Bank Merger Marketing Best Practices

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1 Bank Merger Marketing Best Practices PRESENTED BY BKM MARKETING

2 Bank Merger Marketing Best Practices Welcome to Best Practices Guide to Bank Merger Communications from BKM Marketing. This Guide provides readers with a high-level process overview for managing the myriad of communications issues that arise when two banks merge systems, cultures, and products. In this Guide you will learn more about the importance of a detailed communication plan that includes defining roles and responsibilities, timelines and contingencies as well as the foundational marketing elements for an effective and successful customer communication program. 2 Bank Merger Marketing Best Practices

3 Every merger presents its own unique set of communication challenges and experience matters. MERGER COMMUNICATION OBJECTIVES The greatest risk to any merger is the unanticipated loss of or unnecessary disruption and inconvenience to impacted customers. While technology integration and associated activities to move customers from one institution to another in a merger are extremely sensitive and important, studies show that there is a direct correlation between the increase in attrition rates of profitable customers and poorly handled merger communications by the acquiring institution. In order to protect your investment, there are three key new customer communication considerations that BKM Marketing believes must be met through the process: EDUCATIONAL Inform your new customers about what to expect EMOTIONAL Connect with your new customers to allay perceptions FINANCIAL Retain your new customers through a clear and simple process While conducting these programs for our clients since 2002, the most significant lesson that BKM has learned is that every merger presents its own unique set of communication challenges and experience matters. BKM MARKETING BEST PRACTICES ROADMAP FOR MERGER COMMUNICATIONS To meet your organization s merger communication objectives, BKM works along with our clients through a series of three stages: Strategy, Execution and Sustainability, which include nine distinct phases. Each stage directly relates to the Educational, Emotional and Financial guiding principles and is key to delivering a successful program. 3 Bank Merger Marketing Best Practices

4 STAGE 1: STRATEGY PHASE 1 STRATEGY AND PROGRAM DESIGN The Strategy and Program Design phase of the project establishes the objectives, roles and responsibilities, dependencies and timelines for the merger communication plan. BKM and Bank stakeholders discuss and document key initiatives in order to establish the operational and strategic framework that will guide each subsequent phase of the project. 4 Establish a core communication team with designated primary contacts by function 4Assess any situational factors data, products, brand, management, branch capabilities and competition 4Determine the scope of communications needs: who, what, where, when and why 4 Develop an effective communications platform and initial timeline 4Review the customer database for special exception requirements 4Create a detailed strategy with recommended communication channels and touches required 4Develop a targeted timeline depicting project phases, key milestones and contingencies Sample Timeline - 14 Week Conversion Strategy Stage/Activity Week Month Strategy and Program Design 1 Creative Development Data Consolidation 2 3 Execution Print Production Mailing Services 4 5 In-Branch Materials 6 Online Applications 7 Ad hoc Notifications 8 Customer Conversion Sustainability Onboarding Communications 9 Key: Project Phase Phase Duration Milestone/Deliverable 4 Bank Merger Marketing Best Practices

5 PHASE 2 CREATIVE DEVELOPMENT Driven by the Strategy and Program Design phase, the Creative Development phase of the project establishes the foundation for all creative activities for the project. This phase explores existing requirements, such as brand guidelines and production details, and outlines how creative execution will be deployed across all of the Bank s messaging channels in a consistent manner. 4Audit any existing creative assets 4Develop concepts and refine communication packages and components 4Create messaging that clearly sets expectations for the customer experience, including new product details and cross-sell opportunities 4Ensure consistency across all communication channels including in-branch and digital 4Establish all cross-channel communications with consistent messaging that clearly sets customer expectations about upcoming changes PHASE 3 DATA CONSOLIDATION Driven by the Strategy and Program Design phase, the Data Consolidation phase of the project outlines the data requirements for the project, including source data platforms, data availability and limitations and file development and transfer activities. 4Review test files from all systems of record 4Conduct field check and count verification 4Map product changes for customer s customized account summary 4Determine processes for new customer (gap) file processing 4Build consolidated files for all mailing communications and mismatch report 5 Bank Merger Marketing Best Practices

6 STAGE 2: EXECUTION PHASE 4 PRINT PRODUCTION Driven by both the Creative Development and Data Consolidation phases, the Print Production phase of the project is the first step in the execution stage. Using the mailing list size determined in the data consolidation phase, the components for all mailing touches are produced and delivered to the lettershop to prepare for the Mailing Services phase. 4Select appropriate printer for job size 4Provide print partner with program overview, including specifications of all components, and bank brand/color standards 4Review printer proofs 4Conduct press checks to ensure quality control and consistency 4Review and approve printer proofs by BKM and Bank s core communication team 4Deliver printed materials to the lettershop in advance of established mail dates PHASE 5 MAILING SERVICES The Mailing Services phase of the project is the last execution step prior to mailing customer communications. 4Select an appropriate lettershop based on the job size requirements 4Optimize mail stream 4Review live proofs for data and content accuracy 4Ensure 100% percent mail verification 4Include seeds and samples for key stakeholders, including branch use 4Provide additional packages for new customer notification (aka gap mailings) 4Develop live proofs to be reviewed and approved by BKM and Bank s core communication team 4Mail each communication package on agreed upon mail dates and ship sample packages to branches and Bank merger team 6 Bank Merger Marketing Best Practices

7 PHASE 6 IN-BRANCH MATERIALS The In-Branch Materials phase of the project focuses on the development of effective messaging and supporting materials to be distributed across the bank s physical locations and ensure alignment with the Bank s in-branch messaging platform. 4Determine in-branch communication needs 4Extend campaign messaging to in-branch components to deliver a consistent customer experience 4Create and produce materials delivered far in advance of the merger for each branch, including posters, take-ones, tent cards, window signage and video displays PHASE 7 ONLINE APPLICATIONS The Online Applications phase focuses on the development of online and digital messaging needed to support the merger communications program and to ensure message and creative alignment across all Bank channels. 4Partner with internal IT team to determine roles and responsibilities for optimizing online communications 4Develop integrated digital communications to supplement mailings and in-branch materials 4Create digital components including microsite, s, banner ads and social media outreach 4Provide digital assets to internal IT team for internal use, if requested PHASE 8 AD HOC NOTIFICATIONS The Ad Hoc Notifications phase of the project is the final step in the Execution stage. Because of the complexity of mergers, many times there are important notifications that must be communicated but affect only a small number of your customers. This objective of this phase is to develop simple and clear messaging for a consistent customer experience while delivering notifications to these specific customer segments. 4Confirm Bank needs for notifications outside of main package communications by segment 4Determine delivery channels for ad hoc notifications 4Deliver ad hoc communications by segment to impacted customers 7 Bank Merger Marketing Best Practices

8 STAGE 3: SUSTAINABILITY PHASE 9 ONBOARDING COMMUNICATIONS The Onboarding Communications phase of the project establishes the baseline for strategic communications for newly acquired customers over a brief period immediately following conversion. The objective of this phase is to provide a transitional communication platform to newly acquired customers to extend pre-conversion messaging, focus on enhanced levels of engagement and acclimate them into the ongoing marketing communications of the acquiring bank going forward. 4Establish onboarding priorities and messaging opportunities for newly acquired customers 4Determine appropriate marketing communication channels to be used to extend pre-conversion messaging to key customers 4Create potential outreach or offer communications leveraging preferred channels with the objective of acclimating new customers to the acquiring bank s marketing communication strategy ABOUT BKM MARKETING 4Unmatched experience for managing conversion projects 4History of flawless executions always on time and on budget 4Flexible, scalable outsourcing business model 4Works for financial institutions directly or in partnership with existing agencies 4Offers extraordinary value SUCCESSFUL MERGER COMMUNICATIONS: BRINGING IT ALL TOGETHER WITH BKM MARKETING For many Bank Marketers, merger communications can appear to be a series of required disclosure and account migration notifications with dates and formulaic information. While there is clearly truth to be found in this perspective, the reality is that planning these communications and the manner in which they are delivered is proven to be the difference between a completed merger and a successful merger. By focusing on the educational and emotional needs of your new customers, you will see higher levels of customer retention and will have a new platform to promote future offerings. At BKM Marketing, we realize that developing merger communications is not an everyday skill set that many Banks have on staff. That is why our Bank clients continue to retain BKM for each of their merger communications programs. Our experienced professionals can step in and help turn your program from a process to a success - all while keeping the unique nature of each merger in mind. We have been there for our clients since 2002 and we look forward to working with your Bank to deliver the same results. 8 Bank Merger Marketing Best Practices

9 ABOUT BKM BANKING AND FINANCIAL SERVICES BKM Banking and Financial Services practice focuses on developing effective, strategic solutions for our clients. With experience gained over 20 years in the banking industry, BKM primarily works with clients across three strategic areas of focus: Customer Acquisition and Retention 4Integrated Marketing 4Digital Marketing Opportunity Analysis 4Go-to-Market Programs 4Segmentation and Analysis 4Competitive Differentiation Mergers, Acquisitions and Conversions 4Bank Merger Marketing 4Customer and System Conversion Communications For more information about BKM Bank Merger Communications contact: Rick Hall Head of Banking and Financial Services p: e: or, visit 9 Bank Merger Marketing Best Practices