Change Your Mindset #8: Staying Relevant Requires Constant Attention

Change is constant; change is fast; and as a result, staying relevant in today’s marketplace can be more difficult than ever. And whether it is demographic shifts, technological advances or changes in customer preferences, financial institutions must constantly and carefully address these changes in order to stay relevant to their target audiences.

Think about today’s most successful companies; many of these companies do more than simply address change, they embrace it. In fact, many of these companies have gone as far as to create the change. Think of how Apple revolutionized the way we listen to music with the iPod, or how easy it is for us to rent movies from Netflix. Perhaps more importantly, think of companies that have been forced to rethink their businesses as means to stay relevant. Kodak comes to mind, as it has had to shift from its focus on film to include new digital photo technologies and products in response to customer preferences.

While the pressures to stay relevant are evident in many industries, there seems to be a lack of urgency and importance placed on staying relevant in financial services. Think about the last time you made significant changes to your website; or think about your ATM displays and features compared to the machines used by institutions like Chase and Bank of America. Sure, technology is expensive. However, customer expectations are rapidly changing, and it’s critical that you understand and manage your audience’s needs, preferences and expectations.

No longer is simply having a website good enough; it’s expected that your institution have a good (translation: sophisticated) website. It’s become an expectation that customers can easily and quickly log-in to view and manage their accounts on your website; that information is easily assessable and up to date (everyday); and that nearly all (if not all) applications, transactions and inquiries can be handled with through your website.

The first step in staying relevant in today’s market is identifying and fully understanding your target audience. While you may have a solid understanding of what your current customers expect, it’s also important to look more broadly at the market you serve. Do you fully understand the shifts that have occurred in the past few years - and the changes that are projected to take place in the near future?

While staying relevant is important, it’s not necessarily about being flashy or reinventing the wheel. It simply means making a conscious effort to anticipate and adapt your business to your changing market, customers and consumer behaviors. And while it is a simple concept, we see too many institutions that are resistant to change; as a result these institutions are voluntarily becoming irrelevant. Change your mindset – and don’t wait until your annual strategic planning meeting to discuss initiatives that will allow your institution to remain relevant in your market; staying relevant must constantly and consistently be addressed.