Community banks, as we all know, are by definition, uniquely positioned to capitalize on their local presence and deep-rooted community connections in order to strengthen their brand, grow customer loyalty, and attract new clients—something that the larger banks simply cannot do. Because while large national and international banks rely on mass-market marketing strategies that attempt personalization, community banks can take advantage of their strong ties to the local community.
One of the most powerful marketing tactics a community bank can use to leverage this advantage is through hyperlocal marketing—a strategy that focuses directly on engaging with local customers in meaningful, tangible, and personalized ways. This approach can be particularly effective when community banks participate in and sponsor local events, programs, and organizations. By doing so, they build stronger, more genuine connections with their communities, drive brand awareness, and most importantly, firmly establish themselves as key supporters of local causes.
What is Hyperlocal Marketing?
Hyperlocal marketing refers to the practice of targeting and engaging consumers within a very specific geographical area, usually a small community or neighborhood. As digital marketing guru, Neil Patel, says in his worth-reading article, How to Create Hyperlocal Ad Campaigns, ”as the name suggests, hyperlocal marketing is simply a marketing strategy that focuses on reaching customers in your vicinity. Unlike broad, one-size-fits-all marketing campaigns that are aimed at a national or even global audience, hyperlocal marketing is all about focusing on the needs, interests, and behaviors of local customers.” This marketing strategy allows businesses, particularly community banks, to connect on a deeper level with their customers by demonstrating that they care about the issues that matter to them the most.
The Power of Local
One of the most effective ways to implement hyperlocal marketing is through local engagement. This engagement can take many forms: from participating or sponsoring charity fundraiser runs, professional networking organizations, and festivals to school sports, agricultural clubs, and farmers' markets, to name just a few. Sponsoring or actively participating in this way enhances the bank’s ability to engage directly with local residents, demonstrate their commitment to the community, and showcase their brand in a real, tangible way.
Building Brand Visibility
Whether it’s sponsoring a local 5K race, supporting a high school sports team, or participating in a neighborhood block party, community banks can raise awareness of their brand in a way that’s both organic and relevant to the community. Imagine a community bank sponsoring a local food festival that attracts hundreds of people from the surrounding neighborhoods. Not only does the bank get its name in front of potential customers, but bank associates have the chance to interact with people face-to-face, answer their questions about banking products, and offer special promotions or giveaways.
A community bank might also sponsor a high school sports team and then host a "meet the team" event at their branch, inviting families to come in, meet the players, and learn more about the bank’s offerings. The bank could also offer special financial advice tailored to families, such as saving for college or managing household budgets. This personal approach shows that the bank is not just concerned with making money, but also with helping its customers achieve their financial goals.
Building Trust and Relationships
Whether it’s a fundraising drive for a local food bank or a youth mentorship program, community banks can show that they are more than just a financial institution—they are actively invested in the community’s success and well-being. As we all know, people are more likely to trust and support businesses that align with their values, and community banks can use local sponsorships to show that they share the same goals and concerns as their neighbors.
For example, as summer comes to an end, a local bank might sponsor a "back-to-school" event where students receive free supplies, or they could host a fundraiser to support a local shelter or food pantry. In addition to supporting a worthy cause, the bank’s involvement sends a powerful message that they are deeply committed to improving the lives of those in their community. Doing so is of critical importance, particularly with young consumers — Millennials and Gen Z, in particular — who are known to support brands with which they share values. And, as we talked about just recently in our blog, “The Great Wealth Transfer,” trillions of dollars will soon be funneling into the hands of these younger consumers.
By sponsoring events that appeal to younger demographics, such as music festivals, sports tournaments, or local entrepreneurship expos, community banks can attract a younger audience and foster long-term relationships with customers who 1) are just entering their true income-generating and wealth-accumulating years and, 2) likely to use their services for years to come.
Embrace and Engage
Community banks that embrace hyperlocal marketing will engage with consumers in ways that can increase brand visibility, build stronger relationships, and demonstrate their commitment to the community. Engagement of this kind creates authentic experiences that foster trust and loyalty, both of which are key to attracting and retaining customers. In the world of community banking, relationships matter, and connections are built one local event, and one relationship, at a time.
Bank Marketing Center
We’re Bank Marketing Center, the leading, subscription-based provider of automated marketing services to community banks. Our goal is to help bank marketers with topical, compelling communication with customers that builds trust, relationships, and revenue. And we do this through automating critical bank marketing functions, such as content creation, social media management and digital asset management, as well as regulatory and brand compliance.
We also want to share what we know – and learn along the way – with all our community banking friends. Whether it’s the latest on AI technology, suggestions on how to attract and retain top talent, or the importance of data protection, we’re here to make bank marketing the best that it can be.
Want to learn more about what we can do for your community bank and your marketing efforts? You can start by visiting bankmarketingcenter.com. Then, feel free to contact me directly by phone at 678-528-6688 or via email at nreynolds@bankmarketingcenter.com. As always, I welcome your thoughts.