Banking on Digital Growth
Banking on Digital Growth

Episode · 1 year ago

36) #ByTheBook: Your Purpose Is More Important Than Your Vision


Most financial brands know they need a vision statement. 

But vision isn’t the same thing as purpose. 

And if you don’t learn the difference, it’ll cost you. 

In this episode, I explain:

  • The difference between vision and purpose
  • What to do to bridge the digital experience gap
  • Why conscious capitalism is the path forward

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 empowers financial brand marketingsales and leadership teams to maximize thei or digital growth potential bygenerating ten times more loans and deposits. Today's episode is part ofthe by the book series where James Robert UN 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 show, greetings in hello. Thank you fortuning into the thirty six episode of the banking on digit, both podcast,where I James Rorbert, lay your digital anthropologists, continue to commit tosimplify the biggest digital marketing and sell strategies that will empoweryou and your financial brand to generate ten times more loans thandeposits. Today's episode is part of the by the book series, where I shareinsights for my best selling book banking on Digital Growth, thestrategic marketing manifesto to transform financial brands. As always,I do like to start these episodes by celebrating those that have read thebook and have shared feedback on Amazon, with the review in today. I'd like togive a shout OUP to J who shared quote baking on digital growth is a must readfor anyone serious about their financial services. Career Times arechanging fast and you need to change fast to Jay continues. This bookprovides a roadmap for your company, and I feel it has set me apart amongstmy peers, because I have read and reread this manifesto well. Thank youvery much for the kid words J and it's good to hear that you've not only read,but you've also reread my strategic manifesto for financial brands and foryou dear listener, if you've, already read or like J, have even rereadbanking on digital growth. I want to hear from you as well just take aminute. Send me an email directly to Jr wa at Digital Growthcom, and let meknow what has been one insight or idea that you have found most helpful in thebook every week. I'm getting notes from financial brand marketing leaders fromaround the world, and- and I want to hear from you too, about how banking ondigital growth is helping you to invision a new purpose for yourfinancial brand, because, unfortunately, as it stands today, the vast majorityof financial brands are not purpose driven but they're instead stillcontinuing to be driven by traditional...

...mission and or vision statements. Now,an episode. Thirty and thirty three, I shared the story of two brands thathave maximized their growth potential and very competitive. Very commoditizedmarket places one being shoes, the others being sucks and they've done soby positioning themselves and their brands beyond the product abut. Whatthey've done is they've really focused on positioning around purpose and thesestories in episode. Thirty, it was Tom Shoes and episode. Thirty, three, itwas bombis. You two have the potential to position your financial brand arounda purpose or what I like to say to bank on purpose, going far beyond thetraditional vision and mission statements that have guided so manyleaders over the last thirty forty fifty years, and this is because amission or a vision is not the same as a purpose. So what is a missionstatement? And how is a mission statement different than a visionstatement? The former is really about us, the financial brand, what we do,how we do it! The latter is also about US and that itprovides clarity and insight into where we as the financial brand. We as theorganization are going as we'll talk in this podcast and really inpack over afew more even this kind of direction, through a vision statement of wherewe're going. It's not enough and something that we can dive deeper tothat's. Why I'm calling on financial brands to define a third path a thirdway forward, and that is with a digital growth purpose. I'll explain why herein a moment, but but let's I want to lay the for foundational problems thatI see with traditional legacy mission. andvision statements number one, these traditional legacy mission andvision statements. They are outdated and typically these mission envisionstatements were conceived through some increasingly obsolete lends ofoperating in a physical or a tangible world built around branches andbroadcast, and, as we know, the future is intangible. The future is digitalproblem. Number two is that mission. Envision statements are pretty blandand commoditized. They tend to all look and sound the exact same, and werepeatedly see this through our digital growth, diagnostic studies and andseriously. You know you could take one bank or Creditin's mission, envisionstatement and then just hit copy and...

Pacte to another financial brand and Nione would be the wiser. The third problem we see is that mission andvision statements are often self serving their inward focused. Theyaddress the needs of the financial brand and in Werecases, where they dohave some sort of external focus or perspective, whether that be on themarket places the consumer, the community, when they do have this.These statements are very clinical, there's, no emotion tied to them,they're, very generic or lofty ideas without any type of concrete substanceor definition. And finally, the fourth problem that wesee and really, most importantly, is that mission. Envision statements arenarsisistic and that's a reflection on society as a whole. These mission,envision statements, are almost always about us. What our financial brand needs with ourbank, what our credit union needs and wants so read a finding mission andvision statements. I get it. I get that it can feel like yourrocking the boat. There's a lot of emotion, tied up in these missionenvision statements, every one has an opinion, and this is why I see the biggestopportunity in this part of your digital growth journey is to look for a third path. Look for athird way: That's not a mission statement, it's Not a vision statement,but it's something new. It's something different and it's something that hasthe potential to truly be transformative. Now we call this thepurpose statement and an notably the purpose statement. It's an outwardfocus, it's an outward facing statement and it establishes your financialbrands purpose in relationship to other people. More importantly, the people inthe communities that you serve a purpose statement is intended to buildtrust. It's intended to create value for those people in the communitiesthat you serve, thus resulting in a positive emotional response. Just likewe saw an episode number thirty with Tom Shoes just like we saw an episodenumber thirty, three with bobis and their sucks. Now. Does this mean thatyou have to toss out your your past to do away with the legacy missionenvision statements altogether? Absolutely not, but when it comes to positioning when itcomes to marketing when it comes to sells and when it comes to culture,even you should place a higher priority on your digital growth purposestatement, because purpose becomes the...

North Star for your financial brandpurpose becomes. The guiding light of where you can go in the future purposealso becomes a litmus test as well for decision making. So why does it matterso much that your purpose statement this third way? This third path is notinward. Looking inward focus like the traditional legacy mission, envisionstatements that we see well, it's because it's the very narcissism andthe tunnel vision that created the situation were in in within an industryin the first place is the reason that people don't trust financial brands.You see consumers for the most part, see financial bands being driven bytheir own interest and in fact, a report from facebook found that fiftythree percent of millennials, what out of every two millennials, feel theyhave no one to trust for financial guidance. Even worse, only eightpercent of billennals fiel they can trust financial institutions forguidence. Put that inother way. Ninety two percent of millennials do not feelthey can trust financial institutions for financial guidance. HMM anotherstudy from Viacom shared that seventy three percent of millennials wouldreally feel more excited about a financial offering com coming fromGoogle coming from anazon apple paypile. Then they would from a traditionalfinancial brand, and I've talked about this over and over and over again moneyis complex. Money is stressful, but that stress that people are feelingit's not just about the economy. Why are the younger demographics, themillennials and even the X and Nethe exers, the the ginzers? Why are theymore trusting of big tech than they are of atraditional financial brand? It's not just because big tech happens to be theones that the interact with on a daily basis, more than any others and and alot of their digital experiences and digital expectations are being set bybig tech by google, by Amazon by Facebook, by apple by Netflix byspotify. A lot of this has to do because of usbecause of we as financial brands and how we either a act, show up andcommunicate with the world or really be how we don't act, show up andcommunicate with the world. Technology has transformed our world,and digital has changed the way consumer shop for and by 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 andsales 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 growthcom 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 practical andproven insight. You can start using today to confidently generate ten timesmore loans and deposits. Now Back to the show Jack Welch, I love his thinking. He summed it up sonicely when he shared quote: pursuing shareholder strategy arepursuing shareholder value, as a strategy was the dumbest idea ever. In quote, at the sea sweet level, we see that financial brand leaders aretraditionally driven by what we call the three Peece they're, driven by the product, they'redriven by the processes and the efficiencies from the products in theprocesses which, ultimately to the third P, which is the profit. Now this means the products they bring tomarket and the products and efficiencies they use to reduce cost,ultimately drive their future profits. But on the flip side of this equation,consumers are driven by totally different things, totally differentvalues and totally different onte needs and desires, which we define as healthnumber. One wealth number two and happiness number three, it'sinteresting, because just the other day, I was listening to a podcast andlearned that AARP CEO, Joan Jeakins. She thinks a lot about these same ideasabout the purpose that drives the work they're doing at Ar p as our ability tolive longer to live a healthier and really live more productive lives. Yes,that's what of mankind's greatest accomplished mints up to this point,however, what the research that ARP did. They found that most people view agingas a process of deterioation of the pendency of reduce potential of ofdigital andcapetance. Now, as a result of these deeply and grain negativeattitudes, people viewing the aging process as something to fear and fightagainst whether than is something of continued growth. That brings newopportunities for both in the individual as well as society, and thisproblem is exactly what is driving a arp's purpose as they are looking toand working towards changing the...

...perception of aging or is Joanne sharesquote. We need to desperately disrupt aging andquote and to do this Joyanshares. There are three keys that ARP is focusing on Whit. She refers to,coincidentally enough health, wealth and self. Now I had no idea aboutJoanne's perspective when I was writing banking on digilo growth, but it's goodto see that my thinking is aligned with hers. In fact, I'm thinking that weneed to get her on a future podcast episode of expinetial insights, becauseI want to dive deeper into this perspective that she shares aroundhealth, wealth and self, because it's so closely aligned with mine of health,wealth and happiness. It's so easy, it's so simple to understand, get is sopowerful from an internal positioning communication as well as externalpositioning and communication. So let's come back to the two perspectives Inoteded for financial brands. We have the internal drivers of the executiveteams around the three PS the products. The process is the propets in relationto the desires of people framed around their health, their wealth, theirhappiness. Clearly, these two sets of drivers, thefinancial brands and the consumers. The people are not fully aligned, soconflict is bound to arise in these relationships. Now we call thisconflict. The digital experience gap and the digital experience gap can onlybe bridged by trust. That's why it's in the best interest of financial brandsto win over both the hearts and minds of consumers to get more business, andthis creates, you know a certain cognitive dissidence. I know thatwhenever I talk with financial brand leaders, CEOS executive team leadershipteams, boards of directors about some of this touchy, feely stuff likeempathy, what they're really concerned aboutwhat they're really interested in is: okay, yeah great, that's Nice, JamesRobert. But how does this affect my bottom line and that that's anappropriate question for sure? However, one of the greatest opportunities thatI see for financial brands to capture is clear: Positioning Aroud, a purposethat transcends the promotion of commoditized products will generateeven more revenue for your financial brand in this post covid digital world.Put put it simply purpose is the path towards bigger profits. I'm going tosay that again, purpose is the path towards your financial brand capturingeven more profit. In fact, there are a growing number of leaders, includingsome that are guiding very big brands, whether that BICOSCO trader joes Reiwhole foods, their champion, what we... a concept around consciouscapitalism building companies based on the idea, their business is more thanjust about making a profit. Now, according to entrepredeur magazine,conscious capitalism inspired brands, inspired, companies are outperformingthe market by a factor of ten and a half and are even beating the quote:Unquote good to great companies that were classified in Jim Collins, reallygood book good to great. But these purpose driven conscious capitalisminspired companies are outperforming those good to great companies, buy upto three hundred percent THAs good to great companies being companies likeFanny May and Walgreens. Okay, I get it. Capitalism is quite a polarizing wowordin today's political climate, as many feel that capitalism is about creatingand maximizing a profit at the expense of others. It's you know about creatingwinners and losers. It's a zero some game, but in today's digital economy,particularly post Covin, I see an opportunity to transform a mindset ofscarcity into a mindset of abundance byreframing and redefining capitalism. Beyond that zero some game, I like whatconscious capitalism is about those that are really leading by and from aposition and platform of conscious capitalism, because their message isaligned with this idea of purpose and how defining your purpose must be atthe heart of any digital growth strategy. Now all of this is to say ifsome of the biggest leaders today are thinking about capitalsm and there is areport, and I can't think of it off the top of my head, but there is report wewe Sel, two hundred leaders come out. Very very big, even I think chase waspart of this conversation where they talked about this. This idea of purposeand causcious cabitalism, because if these leaders are talking about this inthe context of purpose having a greater impact on the world at large, maybefinancial brand leaders might not need to be as focused onthose three PAS, as we've traditionally thought. Furthermore, on the consumerside, maybe the drivers of their behaviors aren't as touchy feely, as wewould think to believe. Otherwise, so there's an importance difference herewhen consumers brought up wealth and the answers when we're talking withthem through our studies, our secret shopping studies, wealth to them, doesit mean being a bizillionaire people? Just don't want to have to worry aboutto feel stress about money, because...

...that stress does take a direct toll ontheir health and it also impacts their well being or their happiness, and thisis exactly where the opportunity lies for financial brands who commit to bankon purpose. Consumers are looking for someone they can trust to guide them toa bigger, better brighter future and right now, from our view of the worldfrom the research that we're continuing to do it's the neo banks, it's theneolenders that are positioning themselves around a purpose bigger thanprofits, and that is going to bridge the everwidening consumer trust gap. So what about you? How are you, bridging the consumer,trust gap, digitally? What's the plan for your financial brand and how willyou move forward to shorten that gap to close that gap? That's why I'm going to invite you tojoin me on the next episode of the by the book series, and I will guide youforward along this part of your digital browth journey as we continue to getfurther inside the consumers mind to unpack the five drivers of humanbehavior and how purpose really motivates people's buying decisions ina financial world, as always at until next time be well, do good and washyour hands. Thank you for listening to anotherepisode of banking on Digital Growth, with James Robert Lay like will youhear, 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 geteven more practical, improven insights, vis, it www don digital growthcom tograb a preview of James Robert's, best selling book bhanking 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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