Independent Banker - March 2023 - 54

" For us, the marketing and communication
starts with understanding the customer base and
what's important to them, " Maher says.
Tailoring your M&A
communications strategy
Community banks looking to merge with
or acquire another bank should base their
marketing strategy on the purpose behind
that merger or acquisition, say experts. What
is it trying to accomplish? Is it a merger of
equals or a bigger bank buying a smaller
bank? Is the primary goal to acquire a certain
aspect of the business, such as commercial
" The goal of all of our
marketing efforts was
to prepare Glasford
Bank customers for the
changes coming and to
help their employees
feel comfortable with
the changes and also
excited about the new
products and services
being offered. "
-Elizabeth Allen, Better Banks
lending, a loan portfolio or deposit accounts?
Communicating that goal-and the benefits to
customers-should be at the heart of messaging
to customers.
However, Paul P. Schaus, president and CEO
of CCG Catalyst Consulting in Phoenix, says
there are common overlaps no matter the goal of
the transaction. " One is that you need to inform
your customers about what is going on, " he
says. " Don't hide it. If you're going to maintain
everything, tell people you're maintaining
everything. If you're going to [move] to your
account structure because you're better, then
you need to explain why. But don't keep clients
in the dark, because [that's] when they leave. "
Take the example of a forced march approach,
where the acquiring bank is absorbing another
bank and its employees and customers need to
adapt to new ways. In that case, the marketing
strategy could revolve around convincing
customers that the new products are better than
what they have, notes Schaus.
Banks should also do due diligence to identify
the top customers. In many community banks,
the top 50 or 100 customers may represent 85%
of the profit of the entire bank, according to Tim
Pannell, president and CEO of FMS Consulting
in Franklin, Tenn. Those top customers require
a more personalized approach to marketing
and communications, including in-person
visits and phone calls with existing bankers and
new bankers.
" There will have to be very personal
communication with key people. You can't just
treat them like everybody else, " notes Pannell.
Frontline staff are key to success
Customers aren't the only ones who should be
considered when crafting a communications
strategy. The acquiring bank must take great
pains to communicate effectively to the newly
adopted employee base of the acquired bank.
The reality is that M&A transactions create
disruption and stir up fears and uncertainty
among employees. " As an organization, you need
to realize that your number one strategy is to go
in and onboard, in a very positive, empathetic
way, all of the new human capital, " says Pannell.
Acquiring banks need to take the time to
communicate, listen, answer questions and
get people excited about being part of the new
organization. " If you don't do that, you can
spend all the time and money you want on
marketing, and it won't matter, " says Pannell.
" If Betty the teller and Bob the loan officer are
unhappy, they're going to go to church and the
grocery store and Little League and tell all of
their friends that they're unhappy, and the new
management doesn't know what they're doing,
and those people will tell other people. You've
then undermined everything that you have spent
your money to purchase. "
It's the classic " loose lips sink ships, " agrees
Schaus. If the employee doesn't know anything,
they're going to make it up, which could have
a negative impact not just on the workforce
Independent Banker - March 2023

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