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 digital growthwith James Robert Lay, a podcast that empowers financial brand marketing, sales andleadership teams to maximize their digital growth potential by generating ten times more loans anddeposits. Today's episode is part of the by the book series where James Roberton locks and shares the secrets of digital marketing and sales strategies for financial brandsfrom his best selling book banking on Digital Growth, the strategic marketing manifesto totransform financial brands, that is now available on Amazon. Let's get into theshow. Greetings in hello, thank you for tuning into the thirty episode ofthe banking on Digital Growth Podcast, where I James Robert Lay, your digitalanthropologists, help you to simplify the biggest digital marketing and cell strategies that empoweryou and your financial brand to generate ten...

...times more loans and deposits. Today'sepisode is part of the by the book series where I share insights from mybest selling book banking on digital growth, the strategic marketing manifesto to transform financialbrands. But before we get into today's discussion, I'd like to thank Craigfor his Amazon Review where he shared quote the Strategic Marketing Manifest show is aframework that delivers what most thought leaders are afraid to specificity. This book isn'tjust another Poetic Muse about digital what if's. Instead, James Robert Delivers a planfilled with practical examples and supporting data to get your organizational board with thechanges necessary to thrive when so many institutions are coasting into obsolescence. Well,thank you very much, Craig, for the Amazon Review and I do appreciateyour feedback. And to your point, Craig, about change and getting otherson board with change. One of the...

...best ways to do this is byestablishing a digital growth purpose. That's exactly what the founder of Tom Shoes did, as he got an idea for a business model when he was traveling throughArgentina in two thousand and six he noticed to need and that that need reallyget him thinking and in in this part of the world, in Argentina,what Blake saw was there was a lot of children who are growing up withno shoes, to where they were always barefoot. So not long after thattrip, Blake started a company out of his apartment, and that company iswhat we all know today is is Tom Shoes, and it really begin witha purpose. Tom Set out not only to sell just another commoditie shoe but, in their own words, their purpose was, two words, improve lives. And the premise behind this business model...

...was that for every pair of shoesthat they sold, they would donate a pair to a child in need.They were one of the the really the the founders of this what they calledthe one for one approach, which Tom's trademark and really created the the wholecategory of purpose driven brands, because their idea of giving away an item forevery atom they sold became copied and replicated by other companies. And so whatbegin is this simple idea really evolved into a powerful growth model, and thenumbers speak for themselves. Since two thousand and six Tom's has donated more thaneighty eight million pairs of shoes to children. And when you think about this fromfrom an economic standpoint, with the average price for their shoes being fiftyfour dollars and the average cost of gets sold prepares just nine, clearly theirpurpose driven business model has created almost a...

...triple threat of value for consumers,for kids and needs, and also for the company itself. Purpose is whatgave Tom's a huge strategic competitive advantage in and otherwise commoditized shoe market. Butit hasn't been smooth sailing. It hasn't been easy every step of the wayfor Tom's because around two thousand and eleven, two thousand and twelve, the storyof Tom's took a bit of a rocky turn. And Truth is,the company lost its way when they begin to go down a path of conformity, which which led to commoditization. You see, Tom's became focused on chasinggrowth and revenue and they lost sight of their purpose. So, to supporttheir expansion efforts, tom started to roll...

...out new product lines. And wheneverthey did this, they begin to move away from what had made them successfulin the in their first place, which was their purpose, the one forone philosophy. And when they did they they started to fall back on traditionalmarketing campaigns and marketing strategies that required very expensive lifestyle shoots and media Advis soat this point Tom's was no longer focused on purpose. They were no longerfocused on what created the brand of who they were with one for one,which created a lot of organic, feel good word of mouth marketing that wasthen further ample amplified through social media, and so the the but he wasstruggling. Their CEO, Blake, decided to take a sabbatical, to stepaway, to step back reflect on where he been, where he was andwhere he needed to go next to transform...

Tom's and get them to the nextlevel. And on this sabbatical what he realized was that the company had becomemuch more focused on the process and the promotion of commoditized products instead of theirpurpose. They had been concentrating so hard on what the business was doing andhow the growth of the business was going to perform that they forgot their why. They forgot their purpose, which which was still to improve lives, andjust those two simple words improve lives, that simple formulation and the determination behindit, the purpose, is what had always given Tom's their greatest competitive advantage. It's what allowed them to build an emotional bond with their customers and really, for that matter, their culture,...

...their employees. Technology has transformed ourworld and digital has changed the way consumer shop for and buy financial services forever. Now, consumers make purchase decisions long before they walk into a branch.If they walk into a branch at all, but your financial brand still wants togrow loans and deposits. We get it. Digital growth can feel confusing, frustrating and overwhelming for any financial brand marketing and sales leader. But itdoesn't have to, because James Robert wrote the book that guides you every stepof the way along your digital growth journey. Visit www dot digital growthcom to geta preview of his best selling book banking on digital growth, or ordera copy right now for you and your team from Amazon. Inside you'll finda strategic marketing manifesto that was written to transform financial brands, and it ispacked full of practical, improven insights you...

...can start using today to confidently generateten times more loans and deposits. Now back to the show. This toword improve lives purpose was the motivational factor driving both groups, the internal andthe external stakeholders. And for people shopping for the shoes and the people workingat Tom's, improving lives made them feel part of something bigger than themselves.Years later, reflecting on some of the missteps and failures, Tom CEO Blakereally thought about where things went astray and what it was what he what hecame to the conclusion is that it was commoditization. They started doing all ofthe same things that every other footwear company...

...does. The think about your financialbrand, how you position yourselves, how you go to market, how youcommunicate. Are you promoting the same great rates, amazing service and commoditize laundrylist of look alike features? Are you doing? Rd and this is notresearch and development, it's ripping off and duplicating what other financial brands are doing, or are you committing and doubling down on a purpose that as unique toyou, your financial brand and really the people in the communities that you served? So let's get back to the Tom Story. In Two thousand and fifteenblake had stepped away as CEO, but he stayed on to help drive thecompany's purpose. He had acknowledged that the story of Tom's and their purpose wereso tightly aligned. When he was reflecting...

...on this with with Fast Company,one of the key insights he shared is this at and I quote, hesaid, I realize the importance of having a story. Today is what reallyseparates company. People just don't wear our shoes, people tell our story.And when we think about that, think about your financial brand again, fora moment. Are People just banking with you? Do they just have achecking account with you, alone, with you, their mortgage with you,or are people believing in your purpose and telling your story to their friends andfamily? After Blake had stepped down in two thousand and fifteen a CEO,Tom's brought in a new CEO, who is Jim Aling. Jim came fromstarbucks and t mobile, and Jim was...

...talking through the next steps of Tom'sand where they were going to go, you know, moving away from promotingand pushing product but getting back to evolving and growing the spirit of its originalpurpose of improving lives. But at that point, you know, it mighthave been a little too late for Tom's to save themselves because they had losttheir way. And that's a key lesson for all financial brand marketing cells andleadership teams, because in December of two thousand and Nineteen Tom's was in areally bad play. They had to bring in some new private equity, newinvestors. But the hope is this. The new owner still had faith inthe brand and we're willing to invest further to double down on Tom's purpose.And so Tom's has continued to evolve and...

...change their strategy, coming back totheir core purpose, and there's really no denying here, if you look atthe story of Tom's and what made them successful in the first place, thatpurpose those two words improving lives. But then they lost their way when theystarted to focus on growth for maybe even growth sakes and commoditizing their product.There's no denying how hard it can be for a brand to make the kindof changes that Tom has had to make over the years to find their wayback to their purpose. But in the case of Tom's, it's really theirboldness and their courage that could be what helps them to continue to move forwardand create value in a world beyond just...

...selling a commoditized product. And that'smy hope for you, that's my hope for your financial brand, that youcan have that same boldness and courage throughout your entire organization to begin banking onpurpose and position your financial brand beyond the commoditized promotion of of look like productsand services, but really commit to put the transformation of people, the transformationof people in the communities that you serve, over the traditional transaction of dollars andsense, as always in until next time, be well. Do Goodand wash your hands. Thank you for listening to another episode of banking onDigital Growth with James Robert Laigh. Like what you hear, tell a friendabout the podcast and leave us a review on apple podcast, Google podcast orspotify, and subscribe while you're there.

To get even more practical, improveninsights, visit wwwigital growthcom to grab a preview of James Roberts best selling bookbanking on digital growth, or order a copy right now for you and yourteam from Amazon. Inside you'll find a strategic marketing and sales blueprint framed aroundtwelve key areas of focus that empower you to confidently generate ten times more loansand deposits. Until next time, be well and do good.

In-Stream Audio Search

NEW

Search across all episodes within this podcast

Episodes (162)