By Frank J. Diekmann
There was so much irony and envy on hand last week that it required a building with 2.6-million square feet of meeting space just to handle it all.
First, the irony. For a large conference with the name “bank” in it, for all the thousands of “bankers” from around the world who were on hand, and for all the references to the “banking” industry, if you listened carefully during the Bank Administration Institute’s Retail Delivery Show you might have noticed it was “credit unions” that so many people were talking about. Even if no one used those words—or even realized what was right beneath their noses.
The more obvious theme to the BAI meeting was “omnichannel,” the buzzword du jour that is all about providing the same experience for the consumer in whatever channel that consumer prefers, or is in at a point in time (we’ll have more on that later, and you can read one bank’s approach to omnichannel here).
But beneath the talk from vendors and participants and experts about omnichannel there was an omni-subject, if you will, and that was this elusive and slippery connection with the consumer that every bank (and credit union) is seeking. It’s elusive because it can’t be quantified, can’t be made a line item on an Excel spread sheet, it’s almost impossible to define, but for the consumer, like Justice Potter Stewart, they know it when they see it. And feel it. And experience it. It’s that deeper connection to a place of business, when it doesn’t feel like business at all.
At the bank meeting they looked to other industries, other leaders, to lead them into the much-desired light of connection and engagement. They looked to John Mackey, for instance. Mackey is the co-CEO of Whole Foods, and a man who speaks passionately about “conscious capitalism” as the backbone to Whole Foods’ success with both consumers and its employees.
“Conscious capitalism is about being more aware,” Mackey told the assembled. “It’s about a higher purpose than just making money. It’s about managing the business to benefit all your stakeholders. It’s about trust, accountability, integrity.”
Sound like the business model of any type of company you know?
And why do Whole Foods shoppers and employees connect so with what is, basically, a grocery store chain?
“Purpose,” answered Mackey. “ People want to feel that their work makes a difference. That it makes a difference in the world, although it doesn’t have to be grandiose. Great purpose makes for great companies. They want to see how that connects to adding value. I think most businesses do a very poor job of explaining how their work fits into the larger scheme of things.”
Again, can you think of a business model that has a higher purpose that might really resonate with employees and prospective employees (even if those businesses often do a poor job of explaining it to the natives?).
The message is hardly unique to one company in the food business. Mark King, president of adidas North America and chairman of the TaylorMade Golf Co., said those very same core values are behind TaylorMade’s extraordinary turnaround.
“If there is one thing that changed the direction of our company and changed people’s thinking and got them engaged it was having something to believe in that is bigger than their job,” said King. “The thing that matters most for leaders is leading people and inspiring people and creating a bigger cause for their organization. In today’s world, if companies don’t have that, they are really going to struggle. “
It Has To Mean More
And, so, many are struggling, especially banks, which can build modern branch networks and digital platforms that are the envy of credit unions. That’s what you can do with money and seven- and eight-figure budgets that allow you to buy anything and everything that’s on the shelf. But as could be seen just beneath the surface at BAI, the most valuable “products” aren’t products at all, and they’re nowhere to be found on that shelf.
“Your brand has to mean more to these young consumers than just products and services. Young consumers want more from their brands, they want it to have a soul,” said King. “Everyone has Saturday hours and checking accounts, Everyone does that. If you want young consumers to come in, there has to be some meaning to your brand. I don’t know what that is, you have to find that out.”
Can you think of a business model that has already found that out?
While speaking to the meeting, BAI CEO Debbie Bianucci observed that when it comes to turnover, banks that are doing well are in the 20% to 25% range. “And many banks are double that,” said Bianucci. “As bankers are trying to figure out how to engage with customers, to engage with employees is a high priority. “
Banks have similarly high churn rates when it comes to their customers. It isn’t that banks are bad or their employees evil-minded, it’s that there is an inherent conflict; the message at bank meetings such as BAI is at odds with why banks are organized in the first place—it isn’t for the mutual benefit of the customers.
There’s absolutely nothing wrong with that. But that doesn’t mean the consumer (or bank employees) feel right about it either, because whether it’s omni-channel or mono-channel, there’s just no meaning. No soul.
And you should need a couple of million feet of exhibit space to see that.
Frank J. Diekmann is Cooperator-in-Chief o CUToday.info, and can be reached at Frank@CUToday.info.