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 digital growth with James Robert Lay, a podcast that empowers financial brand marketing, sales and leadership teams to maximize their digital growth potential by generating ten times more loans and deposits. Today's episode is part of the by the book series where James Robert on locks and shares the secrets of digital marketing and sales strategies for financial brands from his best selling book banking on Digital Growth, the strategic marketing manifesto to transform financial brands, that is now available on Amazon. Let's get into the show. Greetings in hello, thank you for tuning into the thirty three episode of the banking on digital with podcast, where I James Robert Lay, your digital anthropologists, continue to simplify the biggest digital marketing and sells strategies that will empower you and your financial brand to generate ten times more loans and deposits. Today's episode is part of the by the book series where I share insights from my best selling book banking on digital growth, the strategic marketing manifesto to transform financial brands. But before we get into today's conversation and insights, I'd like to give a shout out to a me for her Amazon review, where she shared a couple of words that that I wanted to share with you. She wrote with the world in so much uphe will. 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 go digital while remaining human? Amy Continues. James Robert Presents a strategic path with proven results to create those human experiences in a digital space. She shares. This is a must read for anyone who works in the...

...baking space and questions where the future is taking us, while looking for ways to assure our institutions have a place in the hearts and minds of consumers today and into the future. Thank you for the kind words, amy, as always, 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 are guiding your financial brands Ford with courage and confidence, no matter if you're in marketing and cells on the leadership team. You're leading people through this post covid world. You are a shining light for others who are looking for help and hope you and your financial brand are a rock, a rock for people in the communities that you serve, of people who are looking for support, something, someone to cling to in the Sea of financial chaos that covid has brought to so many. And you know that the future of your financial brand's growth is far beyond the promotion of commoditized products and services. And here's why I know you are committed to helping others create an even bigger, better and brighter future, because you're driven by a purpose that puts the transformation of people over the transaction of dollars and sense, and that's exactly what I'd like to continue to discuss and share with you on today's episode of by the book. Is last time, and and you can go back and listen to episode number thirty, because in episode number thirty we started to explore the story of Tom's shoes and how they were able to to really break...

...free and build a brand beyond the commoditized world of shoes as it was back then whenever Tom's came to market, and the way that they did this was they built a business around purpose. And coming back to what amy had shared in her Amazon Review, she talked about the need to remain human in the digital space, to assure our institutions have a place in the hearts and minds of people, both now as well as in the future. And when we look at the story of Tom's, as I discussed an episode thirty, I shared, exactly what happened as well, when they lost their way, when they forgot their purpose, and then they begin to just to look like every other company selling shoes. And this is exactly what I have observed over the last almost twenty years of studying, Advising, guiding, coaching, financial brand marketing cells and leadership teams. When it comes to positioning through the Lens of digital now, the vast majority of banks and credit unions still do continue to promote the same, what I called the same great rates amazing services and commoditize list of look like product features, and it doesn't matter where this is digitally. Could be on their website primarily, but it's also in their digital ads as well as their emails. The good news for you is that it does not have to continue to be this way. There is a way, there's a path that you can escape the what I call the commoditization trap, which is really just a race to the bottom. Now often when I share the stories of Tom's, as I did an episode number thirty, with financial brand marketing team cells to team leadership teams, they have trouble applying those lessons to themselves. A lot of times they'll doubt the potential for what I call banking...

...on purpose to really be an accelerant, a driver, a differentiator for their future digital growth. And that's what I tell them, that there's another way and there's another company even who's applying this thinking in a commoditized market place, and that company is Bombus, and 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 suction shoes go to gather hand in hand our our foot and foot technology has transformed our world 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 to grow loans and deposits. We get it. Digital growth can feel confusing, frustrating and overwhelming for any financial brand. Marketing and sales leader. But it doesn't have to, because James Robert wrote the book that guides you every step of the way along your digital growth journey. Visit www dot digital growthcom to get a preview of his best selling book banking on digital growth, or order a copy right now for you and your team from Amazon. Inside you'll find a strategic marketing manifesto that was written to transform financial brands, and it is packed full of practical and proven insights you can start using today to confidently generate ten times more loans and deposits. Now back to the show. Bombas was founded in two thousand and thirteen and they were built on a purpose of supporting the homeless community and bringing awareness to a growing, rampant plot problem that they felt deserve greater attention across the United States. And so, like Tom's, Bombas has business model...

...was built around the Bogo the by one, give one model. So for every pair of socks bombs sold, the company donated a pair to the homeless. And also like Tom's, it's not just about charity. This is about business, this is about growth, this is about profitability, but that growth and profitability comes from helping other people outside of the organization, outside of the traditional key stakeholders of the company. And one of the CO founders of Bombus is is a guy. His name's David Heath and back in two thousand and eleven he came across a facebook post about how socks were one of the most requested clothing items at homeless shelters. Now, again, like Blake, coming back to the origin story of Tom's, Bombus was born out of a genuine need to serve and help others, to create values for others just beyond the company. And in David's case, his cofounder, Randy Goldberg, came on board and so the to quit their day jobs and they launched on Indigogo, and this was a crowdfunding initiative to help raise some initial capital. Now, they originally set a goal to raise fifteen thousand dollars in just thirty days. But to their amazement, to their delight, they hit twenty fivezero dollars in crowdfunding within the first twenty four hours and by the time the campaign was over they had crowd funded more than a hundred and Fortyzeros in from from that point for they went on to raise another million dollars with seed funding. What really helped Bombus to take off was when they landed a deal with Jamet Damon John on Shark Tank, and it was that relationship that propelled their growth and within two months of being on the show they did one point two million dollars in cells as they sold out all of their inventory. I used this example of...

Bombus when I talk to financial marketing cells and leadership teams to show that Tom's, the story of Tom's, is not just a one off fluke, but it does make the case for profitability around banking on purpose or for that of purpose driven brands, especially when those brands, like banks and credit unions, are commit competing in commoditized markets. And so profitability, that's what all business leaders and executives really want to know about, that's what they think about. And yes, profit can be deeply rooted in a purpose, once again, that does transcend dollars and sense. So, coming back to this idea of profitability and bottom line, how profitable is bombus? Well, we need to look at their business model. Their socks are not cheap, and so a twelve pack of women's ankle socks, for example, cost around a hundred and forty four five dollars, while a single pair of men's is just twelve dollar. So, like Tom's, these socks are not for everyone. But also like Tom's, the story of bomb has demonstrates how commoditize products do create a triple threat of tremendous value for multiple stakeholders. Number one, we have creating value for the consumer, number two we have creating value for the company and the number three we have creating value for those homeless that are in need of socks. And so, when we look at the value creation in two thousand and eighteen, bombus ended the year with a hundred and two million dollars in revenue. Who would have ever thought that the lowly, unglamorous bottom of the totem pole when it comes to clothing and accessories, the sock, could be...

...transformed into a purpose driven powerhouse brand driving over a hundred million dollars and revenue. So what's next for Bombus? Well, they're continuing to fulfill and live out their purpose centered brand as they journey down the path of putting other people first. In fact, they've moved into the t shirt space and so for every t shirt sold, they donate a t shirt to someone and need it. As of summer of two thousand and nineteen, they have already donated over eighteen million pairs of socks and shirts. So clearly, purpose is a very powerful and in way to create value. It's a way to drive revenue, it's a way to drive profits, but even more so for brands competing and commoditized market places selling commoditized products. And this is true regardless of if your product is socks, shoes, checking accounts or loans. In fact, there's a lot of evidence that that I'll share in a future podcasts, that purpose driven brands are continuously outperforming traditional ones, and this is true from both a financial standpoint, i. either bottom line, as well as in terms of creating exponential triple threat of value for the company or the brand, it's customers or its account holders, as well as for the community in general. So, more to the point, if purpose driven companies are not only competing but they're crushing the competition and commoditized market places, what can your financial brand do to bank on purpose? Think about that as we wrap up today. What are the greatest opportunities for your financial brand to bank on purpose? Because,...

...unfortunately, the vast majority of banks and credits through our own going studies and assessments are not driven throughout the entire organization with that perspective of banking on purpose. A lot of them are being driven up, being guided by traditional mission or vision statements. But the problem with mission and vision statements is they inform what we do and how we do it and oftentimes these mission and statements and vision statements are informed bypass perspective. And so that's why I'm going to show you a third path forward, beyond the traditional mission and vision statements, the what we do the how we do it, with something we call a purpose statement that really helps to define the why we do what we do 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 of banking on Digital Growth with James Robert Laigh. Like what you hear, tell a friend about the podcast and leave us a review on apple podcast, Google podcast or spotify and subscribe while you're there. To get even more practical, improven insights. Visit www dot digital growthcom to grab a preview of James Roberts best selling book banking on digital growth, or order a copy right now for you and your team from Amazon. Inside you'll find a strategic marketing and sales blueprint framed around twelve key areas of focus that empower you to confidently generate ten times more loans and deposits. Until next time, be well and do good.

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