Affluent and Wealthy consumers prefer customer service via remote channels rather than face to face. This is as true for GenY as it is across all generations. That is, interactions across virtual channels, and specifically social media, has become ubiquitous. This, according to an infographic entitled: Your wealthiest customers want service on Social Media researched by McKinsey & Co..
Social media. It is free, right? You can set up a Twitter handle or a Facebook page, update them a few times and be good. People will flock to you. People will hang on to every word and want to amplify everything you put out. Right? That is totally the way it works. No. Not at all. If that is the way you think you have a lot to learn.
How does a Bank remake itself so as to attain the prestige, the following of the likes of Apple, Disney, Harley Davidson, and Starbucks? This is the question Ken Olan, EVP / CFO of a $2 billion assets Victoria, TX based First Victoria Bank asks in his opinion post entitled Mission Possible: Creating a Category-of-One-Bank published on BAI’s Banking Strategies website. There is no doubt that retail banking is highly commoditized and without breaking out of the sameness, retail banking will continue to be plagued by cannibalization from non-traditional competitors and will eventually evolve into what Brett King refers to as ‘Utility’ services. In the article, Mr. Olan posits that “…banks need to start thinking more like category-of-one retailers and less like banks. The great companies of the world innovate more than products and services. They consistently challenge the status quo to create brands of ever greater relevance. Sometimes that means creating a vision to deliver something that your customers don’t even express a desire for.” And I completely agree. Financial Institutions – particularly Community Banks and Credit Unions – must dramatically reshape virtually every aspect of their business to grow and prosper. The traditional 80/20 rule is actually 80/2 [Read More…]