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AMA Hawaii talks with Peter Ho, President, Bank of Hawaii
 
AMA:  Bank of Hawaii was rated as one of the best in the country as far as being “safe from the storm.”  What’s been the impact on your image in the marketplace?

Peter Ho:  Well, in the past year, we’ve generated the highest level of customer satisfaction despite this economic crisis.  I’m very proud of that.  So, we have been able to communicate a difference.  There is a difference between the community banks like the Bank of Hawaii and Wall Street.  The focus of our marketing has been to underscore those real differences.  

AMA:  How did you accomplish that?

Peter Ho:  All roads lead back to the customer.  What do you really need to be successful in this environment?  Certainly, the right people and the right execution are critically important, but in the end you have to be able to communicate that through the brand.  You can look at these times as difficult or you can view them as an opportunity.  We’re taking the opportunity to point out the benefits that an organization like Bank of Hawaii can provide our customers.  

AMA:  The current recession is perhaps the steepest and longest we’ve seen since the Great Depression.  There is speculation among some marketers that, even when we come out of the recession, we’ll be seeing a fundamental change in consumer behavior. What’s your read?

Peter Ho:  Unlike other recessions, this recession may change the way people think for a long time to come.  What used to be normal has changed.  There are three phases of consumer consumption that peaked in 2008. First, people consumed personal income rather than saved.  Second, people took on credit card debt.  Third, as asset levels rose, appreciation allowed for further consumption.  Clearly these characteristics have changed and are going to drive consumer behavior going forward.  National savings rates are up: 5-6-7 percent nationally.  In the short run, that isn’t necessarily good for the economy, but in the long run it’s good for everybody, because I don’t think the consumption model we had before was sustainable.  Consumption was 70% of the US economy, while in Japan it’s in the mid 50s. We’re seeing a basic shift in consumer behavior and we’re very focused on building an understanding of that behavior and making the Bank of Hawaii brand relevant in this changing environment.

AMA:  What’s changed in your marketing communications?

Peter Ho:  As the financial crisis began to unfold last fall (and if you go back before summer, that wasn’t great either) we focused on whether we should include a safety message in our brand.  In September/October 2008, we pushed the button and did the “sleep like a baby” ad promoting safety and soundness as well as third party testimonials.    We’re also reaching out to bring the brand to the customer.  We’ve tripled our hours in community service programs and provide seminars and radio spots to help educate the community.  We recognize that being locally oriented in the community is meaningful.  

AMA:  Hawai‘i Business magazine just came out with an article based on interviews with Hawai‘i managers and concluded that we won’t see “normal” again until 2012. Accurate?

Peter Ho:  It’s very difficult to say.  But, when you pull apart the drivers of the US economy, consumer consumption is tired, there’s not a lot of activity involved with investment, and we know there has to be an end to government support.  So, there has to be a concern about the pace of economic recovery. In Hawaii 63% of the economy is military, tourism, and real estate.  Those drivers will have a tough time growing in the near term.  We, as a community, have to maintain focus on what is good and grow our state’s economy and focus on opportunity.

AMA:  The AMA Hawai‘i Chapter has scheduled a party to celebrate the end of the recession in June.  Should we be having a party … or crying in our beer?

Peter Ho:   Looking forward to the party.   

AMA:  Thanks for speaking to AMA.