Pub. 9 2019-2020 Issue 6

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S — H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S May • June 2020 9 Julia A. Gutierrez is a compliance officer at Compliance Alliance, where she isareviewerandpresenterforthe educationdepartment. Julia A. Gutierrez brings years of financial industry experience to the Compliance Alliance team. She began her career in banking in 2000 while receiving her Bachelor of Business Administration degree in Finance from the University of Alabama. Julia has served as a risk management and BSA Officer, assisted in the develop - ment of an enterprise-wide risk management and compliance program for a de novo institution, assisted in the compliance remediation efforts for an institution referred to the DOJ, and was a Senior compliance adviser for a large regulatory compliance consulting firm. In addition to her experience in the financial industry, Julia also serves as a commissioned officer in the United States Army Reserves. As a compliance officer with Compliance Alliance, Julia works in the education de - partment, where she is a presenter for compliance training, seminars, workshops and conferences nationwide. She also assists with policy and document reviews, research and development of new training material, and product development. Demographics & Psychographics Determine who may have a need for the financial product or service you are considering. Take into consideration who will buy or utilize those products and services. This means first looking at your geographical location to establish the size of your potential marketing area. Build onto that concept by considering factors such as age, sex, income level, occupations, marital status, or the backgrounds of the targeted area. Psychographics include more personal characteristics.When analyzing your demographics, consider influences like lifestyle, behavior, interests or hobbies of the individual your marketing group would include. For example, if you are planning to market a financial product in a college town, it would be advantageous to consider factors such as age, income level, and interests of your targeted area. These factors alone give you a clearer idea of what delivery methods may be most the most effective for reaching your based targeted group. Which leads us into the next area of consideration. Marketing Resources and Methods Often, we get caught up in using methods of delivery that we know are successful based on past data. Unfortunately, in the ever-evolving world of technology and social media, we may be selling ourselves short if we rely on the past when it comes to marketing. The targeted audience must be the focal point when choosing the best approach for advertising a specific set of financial products and services. If your audience is unlikely to use social media, perhaps a paper brochure would be an excellent form of marketing. However, if your audience is technologically driven, social media may be a better form of communication. The goal is to determine the best way to ensure your targeted audience receives your message. Competition What’s better about the financial product you are offering than your competitors? An analysis should be conducted of your competitors offered products and services as well as the customer base they are targeting. If your financial institution is offering the same product or a product with similar features, you want to either target a different area or uncover a niche in the market that they may not be overlooking. If it seems like everyone in your area is focused on loan products, offering a deposit product with better features and customer service may be just the right idea to beat out your competition and expand your customer base. And who knows, you may be able to offer that loan product after all if your marketing can get that potential customer into your financial institution. Regulatory Compliance and Limitations Compliance and constraints are always crucial factors that must be considered in marketing. Regulatory limitations can put a real damper on an entire marketing plan if not carefully researched and resolved. Now more than ever, regulators are taking a closer look at the marketing and advertising efforts of financial institutions. Words such as unfair, deceptive or abusive are those scary areas of compliance that we are all trying to avoid. While there are plenty of regulations that govern the marketing of financial products and services, if you are clear, concise, and fair, that is half of the battle for success from a regulatory standpoint. The considerations noted above serve as a compass for the direction in which to market but keep in mind that the final goal is to achieve a successful plan for target marketing while also serving your market fairly. Although you may focus on a target audience, keep in mind that this does not limit your customer base to that target group. After all, the utilization and benefits of your products or services should be offered fairly and equally to anyone meeting the requirements or standards of the offered product. Conclusion In the dynamic world of marketing, targeting your audience is the key to success. Focusing on the considerations discussed throughout can be the difference in defining your target audience and meeting those sales goals or leaving gaps and failing to meet those objectives. Once you’ve met the challenge of targeting your market, assess your decisions and be willing to change your audience as the market evolves. Remember, the key to success is getting your message out. n Determine who may have a need for the financial product or ser - vice you are considering. Take into consideration who will ac- tually buy or utilize those prod- ucts and services. This means first looking at your geographical location to establish the size of your potential marketing area.