Top 10 from “Retailution” – Highlights from BAI Retail Delivery Conference 2010
KCK Blog was in Las Vegas October 19th to October 21st, 2010 for the BAI Retail Delivery conference. Attendance was up from last year. The exhibit floor and sessions were packed. Overall, in public, there was a lot of talk about innovation, mobile banking, remote deposit capture, and social media. In one-on-one conversations, the focus remains on bread and butter items: how to sell better at the point of sales, how to replace the revenues lost due to the new regulations, ID fraud, and privacy. Here are the top ten things we heard at BAI.
10. Learning from other industries: Customer engagement is critical and there is a lot to learn from Zappos. What Zappos has achieved defines what is possible.
9. Try. Learn. Repeat.: According to Doug Merrill, former CIO at Google, Google has 200 experiments running in the search window at any one time. Most are too small to notice, but important for learning. How can we experiment, pull the plug fast when it doesn’t work, and learn a lot?
8. Understand the latent need: Asking customers what they want is going to get what Henry Ford called the “faster horse” moment. Both Tom Kelley from IDEO and Doug Merrill talked about the need to learn from the customer but not asking them “what do you want?”, but understanding latent need by looking with a fresh pair of eyes and observing what customers do rather than what they say are good ideas.
7. Work with customers to produce better results: Rilla Delorier, CMO of SunTrust Bank, talked about what helped them achieve the highest customer satisfaction numbers from their Reg E correspondence. They brought in some customers to help them draft correspondence to customers on overdraft protection.
6. The Red Queen Effect: Tom Kelley at IDEO talked about how in various industries the red queen effect from Lewis Carroll’s “Through the Looking-Glass” is the apt metaphor for today – “”It takes all the running you can do, to keep in the same place.”
5. Trust – depends on who you ask! – BAI President and CEO Debbie Bianucci said that 2/3rds of the US consumers have trust in their own banking institutions at BAI 2009. On the opening day of BAI 2000, USA Today published a survey in which the banks had 9% trust from consumers compared to the most trusted institution, the army which came in at 39%. I can’t imagine the trust getting eroded by 57% in one year. I guess it depends on who you ask!
4. Data, Data Everywhere; but what should I do?: Everybody was talking about analytics but there was acknowledgement that little was being done. A number of sessions focused on leveraging that data to build a 360 degree view of the customer and cross-sell them more products to increase the wallet share leveraging next best action instead of next best offer.
3. On-line is the key battlefront for smaller banks: Credit cards have been consolidated by the large national players. 35% of the deposits are held by large national banks and that is increasing. The bank which has the highest name recognition in Louisville, KY is Bank of America. The kicker is that there is no Bank of America branch for 100 miles around! Smaller banks can’t focus only on branch based banking in this environment and have to focus on online banking.
2. iPad Give Aways Work (or at least we vendors think): IPad giveaways were as popular as cold hard cash in the exhibit floor based on the number of vendors that were offering it and based on the number of attendees that were talking about it.
1. BAI can put up a show: BAI did a great show of bringing thought leaders from both within the industry and outside the industry that gave us a lot to think about. The video introduction to each of the general sessions was our personal highlight. Here is an example.
Of course, receiving the FINTECH100 award on behalf of Equifax as a top vendor to the Financial Services Industry was the most satisfying part of the whole trip. That said, there was a lot of learnings from the conference both from discussions with the attendees and from the sessions. Look for future articles here on those.
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