Unlocking Digital Growth: Bridging the Gap Between Data and Action | Ep. 442 with Derik Krauss

In today's episode of the Exponential Insights series we discuss a significant issue faced by financial institutions: the loss of loans and deposits via their websites. Despite the clear advantages, many credit unions and banks struggle with the digital transformation needed to optimize their website's performance.

James Robert is joined by Derik Krauss, shareholder and senior website consultant at BloomCU,?to discuss the resistance financial brands show toward change, despite the evident opportunities for growth. They touch upon the 'tyranny of the status quo,' explaining that many organizations are hindered by outdated practices and a fear of radical transformation. They urge financial brands to embrace change, potentially even launching new, focused brands to capture unmet market needs.

Join us as we discuss:

• Empathy and Authenticity in Marketing
• The Tyranny of the Status Quo
• The Innovator's Dilemma in Banking

The key moments in this episode are:

00:00 Welcome to The Banking on Digital Growth Podcast

05:40 The Importance of ROI in Website Design

12:04 Empathy and Authenticity in Marketing

17:19 Challenges in Credit Union Marketing

23:22 The Tyranny of the Status Quo

30:36 A New Tool for Website Performance

40:22 Understanding the Struggle of Change

41:52 Bridging the Gap: From Thought to Action

42:55 The Power of Data and A/B Testing

44:24 Challenges in Implementing Change

51:13 The Innovator's Dilemma in Banking

01:01:29 Lessons from Kodak and Netflix

01:06:13 Embracing New Ideas and Overcoming Resistance

Embracing Change: The Key to Thriving in the Digital Era for Financial Institutions

In an era defined by rapid technological advancements and evolving consumer behaviors, financial institutions such as banks and credit unions face unprecedented challenges. Successfully navigating these challenges requires a profound transformation, guided by insights and actions that are both innovative and courageous. This is precisely the topic explored in a recent episode of the "Banking on Digital Growth" podcast, where host James Robert Lay sat down with Derik Krauss, senior website consultant at BloomCU, to delve into the future of financial brand websites and the crucial changes needed to drive growth.

Seeing the Invisible: Identifying Gaps and Opportunities

In today's digital age, banks and credit unions must ask themselves, "What if you could know exactly how many loans and deposits your website is losing right now?" This fundamental question, posed by James in the podcast, encapsulates the need for financial institutions to uncover blind spots and gaps in their digital presence. Derik shared that the key lies in deploying tools such as Metrify, which provide objective insights into the performance of a financial brand's website by comparing it with industry peers.

Yet, the truth is often met with resistance. Derik noted that some institutions, even when presented with data showing they are losing millions of dollars, hesitate to act. This hesitance is tied to a natural human resistance to change and the comfort of the "tyranny of the status quo," as Derik described it.

The Importance of Empathy and Authenticity

A recurring theme throughout the conversation was the importance of empathy and authenticity in marketing strategies. Derik emphasized that many financial institutions' marketing efforts often echo the same promises—great service and rates—without truly expressing their unique values and identities. To differentiate themselves, they must embrace a deeper level of empathy, providing targeted and authentic content that truly resonates with their target audience.

Breaking Free from Complacency: The Need for Radical Change

James and Derik discussed a critical truth: financial institutions are undergoing a massive disruption, much like other industries before them. The "innovator's dilemma," as Derik referenced from Clayton Christensen's work, illustrates the challenge: organizations must either undergo radical transformation or launch new brands that can operate unburdened by the status quo.

This concept suggests that credit unions should consider launching secondary digital brands that focus on specific niches, capable of cannibalizing their existing business if necessary. This approach, although daunting, could provide a viable future path that embraces the new digital reality.

Beyond Insights: Taking Action

Finding success in this transformative journey involves not just identifying insights through tools like metrify but acting on them. James shared experiences of presenting data to banks and credit unions, only to witness inaction despite clear opportunities. The gap between seeing the data and taking action is often bridged by emotion and desire, highlighting a need for marketing teams to also play a role in mentorship and guidance through transformation.

Building the Future, Today

Ultimately, the dialogue between James and Derik underscored a pivotal message: the future belongs to those who have the courage to see differently, think differently, and act differently. The key to thriving in the financial sector's digital transformation requires vigilance against complacency, a commitment to authentic customer engagement, and a strategic embrace of change and innovation. For financial brands willing to invest in these areas, the opportunities for growth are both significant and achievable.

For more insights and inspiration on driving digital growth in the financial sector, connect with Derik at BloomCU, or dive into the strategic frameworks and workshops offered by the Digital Growth Institute. Transformative change is within reach, for those ready to take the leap.