20110928 wwjd shevlin_final
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WWJD? What Would Jerry Garcia Do If He Were A Credit Union CEO?TRANSCRIPT
What Would Jerry Do?(If He Was a Credit Union CEO)
Ron ShevlinSenior Analyst
Aite Group
Management “lessons” from the Dead
What Would Jerry Do?
Regulations
Growth
Charter conversions
Mergers
Capital adequacy
Strategy
Engagement
Technology
What Would Jerry Do?
Strategy
Engagement
Technology
What Would Jerry Do?
Strategy
Engagement
Technology
www.aitegroup.com Page 9
“Lack of preparation, direction and cooperation have made this album the most unreasonable project with which we have ever
involved ourselves.”
“You are now branded an undesireable group.”
“It all adds up to a lack of professionalism. The Grateful
Dead is not one of the top acts in the business as yet.”
What Would Jerry Do?
Strategy
•Create new business model
•Use free to create network effect
•Vertically integrate
What's your strategy?
Superior rates
Branch location
Member service
Other
Bank of Little Hope
Uneedus Bank
First Bank of Whynot
“If you want to get rich, there’s Little Hope for you.” “Uneedus. More
than you know.”
“Why bank with us?Whynot.”
“We’re oneBad Axe Bank.”
Bad Axe Bank
Is service an effective differentiator?
• Service may be what your CU does best, but it doesn’t mean your service is comparatively better
• Service means different things to different people
Disciplines of market leaders
• Operational excellence– Processes optimized and streamlined to minimize cost and
provide hassle-free service• Customer intimacy
– Focus on helping customers understand exactly what they need and ensuring the solution gets implemented properly
• Service leadership– A focus on the core processes of invention, product (or
service) development, and market exploitation
Mapping disciplines to FIs
Operational excellence
ING Direct (US)
ING Direct
“To promote customer homogeneity and keep costs down, ING Direct won't hesitate to fire customers who demand too much. Better to win over customers with shrewd marketing and good rates wrought by the cost
efficiencies of doing business online.”
Bank Technology NewsDecember 2005
Mapping disciplines to FIs
Operational excellence
ING Direct (US)
Customerintimacy RBC (CA)
RBC
“In 1999, RBC reorganized into a customer segment-led organizational structure.
Each primary segment is led by asegment manager who jointly plans and shares
P&L responsibility with product line counterparts.”
“The future of financial services: Intelligent growth”
IBM Institute for Business Value
Mapping disciplines to FIs
Operational excellence
ING Direct (US)
Customerintimacy RBC (CA)
Service leadership USAA
USAA’s investments in service leadership
• Remote deposit capture• Member ratings• Auto Circle• PFM
What Would Jerry Do?
Strategy
Engagement
Technology
CBS: "Ms. Pelosi is a huge Dead fan, her
spokeswoman said."
"I'll show you the bathroom. This is my prized possession, a signed poster of the Grateful
Dead."
What Would Jerry Do?
Engagement
•Facilitate member-to-member contact
•Total customer experience
What are CUs doing to engage members?
Source: Aite Group survey of 54 credit unions Q1 2011
External
Internal
Benefits of product review pages
• Assisted selling• Member advocacy• Better market intelligence• Member engagement
Benefits of collaborative support
• Reduced call volume• Expanded knowledge base• Better employee training• Member engagement
What Would Jerry Do?
Strategy
Engagement
Technology
Keeping up with technology is a challenge
Source: Aite Group survey of 91 credit unions, January 2010
IT priorities are all over the map
Source: Aite Group survey of 83 credit unions, January 2011
Aligning strategy and technologies
Operational excellence
Purely mobileIntegrated
social media
Customerintimacy
Financial advice and guidance
Service leadership
Integrated social media
Purely mobile
What Would Jerry Do?
Strategy
Engagement
Technology
(If He Was a Credit Union CEO)
Measure your online marketing maturity
Online marketing maturity model
LEVELS
Performed
Integrated
Optimized
Demandgeneration
Demandconversion
Accountcreation
PROCESSES
Ron [email protected]@rshevlinhttp://marketingteaparty.comwww.aitegroup.com
Aite Group (eye-tay) is an independent research and advisory firm focused on business, technology, and regulatory issues and their impact on the financial services industry.