Stealing Share

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Commerce Bank | Wachovia | Bank of America | Chase | Wells Fargo | Citibank | Washington Mutual (WaMu) | SunTrust | BB&T | Conclusion

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Wachovia Bank

Wachovia dropped nearly 10% Friday after an analyst downgrade and news its CFO was leaving.

Robert Patten of Morgan Keegan slapped a sell rating on the Charlotte, N.C.-based bank following its miserable second-quarter earnings results and concern that the company might have to raise more capital.

Wachovia reported a staggering second quarter loss $8.9 billion earlier this week and said it was cutting its dividend by 86% to 5 cents a share, among other things to preserve capital.

Wachovia is quite possibly the most guilty of what we will call “brand blindness” than any other of the nation's largest banks.  The brand message is non-existent as it is impossible to discern who the Wachovia user believes they are when they choose Wachovia.

Wachovia would argue that the customer is “someone who gets more” based upon their marketing and advertising messages, and, as a result asks the question, “Are you with Wachovia?”

But getting more by choosing Wachovia is impossible to fathom when we look at their brand messaging.  Wachovia promises us free checking, low ATM fees, convenient locations and membership in an exclusive club, membership with Wachovia (the power of I’m with…).  

In the epitome of self-aggrandizement, Wachovia breaks every rule of effective branding to increase market share.  They talk about themselves, never touch the switching triggers that research tells us exists and instead pounds their chests and boasts about being the 800-pound gorilla. 

"I’m with"… does not matter in banking because everyone believes banks are all the same and that the incentive to switch is non-existent. This is because attributes such as safe, reliable, friendly, convenient, low fees, ease of use, and trust are all considered the providence of “my current bank”regardless of who that bank is.

Wachovia will find themselves owning acres of worthless real estate in bricks and mortar unless they dig deeply into the anthropology of those they wish to influence, infuse those values and beliefs into their brand promise and develop a brand that reflects the target audience and not the bank itself. Otherwise, the only way they win is if they uncover a deep pool of prospects that currently have no bank, or checking account, or credit card, or the ability to use an ATM.  No doubt customers like that will proudly say... “I’m with a bank now!”

Grade- D-

Commerce Bank | Wachovia | Bank of America | Chase | Wells Fargo | Citibank | Washington Mutual (WaMu) | SunTrust | BB&T | Conclusion

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