Product Promotion Strategy – Going Outside the Norm

We hope that you will find the following case to be helpful.  If, after reading, you would like to learn more about our experience, please contact Kerry Kielb at kkielb@bedfordgroupconsulting.com.

Client Profile:
Mid-sized financial institution

Situation:
The firm was under utilizing its deposit base and needed to grow its consumer loan portfolio. The product manager suggested a simple promotion involving a drawing for a vacation to create traffic loan applications.

Contribution:
A TBG partner assumed the role of leading the Client’s marketing group, and suggested that something bolder was in order.

  • Recommended a high quality “scratch and win” contest involving a series of prizes including an international vacation for 4, merchandise and a series of free and discounted banking products.
  • The contest would operate similar to those conducted by packaged good companies. This was only the second financial institution in the U.S. to attempt such a promotion.

Action:
The CEO registered concern as to the appropriateness of such a promotion for the conservative banking market, but was swayed by the evidence of success in other industries.

  • The promotion went forward, supported by focused public relations, paid media, and in-branch promotional support.
  • Provided detailed pre-briefing on the promotion and detailed customer Q&A to all branch managers and staff.
  • The promotion ran for 60 days.

Promotion Results:

  • 17% increase in loan applications over the prior period and contributed to growth across a spectrum of products.
  • The promotion was declared an unrivaled success.
  • The promotion was repeated in an even more elaborate form a year later and was just as successful.
  • Following a merger with a much larger institution, the promotion, even larger, was rolled-out again with similar success.