Access To Diamonds

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Branding for Mergers
and Acquisitions
Learn the branding strategies in the face of mergers and acquisitions
By Ehime Eigbe-Akindele
In 2008, when Washington Mutual Bank
fondly known as Wamu was acquired by
Chase bank, I remember being nervous
about what the acquisition meant for me
as a customer due to the fact that both banks
had totally different cultures when doing
business.
I visited my branch and was assured my free
current account and other benefits will remain
the same since Chase would grandfather
them into their structure. When the change
finally came, this turned out not to be the
case and I effectively closed my account as
Chase lived up to my perception about their
brand.
Mergers and acquisitions are more common
than people actually realize. They bring about
fear, panic, and conflict for all stakeholders
due to the uncertainty it brings. A recent
Harvard business review reports on the
failure of mergers and acquisitions put it at
70% to 90%.
This is a ridiculously high number and I
believe this can be avoided if the right brand
and communication strategy is put in place
leading up to the merger, during the merger &
post-merger. M&As certainly have negatives
and positives impacts but the negatives can
be minimized while the positives highlighted
to ensure success. Given this failure rate
of most mergers and acquisitions, a wellthought-out
brand strategy provides clarity
and signifies that the leadership team is
confident and decisive.
The core focus should be on customer
retention, communicating a brand that
appeals to stakeholders in both banks and
ensures their buy-in. This is an opportunity
for both banks to wipe the slate clean and
bring to reality the ideal bank they want
to create or to reinforce the narrative they
already have in place.
As CEO Herbert Wigwe has stated ‘it’s
ongoing business combination agreement
with Diamond Bank will lead to the creation
of a financial powerhouse.’ Business strategy
is only as strong as the businesses branding
strategy. Rebranding right will play the
ultimate role in building internal and external
credibility by aligning the contrasting
offerings of both banks into a single,
compelling value proposition.
A unified clear brand message map gives all
stakeholders the tools to become effective
brand champions. Access Bank has stated on
their website that the new bank will retain
the name Access Bank. For Access Bank
customers, it is business as usual but it is
more imperative not to alienate Diamond
Bank customers and ensure their perception
of the change is positive. Both banks seem
to already have similar value propositions
which weren’t the case with WAMU & Chase,
so there is a greater chance with the right
strategy of a 90% customer retention.
In the face of an M&A, it is important that
whatever is being communicated to the
customer is completely certain. Do what you
say you will! If you say you plan to keep their
bank accounts as they are with no changes
then you absolutely have to do. It is best to
start off a new relationship with the newly
acquired customers on the right foot.
Build a foundation of trust as this will ease
uncertainty and dispel mistrust. If you are
unsure at the time of what steps would be
taken on certain issues as mergers sometimes
can be a long process, it is still best to
communicate the uncertainty honestly than
mislead a stakeholder. Consistency is key to
building brand credibility.
Customer Retention should be the biggest
aim of the brand and communication
strategy since the goal of the merger is to
build a financial powerhouse. This should be
handled the same way you handle a blended
family. Nobody likes change even though it
is the only thing constant in life. Customers
want to be assured that the complexity of the
M&A would not affect the service they have
grown accustomed to.
They need reassurance that this change will
be more beneficial for them. I spoke to a
Diamond Bank customer who told me ‘he
moved all funds he had in his accounts’ the
day after the merger was announced because
according to him, historically such moves
have led to customer funds being held
indefinitely or completely lost.
There needs to be a strategy for customers
who have this mindset, to reassure them
that things won’t be done as they have in
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