Marketing efforts pay off for firms

In fact, four firms saw their ratings in the consumer advertising category rise by a half a point or more in this year’s Report Card on Banks and Credit Unions, resulting in an overall performance average of 8.1, up from 7.4 last year.

And although two firms (Montreal-based National Bank of Canada and Toronto-based Royal Bank of Canada [RBC)] saw their ratings decrease by half a point or more in the marketing support category, the overall average performance rating also increased significantly vs 2011, to 7.5 from 7.0.

Advisors with the three highest-rated banks in the consumer advertising category lauded their firms for their strong, cohesive branding strategies.

Toronto-based TD Canada Trust, which received the top rating of 9.5, was praised for having advertisements in the media that clients both like and remember.

“I like the grumpy old men,” says a TD advisor in British Columbia. “Those commercials always make me laugh.”

“We already have a very strong brand that resonates with clients,” says Sandy Cimoroni, president, TD Mutual Funds, with TD. “We work very hard to deliver a very consistent and comfortable message.”

Toronto-based Bank of Nova Scotia had the second-highest rating in the category, at 8.9, as Scotiabank advisors were more than pleased with the bank’s “Richness is” campaign.

“The ‘Richness is’ campaign hits home,” says a Scotiabank advisor in Ontario. “It’s not focused on a product; it’s about the person’s [life experiences.]”

That sentiment was echoed by James McPhedran, Scotiabank’s senior vice president, customer experience and distribution strategy: “The value that you bring in serving customers on a human-to-human level – that’s a huge focus for us. If you look at our brand advertising, it is human; it is people. You define richness. It isn’t up to us to define what richness is.”

Meanwhile, the “Arbie” mascot had RBC advisors raving about the accessibility of that bank’s brand. “Arbie is really a fun way to express the brand,” says Michael Walker, RBC’s vice president and head of branch investments. “We’re approachable and kind of poking a little bit of fun at ourselves.”

As for the sole credit union in the survey, Edmonton-based Servus Credit Union Ltd., it held an advertising campaign in the past year that focused on the expertise of its financial advisors. That, and the addition of a consultant dedicated to marketing, are two key reasons for the firm’s significant improvement in the category, says Randy Biberdorf, vice president of wealth management. Servus’s advisors gave their firm a 7.5 rating in the consumer advertising category, up significantly from 6.0 in 2011.

Says Biberdorf: “We have somebody who is constantly looking at how we can improve the awareness of our advisors [among the public] and the fact that we have a [robust] wealth offering.”

But not all deposit-taking institutions earned high praise from their advisors – despite the fact they received improved ratings. Although Toronto-based Canadian Imperial Bank of Commerce’s (CIBC’s) consumer advertising rating increased to 8.0 from 7.5 in 2011, CIBC advisors still had their fair share of complaints, including their firm’s perceived lack of branding strategy.

Says a CIBC advisor in Ontario: “You associate other banks with certain things, but we don’t have much that is associated with us.”

That issue also could be related to the amount of advertising the bank actually delivers. In fact, other CIBC advisors were happy with the style of the advertisements but upset at the lack of visibility in mainstream media.

“When we advertise, it’s done very well,” says a CIBC advisor in Atlantic Canada. “But I’d like to see more of it.”

National Bank advisors don’t just want to see more advertising; they specifically want to see more of it outside Quebec. In fact, although the bank’s rating increased to 6.7 from 6.0 last year, it still sits at the bottom of the pack in this category in this year’s Report Card.

“It’s really a shame because National Bank is aggressively trying to be a nationwide firm,” says a National Bank advisor in Ontario. “But we can’t grow to that extent if we advertise only in Quebec.”

A strong branding strategy is critical for advisors and their firms’ advertising efforts. But when it comes to marketing support, variety and adaptability are key to advisors’ satisfaction.

For instance, TD advisors gave their firm the top rating of 8.6 in the marketing support category because they say they receive ample tailored support through brochures, customizable templates and personal websites.

In contrast, National Bank advisors say they have access to standard brochures, but there aren’t a lot of materials that could be customized.

As for RBC’s marketing support, Walker says, the bank offers advisors “their own portal role that gives them access to different support and marketing material.”

But RBC advisors were dissatisfied with the portal’s accessibility, as well as its ease of use.

© 2012 Investment Executive. All rights reserved.