Three Things to Focus on After a Competitor Acquisition or Branch Closing

NOTE: This article first appeared in the March 2020 issue of BankNotes, a publication of the Community Bankers Association of Illinois.

Acquisitions and branch closings are a unique catalyst for customers to consider switching banks. When these events happen in your market, your bank has a unique opportunity to take advantage of this customer mobility.

In our work with community banks in this time of rapid consolidation, we’ve run several successful campaigns to capture customer attention and put a bank’s brand front and center as customers explore their market for a new financial institution.

Often, banks will send direct mail postcards, local newspaper ads, letters from the president, or step up their outdoor advertising (billboards, bank signage, etc.). While these tactics can attract attention, they can take time to put together. And, they miss the mark on a common goal of many community banks: attracting younger clientele. To do this, you need to move faster, and think digital.

One of our clients, a bank in central Missouri, was recently faced with what to do after their closest competitor’s acquisition. We put together a 3-month plan to make them more visible on Google and the internet in general, and tied our advertising to the brand values they wanted to promote the most. A Google search ad drove 37 phone calls in the first two weeks. The bank had an all-time record number of account openings (42% higher than their previous record!) in just the second month of the campaign. By the end of the campaign, their loan applications were on the rise, reversing their typical trends for that season.

It can take several months to entice customers to switch, even in the face of an acquisition, but keep at it and the results will come. A lot can come to mind when this situation faces you, but we suggest keeping your focus on three main areas:

1. New Messaging

Now is the time to create a fresh message to remind your community that you’re not going anywhere. Consider your bank’s history, anything unique – oldest charter, the only remaining bank headquartered in your town or county, local staff, and so on. Then, think about the typical customer you’re trying to reach – are they younger, older, what are their financial goals or challenges?

Try to find a phrase or slogan that speaks to them – without being too generic. “We’re with you”, “Here to Stay”, “Here for the last 108 years, planning for the next” are all good ways to remind your customer base that you’re sticking around. Couple this with images or other text that speaks to the customer’s goals or challenges.

2. Google Ads

When customers first find out their bank is closing or being acquired, many immediately turn to Google Search. Make sure your bank is well represented there. Do you show up first, or close to it when you do a search? Search for things like “banks near me”, “best checking accounts”, “how to get a loan”, even your bank’s name - and see how you rank for each term. 

It can take months to affect your rankings with search engine optimization – months you don’t have when there’s market movement – so we suggest Google Ads, which will put you at the top of the rankings immediately.

Most banks in smaller areas can have an ad on the majority of searches in their town for around $500/month. This may be higher if you are near a bigger metro area, but you can always cap your budget. It’s important to let the ads run for 2-3 months to capture attention, and people that search multiple times over the course of a few weeks while they’re making their decisions.

3. Digital Banner Ads

Finally, digital banner ads are a cheap way to get a large amount of brand visibility across the internet. Unlike Google Ads, which you target based on the things people are searching for and pay per click, banner ads are purchased by the impression (a single viewing of your ad) and targeted based on demographics, geography, and interests. This means you can run your ads in a close radius to your branch(es), while also specifying precisely whom you want to reach. The ads will be shown multiple times to each person too, meaning they’ll build up brand recognition over time.

When that person becomes ready to make the switch, they may feel they know your bank already and come directly there, or turn to Google Search – where you’ll also have a strong presence!

Digital banner ads can be run in your Google Ads account – called Display ads or Intent-based ads. Or, if you have a marketing agency or partner, they can often run them in 3rd party platforms that allow for more customization (and often cheaper rates).

These three recommendations alone will be enough to boost your visibility and new customer inquiries. Adding traditional advertising to the mix is a powerful way to make your brand as visible as possible to those customers looking to make a switch.