Buzzwords at the ABA Bank Marketing Conference

Over the past few days at the ABA Bank Marketing Conference in Denver, we've heard quite a few ideas and concepts being talked about repeatedly. Some of what we're hearing includes:

• Experience - a concept that we heard a lot about at last year's conference is still on many attendees' minds. Joseph Pine's opening keynote discussed the progression from businesses selling commodities to goods; goods to services; services to experiences; and experiences to transformations. While some institutions certainly pay attention to the complete customer experience, many are stuck simply selling services or goods - which raises concerns regarding commoditization.
• Transformation - as I mentioned above, Joe Pine emphasized the importance of transformation in today's competitive environment; the idea was mentioned in many of the presentations. As Pine described it, beyond creating a customer experience, successful companies will be those that are transformational - those that are able to transform their customers' lives in some respect. The emphasis here raises concerns for me, as many institutions havn't fully grasped the concept of creating and managing the customer experience - which needs to happen before trying to become transformational.
• Differentiation - we've heard much more discussion around the issue of differentiation than we did at last year's conference - which is encouraging. While the marketers here seem to understand the importance, we are hearing a lot of frustration around how to convince senior management and boards that differentiation needs to be part of the overall marketing strategy.
• Segmentation - a topic we didn't hear much about last year, segmentation has certainly become a much more well-known concept, and one that seems to be working its way into many institutions' strategies. I'm impressed with the level that people are talking about the topic. As an example, people were talking about the many segments that make up Generation Y - where last year, the broad group of Generation Y was talked about very generally.

As attendees return home from the conference, I hope that these concepts can make their way into next year's marketing strategies. It's a departure from years past - as none of these concepts offer a turn-key solution - they will vary from market to market, and from one institution to the next.

Have an idea for us?

After reading about the latest Starbucks training sessions where each of its stores were closed for a three hour training session a few weeks back, and hearing about some of the initiatives it will be launching to get back in touch with its customers, I've been looking for examples of these initiatives coming to life in my trips since to Starbucks stores.

The one idea I particularly like, called My Starbucks Idea (Netbanker has a great write-up of how this can tie into banking) is a website that allows customers to submit ideas and feedback about all things Starbucks. And while the initiative is web-based, I was interested to see an in-store display this morning on the table with the coffee creamers.

The display is a small (8.5X11) table top with a stack of tear-off, business-card sized pieces of paper attached to it. These pieces of paper simply read "Have an idea for us?" - and, I have to admit, it intrigued me. I tore it off, and turned it over, the back simply directs you to mystarbucksidea.com.

It's not a survey. There are no questions. It simply directs you to submit your ideas to the bank's microsite.

I can definitely see the opportunity for financial institutions to offer this kind of feedback loop to their customers - and could easily be placed at teller stations or on check-write tables. In Starbucks' case, because it's such a large company, having the comments directed to one central point is a great way to keep them organized.

It's such a simple way to keep the feedback loop open for customer dialogue.

A Bold New Look

There was a news story this morning announcing that Washington Mutual is launching a new version of their website, www.wamu.com. Their stated purpose for this upgrade is to make “the customer's online banking experience simpler, faster and more personalized.” We’ve been talking a lot lately about the importance of relevancy and growth. While I’m not certain their new site gets the job done; I was pleased to see that they are clearly paying attention to two important aspects of remaining relevant: 1) they know that their marketing must remain dynamic; and 2) they understand the customer is at the center of all they do. When was the last time you updated your website? (and yes, by the way, our website is under revision…stay tuned).

One thing their new website does that helps ensure relevancy: they ask "what do you think about the new wamu.com?" They invite feedback. If they have taken steps to show they listen to the feedback they receive, they are well on their way to staying relevant.

Who is setting your customers' expectations?

Trendwatching.com's February Trend Briefing highlights the expectation economy which it has defined as:

“An economy inhabited by experienced, well-informed customers…who have a long list of high expectations that they apply to each and every good, service and experience on offer.”

This includes financial services. And while the expectation economy does not include all consumers, evidence that financial institutions are taking notice of this group is evident in everything from the elimination of traditional teller lines at some banks and credit unions to the installation of lobby coffee bars in others.

Perhaps the most interesting point made in the article, and one which I think is often overlooked by financial services executives and marketers, is that expectations are often set outside your industry - in our case, bank customers' and credit union members' expectations are driven, in some part, by experiences outside of financial services. The article cites “Singapore Airlines’ sense of status, Starbucks’ understanding of indulgence and rituals, H&M’s obsession with making up-to-the-minute fashion affordable, or Apple’s prowess in design and usability” as examples of companies that are driving consumer expectations across the country.

Whether it’s industry leaders like these examples, or a local business in your community offering value above and beyond the expected, it's important to realize that your customers’ expectations of you and your institution are not necessarily driven by anything within your direct control. And, that you recognize opportunities where you can bring the customer experience your institution offers more in-line with these expectations.

We are all consumers; and we all have experiences with retailers, restaurants and other businesses that shape our expectations. Rather than relying on peer-to-peer comparisons to drive decisions (the article also goes as far as to say that “just copying competitors is a race to the bottom), financial services executives and marketers can benefit greatly from understanding their customers’ expectations, not only of financial institutions, but as consumers in general.

Depending on your market and your customers, you may find that their expectations are shaped by experiences like the ease of use and instant gratification of a program like Apple’s iTunes; or, they may be influenced by the personalized experience Starbucks offers in customizing their drink order and calling them by name. Whatever the case, financial institutions can play to these shifting expectations; first, by being more aware of them – and by finding relevant ways to incorporate them into the ways they conduct business.