Independent Banker - April 2019 - 58

were two " very, very popular " gifts. Other promotions have
included fleece blankets, slow cookers, car safety kits, car
wash kits and folding camping chairs. Each gift typically
costs the bank about $17, although it initially intended to
spend only $10.
The program has proven effective in Citizens Bank's
Wichita branches as well as at its four rural branches,
where new customers are harder to come by, since not
many new people move to the area.
" We are doing great as far as customer growth, retention
and average balance, " says Deterding.
It's not enough to offer the gift, though. Deterding says
staff must also be trained to understand all the bank's
account options and ask key questions to direct customers
to the most appropriate product.
Breaking the tie
Metairie Bank in southeast Louisiana views its thankyou
gift for opening a checking account or referring a
new checking customer as a way to differentiate it from
other banks in its market that don't give new customers
anything. Every eight weeks, the bank swaps in a different
" It's not the reason why
somebody comes in. All it's
meant to be is a kind of tiebreaker
if there are five banks on this
stretch of highway. "
-John LeBlanc, Metairie Bank
gift ranging from a panini sandwich maker to a BBQ set.
The most popular items are duffel and gym bags, notes
John LeBlanc, senior vice president and chief financial
officer at the $400 million-asset community bank.
" It's not the reason why somebody comes in, " he says.
" All it's meant to be is a kind of tiebreaker if there are five
banks on this stretch of highway. "
Before implementing the program, Metairie Bank
analyzed every basic checking account in its competitive
market, from fees to minimum balances.
If the community bank wanted to offer the best account,
it would need free internet banking, ATM withdrawals and
debit cards, LeBlanc says. The free gift was meant to be
58 Q ICBA Independent Banker Q April 2019
the cherry on top.
" If someone didn't know if they wanted to use a local
community bank or a megabank, and the products were
similar and our bank was offering a gift, they'd probably
stop in and pick up the free gift just for the heck of it, "
LeBlanc says.
Metairie Bank was right in its assumption. Account
openings had been flat for five years before the bank
contracted with a third party to design and send marketing
pieces. It promotes the program via targeted direct mail
and digital advertising. In the 30 months since the free gift
program began, account openings have doubled. " It's been
successful for us, " LeBlanc says.
Sparking interest and conversation
No one expects to find a miniature game show inside a
bank branch, but that's exactly what $3 billion-asset Burke
& Herbert Bank in Alexandria, Va., created with a pyramid
of gift boxes during its pick-a-gift campaign in 2018.
Every branch had a display with six gift boxes, each
containing a slip promising a prize ranging from branded
bank swag like a travel mug or lunch cooler to gift cards
worth $50 to $250, says Terry Cole, the bank's chief
marketing officer. Customers who opened a new checking
account in a branch during the two-month promotion got
to pick a box.
The promotion works on many levels because it sparks
interest and conversation, Cole says. Customers are
curious about the pyramid of gifts and are more likely to
tell others about their memorable experience opening an
account. Onlookers become interested when they see new
people winning gift cards, and employees have a novel
sales tool to engage customers.
" It creates sales team enthusiasm, helping them rally
around something with a different way to engage potential
customers in conversation, " says Cole, adding the bank
limits the program to two months so it doesn't " become
like wallpaper. It generates energy and excitement for a
period of time. "
The bank has found success with its annual Refer
a Friend program, which also runs for a limited time.
Customers and referred account openers each earn a $50
gift card when a referral opens a new account and meets
minimum requirements.
" We don't want a customer to come to us just for a thing
or a chance for a $100 gift card, close the account and
that's that. We've got to do the selling, " Cole says.
North State Bank, an $897 million-asset business bank
Independent Banker - April 2019

Table of Contents for the Digital Edition of Independent Banker - April 2019
