Banking on the Experience Economy

Banking on the Experience Economy

Elevating the Value

Let’s face reality; banking is a service business. Banks provide customers with financial services and charge for doing what their customers cannot do for themselves. In today’s market, banking is faced with a wide and expanding range of competition that is forcing price to become the primary defining factor at best. Unfortunately, fighting on price creates no greater value for the business, only volume with decreased margins. If there is no real difference in the eyes of the customer, there is no loyalty. Moreover, the idea of great customer service is not a differentiator, it is what is expected.

In the Experience Economy, it is much more than efficiency or performance ratings of service delivery, it is about a personal customized offering to the individual and staging memorable engagements. It is a shift from doing for a customer to doing with a customer. This is a deliberate strategic change from ‘time well saved’ in the service economy to ‘time well spent’ in the experience economy. Moreover, that time well spent being engaged, should come at a premium price.

The question before us is this; can a service economy industry like banking be elevated to that of an experience stager? We believe the answer is a definitive yes given the desire for change exists.

 

 

Staging Experiences with Bank Customers

In the book “The Experience Economy” by B. Joseph Pine II and James H. Gilmore, the phrase “Work is theatre and every business a stage” is used to frame up the key idea that staff have roles to perform and that the environment becomes a stage for the performance. To achieve this idea, banks need to refocus away from merely delivering efficient service to staging engaging experiences with their customers. The environment must be aligned with the brand promise and support the bank’s culture. Banks need to avoid rehashing older delivery models or duplicating another bank’s design to create activity. The physical and digital place must be a manifestation of the bank’s brand and purpose.

 

Transforming the Culture

The hurdle for banking in the Experience Economy is that it requires an honest assessment of the culture across the whole of the organization. The evolution to an experience begins always with the strength of the people. No brand statement or great environment design can create a memorable engagement without the efforts and intention of the staff. This must happen at all levels and all channels of customer interaction. The more staff is engaged with the customer, the more memorable the experience.

 

3S Model: Satisfaction, Sacrifice and Surprise

One method to begin the journey to becoming an experience is applying the practice of the 3S model: Satisfaction, Sacrifice and Surprise.

  • Satisfaction: First, begin by finding ways to improve satisfaction for the customer. Find out what they like about the current interaction with the bank and expand those ideas. Improve on what is already being done and eliminate the customer’s dislike.
  • Sacrifice: Next, identify customer sacrifices and barriers between what the customer wants and what they must accept because of limitations, efficiencies or selection. Begin removing these sacrifices to enhance the interactions with the customer. Remember, it’s about what the customer really wants and not about being limited to selecting from a menu of what is only offered. One major method to removing sacrifice is by leveraging digital channels. As more and more functions and processes of banking become digital, the more customizable they become. The more customizable an experience/event can be, the more personalized it becomes and eventually, the more customer sacrifice is removed. Being digital means being customizable.
  • Surprise: Finally, add in a surprise during the interaction. Surprises can be random or planned. Take the idea of opening an account. Imagine allowing the customer to create their own unique banking package that fits their needs. Then, because options can be digital, this particular blend of service and features gets named after them and becomes a pre-designed package offering that others can choose. It also creates conversation for the customer with their connections and an experience they are willing to share.

For banking to evolve from the service economy to the experience economy, it will take deliberate action. It is a shift in thinking that is interactive and intentional. The experience economy is a very purposeful level of interaction and takes practice, performance and focus. Just imagine if Starbucks stopped being an experience and commoditized the experience by just serving preset coffee drinks. No more getting your order the way you want with the extra shot or soy versus milk. No more customization of ingredients so that it’s your personal latte and no one else’s. How fast would the value of Starbucks fall?

The key to being an experience stager is knowing that experience is unique to each customer, and the customer becomes the product in which the engagement is designed around. To become an experience, an organization must create a unique difference through the engagement, the purpose and deliberate staging of the engagement in order to create a memorable and valuable event in the mind of the customer. Creating memories through experiences creates increased value and revenue.

We are in the era of the experience economy, companies who do not adapt or evolve from goods or services will be replaced by companies who can stage experiences in order to add greater value to their offering.

 

 

Guided Change

I have written, tweeted and even presented a fair amount about change. Change in personal, business and organization environments. The one thing I have not shared is that desired change is guided.

change

Many speak about change as if it was a package you can just pull from the shelves, It’s not. Proper change is a guiding process which requires outside supporter, experts and journey guides. No desired change happens in a vacuum, we all need someone else to guide us along the path, because each of us travels at a different rate and course. There is no one single plan that can work for everyone.

Over the past many years I have worked with some powerful teams help clients with change. In every interaction, the clients that were the most successful had a clear picture of what change would look like and feel like. By creating what they wanted to become and mapping it out, could individuals, teams or whole organizations understand the path that they needed to take and the obstacles to overcome. Most importantly, they knew they had a guide to help them when they faltered or got off course.

Take as an example of personal hardship and eating disorders. a young woman who had fallen into a ritual of poor eating to fit in with the crowd. When she finally realized, after great pain and medical issues, that she needed to change, she found a guide coach who could help her change, not change her. Soon she was on the road to who she wanted to become, and not what others wanted her to be. Read her story here and see how she is now helping guide others along the path she once traversed. The Unpolished Journey.

The second thing I have rarely shared about change is that it is never over. Change is ever evolving as time passes and events unfold around the change that is happening. With change, you can only describe what you believe you wish to become, map the path and begin the journey. Change is not a destination, but truly a journey where new ideas and revelations are revealed that may take you even further. As with Morgan Blair, founder of The Unpolished Journey, her journey of change rippled out around her, changed her from traveller to guide.

Now let’s take an organization who needs and wants to change. Healthcare organizations are being forced to change. These organizations are being directed from external forces. This method of change is not good nor will they control their outcomes. This is a spiral down and not a journey forward. Companies like Starizon are gathering people to help make change a positive path. Even the team members that help the transformation are called Guides and the client as explorers. In change, we explore options and possibilities and our guides help us, never lead or dictate the paths taken.

Change is transformation. We move from one state of being to another. Transformation is the journey we take to self discovery and change. Just as illustrated below, change is only possible in the future state, the past is unchangeable. In order to cross the gap of change, We need to redefine our purpose of why, map the process of ‘How’ to achieve ‘What’ we want to become.

Change Deltasm

To learn more or chat about how mapping your bridge to the future, just contact me when you decide that you want to take control of your own change.

Business Alignment

No matter if you’re a small business, large corporation or non-profit, there are connections in our purpose, communication and the places we connect in. I have written before on the importance of alignment and I am going to do again, but this time I want to break down the idea into steps.

I believe that the three key principles in all businesses are these; Culture, Brand and Place. The principles are not free-standing as some would treat them. No, all three of these are linked in an interlocking pattern. Adjust one and it affects the other two.

Take culture for the first example. What you and those around you believe about the same goal or outcome is your purpose and drives your brand message and the promise your communicate to others.

3 Thoughts on BPC 1

Your promise to others needs a place that reflects this promise and helps facilitate your interactions with others. Your brand frames what your place should be no matter if it is physical or digital. The real message here is that both your physical and digital places should reflect your brand and not merely be a trendy place or a copy of someone else’s place.

3 Thoughts on BPC 2

As I stated at the beginning of this post, all three are connected and each reacts and influences the others. The place where you interact must also support the belief and intention of your culture. It must stimulate those who enter to your belief and help become the stage of your people to communicate your message.

3 Thoughts on BPC 3

It is very important to always remember that these three principles apply to business, play and home. What you believe is reflected in how you speak and what you speak about. Your place becomes a manifestation of those ideas. It is very important to always remember, that all three principles either nourish the whole or jeopardize the possibility of growth and success.

Misalignment Hassles of Life and Business

Have you ever experienced a car that was out of alignment. The strangest of noises occur. Excessive wear on the tires, possibly leading to unusual balding patterns. Eventually this misalignment can cause costly repairs and replacement if allowed to go unchecked.

Misalignment is true of our personal life as well as for business. Unlike the alignment of a car, realigning ourselves can be much more complicated. Like your car, unless you are trained at detecting the conditions and causes, you can cause greater harm than good. When we attempt to repair our own problems and try to realign that which is out of alignment, we tend to allow for subtle imperfections or incomplete repairs to save time or money. Hint, there are no savings to doing correctly.

Take a look at one of my favorite diagrams for personal and business. Now, imagine that every interaction you want to create for another, be it friend or client, you want to be memorable.

BPC Alignment

Ask yourself some basic questions as they relate to staging this experience.

  1. What is the Experience you are staging for others? (The Experience)
  2. What are your beliefs and are they focused on the purpose of this experience? (Culture)
  3. What is the promise you communicate to others that will become part of the experience you want to stage? (Brand)
  4. Where will this experience happen and is it a reflection of your promise and beliefs? (Place)
  5. What language or phrases will you use that can be associated only with the experience? (Language)
  6. What elements of decor or environment pieces will support and theme the experience? (Decor)
  7. Where will the interaction of the experience be found? (Engagement Zones)
  8. Finally, are all these elements of an experience in alignment?

If you are a business or organization, this alignment model becomes quite complicated and at times almost impossible to make work, but stop there. As I have said in the past and posted about, I don’t believe in the “Impossible” only the improbable. All things are possible once you understand how. If you don’t,then find someone who can help.

Just like taking your car to a service station to get realigned, it is best to seek others outside your organization or yourself to help guide you through the process of realignment.

Until next time. Focus on the creation of memories and not the mechanics of the Experience for the experience happens when the memories are created.

Age of the Personal Brand

I have contemplated an idea that is growing larger. The idea of having a personal brand. And as with any brand, comes the brand mark or logo.  So my idea is this; are we truly returning to pictographic or iconographic society?

Evidence would argue that we are. More and more information in our everyday life is being identified by graphic representation and not the written word. Case in point; look to your desktop or mobile device. Very few icons include the use of text. In some cases, applications on mobile devices and desktops are using more icons and graphics to convey processes and functions. One of the obvious reasons is universal use.

Look to another rise in our society, social media brings us the increasing use of emoticons. Graphic icons to replace a set of emotional terms or statements. Technology has brought us back to a digital hieroglyphic age. Everything is becoming represented by icons. If so, then can we create icons for ourselves?

I say it already is happening. From the use of initials to clever Social Media avatar icons, we are in the age of personal branding and with personal branding comes personal logos. To give you an example here are my initials; K.M.D. I have used these all through my art life and as part of my signature. So what happens when I evolve from text to icons? what does my personal brand logo become?

KMD Brand Logo 500

A stylized expression of my initials transformed into a personal brand logo. A logo that can be used in social media as well as to identify ownership of things that belong to me.

But why do we need such icons for ourselves? In an age of graphics and speed, a personal logo does for a person what  a logo mark does for companies, creates a unique symbol that is connected to an individual who may share a name with many others. It is a way to stand out and be recognized.

My prediction is that we are about to see the boom of the personal logo trend. In our world of billions of online citizens, personal logos create that need to be unique or at least be seen as being unique. Soon small garage and bedroom businesses will appear who specialize in creating personal logos and human brands. Who knows, maybe brand consultants will help with couples wishing to join brands or couples needing to create new personal brands due to separation or loss. We have become an industry of we/me.

Is it right? Should we move further back into pictographic and iconographic languages? Maybe not, yet when has that ever stopped a generation or society from following a trend because of popularity or technologic need?

So, you be you and I’ll be me and my mark will be my proof of existence.

Alcoholism Rises to 500%

Drink UpThis may soon be the headline we read in the not too far future.

When mapping out cause and effect of any new development or change, it maybe helpful to visually map out how that new development or change will affect other conditions.

In the example of the title headline, imagine as more and more autonomous self-driving cars or accessible to the public some responses may not be as positive as expected. With self-driving cars, occupants are no longer responsible for their condition behind the wheel. Not being responsible for driving allows people the opportunity to indulge in excess.

Yes bartender, I’ll have another, I’m not driving.

In this example, more autonomous cars could bring about a dramatic increase in public drinking and alcoholism. After all, we’re human.

Autonomous cars and drinking maybe a dramatic example that may never unfold, but then again, it does have the possibility. Look at how companies approach developmental change within an organization. What maybe a small change from the top will ripple down may have unseen consequences if not mapped out. What about dramatic change such as rebranding, environmental design, digital adaptation or even evolving staff culture?

For companies attempting to evolve and stay profitable, not seeing how change will unfold could be as dangerous as not changing at all. This is why visual thinking and graphic facilitation are such a powerful tools in Organizational Change or new product development.

See the possible outcomes and pitfalls before you implement change.

“Thinging” is the New Thing

Thinging

When it comes to experiences, it’s not about the thing as it is more about what you do with the thing. An experience is in the action or “Ing” of a thing. A ball is a thing, yet ball balancing is doing. Any time you do something, you are in essence, experiencing. For a business, staging the action of a thing can be of greater value than merely the selling of the thing.

This trend, which the American Lifestyle Report identified and the Washington Post reported, indicates that consumers are shifting from the acquisition of things to seeking more experiences. People are doing more than buying more. Consumers are moving from the tangible goods to intangible experiences. With this shift comes greater value to the staging of experiences.

So, before you create your customer experience, stop and consider what you want your customer to do. What are you “Thinging” for your customers to experience and how are you driving value from this experience?

The New Economic Value Equation is this “Ing > Thing”

KMD

Reshaping Healthcare

Berry Tree

My grandmother was a simple woman and always had a unique way of viewing and explaining the world to me. Her simple upbringing always seemed to add clarity to her storytelling lessons which always helped me to better understand life, people and how things work.

The reason I bring this up is because while chatting with someone in Healthcare about the challenges of changing how people think about what healthcare should or could be, I was reminded of one of her stories about being something you’re not or trying to be different from your nature.

“Take the berry tree. ” She would whisper as if a great secret was being shared. “Its nature is to be a berry tree. No matter how you trim, cut or tie down its limbs to look like a berry bush, its nature is to be a tree. Its trunk will grow out as it was intended to do in order to support the long limbs where the berries should hang. But it will never be a berry bush. No matter how hard you try.”

Then she smiled and added, “The more you reshape it the less fruit you gather.  So, if you want a berry bush, than it’s wiser to plant a different kind of seed.” 

As I watch how the Healthcare industry is trying to change and reshape itself, I reflect on that story of the berry tree. If Healthcare needs to be different, then maybe it’s wiser to create something new, than it is to reshape that which it was intended to be. Maybe it’s time to grow from different seeds.

Change can be very hard to do from the inside. My advice is always to seek help from someone from the outside to get a fresh and different perspective to grow a new idea. Because thinking outside the box is just that, it’s the thinking from outside the box.

KMD