Public Relations' Role in Banking
By Rick Ke ating
anking used to be simpler. People
B maintained accounts and loans at
one of a handful of local banks close
to their home. Marketing and public rela-
tions were not necessities because competi-
tion wasn't as fierce.
Banks could count on
a loyal following,
based in part on the
personal interaction
bank employees had
with their customers.
This is not the
Rick Keating . case anymore. Be-
tween ATMs and online banking, many
customers no longer need human interac-
tion for their day-to-day banking transac-
tions. As a result, many banks have lost the
opportunity to provide a personal touch.
This, combined with domination in some
markets by a few, large banking institutions
and the ongoing need to introduce new
products and services, means that banks
must take greater measures to stand out to
their existing and target customers, no mat-
ter the size.
To achieve this, banks are investing in
marketing and public relations to promote
their offerings and corporate brand. These
investments, according to the American
Bankers Association, are increasing every
year. In 2001, banks spent 3.8 billion on
marketing; in 2002, they spent 8.6 billion;
and in 2003, they spent $9 billion.
Marketing is a necessity to remain com-
petitive. The question is no longer, "Should
we invest in marketing and public rela-
tions?" but rather, "How can we best spend
our marketing and public relations dollars
to achieve our goals and create maximum
impact in the marketplace?"
THE ROLE OF PUBLIC RELATIONS
IN YOUR BRAND-BUILDING
Public relations builds confidence, com-
municates differentia tors and clearly states
the key messages. Your bank's messages
should always be consistent and convincing.
There is no better vehicle to define your
brand, raise your visibility and, ultimately,
increase your customer base, than public
relations. Public relations allows your com-
pany to deliver its carefully crafted messages
to target audiences in a credible manner.
II New Jersey Banker
One of the key objectives of any PR
campaign will likely be to differentiate the
client's brand from the competition. When
it comes to banks, the average customer
may find it difficult to tell the difference be-
tween all the banks on the block. According
to the New Jersey Department of Banking
and Insurance, there have been 60 bank
mergers over the last five years. This trans-
lates to a great deal of confusion and frus-
tration among customers, who often com-
plain that they no longer know what their
bank is.
Before undertaking a PR initiative, it is
essential to determine what separates you
from the competition. If you are unable to
answer why a customer should choose your
bank over another, then you cannot expect
a customer to be able to make that differen-
tiation either. A public relations firm can
work with you to define and highlight your
differentia tors, if this hasn't already been
determined.
THE 360 DEGREE APPROACH
It's essential to incorporate a 360 degree
strategy when embarking on a PR initiative.
This means not relying on one or two tac-
tics to achieve your PR goals; rather, imple-
menting a wide variety of tactics to cast as
wide a net as possible. While media rela-
tions is often the most common vehicle to
deliver messages to your target audiences,
other tactics, such as byline articles, op-eds
and speaking engagements, are necessary to
complement media placements.
Also, do not forget internal communica-
tions. Internal communications is often rel-
egated to an afterthought, but it is a crucial
component of your outreach. Your employ-
ees are often your best salespeople.
WORKING WITH A PR FIRM
One of the most often-heard comments
about public relations is, "How do I meas-
ure the short- and long-term success?" My
firm measures success by three criteria:
knowledge, counsel and results.
Knowledge - Understanding the client,
the industry, the competition, the client's
business objectives, differentiators and chal-
lenges is the basis for establishing a
thoughtful and comprehensive PR cam-
paign. True client know,ledge builds an in-
telligence foundation and sets the tone for
strategy and implementation throughout
the engagement.
When evaluating your PR firm's knowl-
edge, consider the following:
1. Do they know: Your business and
communications objectives? Your key mes-
sages? The competitive landscape? The
market?
2. Have they analyzed your current com-
munications program regarding strength,
weaknesses and opportunities?
3. Have they interviewed or held brief-
ings with senior management and key intel-
ligence sources, such as, salespeople, advi-
sors, investors, board members, etc.?'
4. Have they established a scope of
work?
5. Does the firm invest in knowledge
databases, such as Lexis exis, to help them
monitor the competition?
6. Are they positioning yo u and your
bank in the most appropriate outlets?
7. Do they know the media? This is
proven through the intelligence and oppor-
tunities initiated, as well as the results
shown for other clients.
Co unsel - Counsel can come in the
form of good or bad advice - many times
costing the client the same in fees. The firm
should clearly guide you on realistic media
expectations, as well as what to expect on
the road to penetrating the media. Follow-
ing are items to consider when measuring
your firm's counseling:
1. Do you have a good feeling about the
project leader and key firm staff engaged on
the assignment?
2. Is the advice given based on knowl-
edge and supported by facts?
3. Is the firm "counseling" or "process-
ing"? Your answer will tell you if you have
hired an order-taker or advisor. Do yo u get.
sophisticated input or do they"just do it"?
4. Are they positioning the pitch with
relevance, or making your news relevant in
a broader context, asking: "Why this story,
why now?"
5. Is the firm providing proactive media
opportunities with counsel as to what the
opportunity is, what possibility might come
from it, and make suggestions on what you
should say? When appropriate, does the
firm provide additional intelligence to pro-
Spring 2005
 voke you and add substance to your inter-
view?
Results - Results without focus on ob-
jectives can be time consuming, brand di-
luting and ineffective. A key result of a well-
orchestrated PR program is one that has a
positive impact on brand and corporate
reputation and, ultimately, sales.
A debated tool for measurement is one
that is counter to achieving the client's
goals: analyzing what a media buy would
cost to purchase the same size space as the
PR placement. Traditionally, firms calculate
the media cost, add an editorial value mul-
tiple of between 5 times and 10 times, and
determine a "value."
This type of measurement is insufficient
because it encourages firms to spend more
time at driving coverage in all media - rele-
vant and non-relevant - to get a high multi-
ple rather than focusing its energy on pene-
trating the key influencing media to
, accomplish the program objectives. For in-
stance, The Wall Street Journal may not be
the best outlet for achieving certain prede-
termined objectives. Rather, it is essential to
reach the media that your consumers are
reading. Often, consistent hits in targeted
outlets are more valuable than a one-time-
only hit in a broad top-tier outlet.
HOW TO MEASURE RESULTS
Following are' some questions to help
you ascertain the success of your public re-
lations program:
1. Is your brand better positioned in
your industry, including greater analyst, in-
vestor, media and public awareness?
2. Are you receiving placement in appro-
priate publications?
3. Do you have key messages and tactics
that continuously support the key mes-
sages?
4. Are the outreach materials and press
releases well written and supportive of the
brand and its positioning?
5. Keeping in mind that you may not yet
have news that warrants coverage in The
Wall Street Journal, are you receiving cover-
age in high-impact media?
6. Have strategic media relationships
been cultivated on your behalf so that when
newsworthy activity arises, you are well po-
sitioned with key targets?
7. Are sales figures on the rise? Are you
achieving other key business objectives?
8. Have you changed attitudes or per-
ceptions about your business? This can be
measured informally, through internal
perception, or more formally through
focus groups.
Standards for success must be estab-
lished up front to ensure a successful re-
lationship with your PR firm . Too often,
firms and clients are not clear on what
their expected outcomes and deliver-
abIes are, setting the way for a program
that will not meet its full potential.
Public relations is an essential tool
within your overall marketing program
to increase visibility, maintain awareness
and drive relevance of the brand to tar-
get and existing customers. Every day is
an opportunity to reach out to your cus-
tomers and reinforce the brand - are
you prepared to meet the opportunity?
Rick Keating is president and chief exec-
utive officer of Keating & Co., a strategic
communications firm. As its second-gen-
eration leader, he has been with the firm
his entire professional career. Keating
also serves as chief executive officer of
KeatingCicatielio, a public affairs firm
he launched in 2004 with Tony Ci-
catielio. He can be reached via email at
rkeating@keatingco.com.

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Spring 2005 New Jersey Banker II