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Marketing During Financial Instability

By January 10, 2023Mark's Minutes

It’s no secret that the financial equilibrium is in flux right now. The Fed continues to ratchet up rates and the stock market is in disarray. Up one day and down the next. Nationally, interest rates on savings vehicles are up as high as 4% for 12-month CDs distributed by the aggressive internet banks. On the street, 2% is the absolute minimum to offer and maintain credibility.

Our clients are coming to us increasingly asking for help with deposit product promotional strategies. With the upward movement of rates, the public interest in the entire line of deposit products is going to grow. Time to dust off your new and improved checking accounts (maybe with newer and higher reward debit features?), your short to medium term CDs, and your retirement focused accounts (IRAs, Roth Savings, etc.)

Many experts are forecasting a recession and a corresponding rise in unemployment. This will likely result in downward pressure on the stock market, some dampening of lending and a move to safety.

With so much in flux, your marketing messaging should be about delivering security, clarity, and confidence to your consumers. Historically, when the market falls and recession is on the horizon, preservation of capital will be the primary goal for many.

What can you do now to help your consumers prepare?

Promote High Yield Checking and Savings in January and February. Historically, checking products have a higher consideration during the early months. With higher rates you can build a more competitive product offering. If you move quickly, you’ll be able to gain market share quickly. Imagine the results you’d see if you offered a 2 – 3% interest bearing checking or money market account? Promoting these items across the normal channels should build traction:
• In branch merchandising
• Outside banners, posters and window signs
• Digital and traditional advertising; Web features

Marketing during downturns is never easy. You’ll face a lot of pressure to decrease your marketing budgets and reduce your outreach.

It’s been proven that those companies that advertise during the recession are the ones that benefit the most once the recession ends.

Keep your wits about you. Now is your chance to shine!