Follows lead of other departments (more reactive than proactive)
2. Lacks authority
3. Disconnected from peers

Other challenges identified by some of us include:

• Executive management overriding marketing decisions
• Department heads not in agreement with marketing plan
• Matrix overload: Multiple regional presidents with different marketing requests
• Lack of understanding for what marketing can achieve
• Marketing not viewed as an investment
• Lack of communication to perform work (sales disconnected)
• Marketing disconnected because role is specialized

Some ways to establish better expectations and accountability:

1. Establish contract and expectations with CEO

2. Build a dashboard for tracking marketing ROI

3. Join ALCO (Asset/Liability Committee)

"Our tests proved that budget was sustained and increased by adding transparency and accurate metrics." Financial Services CMO: Forrester Research.

These ideas play well off of yesterday's speaker, Jeff Marsico, who also posted this today on his blog: http://jeff-for-banks.blogspot.com/2010/05/open-letter-to-bank-marketers.html

Great information and food for thought, Sara and Jeff! - mz

Double A Bank is no longer under letter from the FDIC

So, Q2 wasn't so great for our bank (Double A Bank). We saw our ROA at 1.10 and ROE at 18.07, which wasn't bad but our Fed Funds Purchased was 165% above our total capital...not a good thing apparently.

After a visit from the FDIC and an action plan to fix this issue and adjust our spread up from 3.65, we saw the following improvements:

• ROA went from 1.10 to 2.03
• ROE went from 18.07 to 31.86
• Spread went from 3.65 to 5.13
• Fed funds purchased went from 165% to 38%

Our decisions were very easy last quarter because we knew we had a spread and a funding issue. This quarter's decisions were just turned in and I can honestly say we didn't have as much focus on where to place our emphasis because there wasn't an obvious issue in need of attention. Hope we didn't play things too safe. We'll know in a couple hours...until then... - mz

Finders, Minders and Grinders?!?

Fun at PF Chang's

Day 4 and the time has flown by much faster than last year. Must be because we're being challenged to stretch our minds in BankExec. Made it through the first round of decisions without a visit from the regulators - whew! Tried to give Bill a compliment yesterday and it backfired on me. So - for the record Bill, you don't LOOK like my deceased Uncle Joe. You just SOUND like him and it's all good!

Penny stayed in and read last nite. Hope she doesn't kick my butt!

Great Time!

Having a great time! So great in fact have not had time to post. Interesting days in class and fun times at night. Just enough time to sleep and do it all over again. Thursday night Marquis event was amazing, margaritas and mexican food stations, yum! The stuffed avocados were delicious. Got our in between class assignment information yesterday, a little overwhelming to say the least, but the main reason I came to the school was to write a Marketing Plan for my company so glad to have the guidelines and information to finally do that. Got to rush when I get back to make the June 4 deadline for the first assignments. Time for breakfast!!

Good Times!

Who ever said bankers were stuffy never met the ABA Class of 2010! I have plenty of proof (understatement of the year) that at least bank marketers know how to have a good time. Whether discussing Asset Liability, decisioning their bank sim strategy or hanging out by the pool engaging in deep discussions on upcoming Federal Regulations (seriously, we have) - we always know how to bring on the fun. Partly due to the witty comments of Zmarzly and the crazy BankExec instructors, Sandy and Candy, class has been quite fun. We've managed to pack our brains full of fabulous information we hope to apply when we get back to the office (if they don't turn to mush in the meantime) and solidify relationships that will withstand the many miles between us. This is truly a special class (in more ways than one). I'm lucky to be a part of it!

Sixth Floor Museum

A few pictures

Here are some pictures from this week's evening activities. - mark

First Decision

What a great day! So much information in such little time. I needed about 4 more hours to go to a quiet corner and digest the reports and numbers. Just to talk to myself and say...ok so we need equity right? As a group we really tried to rush the process and often challenged our instructors to the point of frustration (as only marketeers can do). What a surprise!

I rest tonight in hopes all our banks are still operating tomorrow! Looking forward to our 2nd quarter - I think?

All for now,

Penny

First Decision

Wow! I made a sign that says "Do Not Panic" and I may post it to my forehead for the balance of the class...... Two hours seems like a long time at the beginning of the process and not enough time at the end.

Thank goodness we have a fabulous team. I am already saying my prayers.....

Year One Pics

Studying Hard

I thought I graduated from college so I would no longer have to study! Ha! Seriously, though, I'm in early for the evening, reviewing the BankExec Manual in preparation for Day Two. Tomorrow, we begin our bank simulation with a vengeance - and my team has graciously (or perhaps, foolishly) elected me CEO. Hoping to not disappoint. Today, we had a nice introduction to Asset & Liability Management with Mr. Phill Rowley. He brought great clarification to rather daunting subject matter. He actually put a lot of intense information into greater perspective for me - it was a nice surprise.

Looking forward to tomorrow, and the opportunity to put some of that information into play. Until then,

Take a Deep Breath

Good evening,

I just remembered what we were told first thing this morning by Candy (or Sandi?) - take a deep breath and let it all out. I added a nice stretch in between the breathing exercise because, well...just because.

DON'T PANIC

Now again, breathe in and let it out.

Asset liability is not rocket science, so let's go for it tomorrow and use our time wisely, work as great teams, and make our first decision.

All for now,

Penny

Asset Liability

I agree with prior posts, great instructor, but all the little numbers and columns are not my cup of tea.

Not much of a number-cruncher, (not that there's anything wrong with it) but I'm creative, that's why I'm in marketing! :)

Tomorrow should be... interesting & fun

It is what it is...

Phill Rowley did a great job of presenting ALCO information to this rowdy group of bank marketers. He kept things moving at a decent pace - quick enough to keep our attention, deep enough for us to ask relevant questions and short enough to keep our eyes from totally glazing over. Video clip was taken at the final break of the day, after about FOUR hours related to numbers and formulas. No rest for the weary and no time budgeted for the creative conversations we all enjoy. Being out of your comfort zone is good, right?!?

5 hours of asset/liability management

I'm in hour four of a five-hour class on asset/liability management taught by Phill Rowley of Treasury Management services, Inc. While I wasn't looking forward to this class before today, it's pretty fascinating. The decisions behind bank profitability are pretty complex and it's an especially interesting topic in today's rate environment. It will be neat to see how every group takes the theory provided and makes decisions during this week's banking simulation.

I'll do some trash talking posts if my group (A-2) is doing well. If we're not making positive decisions, my posts will probably be about the food and humidity. - mark

Peer average Return on Assets .54
Peer average Return on Equity 5.05
This according to pre-session assignments turned in to Phill Rowley

Student Representative to the Board

Mimi van Nortwick talks to the Year 2 class.

Let the fun begin!

Touchdown Dallas!

Wow! We're finally here and registration begins in just a few minutes. I caught the shuttle with 3 other fabulous bank marketers, two of whom are Year One students. We drove through the SMU campus en route to the hotel (love this place!) and it really brought back some great memories!

Kudos to our class officers, all Year Two students. They have done a great job on the evening activities, shirts, education about the Randy Lusk Scholarship Fund and overall communication! Year One students be prepared - you'll be electing officers to do the same thing next year, and your officers will have some very big shoes to fill!

I see that I've already broken my own rule about excessive use of exclamation points. Oh well, I guess that just means I'm excited to be here. I look forward to reconnections and new friendships - and it all begins in just a few minutes.

Hold onto your hats, Dallas. The bank marketers have arrived!

Here's our blog's word cloud thus far

I've always found www.wordle.net an interesting site for marketers. If you don't know what wordle.net is, it's a site that allows you to upload text or link to a website to create a word cloud. The cloud emphasizes which words are more prevalent in your text by making them larger.

Here's a word cloud for this blog's first 10 posts:

Try using wordle.net with your next bit of marketing text. You'll see if you're emphasizing the bank ("us") or the customer. It can also show if you're touting features vs. benefits, costs vs. free items, etc.

I first heard about wordle.net from one of my fellow SBMM classmates.

Final testimonials before 2010 SBMM starts

What another current attendee says about the SBMM:

Mark Zmarzly, 2010 SBMM Class VP of Communications. Vice President for Haberfeld Associates in NE.

“Two hours after I checked into the hotel, I received a call from my pregnant wife letting me know that after I left our house at 5 am to fly to Dallas, our dog had thrown up five times, a soda had exploded in the fridge, and that our 2-year-old daughter was sick. I could hear crying…which may have been my dog, daughter, wife, or all three. Welcome to the SBMM, Mark!

I was already sick about leaving my family for eight days for the SBMM and this phone call didn’t help. After apologizing to my wife and ineffectively trying to “solve the problems” (after 7 years of marriage you’d think I would know to just listen by now), I showered and got ready for the SBMM opening reception. I went downstairs knowing nobody and somewhat hesitant to be one of the few vendors attending. I figured “what the hell” and threw myself into the very first conversation I found…it turned out to be an elderly group on their way to a quilting exhibit and not part of the SBMM but they were pleasant enough about it.

Attempt two succeeded as I found the SBMM reception hall, a conversation about marketing, and a free cocktail. What followed was a great opening reception, dinner out afterward with two Year 2 attendees who essentially adopted me (thank you so much Jennifer Harris and Bryan Bear!), and an amazing week of learning, laughing, and friendship.

I encourage all those on the fence about attending to just jump in and persuade the powers that be to pony up because the ROI is immeasurable on both a professional and personal level. I also encourage all Year 1 attendees to not be bashful about meeting others and for my fellow Year 2 attendees to do the same. One of the most valuable things I did was to make sure I met anyone who would talk to me. Even if an initial conversation started out awkward, we soon found common ground, and, besides, it was better than being back in Lincoln cleaning up dog vomit.”

What another previous attendee says about the SBMM:

Jennifer Harris, Marketing Officer for Lawrenceburg National Bank in KY.

“I had some serious reservations coming into my first year of SBMM; it was my first time away from my two year old daughter and the first time I had traveled alone… was I crazy? WHY was I doing this to myself?? After my first morning in class I realized I had made the right choice. Although it was early in the morning, and my hand was cramping from all the notes I was writing – it was so wonderful to meet people who knew the challenges of being a bank marketer! That week went by so quickly and when I got back home, I was stuffed to the gills with new ideas and refreshed creativity.

Fast forward to year two and I can’t wait to get to the hotel, catch up with friends and eat some great Texan food. Wonder what this week would bring? The previous year’s second year class had scared us by coming back from their bank simulations looking like they’d been beaten and tortured. So I have to say I was a little worried about that portion of the curriculum. Turns out that the class before me was apparently pretty uptight (or at least the ones I came across… they were somewhat elusive too). The bank simulations were a great learning experience and not really that painful! Sure, our group had some rough spots to work through, but I didn’t lose sleep over it. However, I did come away with a new respect for the pressure upper bank management is under.

Here I sit, almost a year after graduation, wishing that the SBMM was a three year program, because I sure could use a burst of creativity right about now! What a whopper of a year in banking, huh!?

I will never forget my time on the SMU campus – sure, I learned a lot about banking, but I learned more about myself. SBMM gave me the extra boost of confidence I needed to step out and make a difference. Whether it’s being on the organizing committee for a community event, providing leadership for an internal promotion, or being elected to my local Chamber of Commerce Board – what I learned at SBMM has acted as a catalyst.”

My tips for surviving SBMM:

1. Start warming up your writing hand… notes can really take a toll if you aren’t used to writing extensively.

2. DO NOT, under any circumstances, allow your supervisor to pick out your flight schedule

3. Take good notes

4. Pack comfortable clothing and shoes

5. Do not skip the hotel breakfast!

Light Years Ahead

As bank marketers, we are always looking for ways to be different. As marketers, we can't help but be naturally different. I'm guessing most of us were told as children we were "special". My ABA SBMM year one was one of the most rewarding experiences of my professional career. It is a school for the "gifted" and "special" professionals. You can look forward to a network of peers you will likely have for a very long time.

Be prepared to jump light years ahead of your competition armed with ideas and valuable insight. Be a sponge and absorb all you possibly can. My class of 2010 is a spirited group of great friends and colleagues. Although I try very hard to "be anxious for nothing" - I can't wait for Dallas!

The Flip Video is already packed!

Welcome Year One "special" students - we look forward to meeting you!

Penny Gray
VP-Marketing Director
First Security Bank & Trust
Charles City, IA

Another testimonial

What another previous attendee says about the SBMM:

Jason Kincy, VP/Marketing Manager, Alternative Delivery, for Arvest Bank in AR.

“Attending the SBMM in Boulder was an important professional development step for me as I continued to expand my knowledge base and skill set - allowing me to become a greater asset to my bank. I had worked in bank marketing for a short time and although I had learned the basics and was functional in my position, I did not fully understand how to apply proper process and strategic thinking into my role with the bank. Here I was, two years out of college with little banking experience, and yet I was in charge of our bank's brand image, marketing planning and most importantly our budget! I knew, and my bank knew, that to be the best performer I could be for them - I needed SBMM.

The experience I had from my first years as a bank marketer taught me a lot about the tasks that had to be done, those little checklist items that we all have to do, but I was missing the big picture of how to apply my formal education to banking. College had prepared me with general marketing knowledge and theory, but it was the SBMM that helped me make the connections on how to leverage this information to take our bank marketing to the next level - and gave me the confidence to take action and to make a difference for our institution.”

Welcome Year One Students - guest post from one of your own

What a first year attendee says about her pending arrival at the SBMM:

Kim Childers, Year One Student, Marketing Coordinator for Mutual Savings Bank in Franklin, IN.

“I had to contain my excitement when my boss approached me about attending the school. I had seen information for the school over the years and thought it would be a great opportunity, though I never approached my boss to attend. I think this is an amazing opportunity to learn about Marketing. Although I have been at the bank for 11 years I am new to the marketing field and I want to learn what I can about the field to take my position to the next level. It is a bonus that the school is in Dallas I have always wanted to visit Texas so this will be a great way to do that. With the activities planned I will be able to explore the city in addition to the learning opportunity. While I am excited, I am also nervous, wondering what it will be like, what the people will be like, trying to find my way around. I look forward to meeting everyone, learning and having some fun along the way!”

Guest Post from SBMM Faculty Member

Special Guest Post from SBMM Faculty Member Jeff Marsico:

Jeff Marsico is an EVP with The Kafafian Group and teaches a SBMM class on Customer and Product Profitability. I’ve asked his permission to repost something from his personal blog (www.jeff-for-banks.blogspot.com) because it’s in line with the kind of discussions and dialog you will be challenged with at the school. If you have comments for Jeff in response, you can post them here and we’ll make sure they get to him. Thanks.

Original Post on www.jeff-for-banks.blogspot.com

Saturday, April 17, 2010

You call yourself a brand manager?

The Pennsylvania Turnpike’s Valley Forge rest stop is a common waypoint for me on my travels. This week, I stopped and bought a 12oz cup of coffee from the Starbucks kiosk… cost: $1.69. Curious, I moved 10 feet to my right and asked the helpful Burger King clerk the price of a 12oz cup of coffee… $1.15. I paid 32% more so my cup would say Starbucks on it. I must be a victim of a saturation ad campaign. Oh wait, I can’t recall ever seeing a Starbucks ad.

We make premium pricing decisions every day (see chart). For reasons that may be different by customer, we place a monetary value on a good or service that is greater than a similar replacement good or service. We do so even when it is difficult to justify paying the higher price, such as my coffee example. Sure, we rationalize by saying it tastes better, or some other reason. This reminds me when my daughter performed a soda taste test at the local swimming pool, pitting Coke, Pepsi, RC, and a generic brand against each other. The winner: generic brand. Without the labels, top-selling brands are difficult to pick out.

So why can’t we achieve premium pricing in community banking? Why do our lenders price aggressively to “get the deal done” or branch managers rely on rate promotions to grow deposits? A response I often receive is that money is a commodity, and one bank’s greenbacks are the same as another’s. But isn’t a cup of coffee also a commodity? And what about “superior customer service” or “access to decision makers” I keep hearing about in community bank strategy sessions?

I believe that a critical component missing in community banking is a brand. Resist it if you must, but people pay more for a Marriott Hotel room because it’s Marriott and more for a Mercedes because it’s Mercedes. Those brands stand for something that people are willing to pay for. What does your brand stand for?

I am on the faculty on the ABA School of Bank Marketing Management (aside: I am tardy submitting my lesson plan). These students are tough when it comes to instructor critiques. So before I receive my traditionally poor performance reviews and be perceived as having sour grapes, let me be tough on them. Marketing in community banks has not been successful in positioning the function with a strategic focus, pays far too much time dabbling in retail, and has not descended from 10,000 feet to the ground level in building the bank brand. Although I’m sure there are some, I cannot think of one community bank where customers feel they have to bank there regardless of price variations, like they do when they talk about going to Starbucks.

Not to lay all of this at the feet of marketing. Many, if not most, community banks are run by former lenders. The commercial lending function does not often call on marketing for assistance. They think marketing runs the ad budget. And as one CEO told me, “we don’t get business customers from running a billboard campaign.”

Fair enough. But can you get customers to pay more for your money than the competitors? Are you positioned as a trusted advisor? Are your lenders knowledgeable enough to advise? Do business customers rave about you to their contemporaries? Are you the “go-to” bank for education on small business balance sheet management?

My ABASBMM students are pretty bright, and they talk a good strategic marketing game. But what’s the point if they go back to their banks and run the next spring home equity campaign? I get frustrated when my company performs a costing study at a bank focused on commercial customers and the marketing department expends 80% of their time in retail banking endeavors, or is subordinate to the head of retail (both true stories). If your marketing department fits a similar mold and is not aligned with your bank’s strategy, or your bank does not have a strategy, it’s time for a change. Force the issue! Don’t wait for the former commercial lending CEO to take the initiative. The success of your brand, your bank, and your future depends on it.

- Jeff