Banking on Digital Growth
Banking on Digital Growth

Episode · 1 year ago

30) #ByTheBook: Positioning Your Brand Beyond Commoditization

ABOUT THIS EPISODE

What’s your financial brand’s purpose?

Purpose guides and gains support for your digital growth… 

But be warned, straying too far from it could lead to ruin.

Just look at what happened to Tom’s Shoes.

In the latest episode of Banking on Digital Growth, I take a look at why purpose is the bulwark standing between your brand and the sterile commoditization that can destroy it. 

I go over:

-How commoditization led to the downfall of Tom’s Shoes

-How to avoid the same fate for your financial brand

-How to get back to (or begin) banking on purpose

You can find this interview, and many more, by subscribing to Banking on Digital Growth on Apple Podcasts, on Spotify, or here.

You're listening to banking, on digitalgrowth, with James Robert Lay a podcast that impowers financial brand marketingsales and leadership teams to maximize theiir digital growth potential bygenerating ten times more loans and deposits. Today's episode is part ofthe by the book series where James Robert on locks and shares the secretsof Digital Marketing and sale strategies for financial brands fromhis best selling book banking on Digital Growth, the strategic marketingmanifesto to transform financial brands that is now available on Amazon. Let'sget into the shell greetings in hello, thank Yo for tuninginto the thirtieth episode of the banking on Gigital Goath podcast, whereI James Robert Lay your digital anthropologist, help you to simplifythe biggest digital marketing and cell...

...strategies that empower you and yourfinancial brand to generate ten times more loans in deposits. Today's episode is part of the by thebook series, where I share insights from my best selling book banking onDigital Growth, the strategic marketing manifesto to transform financial brands,but before we get into today's discussion, I'd like to think Craig forhis Amazon Review, where he shared quote. The Strategic Marketing Man ofFesto is a framework that delivers what most thought leaders are afraid tospecificity. This book isn't just another Poetic Muse about digitalwhetifs. Instead, James Robert Delivers a plan filled with practical examplesand supporting data to get your organization on board, with the changesnecessary to thrive when so many institutions are coasting intoobsolescence. Well, thank you very much Craig for the Amazon Review and I doappreciate your feedback and to your point crag about change in gettingothers on board with change. One of the...

...best ways to do this is by establishinga digital growth purpose. That's exactly what the founder of TomShoes did, as he got an idea for a business model when he was travelingthrough Argentina in two thousand and six. He noticed the need and h thatneed really got him. thinking. ND in in this part of the world in Argentina,what Blake saw was there was a lot of children who were growing up with noshoes to wear therwere, always barefoot. So not long after that trip Blakestarted a company out of his apartment, and that company is what we all knowtoday is is toms shoes, N, and it really begin with a purpose tom set out not only to sell justanother Commoditi shoe, but in their own words their purpose was two wordsimprove lives and the primise behind...

...this business model was that for everypair of shoes that they sold, they would donate a pair to a child in need. They were one of th t really thefounders of this, what they called the one for one approach, which Tom'strademark and really created th the whole category of purpose, drivenbrands, because their idea of giving away an item for every item they sold, became copied and replicated by othercompanies. And so what begin is this simple idea really evolved into apowerful growth model and the numbers speak for themselves? Its two thousandand six Toms has donated more than eighty eight million pairs of shoes tochildren and when you think about this from from an economic standpoint withthe average price of their shoes being fifty four dollars and the average costof good soul prepares just nine...

...clearly, their purpose driven businessmodel has created almost a triple threat of value for consumers for kidsand needs, and also for the company itself. Purpose is what gave Tom's ahuge strategic, competitive advantage in and otherwise commoditized shoemarket, but it hasn't been smooth sailing. Ithasn't been easy, every step of the way for Toms becausearound, two thousandand eleven, two thousand and twelve. The story of Toms took a bit of Arakyturn and truth. Is the company lost its way when theybegan to go down a path of conformity which which led tocommoditization you see? Toms became focused on chasing growth and revenueand they lost sight of their purpose so...

...to support their expansion efforts, tomstarted to roll out new product lines nd, and whenever they did this, theythey begin to move away from what had made them. Successful in in their firstplace, which was their purpose, the one for one philosophy and when they didthey, they started to fall back on traditional marketing campaigns andmarketing strategies that required very expensive lifestyle, shoots ND andmedia adbis. So at this point, toms was no longer focused on purpose. They were no longer focused on whatcreated the brand of who they were with one for one which created a lot oforganic fill good word of mouth marketing. That was then further ampleamplified through e social media and so th n. The company was struggling. TheirCEO Blake decided to take a symatical to step away to step back, reflect onwhere he been where he was and where he...

...needed to go next, to transform tomsand get them to the next level and on this sybatical, what he realized wasthat the company had become much more focused on the process and thepromotion of commoditized products. Instead of their purpose, they had beenconcentrating so hard on what the business was doing and how the growthof the business was going to perform, that they forgot there why they forgottheir purpose, which, which was still to improve lives, and just those twosimple words improve lives that simple formulation and thedetermination behind it. The purpose is what had always given toms theirgreatest competitive advantageit's, what allowed them to build an emotionalbond with their customers and and...

...really for that matter, their culture,their employees, technology has transformed our worldand digital has changed the way consumers shot for and buy financialservices forever. Now consumers make purchase decisions long before theywalk into a branch if they walk into a branch at all, but your financial brandstill wants to grow loans and deposits. We get it. Digital growth can feelconfusing, frustrating and overwhelming for any financial brand marketing ansales leader, but it doesn't have to because James Robert wrote the bookthat guides you every step of the way along your digital growth journey visit,www, dot, digital growth, docom to get a preview of his best selling bookbanking on digital growth, or order a copy right now for you, and your teamfrom Amazon inside you'll find a strategic marketing manifesto that waswritten to transform financial brands and it is packed full of practicalandprovent insights. You can start...

...using today to confidently generate tentimes more loans and deposits. Now back to the show. This two word improve lives. Purposewas the motivational factor driving both groups, the internal and theexternal state holders and for people shopping for their shoes and and thepeople working at tons. andproving lives made them feel part of somethingbigger than themselves years later, reflecting on some of themissteps and failures Tom, CEO Blake really thought about where things went astrayand what it was, what he whan he came to. The conclusion is that it wascommoditization. They started doing all of the same things that every otherfootwhere company does think about your...

...financial brand. How you positionyourselves, how you go to market? How you communicate? Are you promoting the same great rates,amazing service and commoditize laundry list of lookilike feet features? Areyou doing rn D, and this is not researchand development? It's it's ripping off and duplicating what other financialbrands are doing, or are you committing and doubling down on apurpose that is unique to you, your financial brand and really the peoplein the communities that you served. So, let's get back to the Tom Story intwo thousand and fifteen blake had stepped away a CEO, but he stayed on tohelp drive the company's purpose. He had acknowledged that the story of Toms and their purposewere so tightly aligned when he was...

...reflecting on this with, with fastcompany hone of t the key insights he shared. As this, I quote, he said Irealize the importance of having a story today is what really separatescompany people. Just don't wear our shoes. People tell our story and when we think about that thinkabout your financial brand again for a moment are people just banking with you.Do they just have a checking account with you alone, with you, theirmortgage with you or are people believing in your purposeand telling your story to their friends and family after Blake had stepped down in twothousand and fifteen of CEO Toms brogt brought in a new CEO who was jimallingand Jim came from starbucks in Te,...

...mobile and Jim was talking through the nextsteps of Tom's and where they were going to go. You know moving away frompromoting and pushing product, but getting back to evolving D and growingthe spirit of its original purpose of improving lives. But at that point you know it might have been a littletoo late for Tom's to SAV themselves because they had lost their way andthat's a key lesson for all financial brand marketing cells and leadershipteams. Because in December of Twenty Nineteen Toms was in a really bad place,they had to bring in some new private equity, new investors, but the hope wos. This. The new ownerstill had faith in the brand and were willing to invest further to doubledown on Tom's purpose,...

...and so toms has continued to evolve andchange their strategy coming back to their core purpose and there's reallyno denying here. If you look at the story of Tom's and what made themsuccessful in the first place that purpose those two words improving lives,but then they lost their way when they started to focus on growth, for maybeeven growth sakes in commoditizing their product. There's, no denying howhard it can be for a brand to make the kind of changes that Tom has had tomake over the years to find their way back to their purpose. But in the caseof Toms, it's really their boldness and their courage. That could be what helpsthem to continue to move forward and create value in a world beyond justselling a commoditized product, and...

...that's my hope for you. That's my hopefor your financial brand that you can have that same boldness and couragethroughout your entire organization to begin banking on purpose in position.Your financial brand, beyond the commoditized promotion of look likeproducts and services, but really commit to put the transformation ofpeople the transformation of people in the communities that you serve over the traditional transaction ofdollars and Sente, as always until next time be well, dogood and wash your hands. Thank you for. Listening to anotherepisode of banking on Digital Growth with James Robert Lay like what youhear tell a friend about the podcast and leave us an review on apple podcast,Google, podcast or spotify, and subscribe, while you're there to geteven more practical, amproven insights...

...visit, www don digital growth, dcom tograb a preview of James Robert's, best selling book banking on digital growth,or order a copy right now for you, and your team from Amazon inside you'llfind a strategic marketing and sales blueprint framed around twelve keyareas of focus that empower you to confidently generate ten times moreloans and deposits. Until next time be well and do good.

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