Public Relations' Role in Banking By Rick Keating

Banking used to be simpler. People

maintained accounts and loans at

one of a handful of local banks close

to their home. Marketing and public rela­

tions were not necessities because competi­

tion wasn't as fierce.

Banks could count on

a loyal following,

based in part on the

personal interaction

bank employees had

with their customers.

This is not the Rick Keating . case anymore. Be-

tween ATMs and online banking, many

customers no longer need human interac­

tion for their day-to-day banking transac­

tions. As a result, many banks have lost the

opportunity to provide a personal touch.

This, combined with domination in some

markets by a few, large banking institutions

and the ongoing need to introduce new

products and services, means that banks

must take greater measures to stand out to

their existing and target customers, no mat­

ter the size.

To achieve this, banks are investing in

marketing and public relations to promote

their offerings and corporate brand. These

investments, according to the American

Bankers Association, are increasing every

year. In 2001, banks spent 3.8 billion on

marketing; in 2002, they spent 8.6 billion;

and in 2003, they spent $9 billion.

Marketing is a necessity to remain com­

petitive. The question is no longer, "Should

we invest in marketing and public rela­

tions?" but rather, "How can we best spend

our marketing and public relations dollars

to achieve our goals and create maximum

impact in the marketplace?"

THE ROLE OF PUBLIC RELATIONS IN YOUR BRAND-BUILDING

Public relations builds confidence, com­

municates differentia tors and clearly states

the key messages. Your bank's messages

should always be consistent and convincing.

There is no better vehicle to define your brand, raise your visibility and, ultimately,

increase your customer base, than public

relations. Public relations allows your com­

pany to deliver its carefully crafted messages

to target audiences in a credible manner.

II New Jersey Banker

One of the key objectives of any PR

campaign will likely be to differentiate the

client's brand from the competition. When

it comes to banks, the average customer

may find it difficult to tell the difference be­

tween all the banks on the block. According

to the New Jersey Department of Banking

and Insurance, there have been 60 bank

mergers over the last five years. This trans­

lates to a great deal of confusion and frus­

tration among customers, who often com­

plain that they no longer know what their

bank is.

Before undertaking a PR initiative, it is

essential to determine what separates you

from the competition. If you are unable to

answer why a customer should choose your

bank over another, then you cannot expect

a customer to be able to make that differen­

tiation either. A public relations firm can

work with you to define and highlight your

differentia tors, if this hasn't already been

determined.

THE 360 DEGREE APPROACH It's essential to incorporate a 360 degree

strategy when embarking on a PR initiative.

This means not relying on one or two tac­

tics to achieve your PR goals; rather, imple­

menting a wide variety of tactics to cast as wide a net as possible. While media rela­

tions is often the most common vehicle to

deliver messages to your target audiences,

other tactics, such as byline articles, op-eds

and speaking engagements, are necessary to

complement media placements.

Also, do not forget internal communica­

tions. Internal communications is often rel­

egated to an afterthought, but it is a crucial

component of your outreach. Your employ­

ees are often your best salespeople.

WORKING WITH A PR FIRM One of the most often-heard comments

about public relations is, "How do I meas­

ure the short- and long-term success?" My

firm measures success by three criteria:

knowledge, counsel and results.

Knowledge - Understanding the client,

the industry, the competition, the client's

business objectives, differentiators and chal­

lenges is the basis for establishing a

thoughtful and comprehensive PR cam­

paign. True client know,ledge builds an in-

telligence foundation and sets the tone for

strategy and implementation throughout

the engagement. When evaluating your PR firm's knowl­

edge, consider the following:

1. Do they know: Your business and

communications objectives? Your key mes­

sages? The competitive landscape? The

market?

2. Have they analyzed your current com­

munications program regarding strength,

weaknesses and opportunities?

3. Have they interviewed or held brief­

ings with senior management and key intel­

ligence sources, such as, salespeople, advi­

sors, investors, board members, etc.?'

4. Have they established a scope of

work?

5. Does the firm invest in knowledge

databases, such as Lexis exis, to help them

monitor the competition?

6. Are they positioning you and your

bank in the most appropriate outlets?

7. Do they know the media? This is

proven through the intelligence and oppor­

tunities initiated, as well as the results

shown for other clients.

Counsel - Counsel can come in the

form of good or bad advice - many times

costing the client the same in fees. The firm

should clearly guide you on realistic media

expectations, as well as what to expect on

the road to penetrating the media. Follow­

ing are items to consider when measuring

your firm's counseling:

1. Do you have a good feeling about the

project leader and key firm staff engaged on

the assignment? 2. Is the advice given based on knowl­

edge and supported by facts?

3. Is the firm "counseling" or "process­

ing"? Your answer will tell you if you have

hired an order-taker or advisor. Do yo u get.

sophisticated input or do they"just do it"?

4. Are they positioning the pitch with

relevance, or making your news relevant in

a broader context, asking: "Why this story,

why now?"

5. Is the firm providing proactive media

opportunities with counsel as to what the

opportunity is, what possibility might come

from it, and make suggestions on what you

should say? When appropriate, does the

firm provide additional intelligence to pro-

Spring 2005

voke you and add substance to your inter­view?

Results - Results without focus on ob­jectives can be time consuming, brand di­luting and ineffective. A key result of a well­orchestrated PR program is one that has a positive impact on brand and corporate reputation and, ultimately, sales.

A debated tool for measurement is one that is counter to achieving the client's goals: analyzing what a media buy would cost to purchase the same size space as the PR placement. Traditionally, firms calculate the media cost, add an editorial value mul­tiple of between 5 times and 10 times, and determine a "value."

This type of measurement is insufficient because it encourages firms to spend more time at driving coverage in all media - rele­vant and non-relevant - to get a high multi­ple rather than focusing its energy on pene­trating the key influencing media to

, accomplish the program objectives. For in­stance, The Wall Street Journal may not be the best outlet for achieving certain prede­termined objectives. Rather, it is essential to reach the media that your consumers are reading. Often, consistent hits in targeted outlets are more valuable than a one-time-

Spring 2005

only hit in a broad top-tier outlet.

HOW TO MEASURE RESULTS Following are' some questions to help

you ascertain the success of your public re­lations program:

1. Is your brand better positioned in your industry, including greater analyst, in­vestor, media and public awareness?

2. Are you receiving placement in appro­priate publications?

3. Do you have key messages and tactics that continuously support the key mes­sages?

4. Are the outreach materials and press releases well written and supportive of the brand and its positioning?

5. Keeping in mind that you may not yet have news that warrants coverage in The Wall Street Journal, are you receiving cover­age in high-impact media?

6. Have strategic media relationships been cultivated on your behalf so that when newsworthy activity arises, you are well po­sitioned with key targets?

7. Are sales figures on the rise? Are you achieving other key business objectives?

8. Have you changed attitudes or per­ceptions about your business? This can be

measured informally, through internal perception, or more formally through focus groups.

Standards for success must be estab­lished up front to ensure a successful re­lationship with your PR firm. Too often, firms and clients are not clear on what their expected outcomes and deliver­abIes are, setting the way for a program that will not meet its full potential.

Public relations is an essential tool within your overall marketing program to increase visibility, maintain awareness and drive relevance of the brand to tar­get and existing customers. Every day is an opportunity to reach out to your cus­tomers and reinforce the brand - are you prepared to meet the opportunity?

Rick Keating is president and chief exec­

utive officer of Keating & Co., a strategic

communications firm. As its second-gen­

eration leader, he has been with the firm

his entire professional career. Keating

also serves as chief executive officer of

KeatingCicatielio, a public affairs firm

he launched in 2004 with Tony Ci­

catielio. He can be reached via email at

rkeating@keatingco.com.

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New Jersey Banker II