The unfolding banking crisis over the last couple of weeks, examined from a brand and communications perspective, offers insights into how companies are using, misusing, underutilizing, or just plain wasting media touchpoints and opportunities to communicate in these crucial days.

Unfolding our newspapers, we see full-page, half-page, and quarter-page ads from such firms as JP Morgan Chase, Bank of America, Merrill Lynch, Washington Mutual, and Charles Schwab in national as well as regional papers, in other words, a sea of mostly generic messages. The messaging ranges from "Don’t worry, it’ll all be ok," to, "Welcome. We’re glad to have you," to inexplicable and inappropriate business as usual advertisements, touting great rates, or no-fee checking, as if the banking crisis isn’t happening on the same or opposite page!

There are exceptions, of course, such as Charles Schwab, who opted for an "Open Letter to America’s Investors," a more empathetic and educational approach delivered in a deliberate, recognizable, reassuring way, playing to the strength of the chosen communications channel. Schwab’s cross-channel approach delivers the "Open letter to America’s investors" as a full-page newspaper ad, while devoting valuable front-page sections of Schwab’s marketing, corporate, and transactional websites to more in-depth analysis of the financial markets, and Schwab’s own financial soundness. These sections receive constant updates during the turmoil, using a variety of formats, including a "Q&A" with the company’s Chief Investment Strategist.

Schwab is doing a laudable job, showing empathy for consumers, acknowledging that these are confusing times, and offering practical as well as understandable information. But, in terms of exploiting their websites and using this once-in-80-years situation to respond with new web tools and platforms, even they have missed an opportunity.

Corporate blogs tend to be dull and lack for readership at the best of times. At the worst of times, such as the current situation may turn out to be, the companies that are proactive and forthcoming in their communication efforts have a chance to break away from the competition, winning a spot in the consumers’ minds and hearts, and prepositioning their companies for growth in the next cycle. Hence, the agility and sense of "real-time" blogging is tailor-made to recognize confusion and address concern, if not to alleviate it completely.

Wide consumer adoption of online video offers an additional high-impact way to communicate during extraordinary times. JetBlue’s founder and then-CEO David Neeleman personally delivered a web video message on the airline’s website and YouTube to introduce flyers to jetBlue’s Customer Bill of Rights, a brilliant example of using adversity to open the door to opportunity, in the wake of the disastrous, blizzard-induced delays that paralyzed airline and passengers back in 2007. This is a highly pertinent example of a leader stepping into the whirlwind, showing humility and taking responsibility. The video succeeded in at least two ways: 1) It put the company’s leader on the front lines, taking personal responsibility instead of hiding behind a print ad, and, 2) The online format put the viewer in control. The video was shared widely, and was viewed within weeks by many hundreds of thousands viewers, eliciting hundreds of comments.

Neeleman’s video succeeds in communicating the five qualities of simple communication that are key to building successful customer relationships. In any medium, through any communications channel, a message that’s useful, clear, fresh, honest, and inspiring is the message that’s going be received, even when the prevailing conditions tend toward noise, confusion, and anxiety. To illustrate, let’s apply the five-quality lens to a comparison of the responses of JP Morgan Chase and Washington Mutual to their recent, shall we say, "get together."

USEFUL
An appropriate amount of education coupled with ease of use. JP Morgan Chase’s website offers (at least) a prominent welcome message to Washington Mutual customers, acknowledging their uncertainties and allaying their concerns.

Washington Mutual, on the other hand, missed the chance to utilize its website to acknowledge the crisis sooner, to offer customers useful information and answers on the whereabouts and security of their money during the transaction, how to access their accounts, whether their personal checks still worked or if the FDIC would be involved, and, most important, when to get the next update on the situation.

Of course, the JPMC-WaMu merger occurred with breathtaking speed, but that doesn’t excuse management (of any company) from a responsibility to be prepared to get out in front of the situation through the ubiquity of the internet.

CLEAR
Clear communications make it easy to access important information by presenting in a logical, user-friendly structure, in plain, accessible, non-specialist language.

Chase’s welcome message to WaMu customers is prominent and easy to find. It links to a special web page providing information that anticipates customer concerns. This information also leads to phone, print, and other web channels, for people who are more comfortable in those media.

FRESH
Freshness means new twists, new elements, new insights, uncliched newness that drive positive perceptions of the company. You may be telling an age-old story, but there is always a new way to tell it.

Bankers should have followed David Neeleman’s example and stepped from behind the torn curtain of the finance industry to humanize the situation and personally express their feelings, thoughts, and positions. In a sense, the CEOs of troubled financials needs to come out and say, "Hey, we’re in this, too."

Those institutions not in immediate jeopardy should have been proactive and used their web and print channels to communicate with their clients and dispel worries. Charles Schwab’s website posted letters from its founder, plus a Q&A with their Chief Investment Strategist. All positive moves, but Schwab could have gone farther, and utilized the intimate, one-to-one nature of the web to humanize the situation further by entering into dialogue with investors, and by encouraging questions.

HONEST
Honesty is expressed through direct acknowledgement of issues and concerns, a straightforward tone and style, and an effort at presenting a balanced picture.

Merrill Lynch came straight across with a large homepage announcement of its acquisition by Bank of America. This then links to a confusing press release announcing that Merrill, "A great global franchise… one of the world’s leading wealth management companies, capital markets, and advisor companies…" with no mention of the merger, its circumstances, or any of the concerns investors might have.

This lack of acknowledgement is a surprise. It should be, and is, standard operating procedure throughout the industry. It’s analogous to the single biggest factor determining whether a patient sues his doctor or not. It often depends on the doctor apologizing. An acknowledgement (of the enormity of the situation and its impact on customers) from one of these institutions would have been a breakthrough step towards rebuilding a brand, on a new foundation of trust, built on the ruins of the old one.

INSPIRING
Inspiration comes from reframing the situation in such a way that the audience sees reason to hope, labor, and achieve. Removing barriers, addressing concerns, using language and design in exciting, edifying ways can all play a part in motivating the audience to take action.

Charles Schwab’s own open letter, written in plain, clear language, acknowledged the market conditions, and offered clear, simple advice: Review your asset allocation, diversify, and rebalance if necessary. Schwab’s candid, personal tone is perfectly "On-brand," as well as reassuring.

So, what lessons can your brand take away for this and future market cycles?
Well, start with a few simple questions:

1. Today’s consumers are everywhere. Is my brand everywhere?
2. The one-size fits-all approach is no longer enough. Are my messages tailored to the medium?
3. Is my approach delivering the brand in a useful, clear, fresh, honest, and inspiring way?
4. Am I speaking from the pulpit, or am I engaging in a dialogue?
5. Am I prepared to create content and publish with the frequency expected by digital media?

This entry was posted on Friday, October 3rd, 2008 at 1:08 pm and is filed under social media, technology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.