There has been a fair bit of discussion on Banks, and branding recently amongst a few of us.
Scotiabank in Canada is trying something that I think is quite new in the world, and certainly new in Canada. First off they were offering a cell phone plan to their customers and that was about 9 months ago. The plan was branded ScotiaBank.
The other day I noticed the local Cineplex on Richmond St is now branded Scotiabank. Apparently this is part of a larger play. I saw that on the 23rd, and then on the w4th, out came this press release.
Cineplex Entertainment and Scotiabank have joined forces to launch SCENE, the first-ever Canadian entertainment rewards program that will provide moviegoers with fun rewards that can be accumulated and redeemed quickly and easily. The program will launch today in the Greater Toronto Area, expanding to other markets across Canada in the
spring. Also announced today is the newly named Scotiabank Theatre Toronto, formerly known as the Paramount Toronto. Scotiabank has also acquired naming rights to four other major Cineplex facilities in Montreal, Calgary, Edmonton, and Vancouver.
I find this move smart and exciting. It puts the brand in front of the next generation of customers. The key is, will they care, and will they relate that brand to their banking. Banks have long placed names on sports venues, but this strikes me as a new move, and while it gets the brand out there (the sign is enormous!) it might be confusing to customers, unless the rewards (SCENE) programme is clear.
In any event, its hard to place an ROI on that one (Ron!)
Bankwatch 
It should be easy to put an ROI on that one: Will Scotiabank gain market share among younger consumers (who are more likely to be movie-goers than older consumers, presumably).
I find it surprising, however, that YOU find this a smart move. The other day, you were agreeing with John Moore’s comments about Starbucks investing in the customer experience (vs. advertising). Why is it any different with Scotiabank?
There are, what, six big banks in Canada? Is it really possible that anyone over the age of 18 with $100 to put in a checking account hasn’t heard of Scotiabank? Does the bank really need to do this for branding purposes?
But…let’s play out the scenario…let’s assume a younger consumer comes out from a good experience in the theater and says “hey, I should go talk to Scotia about the mortgage I need.”
What good did that do if that consumer has a bad experience at the bank (because the branch rep is poorly trained in helping customers make smart mortgage decisions), or goes to the Web site for help, but only sees a page with the bank’s rates and 12 buttons all screaming “Apply now!”?
I thought you were the guy arguing for investing in the customer experience? Movie theaters are not financial services firms’ customer experience.
Hah Ron! Welcome to my world!!
First off the fact there are six banks here is precisely the problem. The lack of differentiation is palpable. Its almost down to a colour preference … blue, green, red or the other blue.
However I have to defer to your point on investing in advertising vs product. In retrospect I made the (internal) leap that in an undifferentiated market, anything different is a good thing. The matter of investing in advertising is predicated on a decent product, and excellent service. Scotiabank happen to have both, but thats no excuse for me.
I still place excellence in product. In Banking lingo, I define product as a combination of process, channels, and account suite.
So after that reflection, I see the ScotiaBank move as an attention getter. That attention getter, will reflect in results when any new customers try out the ScotiaBank services.