The changing landscape of bank merger communications

By Pamela Reich

Bank merger and acquisition communications strategies have evolved dramatically. Where once the primary focus was meeting regulatory requirements with the mandatory mailing of account changes and new disclosures, successful merger communication programs now incorporate a more comprehensive approach to ensure a seamless transition coupled with an optimal customer experience. A smart program builds trust and confidence in the acquiring institution with robust, well-timed omnichannel tactics and strategic messaging to minimize attrition and set the stage for building deeper customer relationships.

Here are five key factors supporting a strategic, omnichannel approach to merger communications:

1. Increasing customer demand for transparency

Individuals face a bombardment of information in today’s world. Critical change information directly impacting customers must break through. To minimize customer anxiety and confusion, merger communications must proactively provide consistent messaging across all channels that reassures, helps build confidence and mitigates concerns about changes to customers’ banking experience.

• Set expectations of what will be happening and when.
• Be honest about what will change and share information about what will remain the same.
• Acknowledge and address concerns; create optimism about the benefits of the combined organization.
• Clearly explain any actions required, with reminders as appropriate.
• Ensure easy access to answers and updates throughout the merger process.

2. The availability and ubiquity of digital communication channels

A combination of digital tactics enables “surround sound” marketing to deliver and reinforce key merger messages. Multiple channels reach customers where they are, keeping them aware and engaged.

• Emails can provide heads up notifications, including “watch your mail” notifications for important mailings like an all-inclusive “welcome kit.” They can reinforce key merger details. With a shorter lead time than for direct mail, emails can be deployed relatively quickly to provide time-sensitive updates and other important information.
• A dedicated microsite – to which all communications will point – houses general and customer segment-specific merger messaging. It becomes the central hub for information and resources and should be periodically updated with content as more conversion details become known.
• Mobile app/website messaging links to the microsite and reaches customers where they interact with the bank.
• Social media featuring general merger messaging helps you engage with customers and build positive perceptions of your brand. Complement organic posts with paid social targeting customers who may not follow the bank on social channels.

3. Recognition of employees – especially customer-facing ones – as critical stakeholders

The more confident and optimistic employees are about the benefits of the merger, the better able they are to serve as merger champions.

• Equip them with sales and training tools detailing the conversion impacts to set them up for success in providing the best customer service.
• Utilize a dedicated internal merger-related microsite on the bank’s intranet to post relevant updates.
• Use emails to engage and inform employees throughout the integration process.

4. Increased demand for personalized communication to improve the customer experience.

Personalization can significantly enhance customer engagement and loyalty. By implementing personalized communications during a bank merger, banks can build trust, improve customer satisfaction and reduce churn. Creating highly personalized communications and journeys demonstrates that the bank values its customers and is committed to providing them with a positive experience during a potentially stressful period.

• Tailor messaging to specific customer segments with the direct delivery of relevant change information rather than requiring customers to read content that may not apply to them.
• Deliver personalized messaging across various communication channels, including direct mail, email, web pages and online messaging, ensuring customers receive information in their preferred format and can easily access resources and support.
• Customize product change information to the customer’s specific account relationship via variable messaging within direct mail and email.
• Position overall messaging with segment-specific merger benefits tailored for different lines of business.
• Employ personalized cross-sell messaging based on individual customer needs and preferences.

5. Stiff competition from fintech firms, non-bank lenders and other banks

The emergence of fintech companies and the ever-competitive banking market underscore the value of existing relationships and render customer retention a higher priority than ever before. Individuals and businesses typically do business with more than one financial institution; it is essential to implement merger communications that reinforce loyalty to the new banking institution.

• Treat all merger communications as more than a compliance necessity; they are marketing opportunities to support your brand and strengthen relationships.
• Develop communications focused on creating a positive brand perception, building confidence and maintaining trust.
• Preempt issues that can cause attrition; isolate and address possible pain points.
• Leverage data to analyze the acquired customer base and fine-tune targeting for cross sell and retention.

Turning insights into action

Merger communications are no longer about simply delivering the required change information. Instead, they are about shaping perceptions, creating positive customer experiences and building a strong foundation for long-term customer loyalty. As tools for data intelligence, personalization, marketing activation and optimization become more sophisticated, banks have even more opportunities to create customer-centric merger communications that support seamless transitions, retain more customers and unlock greater value from merger investments.

Pamela Reich is a content strategist at MKP communications inc., a New York-based marketing communications agency specializing in merger/change communications for the financial services industry.