Rebranding — Sometimes It Pays To Be Different
Dec 28th, 2009 by David Svet
Everyone raise your hand up high. Who love’s their bank? Uh-huh. Not much happening out there when it comes to sharing the love for your bank. It’s a tough time in banking. Yet, most banks aren’t seeing this as an opportunity. When everyone zigs you should zag. One bank is doing that and is reaping the rewards.
Earlier this year GMAC Finance rebranded to become Ally Bank. Ally only exists online. It has no branches to visit. But what makes Ally remarkable is that it claims to be honest and transparent. That’s a big point of differentiation at a time when most people believe banks are dishonest and opaque. So, there is a huge opportunity for them. They have a market that is flooded with disgruntled bank customers, many of whom loathe their bank or banks in general.
Enter the newcomer — the opposite of what you believe, they are your ally. Plus, they are willing to pay you to try it out. They offer very good interest rates. It’s a remarkable feat. At a moment of exceptional market opportunity, they redeveloped their brand with a promise that meets the market need and is completely different from all of their competitors — they made a big, fat, audacious claim. They dared to be different in a field that rewards conservative conformity.
Is it working? Time will tell. They need to fulfill their promise. But, they are gaining depositors and have a handful of positive reviews. That’s more than a lot of banks can say.
So, what’s your brand promise? Do you zig or zag? Are you remarkable? Are you audacious? If you sincerely believe in what you are doing, you should be. Make this a break out year and feel the love.
Photo: Paullikespics
you bring up an often mentioned and less scrutinized point: so what *is* your brand promise? an org should be able to clearly explain the ‘promise’ behind their brand, much like a telling a traditional story whose value and worth have withstood the test of time. rebranding certainly provides this opportunity–whether the revamping a brand’s image or positioning. the first critical step is to have the willingness to ascertain brand differentiation. from there, one can build a competitive edge.
You make a great point, Autom. Defining your brand promise is critical. Without it there is no line in the sand. It’s possible that the bank is reaping the reward of having a brand promise where there once was none. I suppose GMAC used to stand for something. But even though it is a separate institution it is tainted by the stigma of GM.
Will consumer perceptions of the banking industry actually “change” the industry? Perhaps…although I don’t believe the general consumer is as frustrated with their bank as the current press would indicate. Time will certainly reveal the answer as we watch some of the larger regionals and mega banks try to carve out a new image.