Commerce Bank President Vernon Hill demonstrated his business strategy of putting the customer first during his presentation in Huntsman Hall yesterday -- by handing out a $50 gift card to each audience member.
The Class of '67 Wharton alumnus was honored by the Marketing Department with the first annual Wharton Marketing Pioneer Award, recognizing his innovative approach to the banking industry, which treats Commerce Bank as a retail business.
"This is not a bank that earns 3 to 4 percent a year. This is a growth machine," Hill said, commenting on Commerce Bank's future earning potential.
Hill founded the bank chain in Marlton, N.J., outside Philadelphia. Commerce Bank now has expanded across New Jersey and into the metropolitan New York City area, with more than 200 total locations. Hill plans to continue his current fast-paced growth, targeting the Washington, D.C., region next.
Hill said the secret behind his strategy is to focus on improving the customer's experience, as opposed to the traditional cost-cutting business model.
"Convenience is the key," he said. "It's about enhancing the experience. It's about making it fun. ... In many ways, this is an old-time community bank blown up on a large scale."
Reflecting Hill's philosophy of pleasing the consumer, the approximately 80 audience members were greeted with $50 Visa debit cards and toy van-shaped coin banks on their seats.
"It was definitely a pleasant and unexpected surprise," Wharton MBA student Payal Gandhi said. "We're just really fortunate to have these types of speakers address us."
"He definitely knows how to tap into what's important to the consumer or to the audience," Wharton MBA student Liz Lee said.
Capturing the audience's attention from the start, Hill told attendees, "It is my job tonight to show you how to get rich."
Hill spoke about business ethics, advising members of the audience to "never accept mediocrity. Average is a loss. Execute to the extreme."
Audience members praised Hill's approach.
"I was just really impressed with how closely [Commerce Bank] adheres to the philosophy of ... over-investing in the business and over-investing in the customer," Lee said. "In doing so, you can actually have a growth business in a non-growth industry, and I think that's pretty remarkable."
Over the course of December, Hill said he will "personally visit and shake hands with every single employee. That's 5,000 employees in 200 stores. It's about inspecting the branches, connecting with the people, looking at the facilities."
Hill said he can only attribute the success of Commerce Bank to "an endless series of insurmountable things that make it happen."
After the speech, Hill took questions from the audience. A reception immediately followed the approximately one-hour presentation.
