The keys to effective change communications in banking

In the banking industry, change is inevitable—whether it’s a brand refresh, a systems conversion or a full-scale merger. While bank customers generally maintain a neutral stance on changes to their bank’s brand, products and services, the success of the transition hinges on how well changes are communicated.

A smart and strategically sound communications program that manages the flow of information and sets expectations can do more than just mitigate disruption. It can enhance customers trust, promote engagement and open the door to deeper customer relationships.

When confronted with change, customers typically adopt a “wait and see” attitude, provided their day-to-day banking isn’t disrupted. But silence or confusion can quickly breed concern, and that’s where a smart, customer-centric communication plan makes all the difference. A successful communications strategy should aim to:

• Build trust and confidence in the new bank brand, product or service experience.
• Provide customers with clear, personalized information about what’s changing, and what’s not.
• Create optimism about new benefits and capabilities.
• Provide ample notice, action items and clear next steps.
• Support customers through the transition with easy access to help.
• Set the stage for future cross-sell opportunities following the transition.

Change communication strategies that work:

While no two change events are the same, there are some key communication strategies that apply in most situations.

Lead with the “Why”

Customers are more likely to embrace change when they understand its purpose. Start with a clear and compelling narrative that outlines why the change is happening and, importantly, what it means for customers. Explaining the “why” behind the change and sharing how it will improve their banking experience builds buy-in and reduces resistance.

Embrace an omnichannel approach

No single channel can effectively deliver your communications to all audiences. How, when and where your audience consumes information differs from one customer to the next, making omnichannel communications a must. Employ a multichannel approach to deliver and reinforce key messages to ensure coverage across all customer touchpoints leading up to, during and immediately following the transitions.

• Email throughout the transition journey can keep customers engaged, informed and aware of information coming in the mail.
• Segmented interactive digital experiences can highlight benefits for different customer groups (e.g. personal, small business, commercial, private bank).
• Dedicated transition webpages can serve as a dedicated resource center for up-to-date, general and segment-specific transition information and FAQs.
• Personalized direct mail combines required change information and disclosures with personalized messaging about new products, services and benefits. Additional personalized direct mail can communicate high-impact changes like changes to digital banking and treasury management services.
• Alerts and banners within online and mobile banking and on your bank’s homepage reach customers where they interact with the bank.

Pace the information

Avoid the temptation to include all the details in every communication. Plan for a series of communications to keep customers informed and engaged throughout the various phases of a change event (e.g., merger announcement, legal close, pre-conversion, systems conversion and brand change). Managing the timing and volume of communications ensures customers aren’t overwhelmed and helps them absorb and act on what matters most.

Don’t forget about your employees

When implementing and communicating changes that impact customers, it’s essential to keep your employees well-informed and engaged. Customer-facing staff members play a vital role in the success of conversion projects. They are key to ensuring a positive customer experience. The more confident and optimistic they are about the benefits of changes to customers, employees and the bank, the better able they are to serve as change champions. And when armed with sales and training tools detailing conversion impacts, they are set up for success in terms of providing an optimal customer service.

• Build an internal communications plan. Identify key internal audiences, and the specific updates that need to be shared.
• Utilize omnichannel communications. Reach employees with conversion-related information in all available communication channels, including email, your company intranet and point-of-sale materials. Develop tools for customer-facing employees to enable informed personal outreach to high-value customers.
• Establish an ongoing stream of communications. Plan regular updates and set expectations early. Refresh content as detailed information becomes known. Align the timing of employee updates with the timing of customer communications so bankers have advance notice of what their customers will receive and are ready to field questions and reinforce approved messaging.

Turn change into a marketing opportunity

Transitions in your bank’s brand, products, and services represent change that could be unsettling.

However, when communicated successfully, transitions also represent opportunity. Smart, well-conceived communication strategies are essential to preserve customer relationships, deepen customer loyalty, and unlock new opportunities for growth.

Pamela Reich is Content Strategist at MKP Communications Inc.