Banking on Digital Growth
Banking on Digital Growth

Episode · 1 year ago

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

ABOUT THIS EPISODE

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 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 manifestoto transform financial brands, that is now available on Amazon. Let's get intothe show. Greetings in hello, thank you for tuning into the thirty sixepisode of the banking on Digital Growth Podcast, where I James Robert Lay, yourdigital anthropologists, continue to commit to simplify the biggest digital marketing and cellstrategies that will empower you and your financial brand to generate ten times more loansand deposits. Today's episode is part of the by the book series where Ishare insights from my best selling book banking on digital growth, the strategic marketingmanifesto to transform financial brands. As always, I do like to start these episodesby celebrating those that have read the book and have shared feedback on Amazonwith the ree view, and today I'd like to give a shout out toJay, who shared quote. Banking on digital growth is a must read foranyone serious about their financial services career. Times are changing fast and you needto change fast. To Jay continues, this book provides a Road Map foryour company and I feel it has set me apart amongst my peers because Ihave read and reread this manifesto. Well. Thank you very much for the kindwords, Jay, and it's good to hear that you've not only read, but you've also re read my strategic manifesto for financial brands and for you, dear listener, if you've already read or, like Jay, have evenreread banking on digital growth, I want to hear from you as well.Just take a minute, send me an email directly to Jarwla at Digital Growthcomand let me know what has been one insight or idea that you have foundmost helpful in the book. Every week I'm getting notes from financial brand marketingleaders from around the world and and I want to hear from you two abouthow banking on digital growth is helping you to envision a new purpose for yourfinancial brand because, unfortunately, as it stands today, the vast majority offinancial brands are not purpose driven, but they're in stead, still continuing tobe driven by traditional mission and or vision...

...statements. Now, in episode thirtyand thirty three, I shared the story of two brands that have maximized theirgrowth potential in very competitive, very commoditized market places, one being shoes,the other being sucks, and they've done so by positioning themselves and their brandsbeyond the product. But what they've done is they've really focused on positioning aroundpurpose and these stories and episode thirty it was Tom Shoes and episode thirty threeit was Bombus. 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 the traditional vision and mission statements that have guided so many leadersover the last thirty, forty, fifty years. And this is because amission or a vision is not the same as a purpose. So what isa mission statement and how is a mission statement different than a vision statement?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 podcasts and really unpack overa few more even this kind of direction through a vision statement of where we'regoing. It's not enough and something that we can dive deeper to. That'swhy I'm calling on financial brands to define a third path, a third wayforward, and that is with a digital growth purpose. I'll explain why herein a moment, but but let's I want to lay the FO foundational problemsthat I see with traditional legacy mission and vision statements. Number One, thesetraditional legacy mission and vision statements. They are outdated and typically, these missionand envision statements were conceived through some increasingly obsolete lens of operating in a physicalor a tangible world built around branches and broadcast and, as we know,the future is intangible, the future is digital. Problem number two is thatmission envision statements are pretty bland and commoditized. They tend to all look and soundthe exact same and to re repeatedly see this through our digital growth diagnosticstudies and and seriously, you know, you could take one bank or creditsmission and vision statement and then just hit...

...copy and paste to another financial brandand no one would be the wiser. The third problem we see is thatmission and vision statements are often self serving. They are inward focused. They addressthe needs of the financial brand and in where cases where they do havesome sort of external focus or perspective, whether that beyond the market place,the consumer of the community, when they do have this, these statements arevery clinical. There's no emotion tied to them. They're very generic or loftyideas without any type of concrete substance or definition. And finally, the fourthproblem that we see, and really most importantly, is that mission and visionstatements are narcissistic, and that's a reflection on society as a whole. Thesemission envision statements are almost always about us, what our financial brand needs, whatour bank, what our credit union needs and wants. So redefining missionenvision statements, I get it. I get that it can feel like you'rerocking the boat. There's a lot of emotion tied up in these mission envisionstatements. Everyone has an opinion, and this is why I see the biggestopportunity, and this part of your digital growth journey is to look for athird path, look for a third way. That's not a mission statement, it'sNot a vision statement, but it's something new, it's something different andit's something that has the potential to truly be transformative. Now we call thisthe purpose statement and and and notably, the purpose statement. It's an outwardfocus, it's an outward facing statement and it establishes your financial brand's purpose inrelationship to other people, more importantly, the people in the communities that youserve. A purpose statement is intended to build trust, it's intended to createvalue for those people in the communities that you serve, thus resulting in apositive emotional response, just like we saw an episode number thirty with Tom Shoes, just like we saw an episode number thirty three with Bombus and their sucks. Now, does this mean that you have to toss out your your past, to do away with the legacy mission and vision statements all together? Absolutelynot. But when it comes to positioning, when it comes to marketing, whenit comes to cells and when it comes to culture even, you shouldplace a higher priority on your digital growth purpose statement, because purpose becomes theNorth Star for your financial brand. Purpose...

...becomes the guiding light of where youcan go in the future. Purpose also becomes a litmus test as well fordecisionmaking. So why does it matter so much that your purpose statement, thisThird Way, this third path, is not inward looking, inward focus,like the traditional legacy, mission and vision statements that we see? Well,it's because it's the very narcissism and the tunnel vision that created the situation wherein in within an industry in the first place. It's the reason that peopledon't trust financial brands. You See, consumers, for the most part,see financial brands being driven by their own interests. And in fact a reportfrom facebook found that fifty three percent of millennials, what out of every twomillennials, feel they have no one to trust for financial guidance. Even worse, only eight percent of millennials field they can trust financial institutions for guidance.Put that another way, ninety two percent of millennials do not feel they cantrust financial institutions for financial guidance. HMM. Another study from Viacom shared that seventythree percent of millennials would really feel more excited about a financial offering comingfrom Google, coming from Amazon, apple paypal, then they would from atraditional financial brand, and I've talked about this over and over and over again. Money is complex, money is stressful, but that's stress that people are feeling. It's not just about the economy. Why are the younger demographics, themillennials and even the X and not the exers, the the Jin's ears? Why are they more trusting of big tech then they are of a traditionalfinancial brand? It's not just because big tech happens to be the ones thatthe interact with on a daily basis more than any others, and and alot of their digital experiences and digital expectations are being set by big tech,by Google, by Amazon, by Facebook, by Apple, by Netflix, byspotify. A lot of this has to do because of us, becauseof we as financial brands, and how we either a act, show upand communicate with the world or really be how we don't act, show upand communicate with the world. Technology has transformed our world and digital has changedthe way consumer shop for and by financial services forever now. Consumers make purchasedecisions long before they walk into a branch, if they walk into a branch atall. But your financial brand still wants to grow loans and deposits.We get it. Digital growth can feel confusing, frustrating and overwhelming for anyfinancial brand marketing and sales leader. But...

...it doesn't have to, because JamesRobert wrote the book that guides you every step of the way along your digitalgrowth journey. Visit www dot digital growthcom to get a preview of his bestselling book banking on digital growth, or order a copy right now for youand your team from Amazon. Inside you'll find a strategic marketing manifesto that waswritten to transform financial brands, and it is packed full of practical and proveninsights you can start using today to confidently generate ten times more loans and deposits. Now back to the show. Jack Welch, I love his thinking.He summed it up so nicely when he shared quote. Pursuing shareholder strategy.Are pursuing shareholder value as a strategy was the dumbest idea ever. In quote, at the sea sweet level, we see that financial brand leaders are traditionallydriven by what we call the three P's. They're driven by the product, they'redriven by the processes and the efficiencies from the products and the processes,which ultimately to the third P, which is the profit. Now this meansthe products they bring to market, in the products and efficiencies they use toreduce cost ultimately drive their future profits. But on the flip side of thisequation, consumers are driven by totally different things, totally different values and totallydifferent once needs and desires, which we define as health number one, wealthnumber two and happiness number three. It's interesting because just the other day Iwas listening to a podcast and learned that AARP CEO, Joan Jenkins, shethinks a lot about the same ideas, about the purpose that drives the workthey're doing. An Aarp as our ability to live longer, to live ahealthier and really live more productive lives. Yes, that's what of mankind's greatestaccomplishment mints up to this point. However, what the research that a AIRP did? They found that most people view aging as a process of deterioration,of dependency, of reduced potential, of of digital and competence. Now,as a result of these deeply ingrained negative attitudes, your people viewing the agingprocess as something to fear and fight against, whether than something of continued growth thatbrings new opportunities for both in the individual as well as society. Andthis problem is exactly what is driving aaarp's purpose, as they are looking toand working towards changing the perception of aging,...

...or, as Joan shares, quote. We need to desperately disrupt aging and quote, and to do this, Joe and shares. There are three keys that AARP is focusing on,which she refers to coincidentally enough, health, wealth and self. Now, Ihad no idea about Joan's perspective when I was writing banking on digital growth, but it's good to see that my thinking is aligned with hers. Infact, I'm thinking that we need to get her on a future podcast episodeof exponential insights because I want to dive deeper into this perspective that she sharesaround health, wealth and self, because it's so closely aligned with mine ofhealth, wealth and happiness. It's so easy, it's so simple to understand. Get us so powerful from an internal positioning communication as well as external positioningand communication. So let's come back to the two perspectives I noted. ForFinancial Brands, we have the internal drivers of the executive teams around the threeP's, the products, the processes, the profits in relation to the desiresof people, framed around their health, their wealth, their happiness. Clearly, these two sets of drivers, the financial brands and the consumers, thepeople, are not fully aligned, so conflict is bound to arise in theserelationships. Now we call this conflict the digital experience gap, and the digitalexperience gap can only be bridged by trust. That's why it's in the best interestsof financial brands to win over both the hearts and minds of consumers toget more business. And this creates, you know, a certain cognitive dissonans. I know that whenever I talk with financial brand leaders, CEOS, executiveteam leadership teams, boards of directors about some of this touchy Feeley stuff likeempathy, what they're really concerned about and what they're really interested in is,okay, yeah, great, that's Nice, James Robert, but how does thisaffect my bottom line? And that that's an appropriate question for sure.However, one of the greatest opportunities that I see for financial brands to captureis clear positioning around a purpose that transcends the promotion of commoditized products. Willgenerate even more revenue for your financial brand and in this post covid digital world, put it simply, purpose is the path towards bigger profits. I'm goingto say that again. Purpose is the path towards your financial brand capturing evenmore profit. In fact, there are a growing number of leaders, includingsome that are guiding very big brands, whether the that be costco, traderJoe's, Uri whole foods. They're championing...

...what we call a concept around consciouscapitalism, billing companies based on the idea their business is more than just aboutmaking a profit. Now, according to Entrepreneur magazine, conscious capitalism inspired brands, inspired companies, are outperforming the market by a factor of ten and ahalf and are even beating the quote unquote, good to great companies that were classifiedin Jim Collins really good book good to great. But these purpose driven, conscious capitalism inspired companies are outperforming those good to great companies buy up tothree hundred percent. Tho's good to great companies being companies like Fanny May andWalgreens. Okay, I get it. Capitalism is quite a polarizing word intoday's political climate, as many feel that capitalism is about creating and maximizing aprophet at the expense of others. It's, you know, about creating winners andlosers. It's a zero some game, but in today's digital economy, particularlypostcovid I see an opportunity to transform a mindset of scarcity into a mindsetof abundance by reframing and redefining capitalism beyond that zero some game. I likewhat conscious capitalism is about, those that are really leading by and from aposition and platform of conscious capitalism, because their message is aligned with this ideaof purpose and how defining your purpose must be at the heart of any digitalgrowth strategy. Now, all of this is to say, if some ofthe biggest leaders today are thinking about capitalism and the there is a report,and I can't think of it off the top of my head, but thereis report where we sell two hundred leaders come out very, very big.Even I think chase was part of this conversation where they talked about this,this idea of purpose and conscious capitalism. Because if these leaders are talking aboutthis in the context of purpose having a greater impact on the world at large, maybe financial brand leaders might not need to be as focused on those threepeas as we've traditionally thought. Furthermore, on the consumer side, maybe thedrivers of their behaviors aren't as touchy feely as we would think to believe otherwise. So there's an importance difference here. When consumers brought up wealth and theanswers when we're talking with them through our studies, are secret shopping studies.Wealth to them doesn't mean being a bazillionaire. People just don't want to have toworry about, to feel stress about...

...money, because that stress does takea direct toll on their health and it also impacts their wellbeing or their happiness. And this is exactly where the opportunity lies for financial brands who commit tobank on purpose. Consumers are looking for someone they can trust to guide themto a bigger, better, brighter future and right now, from our viewof the world, from the research that we're continuing to do, it's theneo banks, it's the neo lenders that are positioning themselves around a purpose biggerthan profits and that is going to bridge the ever widening 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 will you move forward to shortenthat gap, to close that gap? That's why I'm going to invite youto join me on the next episode of the by the book series and Iwill guide you forward along this part of your digital growth journey as we continueto get further inside the consumer's mind to unpack the five drivers of human behaviorand how purpose really motivates people's buying decisions in a financial world. As alwaysit 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 RobertLaigh. Like what you hear, tell a friend about the podcast and leaveus a review on apple podcast, Google podcasts or spotify and subscribe while you'rethere. To get even more practical, improven insights, visit wwwigital growthcom tograb a preview 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 and sales blueprint framed around twelve key areas of focus thatempower you to confidently generate ten times more loans and deposits. Until next time, be well and do good.

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