5 Reasons Some Branches Can’t Succeed
by Joe Swatek
Even community banks and credit unions find they have branches that don’t open the expected number of new accounts. The numbers of customers/members who use the branch fall below expectations. Staff and resources are underutilized.
Bigger financial institutions almost certainly have branches like those described.
At ACTON Marketing, we’re often asked to solve the problem and bring branch production up to respectable levels. Because of projects like those, I can give you a few, sometimes-overlooked ideas why some of your branches might be unsuccessful.
Here’s a brief list.
1. You’re not competitive in that market. Competition varies from one branch to another. What other financial institutions are near your underperforming branches? What do they offer prospects? Are they out-advertising you? Making better eye-catching offers?
2. The location is bad. Has the marketing footprint for the branch changed since it opened? Has the area shifted away from residential? Have people moved from the area or have residents in the market suffered financial setbacks?
You can conduct studies to learn answers to questions like these. Mapping programs pinpoint areas where current customers live and show if you’re marketing to the right neighborhoods. You can also map competitors and see if the area is over-served.
You can run targeted promotions, but unfortunately, there are times when the location simply isn’t viable.
3. Staff performance causes problems. From experience and mystery shopping, we’ve found many instances where staff members in underperforming offices are the problem. They make it difficult for people to open accounts by putting up unnecessary barriers. Service may be below par.
This isn’t a marketing problem. It’s usually a training problem.