Banking on Digital Growth
Banking on Digital Growth

Episode · 1 year ago

33) #ByTheBook: How to Escape the Commoditization Trap

ABOUT THIS EPISODE

You're committed to helping others create a bigger, better, and brighter future.

How do I know? Because you're driven by a purpose. You put transformation of people over the transaction of dollars and cents. Purpose-driven brands are outperforming traditional ones, and that's what this episode of the Banking on Digital podcast is all about.

On this episode, I shared insights from my best-selling book Banking on Digital Growth: The Strategic Marketing Manifesto to Transform Financial Brands.

I talked about:

  • How TOMS built a business around a purpose and then forgot it
  • Why banking on purpose is an accelerant for future digital growth
  • And how Bombas has replaced TOMS as the purpose-driven brand for banks and credit unions to emulate

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 you fortuning into the thirty third episode of the banking on Digital Woth Plodcast,where I James Robert Lay your digital anthropologists, continue to simplifythe biggest digital marketing and sell strategies that will empower you andyour financial brand to generate ten times more loans an 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 conversation and insights, I'd like togive a shatow to amy for her Amazon Review, where she shared a couple of ofwords that that I wanted to share with you. She wrote with the world in somuch upheaval. Nowadays, this book couldn't have come at a better time,more and more of what we do has to be in the digital space. But how do we godigital while remaining human amy continues? James Robert Presents astrategic path with proven results to create those human experiences in adigital space. She shares this is a must read for anyone who works in thebanking space and questions where the...

...future is taking us, while looking forways to assure our institutions have a place in the hearts and minds ofconsumers to day and into the future. Thank you for the kind words amy, asalways an, and I really do appreciate the feedback and support from readers.Like you, because you are why I do what I do and- and it is you you who areguiding your financial brands, Ford with courage and confidence, no matterif you're in marketing in cells on the leadership team, you're, leading peoplethrough this post coved world, you are a shining light for others who arelooking for help and hope. You and your financial brand are a rock, a rock for people in the communitiesthat you serve. People who are looking for support something someone to clingto in the Sea of financial chaos. That Covett has brought to so many, and youknow that the future of your financial brands growth is far beyond thepromotion of commoditized products and services. And here's why I know you arecommitted to helping others create and even bigger, better andbrighter future, because you're, driven by a purpose that puts thetransformation of people over the transaction of dollars and cents andthat's exactly what I'VD like to continue to discuss and share with you oun. Today's episode of by the book islast time and- and you can go back and listen to episode, numer thirty,because in episode number thirty, we started to explore the story of Tom'sshoes and how they were able to to really break free and build a brandbeyond the commoditize world of shoes,...

...as it was back, then, whenever tomscame to market and the way that they did this, was they built a businessaround purpose and coming back to to what amy had shared in her AmazonReview, she talked about the need to remainhuman in the digital space. To to assure our institutions have a place inthe hearts and minds of people both now as well as in the future, and when welook at the story of Tom's. As I discussed an episode of thirty, Ishured exactly what happened as well when they lost their way when theyforgot their purpose, and then they began to just to look like every othercompany selling shoes, and this is exactly what I have observed over thelast almost twenty years of studying, advising guiding coachingfinancial brand marketing cells and leadership teams when it comes topositioning through the Lens of digital. Now the vast majority of banks andcreditnions still do continue to promote the same. What I call it thesame: great rates, Amazing Services and commoditize list of look like productfeatures, and it doesn't matter where this is digially could be on theirwebsite primarily, but it's also in their digital ads, as well as theiremails. The good news for you is that it does not have to continue to be thisway. There is a way, there's a path that you can escape what I call thecommoditization trap, which is really just a race to the bottom. Now oftenwhen I share the stories of Toms, as I did an episode number thirty withfinancial brand marking team cells, team leadership teams, they havetrouble applying those lessons to themselves a lot of times. They'll doubt thepotential for what I call banking on...

...purpose, to really be an excellerant, adriver, a differentiator for their future digital growth and that's what Itell them that there's another way and there's another company, even who's,applying this thinking in a commoditize marketplace and that company is Bombasand Bombas has become known as the quote. Unquote the Tom Shoes of socks,because once again of their socially conscious business model and of course,because soct and shoes go together, hand in hand or or foot and foot 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 insales 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. BOMAS was founded in two thousand andthirteen, and they were built on a purpose of supporting the homelesscommunity and bringing awareness to a growing rapant plot problem that theythey felt deserve greater attention across the United States, and so likeTOMS bomis's business model was built...

...around the Bogo. The by one, give onemodel so for every pair of socks bomb is sold, the company donated a pair tothe homeless and also like Toms. It's not just about charity. This is aboutbusiness. This is about growth. This is about profitability, but that growthand profitability comes from helping. Other people outside of theorganization outside of the traditional key stakholders of the company, and oneof the cofoters of bombis is, is a guy, his name's David Heath and back in twothousand eleven. He came across a facebook post about how socks were oneof the most requested clothing items at homeless, shelters now again, likeBlake, coming back to the origin story of Toms, bombis was born out of agenuine need to serve and help others to create values for others, justbeyond the company and in David's case his co, founder, Randy Gohlberg came onboard and so the two quit their day, jobs and they launched on Indigogo, andthis was a crowd funding initiative to help raise some initial capital. Nowthey originally set a goal to raise fifteen thousand dollars in just thirtydays, but to their amazement, to theirdelight, they hit twenty five thousand dollars in crowd funding within thefirst twenty four hours and by the time the campaign was over, they had crowdfunded more than o e hundred and forty thousand dollars nd. From from thatpoint, four, they went on to raise another million dollars with seedfunding. What really helpd bomb is to take offwas when they landed a deal with jm Damon John on Sharktank, and it wasthat relationship that propelled their growth n and within two months of beingon the show, they did one point, two million dollars in cells as they soldout all of their inventory.

I used this example of Bomis when I talk to financial marketingcells and leadership teams to show that Tom's, the story of Toms is not just aone of fluke, but it does make the case for profitability around banking onpurpose or for that of purpose driven brands, especially when those brandslike banks and credit inews, are com competing in commoditized markets andso profitability. That's what all business leaders and executives reallywant to know about? That's what they think about, and yes, profit can bedeeply rooted in a purpose once again that does transcend dollars and cents.So, coming back to this idea of profitability and bottom line, howprofitable is bombis well, we need to look at the business model. Their socksare not cheap and so a twelve pack of women's ankle socks, for example, costaround a hundred and forty f five dollars, while a single pair of mins is,is just twelve dollars so like toms, these socks are not for everyone, butalso like toms. The story of Bobas demonstrates how commoditize productsdo create a triple threat of tremendous value for multiple stayholders numberone. We have creating value for the consumer number two. We have creatingvalue for the company in the number three. We have creating value for thosehomeless that are in need of sucks, and so when we look at the value creationin two thousand and eighteen bombis ended the year with a hundred and two million dollarsin revenue who would have ever thought that the lowly unglamorous bottom ofthe totel pole when it comes to...

...clothing and accessories, the sockcould be transformed into a purpose driven powerhouse brand driving over ahundred million dollars in revenue. So what's next, FO Bombas well they'recontinuing to fulfil and live out their purpose, centered brand as theyjourneyed down the path of putting other people. First. In fact, they'vemoved into the TSHIRT space and so for every tshirt sold. They donat a Tshirtto someone Neede as of summer of Twenty nineteen. They have already donatedover eighteen million pairs of socks and shirts. So clearly, purpose is avery powerful in way to create value. It's a way to drive revenue, it's awayto drive profits, but even more so for brands, omcompeting andcommoditized market places, selling commoditize products- and this is true,regardless of if your product is socks, shoes checking accounts or loans. Infact, there's a lot of evidence that that I'll share in a future podcastthat purpose driven brands are continuously outperforming traditionalones, and this is true from both a financial standpoint. I eat a bottomline as well in terms of creating expindential, triple threat of valuefor the company or the brand, its customers, or it's accountholders, aswell as for the community in general. So more to the point, if purpose drivencompanies are not only competing but they're, crushing the competition incommoditize market places, what can your financial brand do to bank on purpose? Think about that, as we wrap up today were of thegreatest opportunities for your...

...financial brand to bank on purpose, because,unfortunately, the vast majority of banks and creditnsthrough Ou going studies and assessments are not driven throughout the entireorganization. With that perspective of banking onpurpose, a lot of them are being driven being guided by traditional mission orvision statements. But the problem with mission envision statements is theyinform what we do and how we do it and oftentimes these mission statementsenvision statements are informed by past perspective, and so that's why I'mgoing to show you a third path, Ford beyond the traditional mission,andvision statements, the what we do, th, how we do it with something. Wecall a purpose statement that really helps to define the why we do what wedo and we'll talk about that on the next episode of the by the book series, as always, and until next time be well,do good and wash your hands. Thank you for listening to another episode ofbanking on digital growth with James Robert Lay like what you hear tell afriend about the podcast and leave us a review on apple podcast, Google,podcast or spotify, and subscribe, while you're there to get even morepractical, improvent insights. Is it w ww Don digital growth dcom to grab apreview of James Roberts, best selling book banking on digital growth, ororder a copy right now for you, and your team from Amazon inside you'llfind a strategic marketing, an sales blue print 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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