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Wells Fargo/Wachovia: Two Banks into One . . . the Bottom Line

Sometimes it isn’t just your organization or your individual brand that needs to be strengthened. Often, a brand needs to be bolstered when an entire industry is being seriously questioned and/or challenged because of recent events that call into question the integrity, character, and behavior of everyone involved. Consider the case of the entire financial services industry, whose reputation took a huge hit in the sub-prime fiasco of 2008/2009. A Gallup poll from October 2009 found that “the percentage of Americans saying they have a ‘great deal’ or ‘quite a lot’ of confidence in American banks has dropped to 18 percent, compared to 32 percent in July 2008.”1 When a brand’s customer base takes that kind of hit, efforts to keep a brand strong require a handle-with-care approach. Combining Brands The economic meltdown in 2009 is the backdrop and climate in which two American banking giants, Wachovia and Wells Fargo, LLP, came together in one of the most-talked-about and newsworthy merges in banking history. Ultimately, the merged organization will become known as Wells Fargo, but as of this writing the two bank names are working to coexist. According to Sylvia Reynolds, the chief marketing officer for Wells Fargo, “Our strategy is essentially to combine these brands respectfully and honor what’s strong about the Wachovia brand: many strengths are common to Wells Fargo . . . our biggest challenge in bringing the brands together is to reassure Wachovia customers that the things they love about Wachovia will remain part of the new company, in particular the brand’s focus on outstanding customer service. Our other challenge 210 Wells Fargo/Wachovia Two Banks into One . . . the Bottom Line Adubato_(Brand)_final 4/11/11 11:30 AM Page 210 is building Wells Fargo’s brand recognition in areas where Wachovia is very strong but Wells Fargo has not traditionally had a strong presence.”2 The brand recognition of Wells Fargo will certainly be strengthened by the increased exposure. According to the Phoenix Business Journal, “The merger gives Wells Fargo a first-time presence in Alabama, Connecticut, Delaware, Florida, Georgia, Kansas, Maryland , Mississippi, New Jersey, New York, North Carolina, Pennsylvania , South Carolina, Tennessee, Virginia and Washington, D.C.”3 That kind of opportunity growth is priceless, but must be handled carefully. Bringing or merging two well-known brands together is never easy, but in an interview with Lucia Gibbons, regional president, Northern New Jersey Wachovia, she explained: “Having the two names is a challenge, but we have chosen to view this as an opportunity .We are proactive in talking about the two names and telling the stories‘of success’ and talking about the exciting things that are coming with employees, customers, and centers of influence to minimize confusion. . . . In NewYork and in New Jersey, leading up to the official name change, we are changing the look of the stores—we are painting, adding new furniture and murals, and changing signs that will be covered until the conversion is finalized , which will add to the excitement and present more opportunities to engage customers about the name change.” Making It Personal Gibbons, who is one of the most recognizable banking executives on the East Coast, has spent many years building relationships and partnerships with individuals and organizations. With the Wells Fargo merger, Gibbons is even more aware of the need to be “out there” with many key stakeholders and audiences. She explains: “I have had heightened sensitivity for the past twelve to eighteen months regarding the name change. I try to be out there even more with employees and centers of influence so that they don’t draw conclusions such as ‘Lucia has not been visible; she must be too busy with the merger.’ It is more important that I am engaged now WELLS FARGO/ WACHOVIA 211 Adubato_(Brand)_final 4/11/11 11:30 AM Page 211 more than ever because it is a critical time when people draw inaccurate conclusions if you are absent.” Gibbons makes an excellent point about the importance of personal communication. Too many professionals assume that everything will work out smoothly if they send updates about a merger via memos and e-mails to employees and key customers and stakeholders . That’s not how it works. In a brand merger, personal, direct, and engaging involvement is critical to the ultimate success. In order to...