Relevancy in Points of Differentiation

The Today Show ran a story yesterday highlighting Whole Foods and Coldwater Creek as retailers that have taken steps to differentiate their retail experiences by adding spa services to their stores in select markets. And for these retailers, it seems to make sense.

After watching the segment, I looked into the Whole Foods Spa and found that the services are offered at the grocer’s Preston Road store in Dallas, Texas; and that this location was chosen as the test-store for spa services. And, as I read this, I was reminded of the Wal-Mart store in Plano, Texas, which offers higher-end products and foods to better serve the Plano market.

Well, it turns out that the Whole Foods store in Dallas and the Wal-Mart store in Plano are in essentially the same market – they are less than ten miles from one another.

This is a great example of making points of differentiation meaningful to the markets served. Both Whole Foods and Wal-Mart understand this market’s specific needs and preferences, and each has taken steps to address them in crafting their in-store experiences. John Flemming, Executive Vice President and Chief Marketing Officer for Wal-Mart is quoted as saying "With the opening of this store, Wal-Mart is adopting an active approach to understanding and meeting customer needs, particularly those of the selective female shopper.” It’s this “selective female shopper” that Whole Foods also seems to be targeting with its spa services and free-concierge shoppers.

As differentiation gains traction in financial services, executives and marketers must remember that relevancy can be the difference between success and failure. It’s critical that differentiation strategies be rooted in a solid understanding of your target market’s needs and preferences, and your competition’s position, messages and points of differentiation.

It’s also important to point out that in this case, Whole Foods and Wal-Mart have recognized an opportunity within one market to enhance their traditional in-store experience. The retailers understand where to draw the line – and that the initiatives of offering spa services and higher-end products may be received well in this market, but probably won’t be in every other market they serve. Financial institutions with a larger footprint can do the same.

Whether it’s offering spa services or investment services, financial institutions pursuing a differentiation strategy must be relevant to their target market – and this starts with understanding the market you serve.

Targeting Small Businesses with Lemonade

Jeff Stephens points us to the latest from Umpqua Bank – a campaign centered on perhaps the smallest and most basic of small business, the lemonade stand. “The Lemonaire” campaign, as the bank calls it, uses a variety of media to expose small business owners to the bank’s latest small business initiative - giving entrepreneurial youngsters the opportunity to start their own lemonade stand with the basic supplies and $10 business loan to get their business started.



Like Jeff, I find the campaign website interesting in that there is no overt attempt to sell and it’s minimally branded. You’ll notice that the only real message communicated in text at the bottom of the screen is not an attempt to sell product, but one of the bank’s philosophy – “We believe in encouraging entrepreneurs.” This, in combination with the fun and different presentation reflects Umpqua’s messages and overall brand, and will likely drive many small business owners to consider the bank for their needs.

Visit the lemoniare website and read what the New York Times has to say about this campaign.

New Presentation Hot Topics

Our team has delivered quite a few presentations to various financial services organizations this year; and, we pleased to share with you a new series of hot topics that we feel addresses some of the most pressing issues facing today’s financial services executives and marketers.

These topics have been greatly influenced by our observation that there is an industry-wide tendency to conduct business as usual, and are designed to challenge our audiences to step out of their comfort zones and think differently about a variety of issues. The topics include:

• Three Characteristics of High-Performance Institutions
  Understand your market; Differentiate from the Competition; and encourage a culture of Leadership
• The Magic of Internal Marketing
  The importance of involving your entire team in your marketing initiatives
• Training Your CEO
  Bridging the gap between marketing and the senior management team
• Reaching In or Branching Out
  Identifying the most viable means of growth for your institution
• The Great Demographic Divide
  A boomer’s guide to attracting younger employees and customers
• Leadership is not About Job Title
  The importance of leadership and innovation at all levels within your institution
• Change Your Mindset
  If you want different results, you have to think differently

See full session descriptions here

Please check out our calendar of events periodically, as we will be scheduling these and other presentations for the coming year. As always, if you have any questions about these topics or would like to suggest an additional topic that you think we should explore, please let us know.