When it comes to a “firm’s image with the public,” Canadian banks held up rather well vs their U.S. counterparts during the global financial crisis, say financial advisors surveyed for this year’s Report Card on Banks and Credit Unions.
Part of what has kept the image of Canadian banks so strong is the power of a consistent brand message delivered through consumer ads and community events.
As Thomas Dyck, president of TD Mutual Funds, puts it: “If you look at the events of the past 24 months, its been a proving time for brands. And TD Canada Trust’s brand has significantly strengthened over that time — not because we changed our strategy, but because the significance and importance of our approach has proven out.”
Advisors agree. Canadian banks that built up their images through creative consumer ad campaigns received the highest ratings in the “firm’s consumer advertising” category. However, advisors with the two credit unions in the survey were disappointed in their firms’ efforts.
Toronto-based Royal Bank of Canada was rated highly for having an effective consumer ad campaign. In the past year, RBC put out a series of commercials promoting its 2010 Olympic torch relay contest, informing Canadians how they could have become torchbearers for the 2010 Winter Olympics. As a result of this increased exposure, RBC’s rating in the consumer advertising category rose by 1.4 points, to 8.9 from 7.5 in 2009, the biggest improvement in the category.
“[Advertising has gotten a] heck of a lot better in the past few months,” says an RBC advisor in Alberta, echoing the sentiments of many colleagues. “RBC’s push on the Olympics was money well spent.”
Other banks to see improvements in the category were Tor-onto-based Bank of Nova Scotia (8.8 vs 8.4 in 2009), TD (8.7 vs 8.3), and Canadian Imperial Bank of Commerce (8.1 vs 7.9).
Similar to RBC, Scotiabank’s sponsorship of sporting events also played a role in building the bank’s image with the public, says Anatol von Hahn, executive vice president, personal and commercial banking, with Scotiabank. He points out the bank is front and centre in its sponsorship of the NHL and CFL.
Scotiabank has also continued its ‘You’re richer than you think’ campaign, which is meant to communicate optimism with personal finance,” says Rick White, head of marketing, Canadian banking, with Scotiabank. The tag line has a two-fold message, he says: “Rationally, Scotiabank is positioning itself as a bank at which people can get ahead financially. But we are also communicating there is a lot more to life than money, which is expressed in our sponsorship programs.”
@page_break@For the most part, Scotiabank advisors believe the bank is doing a great job in its advertising — but some say the tag line backfired during the recession. “Clients complain about ‘You’re richer than you think’,” says a Scotiabank advisor in Ontario. “They just don’t think it’s appropriate for people who are struggling to pay their bills.”
Although this has been a common criticism, the bank has done extensive research to ensure the campaign is still appropriate, says White: “Only a small minority of people were sensitive to the statement.”
Meanwhile, TD advisors are still keen on the “Green Chair” campaign, which conveys to clients that banking should be comfortable. TD was ranked No. 1 in the “firm’s image with the public” category, with a 9.5 rating. As a part of the campaign, TD had created a commercial with the famous two grumpy old men complaining about the convenience of TD’s mobile mortgage specialists.
“[TD has] excellent ads that run on air,” says a TD advisor in Nova Scotia, “and it’s important to advertise properly to clients.”
Advisors with the credit unions were unhappy campers when it came to evaluating their firms’ consumer advertising campaigns. “They need more of a presence,” says an advisor in British Columbia with Vancouver-based Vancouver City Savings Credit Union.
But considering Vancity’s position as a credit union that serves the community, the marketing budget is better invested in sponsoring community events, says Richard Seres, vice president, marketing, with Vancity: “One of the big messages is ‘When you do business with us, your community profits, too.’ That’s why we continue to focus our efforts on investing in the community.”
It was the same story for Edmon-ton-based Servus Credit Union, which had the largest drop in the consumer advertising category, to 5.9 from 6.6. Although Servus’s advisors were quite displeased with the firm’s lack of consumer ads, executives point out that the marketing focus will remain on community events. In fact, in the past year, Servus has donated $1.8 million to charitable events.
Montreal-based National Bank of Canada received the lowest ratings in both the consumer advertising and public image categories, at 5.2 and 7.4, respectively. Advisors were most disappointed with National Bank’s lack of advertising in provinces outside Quebec.
However, executives say the bank is growing awareness of the brand in Western Canada by sponsoring events and creating partnerships with community groups.
IE