DATE: Wednesday, November 12, 1997          TAG: 9711120474

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY TOM SHEAN, STAFF WRITER 

                                            LENGTH:   63 lines

CRESTAR PROMOS PLAY TO CONCERNS RELATED TO MERGERS

As mergers sweep through Virginia's banking sector, Craig Kelly thinks about ways to lure new customers to Crestar Bank.

``It's an opportunity to remind people that they have a choice,'' said Kelly, group executive vice president of strategic marketing at still-independent Crestar. ``If there was ever an opportunity, it's now.''

The Richmond-based bank is promoting checking accounts, loans and other services with a combination of bluntly worded ads, endorsements from baseball star Cal Ripkin Jr. and cash guarantees.

The ad campaign, which runs through mid-December, is the largest that Crestar has ever undertaken, said Kelly, who declined to say how much it will cost.

In fact, Crestar's marketing effort may be the beginning of a contest among merging banks trying to hold onto customers and rivals seeking to take away customers who feel shortchanged. During many bank mergers, service often deteriorates because of branch closings, the departures of veteran personnel, and foulups in computer systems.

One merger in Virginia - Wachovia Corp.'s acquisition of Jefferson Bankshares Inc. - was completed in late October, and three more large mergers are pending:

Wachovia, based in Winston-Salem, N.C., is scheduled to acquire the Richmond-based parent of Central Fidelity National Bank before year-end.

First Union Corp. of Charlotte expects to acquire Richmond-based Signet Banking Corp. later this month.

BB&T Corp. of Winston-Salem has agreed to buy the parent of Life Savings Bank in Norfolk. That transaction is likely to be completed next spring.

``The fact is that a lot of people look at banks as a necessary evil,'' said Kelly.

``People tell us that they are tired of the same old hollow promises from banks.''

To capitalize on that sentiment, Crestar's advertising agency designed a series of print ads with black letters set against a yellow background.

``This is a bank ad,'' one declares. ``We aren't going to tell you our bank is a fun place to be. It's a bank.''

Another asks, ``Do you enjoy dealing with banks? Or are you normal?''

As part of its campaign, Crestar has promised to pay cash to new customers who are dissatisfied with the service they receive. Payments range from $50 to someone who opens a checking, savings or money market account to $200 for someone who is unhappy with a home mortgage loan.

The guarantees also apply to trust and investment management accounts and small-business checking accounts.

``There are people who might look at this as an easy way to make 50 bucks,'' Kelly said. Crestar, however, isn't worried about being deluged with claims, he said.

For an endorsement in some of its TV and print ads, the bank chose Ripkin, the Baltimore Orioles' star, because he has demonstrated his endurance and tenacity.

``He shows up every day, and he plays every game,'' Kelly said.

Crestar will run a second ad campaign in January, but Kelly declined to describe its contents.

The bank used a Richmond advertising agency, Just Partners Inc., for its campaign. ILLUSTRATION: Photo

Crestar is promoting checking accounts...

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