a commitment to continually improving your bank and reposition.pdf · • reinvention starts with...

reinvent and repositiona commitment to

continually improving your bank

Washington Bankers Association

Thursday, October 29 – 2:15 – 3:15 pm

joe sullivan, ceo

market insights

agenda

1. why now?

2. why you?

3. cornerstones of Re-invention

4. what’s next?

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• consultant• writer

• speaker/facilitator• psychotherapist

• yogi• marathoner• coffee lover

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be amazed!

banking

is necessary;

banks are not

- Bill Gates

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me

re·in·vent [verb] - to make major

changes or improvements;

to present (something) in a

different or new way

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re·in·vent [verb]

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reconsider

branch/

delivery

formats

know your

market

and your

customer

create a

great

customer

experience

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know your market

and your customer

In the consumer space, there’s a

huge shift in what customers are

doing. We see it across all

industries. It’s redefining what

relationship means; it’s redefining

what convenience means.

Beth E. Mooney- CEO, Key Corp.

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know your market and your customer

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• size of trade area

• older vs. younger

• business types

• growth trends

• competition

• channel usage

within a

market area

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know your market and your customer

broad generalizationsinsights on your

actual and potential

customers

to

know your market and your customer

P$YCLE Retail Segment DistributionNot all markets are the same!

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know your market and your customer

P$YCLE Retail Segment DistributionNot all markets are the same!

0%

5%

10%

15%

20%

25%

30%

35%

Household Life Stage per 3 mile radius

Market A

Market B

Market C

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social media use among adult internet usersSource: Pew Research – 1/9/2015

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71% 23%28% 81%*

*Source for YouTube data (March 2015): comScore

researching

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reconsider branch/

delivery formats

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reconsider branch delivery formats

reconsider branch delivery formats

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reconsider branch delivery formats

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“In 5 to 10 years your

digital and remote

channels will be so

sophisticated and

appealing that,

frankly, consumers

will find coming into

your branches to be

an inconvenience.”

— Lee Moreau, Continuum

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ATM Self Service Hybrid Full Service

Walk-up/Drive-up Banking Center Banking Center Trad. Branch

Specifications

Size (sqft.) N/A 250-300 1,000 2,500

Cash Recyclers X

Traditional ATM X

Video Enabled ATM/Kiosk X X X

Environment (Market Type)

Urban (high pedestrian traffic) X X X

Suburban/shopping X X

Small Town/Rural X X

Workplace X X X

Typical Situation

Downsizing (sqft.) X X

Consolidating (2 into 1) X X

Satellite (feeder) location X X

Branch closure X X

Staffing Model

Universal Banker X X

Specialized (invsmnt, mortgage, etc.) X X

Phase out tellers X

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reconsider branch delivery formats

25© 2015 Market Insights*Source for YouTube data (March 2015): comScore

researching

How am I/we adapting this branch to better

align with how customers use it?:

1. ___________________________

2. ___________________________

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create a great

customer experience

create a great customer experience

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create a great customer experience

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Single Channel Multi-Channel Cross-Channel Omni-Channel

Bulk of revenue from one channel

• Traditional branch• Online

Different channels in silos

• Different customer experience

• Siloed business units• Internal competition• Brand dilution• Product variety

Some cross-channel

capabilities

• Single brand access across all channels

• Product synergies• Separate supply chains

and systems

Unified and seamless

experience

• Flexibility and seamless access to services

• Full product offering across all channels

• Single view for the customer across all channels

• Single organization servicing all channels

Building a positive omnichannelexperience remains a work in progress for most banks. Research shows that when done well, an omnichannel experience can strengthen relationships streamline the experience and increase profitability.

Jim MarousThe Financial Brand

create a great customer experience

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zones of engagementEmpowerment/Education

Engagement

Specialized Sales

Self-Service

create a great customer experience

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create a great customer experience

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You aren’t innovating unless you aremaking banking easier and

finding ways to save people time.

- Jeffry PilcherThe Financial Brand

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re·po·si·tion [verb] – place in a

different position; change the

image of a company

to target a new or wider market

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publicizeplan prepare

re·po·si·tion [verb]

• banking is experiencing both evolution and revolution

– and you must rethink everything

• reinvention starts with knowing your market

and your customer

• delivery channels – and the customer experience you

will create through them – must evolve.

• there is no one-size-fits-all solution

• repositioning occurs in the mind of your customer

…and remember, reinvention & repositioning is an

ongoing process

takeaways

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soon

is not as good

as now

Seth Godinauthor of Poke the Box

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800.348.0220 - www.formarketinsights.com

@mi_sullivan

jsullivan@formarketinsights.com

thank you

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both types of change require

informed and strategic action

…that’s where we can help!