Presentation Massachusetts  Bankers Association 3 1 12 Final
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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.

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

  • Massachusetts Banking AssociationAndrea J. Simon PhDMarch 1, 2012
  • 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
  • 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
  • The Times They Are A Changing Financial Services are changing, or ? Should you think about changing your culture Customers are changing, and fast 4
  • Is It A Time To Redefine Success? 5
  • Why Crisis Drives Change Change is literally pain. Brain fights change. 6
  • 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
  • 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
  • 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 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
  • 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
  • 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 opportunity A clear, simple story What’s your hook? 15
  • 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
  • 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
  • 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
  • But in a Blue Ocean Strategy Create a New Market Space by Creating Demand Among Non-users 19
  • 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 culture for Ford
  • 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
  • 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
  • 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
  • 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 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
  • Going Totally Mobile Fast Company: October 27, 2011 First Look: BankSimple’s iPhone App Aims To Reimagine Your Money 28
  • 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?
  • 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 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
  • 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
  • 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 Aligning your Organization 34
  • 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
  • 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@simonassociates.netSkype andrea.j.simon@simonandiPhone 914-245-1641Cell 914-261-1631 37