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Massachusetts Banking AssociationAndrea J. Simon PhDMarch 1, 2012
Challenge for today   Reviewing research:      If you are selling insurance and investments,      only x% of your customer...
For Both Of You   For your customers, how can you find   innovative ways to provide these services so   you make it:      ...
The Times They Are A Changing  Financial Services are changing, or ?  Should you think about changing  your culture  Custo...
Is It A Time To Redefine Success?                                    5
Why Crisis Drives Change   Change is literally   pain.                 Brain fights                         change.       ...
Could a Blue Ocean Strategy Help?   Find a new way to “see, feel, and   think” about what you are doing   Find a Blue Ocea...
In a Blue Ocean…   Create a New Market Space   Find Non-Users   Create demand for your products   See and Feel things in w...
Interesting but,HOW DO I DO THAT?                    9
Classical Music in a Blue Ocean? Andre Rieu                                   10
This is probably what you remember?                                      11
What Did He Do? New Market Space  Classical Music         Pop Music  Traditional Setting     Untraditional setting  Dress ...
Results? “A Maestro for the Masses” WSJ: Friday, June 11, 2010 Dutch conductor and violinist André Rieu is the king of cro...
What did he create?A BLUE OCEAN STRATEGY                        14
In Times of Change You Need…A Real Strategy   A well-defined, integrated,   cohesive approach   to a challenge and an   op...
All Strategies Ask…  Which customers or  markets will we target?  What distinguishes us?  What value proposition?  Why key...
Classic Strategic Thinking   Takes market structure   as a given.   Drives you to carve out a   position against the   com...
So, How Do You Win?                      Grabbing a                      bigger share of                      the “red-oce...
But in a Blue Ocean Strategy   Create a New Market Space   by   Creating Demand   Among Non-users                         ...
What might this mean for you?SHOULD YOU FIND A BLUEOCEAN STRATEGY?                                20
Some Blue Ocean Strategies
Ford versus the Horse   Went after people   who drove horses   Completely Changed   our Mode of   Transportation   New cul...
Yellow Tail®  Went after non-wine drinkers     Only 15% of Americans drank wine-     Red Ocean     85% drank other things:...
Southwest   In Bankruptcy     People who Drove between   Hubs              Shorter Distances                     Completel...
ING DIRECT  June 2011: Capital One Buys ING Direct, and  Customers Start to Freak Out (still pending)  Remember that in 20...
What about BankSimple?  Simple and Easy  Built around a mobile app!                               26
Why BankSimple?   Why BankSimple?   “Banks are lazy. They charge fees when no   fees are necessary. They make life hard   ...
Going Totally Mobile Fast Company: October 27, 2011 First Look: BankSimple’s iPhone App Aims To Reimagine Your Money      ...
Pattern Here: Still are the Same but…       CHALLENGE         TARGETED NONUSERS        ALTERNATIVESANDRE RIEU             ...
So you are a BankIS THIS FOR ME?                    30
Important trends for you   65% of the children being raised by single   parents—What are you doing for them?   Women are g...
Let’s think about these trends  Who is using your bank today? Who could?  Who is buying investments and/or insurance  else...
Where do you find a Blue Ocean Opportunity?SHIFT YOUR FOCUS                                              33
A Blue Ocean Focus   Focus on:     Adding Value + Innovation     Making the Competition Irrelevant     The Nonuser     Ali...
Please, don’t ask them what they need  Henry Ford’s quote:  “If I had asked people  how I could improve  their transportat...
Can you find a Blue Ocean?   It could open up an entirely new   opportunity for you!                                      36
Simon Associates Management Consultants1905 Hunter Brook RoadYorktown Heights, NY 10598www.simonassociates.netasimon@simon...
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Presentation Massachusetts Bankers Association 3 1 12 Final

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This Presentation was made in 2012 to Massachusetts Bankers Association on how to use Blue Ocean Strategic Thinking in Growing Bank Insurance Sales.

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Transcript of "Presentation Massachusetts Bankers Association 3 1 12 Final"

  1. 1. Massachusetts Banking AssociationAndrea J. Simon PhDMarch 1, 2012
  2. 2. Challenge for today Reviewing research: If you are selling insurance and investments, only x% of your customers are participating. How can you change that? If you aren’t selling insurance or investments, should you rethink your decisions? 2
  3. 3. For Both Of You For your customers, how can you find innovative ways to provide these services so you make it: Easier and simpler for customers to buy and use what they need Less complicated and more attractive for nonusers to get the services they need 3
  4. 4. The Times They Are A Changing Financial Services are changing, or ? Should you think about changing your culture Customers are changing, and fast 4
  5. 5. Is It A Time To Redefine Success? 5
  6. 6. Why Crisis Drives Change Change is literally pain. Brain fights change. 6
  7. 7. Could a Blue Ocean Strategy Help? Find a new way to “see, feel, and think” about what you are doing Find a Blue Ocean Strategy Find customers that want to use you for Insurance, Investments and Other services
  8. 8. In a Blue Ocean… Create a New Market Space Find Non-Users Create demand for your products See and Feel things in ways not there before Make it simpler, easier and less complex 8
  9. 9. Interesting but,HOW DO I DO THAT? 9
  10. 10. Classical Music in a Blue Ocean? Andre Rieu 10
  11. 11. This is probably what you remember? 11
  12. 12. What Did He Do? New Market Space Classical Music Pop Music Traditional Setting Untraditional setting Dress in classic form Colors, fashion Conductor’s back Conductor’s Personality Disengaged Face First Focused on adults Totally engaged Funeral Young and Old Party 12
  13. 13. Results? “A Maestro for the Masses” WSJ: Friday, June 11, 2010 Dutch conductor and violinist André Rieu is the king of crossover classical music. Can his balloon-filled spectacles make it in the U.S.? At concerts like this one at the Wiener Stadthalle, Mr. Rieu grossed about $96 million on tour last year. That haul landed him at No. 6 among the worlds top touring acts, according to Billboards 2009 tally—ranked just below U2, Madonna and Bruce Springsteen, and above Britney Spears, Coldplay and Metallica. 13
  14. 14. What did he create?A BLUE OCEAN STRATEGY 14
  15. 15. In Times of Change You Need…A Real Strategy A well-defined, integrated, cohesive approach to a challenge and an opportunity A clear, simple story What’s your hook? 15
  16. 16. All Strategies Ask… Which customers or markets will we target? What distinguishes us? What value proposition? Why key processes give us competitive advantage? What are the human, technological or organizational enablers of the strategy? 16
  17. 17. Classic Strategic Thinking Takes market structure as a given. Drives you to carve out a position against the competition Trying to capture segments among the same set of users. Reel in the competition 17
  18. 18. So, How Do You Win? Grabbing a bigger share of the “red-ocean” market is a zero- sum game— One wins, the other loses. 18
  19. 19. But in a Blue Ocean Strategy Create a New Market Space by Creating Demand Among Non-users 19
  20. 20. What might this mean for you?SHOULD YOU FIND A BLUEOCEAN STRATEGY? 20
  21. 21. Some Blue Ocean Strategies
  22. 22. Ford versus the Horse Went after people who drove horses Completely Changed our Mode of Transportation New culture for Ford
  23. 23. Yellow Tail® Went after non-wine drinkers Only 15% of Americans drank wine- Red Ocean 85% drank other things: Blue Ocean Strategy: Turn non-drinkers into frequent enjoyers. Change the Culture: Retailers and non-wine drinkers Results: »Dominating the overseas export market, [yellow tail]® is the fastest growing imported wine in US market history. » 23
  24. 24. Southwest In Bankruptcy People who Drove between Hubs Shorter Distances Completely different culture Business Travelers 2010 Financial Statistics • Net income: $459 million Union • Total passengers carried: 88 million • Total operating revenue: $12.1 billion 24
  25. 25. ING DIRECT June 2011: Capital One Buys ING Direct, and Customers Start to Freak Out (still pending) Remember that in 2007 ING Direct paid 4.5% on a savings account, while the average account gave 0.46%, according to Bankrate.com Then there was the fast-food aesthetic: simple, inexpensive service. ING Direct offered exactly one type of savings account and one type of checking account. There were no fees and no minimum balances Blog post: Customer, “I’m going to stay with them until they make changes, then bail for a local credit union” 25
  26. 26. What about BankSimple? Simple and Easy Built around a mobile app! 26
  27. 27. Why BankSimple? Why BankSimple? “Banks are lazy. They charge fees when no fees are necessary. They make life hard when it doesnt need to be. They dont provide up-to-the-minute information to customers about their own money. Banks have become adversaries rather than advocates for their customers.” “Simple is not a bank. We replace your bank and provide the clarity and sophistication that you need to manage your finances.” 27
  28. 28. Going Totally Mobile Fast Company: October 27, 2011 First Look: BankSimple’s iPhone App Aims To Reimagine Your Money 28
  29. 29. Pattern Here: Still are the Same but… CHALLENGE TARGETED NONUSERS ALTERNATIVESANDRE RIEU NON-CONCERT ROCK, POP, JAZZ GOERS/YOUNGER EVERYTHING BUT PEOPLE CLASSICAL MUSICFORD NON-CAR DRIVERS HORSESYELLOW TAIL NON-WINE DRINKERS BEER/HARD LIQUORSOUTHWEST NON-FLIERS DROVE DISTANCESING DIRECT/ BANKSIMPLE SAVERS/MOBILE LOTS OF OPTIONSWHAT ABOUT YOU? WHO ARE YOUR WHAT ARE THEIR NONUSERS ALTERNATIVES?
  30. 30. So you are a BankIS THIS FOR ME? 30
  31. 31. Important trends for you 65% of the children being raised by single parents—What are you doing for them? Women are going to be >50% dentists; 45% doctors—How are you targeting them? All those savers of 401Ks are going to start to live off them—How can you help them? Young people think of careers in 4 year cycles— What might you do for them? 93% of Valentine’s Day Purchases were being done online—What could that mean for mobile banking? 31
  32. 32. Let’s think about these trends Who is using your bank today? Who could? Who is buying investments and/or insurance elsewhere, or not at all? What are those unmet needs? What kind of culture will make them trust you? How do you tailor this for nonusers? Create the right environment for them? Who are you built for? Women or for men? Hi Touch or Hi Tec? 32
  33. 33. Where do you find a Blue Ocean Opportunity?SHIFT YOUR FOCUS 33
  34. 34. A Blue Ocean Focus Focus on: Adding Value + Innovation Making the Competition Irrelevant The Nonuser Aligning your Organization 34
  35. 35. Please, don’t ask them what they need Henry Ford’s quote: “If I had asked people how I could improve their transportation they would have told me to make their horses go faster.” 35
  36. 36. Can you find a Blue Ocean? It could open up an entirely new opportunity for you! 36
  37. 37. Simon Associates Management Consultants1905 Hunter Brook RoadYorktown Heights, NY 10598www.simonassociates.netasimon@simonassociates.netSkype andrea.j.simon@simonandiPhone 914-245-1641Cell 914-261-1631 37
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