Case Study

Farmers National Bank

Farmers National Bank, founded in 1887, is a community bank with approximately $4.1 billion in banking assets, 3 billion in trust assets and 50 retail locations. In addition to traditional consumer and commercial banking services, it offers trust, private banking, investment and insurance services.  In addition to numerous “Best Bank” consumer rankings, in 2018 Farmers was rated the #1 Performing Bank in Ohio and 30th Performing Bank in America by Bank Director Magazine.

In an ongoing era of industry consolidation, true community banks are disappearing from America’s financial landscape, most via acquisition by much larger financial institutions.    The Farmers National Bank board’s vision is not to be acquired, but to grow both organically in its existing markets and through strategic acquisitions of other community banks in contiguous geographic markets.

PRODUCT: BRAND SCAN MARKETPLACE PRO

dATE: 2014, Q2

PRODUCT: BRAND SCAN MARKETPLACE PRO

dATE: 2014, Q2

Brand Scan Situation Analysis: 

Farmers engaged in an initial Brand Scan process at the height of the economic meltdown in 2009, which identified a Market Leadership Position of “Financially Strongest Local Bank”.  While financial strength was universally recognized, Farmers received low competitive ratings for online and mobile services, and the team realized that they would need to improve the quality and features of their online and mobile banking offerings to be competitive in these areas.

Consistent messaging around financial strength had allowed Farmers to not only survive the economic meltdown that claimed many community banks, but to emerge thriving and stronger than before.

In September, 2011 Farmers conducted their IPO and became listed on the NASDAQ, and in 2013 they acquired National Associated, a smaller community bank.  Farmers also invested significantly in new online and mobile banking platforms.  By 2014, the memory of the economic meltdown was fading, and Farmers wanted to refine their Market Leadership Position in the context of an economy that was no longer driven by fear and uncertainty, and to focus on additional attributes and benefits that would be compelling to customers as they continued to grow.

“Farmers needed to re-brand for an economy no longer driven by fear and uncertainty”

Process Overview

Process Overview

1. Industry Exploration Key Takeaways

Since the initial Brand Scan in 2009, Farmers competitive landscape had changed, as several local banks had either closed or been bought out by larger banks. Institutional financial strength was still an important (though no longer singular) concern for consumers, especially in community banks.  In addition, there had been a significant increase in adoption of online and mobile banking by consumers, and these services were now expected, with differentiation possible only by quality of service and features.

2. Focus Group Assessment Key Takeaways:

 

During the focus group assessment, the Farmers team identified “financially sound” as the number one attribute, followed by “relationship-based culture”, “convenient banking services”, “strong cybersecurity”, and “electronic banking tools”.  After completing the competitive rating module, farmers realized that their strengths would reverse the order of the first two attributes, and recent improvements in online and mobile banking now made them competitive in the digital arena.

3. Marketplace Research Key Takeaways

Farmers chose to complete the Marketplace Pro Research module, which allowed them to test benefits for their top eight attributes.  Insights from the focus group were largely confirmed by external surveys, as the rank order of attributes was unchanged except for a move of “competitive rates and fees” to 8th place.  

 Of the top 4 benefits identified by Marketplace Research, 3 were related to relationships and customer service (2 Emotional Gratification and 1 Emotional Safety-Security). Other benefits valued by customers included online banking tools, and Farmers’ financial strength protecting them from being bought out.

4. Market Leadership Development

Based on the results of the Focus Group and Marketplace Research it was clear that Farmers existing Market Leadership Position (Financially Strongest Local Bank) was generally on track, but too narrowly focused.  By broadening the Market Leadership Position to “Strongest Local Bank”, Farmers was able to include other aspects of strength as articulated in the following Brand Value Proposition:

Farmers is the strongest local bank because we have the strength to protect your assets and identity, offer the tools, services and products of a big bank, and support our customers with the personal touch of local bank service we’ve built over 127 years.

The Brand Story Added Insights

 

127 years ago, Farmers National Bank started small, as a bank run by and for local farmers. Our customers were our community, and personal relationships were the basis for our service and decisions. As time went on, Farmers grew and was able to stand  strong for our customers even in difficult times from the Great Depression to the 2008 financial meltdown. Building on our traditional fiscal strength, we’re now setting the pace as the local leader in technology and cybersecurity among banks of all sizes. But no matter how much further we grow, or into what markets we expand, we remain true to our values and offer our customers the big benefits of small banking

Creative

A refreshed logo and new tagline encapsulated the shift in Market Leadership Position:

 

1. Industry Exploration Key Takeaways

Since the initial Brand Scan in 2009, Farmers competitive landscape had changed, as several local banks had either closed or been bought out by larger banks. Institutional financial strength was still an important (though no longer singular) concern for consumers, especially in community banks.  In addition, there had been a significant increase in adoption of online and mobile banking by consumers, and these services were now expected, with differentiation possible only by quality of service and features.

2. Focus Group Assessment Key Takeaways:

 

During the focus group assessment, the Farmers team identified “financially sound” as the number one attribute, followed by “relationship-based culture”, “convenient banking services”, “strong cybersecurity”, and “electronic banking tools”.  After completing the competitive rating module, farmers realized that their strengths would reverse the order of the first two attributes, and recent improvements in online and mobile banking now made them competitive in the digital arena.

3. Marketplace Research Key Takeaways

Farmers chose to complete the Marketplace Pro Research module, which allowed them to test benefits for their top eight attributes.  Insights from the focus group were largely confirmed by external surveys, as the rank order of attributes was unchanged except for a move of “competitive rates and fees” to 8th place.  

 Of the top 4 benefits identified by Marketplace Research, 3 were related to relationships and customer service (2 Emotional Gratification and 1 Emotional Safety-Security). Other benefits valued by customers included online banking tools, and Farmers’ financial strength protecting them from being bought out.

4. Market Leadership Development

Based on the results of the Focus Group and Marketplace Research it was clear that Farmers existing Market Leadership Position (Financially Strongest Local Bank) was generally on track, but too narrowly focused.  By broadening the Market Leadership Position to “Strongest Local Bank”, Farmers was able to include other aspects of strength as articulated in the following Brand Value Proposition:

Farmers is the strongest local bank because we have the strength to protect your assets and identity, offer the tools, services and products of a big bank, and support our customers with the personal touch of local bank service we’ve built over 127 years.

The Brand Story Added Insights

 

127 years ago, Farmers National Bank started small, as a bank run by and for local farmers. Our customers were our community, and personal relationships were the basis for our service and decisions. As time went on, Farmers grew and was able to stand  strong for our customers even in difficult times from the Great Depression to the 2008 financial meltdown. Building on our traditional fiscal strength, we’re now setting the pace as the local leader in technology and cybersecurity among banks of all sizes. But no matter how much further we grow, or into what markets we expand, we remain true to our values and offer our customers the big benefits of small banking

Creative

A refreshed logo and new tagline encapsulated the shift in Market Leadership Position:

 

OUTCOMES

The blend of benefits of both big and

small banking became the core of a campaign

Since the 2014 Brand Scan, Farmers has continued its trend of growth.  Banking assets have grown from 1 billion in 2013 to 4.1 billion, and trust assets have also grown from 1 billion in 2013 to 3 billion.  Farmers has grown through a series of almost yearly acquisitions, including five community bank groups and one insurance group.

2015National Bancshares
2016Tri‐state 1st Banc
2017Bowers Insurance
2018Monitor Bancorp
2019Maple Leaf
2021Cortland Bancorp

Farmers has also continued to remain at the forefront of new technology, leading the way with upgraded mobile and web applications, and a continued focus on industry-leading cybersecurity.  They are also the only local bank in their market with high-tech “lab branches” available for customers.  

As Farmers has expanded their geographic footprint, they have brought with them their commitment to supporting local communities by investing in local businesses and supporting local charities and community events. 

In 2016 the Brand Scan team began producing Capital Ideas Magazine for Farmer’s National Bank.  This branded magazine is produced twice each year, and profiles on the entrepreneurs that drive the local economies in which Farmers is a leader in providing local businesses with loans, by focusing on the ways Farmers leverages its financial strength through personalized relationships to provide excellent customer service.

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