What if we told you all that from now on you could only use social media to promote your financial institution?
That means no press releases, no radio or television ads, and no billboards placed on highways, just social media- and of course the inevitable word of mouth.
Do you believe your establishment would be successful with this marketing tool? How would you open new accounts? How would you build relationships in your surrounding communities?
Let us tell you about Melrose Bank!
Melrose Bank ($262 mm) is a one-branch community bank located in Melrose, Massachusetts, right outside of Boston. They have proven in a variety of ways that they are a dedicated member of their community, and one way they do this is by putting on an event known as ‘Fun Friday’.
One Friday every month the bank teams up with another local business to put on this event.
From 4-7pm Melrose Bank puts out a special offer, usually a special CD rate unmatched by local competition. The local business partnering with them for the event donates a share of their services and/or goods to those that attend. In the past Melrose Bank has teamed up with local massage therapists, pizza parlors, farmer’s markets, bakeries, etc.
They are committed to the cause!
Melrose Bank has been running these ‘Fun Friday’ events for quite some time. How do they market this event you may ask? They use the well-known social platform, Facebook along with one of their paid features, Boosted Posts. The posts are promoted for a short period of time, typically the day prior to the event, and a small budget is allocated to ensure the post reaches a significant amount of Facebook users.
These posts typically include information regarding the local business partner that is providing services or goods during the event. The special CD rate is also teased in the post, but the actual rate is never revealed. You have to participate in the ‘Fun’ in order to discover what the rate is! Their most recent rate was in celebration of Super Bowl 51, being the supportive New England fans they are, Melrose Bank offered a 5.1% APY CD for 51 weeks, with a maximum deposit amount of $5,100.
For those who stopped by but weren’t able to open the CD that day, staff handed out coupons during the event with the special CD rate along with an expiration date, dated one week following the event. At their most recent ‘Fun Friday’, 25 coupons were given out, from which 11 CDs were opened. That’s a 44% conversion rate! On top of those 11 CDs, two additional accounts were opened.
Melrose Bank’s ‘Fun Friday’ event has simultaneously opened new accounts with existing members, earned the trust of new members, as well as building lasting relationships with local businesses in their surrounding communities. The success of this event and overall success of Melrose Bank can be attributed to their frequently used marketing tool, Facebook.