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 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 six episode of the banking on Digital Growth Podcast, where I James Robert Lay, your digital anthropologists, continue to commit to simplify the biggest digital marketing and cell 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. As always, I do like to start these episodes by celebrating those that have read the book and have shared feedback on Amazon with the ree view, and today I'd like to give a shout out to Jay, who shared quote. Banking on digital growth is a must read for anyone serious about their financial services career. Times are changing fast and you need to change fast. To Jay continues, this book provides a Road Map for your company and I feel it has set me apart amongst my peers because I have read and reread this manifesto. Well. Thank you very much for the kind words, 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 even reread 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 Growthcom and let me know what has been one insight or idea that you have found most helpful in the book. Every week I'm getting notes from financial brand marketing leaders from around the world and and I want to hear from you two about how banking on digital growth is helping you to envision a new purpose for your financial brand because, unfortunately, as it stands today, the vast majority of financial brands are not purpose driven, but they're in stead, still continuing to be driven by traditional mission and or vision...

...statements. Now, in episode thirty and thirty three, I shared the story of two brands that have maximized their growth 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 brands beyond the product. But what they've done is they've really focused on positioning around purpose and these stories and episode thirty it was Tom Shoes and episode thirty three it was Bombus. You two have the potential to position your financial brand around a 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 leaders over the last thirty, forty, fifty years. And this is because a mission or a vision is not the same as a purpose. So what is a 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 it provides clarity and insight into where we as the financial brand, we as the organization, are going, as we'll talk in this podcasts and really unpack over a few more even this kind of direction through a vision statement of where we're going. It's not enough and something that we can dive deeper to. That's why I'm calling on financial brands to define a third path, a third way forward, and that is with a digital growth purpose. I'll explain why here in a moment, but but let's I want to lay the FO foundational problems that I see with traditional legacy mission and vision statements. Number One, these traditional legacy mission and vision statements. They are outdated and typically, these mission and envision statements were conceived through some increasingly obsolete lens of operating in a physical or a tangible world built around branches and broadcast and, as we know, the future is intangible, the future is digital. Problem number two is that mission envision statements are pretty bland and commoditized. They tend to all look and sound the exact same and to re repeatedly see this through our digital growth diagnostic studies and and seriously, you know, you could take one bank or credits mission and vision statement and then just hit...

...copy and paste to another financial brand and no one would be the wiser. The third problem we see is that mission and vision statements are often self serving. They are inward focused. They address the needs of the financial brand and in where cases where they do have some sort of external focus or perspective, whether that beyond the market place, the consumer of 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 substance or definition. And finally, the fourth problem that we see, and really most importantly, is that mission and vision statements are narcissistic, and that's a reflection on society as a whole. These mission envision statements are almost always about us, what our financial brand needs, what our bank, what our credit union needs and wants. So redefining mission envision statements, I get it. I get that it can feel like you're rocking the boat. There's a lot of emotion tied up in these mission envision statements. Everyone has an opinion, and this is why I see the biggest opportunity, and this part of your digital growth journey is to look for a third path, look for a third 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 has the potential to truly be transformative. Now we call this the purpose statement and and and notably, the purpose statement. It's an outward focus, it's an outward facing statement and it establishes your financial brand's purpose in relationship to other people, more importantly, the people in the communities that you serve. A purpose statement is intended to build trust, it's intended to create value for those people in the communities that you serve, thus resulting in a positive 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? Absolutely not. But when it comes to positioning, when it comes to marketing, when it comes to cells and when it comes to culture even, you should place a higher priority on your digital growth purpose statement, because purpose becomes the North Star for your financial brand. Purpose...

...becomes the guiding light of where you can go in the future. Purpose also becomes a litmus test as well for decisionmaking. So why does it matter so much that your purpose statement, this Third 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 where in in within an industry in the first place. It's the reason that people don't trust financial brands. You See, consumers, for the most part, see financial brands being driven by their own interests. And in fact a report from facebook found that fifty three percent of millennials, what out of every two millennials, 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 can trust financial institutions for financial guidance. HMM. Another study from Viacom shared that seventy three percent of millennials would really feel more excited about a financial offering coming from Google, coming from Amazon, apple paypal, then they would from a traditional 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, the millennials 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 traditional financial brand? It's not just because big tech happens to be the ones that the interact with on a daily basis more than any others, and and a lot of their digital experiences and digital expectations are being set by big tech, by Google, by Amazon, by Facebook, by Apple, by Netflix, by spotify. A lot of this has to do because of us, because of we as financial brands, and how we either a act, show up and communicate with the world or really be how we don't act, show up and communicate with the world. Technology has transformed our world and digital has changed the way consumer shop for and by 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. 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 traditionally driven by what we call the three P's. They're driven by the product, they're driven by the processes and the efficiencies from the products and the processes, which ultimately to the third P, which is the profit. Now this means the products they bring to market, in 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 different values and totally different once needs and desires, which we define as health number one, wealth number two and happiness number three. It's interesting because just the other day I was listening to a podcast and learned that AARP CEO, Joan Jenkins, she thinks a lot about the same ideas, about the purpose that drives the work they're doing. An Aarp as our ability to live longer, to live a healthier and really live more productive lives. Yes, that's what of mankind's greatest accomplishment 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 aging process as something to fear and fight against, whether than something of continued growth that brings new opportunities for both in the individual as well as society. And this problem is exactly what is driving aaarp's purpose, as they are looking to and 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, I had 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. In fact, I'm thinking that we need to get her on a future podcast episode of exponential insights because I want to dive deeper into this perspective that she shares around health, 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 us so powerful from an internal positioning communication as well as external positioning and communication. So let's come back to the two perspectives I noted. For Financial Brands, we have the internal drivers of the executive teams around the three P's, the products, the processes, the profits in relation to the desires of people, framed around their health, their wealth, their happiness. Clearly, these two sets of drivers, the financial brands and the consumers, the people, are not fully aligned, so conflict is bound to arise in these relationships. Now we call this conflict the digital experience gap, and the digital experience gap can only be bridged by trust. That's why it's in the best interests of financial brands to win over both the hearts and minds of consumers to get more business. And this creates, you know, a certain cognitive dissonans. I know that whenever I talk with financial brand leaders, CEOS, executive team leadership teams, boards of directors about some of this touchy Feeley stuff like empathy, 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 this affect 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 capture is clear positioning around a purpose that transcends the promotion of commoditized products. Will generate 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 going to say that again. Purpose is the path towards your financial brand capturing even more profit. In fact, there are a growing number of leaders, including some that are guiding very big brands, whether the that be costco, trader Joe's, Uri whole foods. They're championing...

...what we call a concept around conscious capitalism, billing companies based on the idea their business is more than just about making a profit. Now, according to Entrepreneur magazine, conscious capitalism inspired brands, inspired companies, are outperforming the 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 really good book good to great. But these purpose driven, conscious capitalism inspired companies are outperforming those good to great companies buy up to three hundred percent. Tho's good to great companies being companies like Fanny May and Walgreens. Okay, I get it. Capitalism is quite a polarizing word in today's political climate, as many feel that capitalism is about creating and maximizing a prophet at the expense of others. It's, you know, about creating winners and losers. It's a zero some game, but in today's digital economy, particularly postcovid I see an opportunity to transform a mindset of scarcity into a mindset of abundance by reframing and redefining capitalism beyond that zero some game. I like what conscious capitalism is about, those that are really leading by and from a position and platform of conscious capitalism, because their message is aligned with this idea of purpose and how defining your purpose must be at the heart of any digital growth strategy. Now, all of this is to say, if some of the 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 there is 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 about this 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 three peas as we've traditionally thought. Furthermore, on the consumer side, maybe the drivers 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 the answers 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 to worry about, to feel stress about...

...money, because that stress does take a 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 to bank on purpose. Consumers are looking for someone they can trust to guide them to a bigger, better, brighter future and right now, from our view of the world, from the research that we're continuing to do, it's the neo banks, it's the neo lenders that are positioning themselves around a purpose bigger than 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 shorten that gap, to close that gap? That's why I'm going to invite you to join me on the next episode of the by the book series and I will guide you forward along this part of your digital growth journey as we continue to get further inside the consumer's mind to unpack the five drivers of human behavior and how purpose really motivates people's buying decisions in a financial world. As always it 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 podcasts or spotify and subscribe while you're there. To get even more practical, improven insights, visit wwwigital 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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