Bank advertising experience

Table of Contents

I. Helping Your Bank to Grow — Service and

Advertising Equally Important 13

II. Starting the Campaign— Plan the Work and

Introduction

©ANKERS quite generally seem to be realizing that now is the time to make their institutions better known and to build up a good will and a reputation which will help at that future time when greater efforts may be needed to get business. A great responsibility was put upon bankers during the war to educate the public in financial matters and to co-operate with the Government in its unusual financing. Hence the immense amount of advertising space that was devoted to the advertising of the Liberty Loans and the War Savings campaign. Commercial banks which are advertising to hasten the general introduction of the trade acceptance are also doing a patriotic work, as whatever makes for the more effective use of capital now is certainly helping our country.

Experience and observation are the great teachers in most activities of life and bank advertising is no exception. For the past decade or more, it has been my privilege to be in a position to survey the whole field of financial publicity, and, to a certain extent, act as a clearing house for bank and trust company advertising ideas. For about ten years I conducted a department of bank advertising comment and criticism in the Bankers Magazine of New York; I have been connected with several advertising agencies specializing in financial publicity; and for over two years I have been conducting a regular monthly department of bank advertising review and suggestion in The Burroughs Clearing House, a publication which goes to every bank and trust company in the United State? and Canada and to many banking institutions abroad. My correspondence with banks in regard to their, advertising problems is extensive and has resulted in a very valuable exchange of opinions and experience.

The text and illustrative matter contained in this volume are made up largely of the material which has been published in The Burroughs Clearing House in the past two years, or which has been used in various addresses recently delivered by the author before groups of bankers and advertising men.

Considerable space is devoted to what might be called patriotic bank advertising. Even with the war at an end, the bankers of this country will continue to devote much of their advertising efforts and their advertising appropriations to the work of helping the Govern= ment finance our share of the war and in the work of reconstruction. That being the case, it is quite evident that the assembling and reproduction of some of the advertising which was done along this line will prove of general interest and benefit to the whole banking fraternity, and it is a matter of gratification to the author to be instrumental in the preservation of these war-time advertisements and advertising ideas as a matter of record, and also because they contain much of value for bank advertising in times of peace.

No attempt has been made in this book to go very deeply into the fundamental principles of advertising. That has been done to a greater extent in some of the author's other works. The main purpose of the work is to preserve some excellent ideas, which banks have recently used in their advertising, and by timely comment and criticism to point out some things which may prove of material assistance to those who are engaged in the work of getting new business and developing the present business of financial institutions by means of printers' ink.

T. D. MacGregor.

Edwin Bird Wilson, Inc.,

68 William Street, New York

Helping Your Bank To Gro

Service and Advertising Equally Important

W

Chapter I. Service And Advertising

EQUALLY IMPORTANT

HOW do we help anything to grow? Is it not by planting it well and by watching over it with care, giving it good soil and sufficient moisture, light and air?

It is no different with a bank.

For a bank to enjoy a healthy growth it ought to begin as a sturdy youngster. You know they say that one of the first steps toward being a strong individual is to choose your parents well. So a bank when it starts out should have a backing of men and money sufficiently strong to enable it to pass successfully through the trying times of infancy.

It must be planted where there is room for it to grow. That is, it should not be crowded in where the field is already thoroughly occupied or where the population is too sparse to support it.

So much for the soil. The moisture, I suppose, is the sweat of the brow of the hard-working officers. The light is the light of publicity, and the air is the atmosphere of genuine courtesy and helpfulness that should radiate about the place.

Only live things grow; so at the very beginning we must assume that your bank is a live one or it cannot be helped to grow.

Advertising Alone Not Enougn

Mere advertising in the ordinary sense of the term is not in itself all sufficient to make a bank grow. Back of the advertising there must be the ability and the willingness to serve customers, a realization that the interests of a bank and those of its depositors are truly mutual — what helps the one is sure to benefit the other, and what is detrimental to one cannot but injure the other.

The Good Book admonishes us, "Let him that is greatest among you be your servant." But it is not just that kind of altruism or "otherism" that appears to animate the modern banking institution. It is rather a selfish unselfishness, if such an expression can be used. I don't mean to say that a bank never offers service without hope of reward or that it never takes part in any great movement from purely unselfish and patriotic motives. On the contrary, I know, as you undoubtedly do, of many instances quite the opposite, such as banks which continued to pay the salaries of their employees while they were absent in the military service of the United States.

Public Service and Private Gam

But the point that I am trying to make is simply that in being a public servant the bank is best serving its own interests. To give a concrete illustration, consider the late James J. Hill, the Great Northern Railway and the First National Bank of St. Paul.

In the grounds of Mr. Hill's fine residence in St. Paul, where most millionaires would have had Italian gardens and spouting ornamental fountains, there was built a large and not ornate greenhouse.

This conservatory the great "Empire Builder" used for experiments with different kinds of grains for the purpose of choosing the best for the use of the farmers in the territory of the Great Northern Railway.

Mr. Hill also did a great deal along the line of developing the best kind of cattle for both beef and dairy purposes. At his country place he had a herd of imported cattle which was his joy and pride.

The results of his experiments in these directions Mr. Hill made public for the benefit of the farmers in his territory, and it goes without saying that they took advantage of it.

Bank Publications

The banks and trust companies of the country through the great mass of timely, and, oftentimes, scholarly matter they put forth in their various publications are really an important factor in the economic, patriotic and financial education of our people. This applies to both large and small institutions, but, of course, is more notable in the case of the larger ones.

For example, the speeches and articles of Lewis E. Pierson, Chairman of the Board, Irving National Bank of New York, on trade acceptances; those of Frank H. Sisson, Vice-President of the Guaranty Trust Company of New York, on foreign trade, and those of George M. Reynolds, President of the Continental and Commercial Banks of Chicago on various banking topics, probably do as much general good as they perform particular service for the institutions with which their author's names are associated.

Consider this list of publications of current interest put out by the Guaranty Trust Company of New York during the war:

"The Awakening of a Great Nation;" "Facing our War Finance Problem;" "Banking Institutions to Finance our Future Abroad ;" 'The Promise of our Vision;" "Cost and Gain of Four Years' War;" "Factors That Cause High Prices;" "Commercial Credits Through Acceptances;" "Taking Stock of the Future;" "Organizing for the Victories of Peace" (Great Britain); "The Inspiration of Adversity" (France); "Breaking Ties that were Fetters" (Italy and Spain) ; "Mariners and Merchants of the North" (Norway and Sweden); "A Record that is a Promise" (Canada); "The Advantage of Opportunity" (Japan); "The Awakening of a Continent" (Australia); "Planning Economic Supremacy" (Germany); "The Life Blood of Industry" (Germany); "Financial and Business Conditions in the United States;" "Investment Recommendations;" "How to Figure Interest Returns on Securities;" "Acceptances;" "Amortization;" "Safekeeping of Securities;" "Trading with the Enemy;" "Federal Capital Stock Tax;" "The War Tax Law;" "War Excess Profits Tax Law;" "Combination in Export Trade Under the Webb Law;" "War Finance Corporation Act;" "The Federal Control of Railroads;" "Digest of the Bills of Lading Act, in Force January 1, 1917;" "United States Shipping Act;" "Federal Estate Tax Law and Regulations" (United States Inheritance Tax); "Income Tax Law of the United States Affecting Non-Resident Aliens;" "Income Tax Record Book;" "Digest of the Federal Reserve Act;" "Guaranty Trust Company of New York; Reasons for Entering the Federal Reserve System;" "New York State Franchise Tax Law;" "Investment Tax Law and Mortgage Tax Law of the State of New York;" "Bonds Exempt or Exemptible;" "Banking Service for Foreign Trade;" "War-Time Service 'Over There';" "From Dollars to Francs;" "Capital Issues Committee Rules and Regulations;" "Federal Tax on Undistributed

Net Income of Corporations;" 'Trance and America;" "Cuba — Its Commercial and Industrial Possibilities."

The Reason for Advertising

An officer of a large bank, replying recently to another banker who asked reasons for the institution's growth, attributed the increase in business to the following factors :

1. Natural increase in balances due to the expansion in the general business of the country.

2. The securing of new accounts in large numbers because of (a) the character and personality of the organization, (b) its reputation as a live, up-to-date, progressive, safe and sound institution, and (c) the constructive character of its advertising and "New Business" work.

To realize the importance of a bank's advertising, think of one of the best accounts now on your books, that of a very successful business man. His account would be a hard one for any other bank to take away from you or for you to take away from any other bank. Ten years ago this man was not so rich nor so successful as he is today, but he was coming along strong. Twenty years ago he had just gotten a fair start and was learning by practical experience the value of a good banking connection. Twenty-five years ago he was a mere beginner and somebody, probably an officer of your bank, was helping him to get the right start. Of course, a quarter of a century ago was the stone age of bank advertising, but this man was influenced in some way to cast in his lot with your institution and he has stayed there ever since. Now, it is the mission of your present-day advertising to catch these future captains of industry and shining lights of the business world when they are young, and it may not be necessary to wait a quarter of a century for the full fruition of your hopes and prayers in the form of an account upon which your competing banks will look with envious eyes.

Planning tne Advertising

When a bank decides to conduct a campaign of advertising, the first thing needful is to get its board of directors to set aside enough money as an advertising appropriation. The exact amount necessary cannot be definitely fixed in advance, but a maximum figure can be set, and usually is.

The next thing is to decide how the advertising is to be handled. Naturally, it comes under the general supervision of an officer of the institution, but in the great majority of cases, an executive officer does not have the time, even if he has the special ability and training, to take care of the details of advertising work. Hence the logical thing is to have an advertising manager or agent — in some cases both of them. This is an age of specialization and in no field is there greater need for it than in bank advertising.

After the manager or agent has been chosen, the plan must be laid out and approved. Then space contracts must be made with the newspapers, banking journals, street cars, etc. Last, but not least, comes the preparation of copy for the newspaper advertisements, booklets, car cards, form letters and other mediums of advertising. The term "copy" covers the illustration as well as reading matter of the advertisements, and one of the most important features of illustration is the emblem or trade- mark which helps to give individuality to the advertising. A distinctive signature cut is also greatly to be desired.

There are so many things to be considered in connection with the subject of copy that in this space it is possible to give only a brief outline of some of the points to be remembered.

Bank advertising copy, especially in its headings, should be humanly interesting in order to attract attention. Full many a rose in the advertising field is born to blush unseen because not properly displayed, and unread because not interesting enough to hold the attention of readers.

The copy should be truly representative of the institution. Therefore it will be true, cordial, dignified, impressive, and reflect any other qualities the bank may have. Simple language should be used so that he who runs may read and he who reads may understand. Logical arguments should be employed so that the reader may be convinced and act accordingly.

Typographically, bank advertising should always be characterized by simplicity and strength. There should be nothing freakish or over-emphasized about the size, style, and arrangement of the type used.

Cultivating Depositors

A certain national bank in a small southern city has deposits of nearly $9,000,000. The reason given for the remarkable success of the institution is the fact that its officers have made it a point to cultivate the personal acquaintance of all its depositors. Most of the officers have desks separated from the public lobby by only a low railing in which there are several convenient openings, so that the officers can quickly pass out into the lobby to greet depositors as the occasion arises. The result of this policy is that the bank is very popular in its community—a popularity which is reflected in its large deposits and big volume of business. During one year, the total resources of that bank increased from $7,617,328 to $10,353,852, and the deposits from $6,037,045 to $8,800,884. Of course, it would be impossible for very large banks to carry out this idea as far as their officers are concerned. Even with many officers, it would not be feasible for them to make the personal acquaintance of each one of thousands of depositors.

Courtesy

Courtesy toward customers, visitors and the public generally ought to be the invariable rule in any bank. It should be sincere and spontaneous. At the same time, it is realized that courtesy is an advertising asset. So part of the advertising appropriation might well go to pay for the entertainment of out-of-town bankers and other depositors, actual and prospective.

Every bank receives letters and visitors from other banks seeking information concerning its forms and methods. Such correspondence and personal inquiries should always be welcomed and every facility placed at the disposal of visitors who are worthy of such consideration. An interchange of ideas is often helpful.

One of the pleasant and profitable features of the work of a large bank is showing visitors through the building. Very frequently a depositor will tell one of the officers he would like to be shown the inside workings of the bank; perhaps he has brought a friend with him, who also is anxious to see what goes on behind the scenes. Just as often out-of-town bankers come in with the same object in mind. Particular pains should be taken to make the exposition as thorough and interesting as possible, because this is the source of much very valuable word-ofmouth advertising which these visitors will do for the institution when they get back home.

New Business Department

While it would be inexpedient, if not physically impossible, for the officers of a large city bank to cultivate all of their thousands of depositors in a personal and individual manner, it is important that the cultivation be carried on in some way. Hence the department of publicity and new business, which undertakes large scale or wholesale friendship making for the bank by means of card files, form letters and printed matter, as supplementary to whatever personal work it is possible to do.

Upon the department of publicity and new business of a bank not only rests the responsibility of reflecting the spirit and policy of the institution, but to it also falls the duty of looking after the intensive cultivation of its depositors and customers. In these days of system in business, even the impressing of a bank's personality upon its community is not left to chance. The so-called new business department has stepped in to systematize and to take advantage of every legitimate opportunity for pushing the business of the institution by means of the personal efforts of an organized force of trained workers. In my book, The New Business Department, I state the primary purpose of such a department to be "to maintain and promote the growth and prestige of the bank by every approved method, and to assist in keeping up the esprit de corps, loyalty and efficiency of its working force, so that customers and the public may be better served and the good will of the institution steadily increased."

Banks that have a publicity department often also have a publicity committee of officers, and the advertisements which finally appear are frequently the result of many conferences. There is much to be said in favor of "conference copy," and something to be said against it. Its tendency is towards good ideas at the expense of forceful and distinctive style. Often in the multitude of counselors there is safety, but sometimes it is a case of the mountain laboring to bring forth only a mouse.

The Advertising Appropriation

Assuming that your bank has a definite advertising appropriation or that it is considering the advisability of adding that item to its annual budget, the next question is: How shall that sum be divided?

In general, there are four main divisions of bank advertising expenditure: (1) space, (2) copy, (3) printing, and (4) miscellaneous schemes.

In practically every community space in the local newspaper is the most valuable advertising medium for a bank. Practically everybody reads the newspaper and all will read the bank advertisements therein if they are well written, and well displayed. The newspaper should be the backbone of every bank advertising campaign. Other mediums are supplementary and complementary to it.

But whatever medium is used, the matter of "copy," that is, the subject-matter used in the space, is all important. Whenever I see a bank advertisement occupying expensive space with poor copy, I am reminded of the man who bought a fifty-dollar frame for a fifty-cent chromo. It might a good deal better be the other way round, for the copy is the life of an advertisement, the thing that gives it strength and result-getting effectiveness.

Advertising "Copy

So I recommend that bankers spend good money for copy. With rare exceptions, the banker himself is not a good writer of advertisements, and as a rule. he is too busy to prepare his own advertising matter effectively. It is not necessary to do so. There are quite a number of expert organizations making a specialty of the preparation of advertising matter for banks.

You are just as sensible to employ them as you are to engage a physician, a lawyer or an architect when you stand in need of the special services rendered by those men. I believe that most ready-to-use or speciallyprepared bank advertising matter from these sources is better than the average bank president or cashier can prepare in the limited time at his disposal for such a purpose. In any event, such matter will provide you with a good basis from which to work, and the material can easily be adapted to the individual requirements of any bank using it.

Reflex Influence or Advertising

Entirely aside from the direct results of the advertising a bank does, if the advertisements are well constructed and attractively presented that very fact has a beneficial reflex influence upon the advertising institution. People notice the up-to-date advertising methods of a bank or trust company, and they reach the justifiable conclusion, subconsciously perhaps, that it is a progressive institution and one that would be satisfactory and profitable to do business with whenever the occasion arises. There is also something to be said in favor of the general publicity of bank advertising. That is, even if in a whole series of advertisements there is no special point that appeals to a certain class of possible customers, the advertising serves to fix the name and location of the bank in the minds of even casual readers so that when the time does come when they need banking service they know where they can get it.

Actual Instances or Service

A source of good advertising copy material which is too often overlooked by banks and trust companies is to be found in actual instances of service rendered to the special advantage of the customer, or of loss or misfortune due to not using the service offered. Of course, it would be only in rare cases that the name of the customer could be used, but anonymity need not weaken the illustration if it bears the earmarks of being a truthful statement of facts.

To illustrate what I mean by "concrete instances," I am reproducing in the following paragraphs a few such as were actually used in their advertising by some prominent institutions.

The Security Trust Company, of Detroit, issued a booklet entitled "What Might Happen to Your Estate, and the Safeguard." Here are a few of the actual cases it contained:

"A prominent business man died and upon filing his will for probate it was found that he had named a personal friend as executor.

"This friend, who represented large business interests, had no experience in the administration of estates. His business required his entire time so that he was unable to familiarize himself with the legal requirements and the many details involved in the settlement of the estate, and he naturally felt that his appointment as executor imposed responsibility which, in justice both to himself and his estate, he could not conscientiously assume. He therefore resigned and the probate court appointed the trust company to take his place.

"An elderly lady placed her life's earnings in charge of a friend for investment. The money was held by him for a number of years, during which time he paid her

A Young Man Who Has $4000 in this Bank

A few years ago a hard-working lad of 19 came into our bank and said: "I am going to open a savings account. If I carry my money around with me, I will spend it." He began with $5 a month and gradually increased his deposits until for some time past he has been adding $10 a week to his account. He now has $4000 to his credit.

Have you that much ready money in the bank? Are you saving regularly?

Many a big, successful business started on the capital of a savings account.

"I'm going to place $50,000 in trust"

That was one of the wisest resolves this man ever made, because he lost all the rest of his money and is now living on the income of the trust which he established with this Company as trustee. You can make a trust now, while you have money, which will protect your family and yourself against possible future' adversity. Let us explain.

Concrete instances interest on the money. He suddenly died, and in settling his affairs it was discovered that the lady's money had been so closely intermingled with his own that it was necessary to resort to legal proceedings in order to prove and recover for the old lady the original amount of the money placed with her friend for investment.

"Here is a case where the individual was honest and undoubtedly conscientious, but his bookkeeping methods were entirely wrong and unnecessary expense and trouble resulted.

"If the Security Trust Company had been named trustee of the lady's money it would have been kept separate from all other funds and there would have been no necessity for expensive litigation to recover her money. She would have received her income when she wanted it and her entire funds would have been returned to her promptly upon her request or disposed of in accordance with the terms of her will."

In a series of newspaper advertisements the Bankers Trust Company, of New York, published a number of true incidents like these:

"A Young Girl's Financial Future Made Secure "A certain man has a young step-daughter who has lived with him from her babyhood, and in whom his affections are centered since he has no children or near relatives.

"In settling the small estate of the girl's mother at her death not long ago, the man was shocked to realize that in the event of his death the carefully reared girl would be almost penniless, since he had never legally adopted her, and had not made a will providing for her maintenance.

His property would go by law to relatives of whom he knew little.

"He then lost no time in creating a trust fund with this company that would give her an ample income throughout her life, making the trust so that it cannot be altered even by the girl herself or by her husband, should she marry.

"Our Policy Saved a Life Income for the Widow "Some years ago this company was appointed trustee of an estate, more than half of which consisted of a cash balance deposited with a mercantile corporation at an attractive rate of interest. The corporation bore an excellent reputation and the heirs were strongly in favor of leaving the money there.

"It is our fixed policy, however, to keep funds of clients with approved banking depositaries only, so this money was withdrawn from the mercantile corporation. Two weeks later it failed. The prompt carrying out of our established safe policy prevented a disastrous loss to the estate. The money was promptly invested in approved securities and the income assures the widow a comfortable maintenance during her entire life.

"How a Well-Known Financier Provided for Two Children's Education "One of this country's prominent bankers has placed funds in trust with this company to provide for educating through preparatory school and college the two small children of one of his relatives. The mention of this man's name would bring a smile at the thought of his anticipating the day when he might not be able to provide amply for these children's education. But the same wisdom that has directed his successful career has determined that making a trust with this company as trustee is the surest way to provide for the children's future." But it is not trust companies only that can use this method. The Central National Bank, of Oakland, CaL, used the following incidents as newspaper advertisements :

"Two Business Men at the Front "In July of 1914, two partners were conducting a highly specialized and technical business in Oakland. In August, war was declared. One partner — of British birth — enlisted, leaving the business in the hands of the other partner — a young man of thirty. When the United States entered the war and the draft numbers were drawn, this man was among those chosen to fight for his country. "With both men fighting, this bank has undertaken the finding of a manager for the business to direct its destinies until the men return. This is another example of the 'business-building' service rendered by this bank.

' 'Financing Overseas Trade "An Oakland manufacturer was anxious to extend his business into foreign markets. But as orders increased in number and size, he found it impossible to adequately finance his shipments. It was often months before funds were returned to him. He put his problem up to this bank and was told of a plan whereby he could secure money on orders practically as soon as shipped. The solving of this problem of export financing has opened a new, broad and profitable market.

"Two Roads and a Market "The changing fortunes of war opened a new market which promised unusual profits for one Oakland manufacturer. To supply this new market required a complete change of manufacturing and financial policy. To follow along the old road, or to burn all bridges and take the possible short cut, was the problem requiring a solution. This bank is glad to have helped in solving the problem— and its services are offered you when you reach a fork in the road."

A Duty Owed To Clients

A new slant on bank advertising is contained in the view expressed privately by the president of a large trust company in Boston to the effect that inasmuch as his company holds many millions of dollars worth of personal trust funds it is really a duty owed to clients to let them know, through advertising, just how the business is handled.