Banking on Digital Growth
Banking on Digital Growth

Episode · 1 year ago

39) #ByTheBook: This One Word Determines Where People Buy Financial Products

ABOUT THIS EPISODE

Can I trust you?

That's the question your customers and prospective customers are asking. And you can't answer their question with a broadcast marketing strategy focused on commoditized products.

Instead, you have to use the fundamentals of neuroscience and gain access to your customer's reptilian brain. I share my thoughts on how to do that in this episode of Banking on Digital Growth.

I talked about:

  • The three levels of connection in all human relationships
  • The two ways you build trust
  • How to use neuroscience to increase customer loyalty to your financial brand

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

Okay, 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 10 times more loans and deposits. Today's episode is part of the by the book Siri's, Where James Robert unlocks 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 39th episode of the Banking on Digital Growth podcast Where I, James Robert Ley, your digital anthropologists continue to coach and guide you as together, we simplify the biggest digital marketing and self strategies that will empower you and your financial brand to generate 10 times more loans and deposits. Today's episode is part of the by the book Siri's where I share insights from my best selling book, Banking on Digital Growth, the Strategic Marketing manifesto to transform financial brands. As always, I like to start these episodes by shouting out and celebrating those that have read the book and today I saw a note from Tiffany on linked in Who is the VP of retail sales and experience for a financial brand in the Midwest. For context, Tiffany shared a quote from banking on digital growth. Where I wrote, remember, the fundamental opportunity is to help guide people beyond the financial stress that's keeping them up at night and taking such a heavy toll on their health and their relationships. The goal is to get them to a bigger, better, brighter future. To that point, I appreciate Tiffany sharing that and really more so, adding her thoughts on linked in because she wrote quote, This has been my goal since I started in banking.

Growing up in poverty and lack, I wanted to make sure others knew there was hope and a way forward Exclamation mark. End quote. Tiffany, I want to thank you for joining me on this journey as I continue to work towards my own personal, bigger purpose here at the Digital Growth Institute that I call one B x BTR, which is to get one billion people beyond their financial stress, towards just that towards a bigger, better, brighter future. But I can't achieve this purpose alone. And I'm grateful for people like you, Tiffany, who are committed to guiding people forward along a similar journey within the communities that your financial brand serves. But none of this can happen if financial brands continue to operate specifically with marketing and cells in mind. If they're informed by the past, if they continue to promote the same commoditized products of being driven by profits and of thinking of growth through the old World model of broadcast marketing and in branch sell strategies, no going forward in this digital world, the greatest growth opportunities for financial brands is to bank on purpose to commit to put the transformation of people over the commoditized transaction of dollars and cents. And as a result, I promise the profits will follow. And you might be thinking, Why? Why is this true? And it's exactly what I want to help you gain clarity around as we dive deep, dive deeper into the consumer's brain together what makes people tick specifically when it comes to shopping and buying financial products and...

...services. It all comes down to one word, and that word is trust you see, in any human relationship. There are three different levels of connection, and in the pyramid of human relationships, which is a strategic model that I teach financial brands. The foundation of any relationship first and foremost, is built on Respect and respect is when you commit to put the needs of others in front of your own. You help someone when they have a need, not when you or your financial brand has a need at the pinnacle. At the top of the pyramid of human relationships is love. Now the word love might get a bit confusing here first glance, but there are many different types of love there, many different kinds of love. In fact, the ancient Greeks, for that matter, talk about five different levels of love. But for our purposes here today, perhaps it's easier to think about love within the context of the pyramid of human relationships as commitment, because commitment is the deepest form of connection with any relationship that we have between human beings. So for us, the strategic question to be clear is how can your financial brand gain commitment and connection with consumers in the communities that you serve in today's digital economy and the only way to bridge the gap between respect and love, respect and commitment is to increase the level of trust, and you build trust in two different ways. Number one Trust has built through communication. Trust is built by what you say but also just is important. Trust is built through action. Trust is built by what you do in today's digital economy. Trust has to be built with a digital first...

...mindset. That's because trust must be established long before a consumer comes into a branch. If they come into a branch, it all going forward in this post covert world to apply for a loan or toe open an account now, having a purpose that transcends profits, having a purpose that transcends the promotion of commoditized products. This is your key to bridge the consumer trust gap through your digital communications, what you say and through your digital experience, your actions what you do, both of which must deeply be rooted in empathy. Already, we've established in today's digital world that empathy. It is one of the most important competitive strategic advantages, if not the most important strategic advantage. Let's come back to that. What exactly is empathy well defined. The answer quickly. Let's go to Google And Google defines empathy as quote the ability to understand and share the feelings of another to help us understand the strategic advantage of empathy. Let's take a peek inside two brains. We have the bankers brain, and we have the consumers brain. Now the bankers brain. It's a beautiful brain, but the bakers brain is gonna be more analytical. It's gonna be more rational. It's gonna be more logical. As for the majority of financial brand leaders there often left brain thinkers relying very heavily on fact and on reason. And this is good once again because we're dealing with people's money. However, it's easy for the bankers brain to get trapped in banker thinking and really view the world through those three piece of just product of process of profits. And this is why I encourage financial brain leaders to step out of the bankers brain on. Let's take a stroll together into the hearts and minds of people.

Let's put on our consumer caps, and when we review the world from the mind's eye of people of consumers, those that are shopping and buying financial products and services we start to view the world through right brain thinking and right brain thinking is driven primarily by feelings and emotions because consumers, often by with the heart they buy with their feelings, they buy with their emotions. And they're in search of two things on their consumer buying journeys. They're looking for help. They're looking for hope. And how does help and show up in the brain? Let's dive a bit deeper into the brain as we explore three key parts together. First and foremost, we have the neocortex that is the thinking brain, and this is where logic and reason resides. Moving from the neocortex, we have the limbic system, which is the feelings brain, and this is where emotion and memories are stored. And finally, we have the reptilian brain, and this is what we depend upon for survival from a banking perspective. When you find your marketing and sells communications are talking to consumers about your great rates. You're amazing service and your commoditized lookalike laundry list of product features. You're very much speaking into the neocortex or to the thinking brain of consumers. What's the problem here? The problem is that every financial brand even in this digital world is communicating the same thing, and we're all speaking into the crowded and overloaded thinking brain of people. So let's take a step back. Let's look for ways to transform toe. Elevate your marketing and sales communication strategies...

...to begin to speak into the other two parts of the brain. First and foremost. Here's why. When you speak into the other two parts of a consumer's brain, you create exponential value for yourself for your financial brand. But you also do so for the people in the communities that you serve. But you can't gain direct access to a consumer's limbic system into their feelings brain without first gaining permission by communicating through the reptilian brain. This is where all of your marketing and sells communication strategies must begin. Technology has transformed our world, and digital has changed the way consumers 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 Thio because James Robert wrote the book that guides you every step of the way along your digital growth journey. Visit www dot digital growth dot com 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 10 times more loans and deposits. Now back to the show. Keep in mind this part of the brain, the reptilian brain, the survival brain. It's all about fighter flight. It's friend. It's foe. I like to call this the binary brain because the answers it's either one or a zero.

It's true or false. It's a yes or no if the primary question the reptilian brain ask is, can I trust you? The question being asked by the consumers Olympic system is How do you make me feel? And we we have first must gain access toe, unlock the reptilian brain when a consumer says, Can I trust you. Yes. Yes, I do. Because then and only then do we have permission to answer the question. How do you make me feel? Similarly? If the first question was a locked by drawing upon your purpose, the question of how you make the consumer Phil will be answered by how well you leverage your understanding of their emotional needs of the needs of the people within the community that you serve and and really more importantly, the process, your communication and actions through how you emotionally connect with them. Because if you succeed in making this emotional connection, it means that you've empathetically connected toe, activate positive feelings, positive emotions through your processes. Once again processes being the communications, the actions of your marketing and sales teams. And that's where trust is built. Trust is built on two things. What you say and what you do when you make a positive emotional connection with consumer you. Finally, you finally have permission then to communicate to the rational part of their brain. And that's the neocortex where then and Onley. Then it's now OK to start talking about your product. But even here, I want to be very careful to not fall back on old patterns on old behaviors on old habits and began to babble on about those rates, services and features because still, even at this point, it's not about you. It's about them. There needs their questions and concerns their...

...hopes, their dreams and how you can help them achieve them through purpose through empathy, all of which are enhanced by communications and actions of both marketing and sales teams. You build respect, you increase trust, and that will activate positive emotions, leading people to fall in love and commit to your financial brand. So what exactly is the value and that emotional connection and commitment? In a report titled Making the Emotional Connection of Financial Services, we found research that concluded and emotionally connected account Holder actually creates 30% upwards to 100% more value for a financial brand than even just a highly satisfied account holder. We also found what's called a multiplier connection or an emotional multiplier, and that means the value added to a new account holder. When we look at analyzing variables such as the number of financial products each account holder has with the financial brand, we find a multiplying effect. Emotionally connected account holders, which coming back, is established through purpose and empathy. Those emotionally connected account holders actually have a six times larger lifetime value when compared to the highly satisfied account holder. So if a six x multiplier of lifetime value doesn't settle the question once and fall for how these strategic principles rooted in purpose, empathy, emotion, they're not just touchy filly subjects, they create value to the bottom line. I don't know what will, but you get it. And that's why you are committed to maximizing your financial brands digital growth potential through purpose, through empathy. And now that you know how to use purpose and empathy,...

...toe win trust coming back to that keyword to start today's conversation toe, entrust through communication what you say and through actions what you do for both your marketing and sales teams. You will continue to get better and better at doing it digitally, especially when we start talking more about the psychology and understanding what drives people to make buying decisions for financial products and services. In fact, that's what I want to wrap up today's episode and briefly share five primary drivers of human behavior, as noted by a few Harvard Business School professors. First, you have the drive toe, acquire everything. You strive to gain its money, it's statuses and it's really power. Then you have the drive to bomb, and what you get out of this is acceptance. Love, shared value, community, if you will. Next, we have the drive to learn. So through education you gain knowledge and knowledge helps toe build confidence for a person. And similarly, the drive to defend is all about protection and security. And finally, we have the drive to feel happy to appreciate the beauty in life. And when we think about those five drivers of human behavior through the lens of what we say, what we do, what we communicate, how we do it, the experiences that we deliver. This is one of the main reasons purpose is at the heart of the digital growth blueprint because it is purpose that binds together so many of these drivers of human behavior, such as the drive to bond and the drive to feel. And while up to this point we've looked at purpose with a focus on consumers, purpose can also create value internally by aligning key stakeholders across your financial brand, which is exactly what we'll explore on the next...

...episode of the By the book, Siri's 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 Ley. Like what you hear? Tell a friend about the podcast and leave us a review on Apple podcasts, Google Podcast or Spotify and subscribe while you're there to get even. Mawr Practical and proven Insights, visit www dot digital growth dot com to grab a preview of James Roberts bestselling 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 12 key areas of focus that empower you to confidently generate 10 times more loans and deposits until next time, be well and do good.

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