According to American Banker, Berkshire Hills Bancorp of Pittsfield, MA is billing itself as “American’s most exciting bank.” The article says that:
“The slogan is the centerpiece of a multimedia marketing campaign Berkshire launched early last year to win over potential customers and energize its work force. The bank put big red buttons on desks throughout its branches that play a few bars of the Pointer Sisters song when pressed. Bumper stickers and cheerful phone greetings reinforce the theme. Individual branches, which are free to plan special events, have had Halloween parties and cookouts, and branch employees helped create their own incentive program.”
My take: America’s most exciting bank? The bar is set pretty low on that criteria, no?
But seriously, Berkshire Hills’ approach begs the question of whether or not trying to be the “most exciting bank” is a sound strategy.
There’s certainly a strong argument that both consumers and employees want a differentiating experience — especially one that’s based on something other than the tired old “best customer service” or “most convenient” claims that many banks have made for ages. Claims without much merit, by the way.
But there’s also a strong argument for why the “most exciting” strategy might be doomed. In his 1999 book The Experience Economy, B. Joseph Pine discussed the opportunity for firms to differentiate themselves based on the customer experience. Pine discussed the strategy of the Rainforest Cafe restaurants which offered decent food (I guess) but with a truly unique dining experience.
The problem that Pine foresaw Rainforest Cafe having to face was figuring out Act Two. After a critical mass of customers had tried Rainforest once or twice, Pine believed the uniqueness would wear off. In other words, after the thrill is gone, what’s next?
When the Rainforest Cafe opened up in the Boston area, it wasn’t uncommon to find 3 hour waits. Today, it’s more like 3 minutes.
What does this mean for Berkshire Hills? It means that the bank is going to have to continually come up with new approaches and tactics to maintain their excitingness. Put differently, the bank is going to have to develop a strategic competency in being — and measuring — exciting. And it’s not like it has many successful or even unsuccessful acts to follow and copy from.
There’s no doubt in my mind that Berkshire Hills’ approach will resonate with a segment of customers — initially. But what happens if the bank focuses too much on being exciting, and not enough on (yes, Colin) innovating and improving core service, transaction, and channel delivery capabilities?
Time will tell if it’s a successful strategy. But for today, kudos to Berkshire Hills for being America’s most exciting bank. I can’t even begin to imagine who’s in second place.
Technorati Tags: Banking, Marketing, American Banker, Berkshire Hills Bancorp, B. Joseph Pine, Experience Economy
The Berkshires are a hop and skip down the I-90 the Pike for me, and we actually have Berkshire Bank branches in the Pioneer Valley now.
Let me give you a couple of insights from the other side of the state. We are about 2/3 of the way over to the Berkshires from your vantage point out by the Atlantic.
Our view is probably similar to yours: the Berkshires are good for visiting: Tanglewood, MassMoCA, Norman Rockwell museum, and lots of great restaurants and B&Bs.
Banking-wise, the Berkshires have their own local currency, called BerkShares. The region also has a mega-CU, Greylock FCU, and a super-regional bank, Berkshire Bank, which has recently begun buying regional banks here in the Pioneer Valley. I know nothing about Berkshire Bank, except for the billboard advertising showing professionally dressed models doing cartwheels, and the tag line “I’m so eXcited.” Despite the fact that they have been in our region for a few years now, not once have these bendy-posed billboard models tempted me to set foot in a branch.
I’m not sure how they promote themselves in the Berkshires, but if I were them, I’d be promoting the bank’s involvement in the local economy through BerkShares, what that does to strengthen local businesses, keep jobs in the area, and help the community. I’d then take it one-step further and feature various area businesses, and let them tell their stories. We would learn why their business customers are committed to the region, the impact that these businesses have on the Berkshires, how Berkshares have helped the businesses, and how the bank has helped the businesses. The upward virtuous cycle of the bank helping local businesses helping strengthen the local economy and community is where the true excitement lies.
Ron, I think you have a great point. The experience economy concept has some good points, but one the problems is that focusing in give unique experiences, the company needs to keep reinventing themselves very rapidly.
I also suppose that the current slowdown of the economy is taking the middle class away from these experience offerings.
1. “Most exciting bank” = “speediest garden slug”
2. Were I to hear of a store/branch that spontaneously played the Pointer Sisters (”I’m So Excited”, no doubt) I would treat it like an Ebola hot zone.
Talk about a contradiction in terms! In any event, I agree with the premise. Being the ‘most exciting” sounds like a marketing campaign aimed at a segment perhaps, and hardly anything substantive.
I want my financial institution to meet my financial needs with courtesy, respect, and expertise. If you want to try to excite me, offer me better rates, better service, or a new way to increase my deposit account balances. That probably still won’t make me giddy, but it will have a better chance than you giving me a button to play “I’m so excited, and I just can’t hide it. I’m about to lose control and I think I like it!”