Eysink Smeets Retail Business Consultants
Retail bankers Austria.What can retail bankers learn from retail?
Eysink Smeets Retail Business Consultants
November 4, 2015, Wien
Eysink Smeets Retail Business Consultants
What are these slides?My slides of the FMVÖ meeting in Vienna.
- I spoke at the BAWAG/PSK HQ in Wien on November 4, 2015.
- We had some hours of inspiring speeches and discussions.
- Here are most of the slides, but I took out some slides, that are not for publication.
- Please let me know what you think of it,- Kind regards,
Hans Eysink Smeets [email protected]
Eysink Smeets Retail Business Consultants
Sie haben mich gefragt die folgende Frage zu beantworten:
Eysink Smeets Retail Business Consultants
Wieviel Retail steckt im Banking?
Eysink Smeets Retail Business Consultants
Darüber haben wir nachgedacht
in den letzten Wochen.
Eysink Smeets Retail Business Consultants
Einige andere Fragen kamen dazu:
Eysink Smeets Retail Business Consultants
Wie viel Retail könnte im Banking stecken?
Eysink Smeets Retail Business Consultants
Warum steckt nicht viel mehr Retail
im Banking?
Eysink Smeets Retail Business Consultants
First: why do I tell you this?
Eysink Smeets Retail Business Consultants
Bosses of very large companies in the retail worldphone us to help them kick-start their retail strategies.
Us.
Eysink Smeets Retail Business Consultants
Those big-shots have made us workin 39 countries in the past 30 years.
Eysink Smeets Retail Business Consultants
Basically our clients ask us to change todays situation.Just a few clients schlepp themselves to their stores.
Retailer
Eysink Smeets Retail Business Consultants
And those ladies leave their shops unsatisfiedand with too few articles in their bags.
Retailer
Eysink Smeets Retail Business Consultants
What our clients would just love,is many, many consumers are running to their stores...
Retailer
Eysink Smeets Retail Business Consultants
...and when they leave, their many bags are filled to capacity. Retailer
Eysink Smeets Retail Business Consultants
...when you fear new competitors will create this situation. Retailer
Eysink Smeets Retail Business Consultants
Retailer
Our e-retail clients have basically the same question:How can you change from just a few unmotivated visitors...
Eysink Smeets Retail Business Consultants
...to many buying clients.
Retailer
Eysink Smeets Retail Business Consultants
Retail bankers ask almost the same
questions.
Eysink Smeets Retail Business Consultants
Retail bank
Retail banking business still looks okay,but how can we prevent that we go from this situation...
Eysink Smeets Retail Business Consultants
..to a rapid decline because of new competitors like global banks, internet, Google, Fintech, etc.?
Retail bank
Eysink Smeets Retail Business Consultants
Retail bank
What lessons could banking learn from retail to guarantee the future,
Eysink Smeets Retail Business Consultants
Okay, some lessons from Retail
Eysink Smeets Retail Business Consultants
Lessons from retail: Develop an assortment
that satisfies basics to fit individual needs.
Eysink Smeets Retail Business Consultants
Standardized products? That is a matter of repackaging.
Eysink Smeets Retail Business Consultants
Look at how you can make one photo relevantto very very different targetgroups.Girls-with-glasses.com Girls-with-dark-hair.com Girls-with-pig-tails.com Girls-with-pig-tails.com
Eysink Smeets Retail Business Consultants
Here Manner in Vienna.
Eysink Smeets Retail Business Consultants
Assortiment
Eysink Smeets Retail Business Consultants
Eysink Smeets Retail Business Consultants
Eysink Smeets Retail Business Consultants
Gifts
Eysink Smeets Retail Business Consultants
Lessons from retail: Design customer journeys
exactly.
Eysink Smeets Retail Business Consultants
Old-school thinking:
- Selling a loan is a job for a trained and experienced humans.
- It comes down to knowing the client, understanding his feelings, reading through the lines…
- All variables to be filled in order to make a decent product.
Eysink Smeets Retail Business Consultants
But then let’s look at kitchens, a retail sector where they sell even more complicated products.
- A kitchen has thousands of variables.
- Color, wood, cabinet fronts, handles, oven type.
- And then there’s the edges and corners of the space it needs to get build into.
Eysink Smeets Retail Business Consultants
Old school kitchen sellers did believe you needed a person to design and sell a kitchen.
- Some guy like this. - Who sat down with you, gave
you coffee, and talked about your life.
Eysink Smeets Retail Business Consultants
The whole sector was convinced that you need a person to design and sell your kitchen.
Eysink Smeets Retail Business Consultants
But then came IKEA.
- And they did it did it differentely.
- You design and buy your kitchen yourself.
- With just a bit of help in designated steps in the customer journey.
Eysink Smeets Retail Business Consultants
You can design your kitchen at home.
Eysink Smeets Retail Business Consultants
But then came IKEA. And they did it did it differentely.
Measure and plan exactly.
Eysink Smeets Retail Business Consultants
Shows you 3D visuals of the new reality.
Eysink Smeets Retail Business Consultants
And lots of suggestions.
Eysink Smeets Retail Business Consultants
Ikea only adds people for three reasons:
- 1. To assist you in your process
- 2. To do a final check.- 3. To put a nice hand on your
shoulder when you’re about to spend 10K on a kitchen.
Eysink Smeets Retail Business Consultants
They are not kitchen experts. They’re not salesmen.
- They’re definitely not amazing compliance wizards. - But they are good at working the software and being a nice human being.
Eysink Smeets Retail Business Consultants
IKEA is now selling 1 in every 3 kitchens in many European countries.
Eysink Smeets Retail Business Consultants
Lessons from retail: Define channel-mix from the products and clients.
Eysink Smeets Retail Business Consultants
Here Interspar in Vienna.
Eysink Smeets Retail Business Consultants
Eysink Smeets Retail Business Consultants
©eysink smeets business consultants bv, amsterdam, 1998-2006
Eysink Smeets Retail Business Consultants
Es gibt viele einfache Konzepten die im
Retailbanking gestochen werden können.
Eysink Smeets Retail Business Consultants
Das ist nicht die wesentliche Frage.
Eysink Smeets Retail Business Consultants
Die viel wichtiger Frage ist:
Eysink Smeets Retail Business Consultants
Wie kann Retailbanking dieser hard-core Retailkonzepten verwirklichen?
Eysink Smeets Retail Business Consultants
Lessons from retail: If retail is important,
reflect that in your organigram.
Eysink Smeets Retail Business Consultants
Of course, you here are the exceptions, but common retail sense is a rare commodity in banks, where retail is fragmented.
In most universal banks nobody has the real & final retail responsibility: “Well, yes, I do retail, but the branches? No, that is…eh… what’s his name…?”
“Me? Yes, I do the branches, but the IT is…” Etc., etc., etc...
Eysink Smeets Retail Business Consultants
Most banks say that retail-banking is important to them.But most don’t reflect that in the top of the management-pyramid.
Eysink Smeets Retail Business Consultants
Ein Retailbank muss von Kopf bis Fuss
auf Retail eingestellt sein.
Eysink Smeets Retail Business Consultants
Lessons from retail:Throw out old IT now.
Eysink Smeets Retail Business Consultants
You can dream on, but steam & cast-iron IT systems of existing bankskeep on strangling every innovative initiative.
With stacks of priorities fighting for prominence, with innovation inevitably sinking to the bottom every time, overruled by compliance, maintenance and the like
Eysink Smeets Retail Business Consultants
Eysink Smeets Retail Business Consultants
Newcomers enter with brand new lean & mean IT.It gives them low costs and, - even more important - incredible agility and speed.
Eysink Smeets Retail Business Consultants
Lessons from retail: Stop thinking
from the channel of the past.
Eysink Smeets Retail Business Consultants
Mountains of costly and obsolete branches delay innovation, prevent looking for real solutions.
Daily improvisation in a branch can solve many system-faults, thereby
hiding real problems
Eysink Smeets Retail Business Consultants
Newcomers have this basic idea about branches.They are internet-based. With or without face-to-face channels.
Eysink Smeets Retail Business Consultants
Re-inventing retail-formats is very topical in all retail sectors.Huge movements in size/location/amount of branches.
Hypermarkets are becoming ancient dinosaurs in many countries. The shift towards close-by supermarkets, or even smaller r convenience store is resulting in a new mix, where on-line
increases in importance.
Eysink Smeets Retail Business Consultants
Lessons from retail:Retailers do everything
to be attractive to retail-talent.
Eysink Smeets Retail Business Consultants
I experience time and again that for the best young talentbanks enjoy a dangerously fast fading career-attraction.
Eysink Smeets Retail Business Consultants
Lessons from retail:Stop fooling yourselves
about what really goes on in the client-contact.
Eysink Smeets Retail Business Consultants
Herr ... entgegnete, dass Banken nicht umhinkommen werden sich neu aufzustellen, perfekten Service und kompetente Beratung zu liefern sowie die digitalen Marktplätze kompetent zu besetzen.
Eysink Smeets Retail Business Consultants
Perfekten Service und kompetente Berating ist
unmöglichin das heutige Businessmodel.
Eysink Smeets Retail Business Consultants
Eysink Smeets Retail Business Consultants
Das meiste ist Selbstbedienung.
Eysink Smeets Retail Business Consultants
Nur limitierte Bedienung.
Eysink Smeets Retail Business Consultants
Bedienung kost Geld und macht Schlangen.
Eysink Smeets Retail Business Consultants
Eine kurze Geschichte aus einige Projekten:
Eysink Smeets Retail Business Consultants
Let’s just say we have 35 account managersfor a SME client group of 10.000.
Eysink Smeets Retail Business Consultants
We miss about 20% of the account managers because of holiday, illness, training ,etcThat leaves us 28 account managers.
Eysink Smeets Retail Business Consultants
About 70% of the time is absorbed by compliance & admin: 19,6 persons gone. Leaves us with 8,4 persons for 10.000 clients.
Eysink Smeets Retail Business Consultants
The branche is open for 50 hours per week. One FTE is 36 hours.Leaves us with 6 persons.
Eysink Smeets Retail Business Consultants
Those 6 have 36 hours FTE, which leaves us with 11.000 hours for clients.Divided by 10.000 clients, we can spend just over an hour per client per year.
Eysink Smeets Retail Business Consultants
Recent compliance requires 1 man-week per file, of which we have 250. Per person we have 40 man-weeks; 250/4=6,25 man. We have 0,25 persons negative.
Eysink Smeets Retail Business Consultants
Every of these SME clients has about 0,04% of an account managerWith that he must maintain the relationship and know the client’s company.
Eysink Smeets Retail Business Consultants
The account manager was hired on 20% admin and 80% client.
Eysink Smeets Retail Business Consultants
the reality of the account manager is almost reversed.70% admin en 30% clients.
Eysink Smeets Retail Business Consultants
Lessons from retail:Never believe in fairy-tales.
Eysink Smeets Retail Business Consultants
The fairy tale of banks andthe emperor’s new clothes.
Eysink Smeets Retail Business Consultants
We all join in and pretend that the bank is dressed in beautiful clothes.
Personal contact!
Close-by!
Knowing the client!
A real relationship!
Kunst & cultuur steunen!
Putting the interest of the client first!CRM!
Your own account manager!
Improving the world!
Part of the society!
Mutual trust!
Tailormade advice!
Eysink Smeets Retail Business Consultants
Hey, look there! The emperor has no
clothes on!
Eysink Smeets Retail Business Consultants
Because clients are dependent on their account manager they pretend that they really believes in an open, mutual-trust relationship.
Close-by!
You know us, the clients!
We have a real relationship!
You put our interests first!
Mutual trust! Tailormade advice!
We love to pay a bit more!
We love the personal contact!
We tell you our deepest secrets!
Eysink Smeets Retail Business Consultants
Lessons from retail: Accept that national giants
are easily wiped out byglobal competitors.
Eysink Smeets Retail Business Consultants
You are not fully realizing the ability of non-banks to diversify.Also into financials. Without compromising their PMC.
Eysink Smeets Retail Business Consultants
Is Apple iBank far away? Would they choose to call it a bank?Probably not, but the threat isn’t less real.
Eysink Smeets Retail Business Consultants
These newcomers won’t necessarily say they are a bank.But just take on the next territory, which is very normal to them.
Eysink Smeets Retail Business Consultants
Lessons from retail: Never play down
newcomers.
Eysink Smeets Retail Business Consultants
Downplaying non-bankers in fin-tech or others isn’t smart.Neglecting them is even dangerous.
Eysink Smeets Retail Business Consultants
Lessons from retail: The days that you could rely
on buying your way out of trouble,
are over.
Eysink Smeets Retail Business Consultants
‘We will just wait and buy the winner’That good old escape-route doesn’t work anymore.
Eysink Smeets Retail Business Consultants
Lesson from retail:Create a symmetric
relationship.
Eysink Smeets Retail Business Consultants
Mrs. Consumer does not have a separate mind for banks.She enjoys a symmetric relationship everywhere, but for the banks.
Eysink Smeets Retail Business Consultants
Lesson from retail:Organize with
consumer at the centre.
Eysink Smeets Retail Business Consultants
I had a hard time putting issues of the day into some order.It seemed the machine of banks looks like this:
Eysink Smeets Retail Business Consultants
Whereas real retailers are consumer-centric by nature.Consumer at the centre, with the machine designed around her.
Eysink Smeets Retail Business Consultants
Lesson from retail:Don’t mix
wholesale and retail.
Eysink Smeets Retail Business Consultants
That restricts how many PMC*’s you can handle.It brings ‘universal versus retail’ -bank discussion to an end.
*PMC: Product Market Combination
Eysink Smeets Retail Business Consultants
The synergy claims of universal banks are just so much bullshit.The law of friction-cost and -time applies anywhere. Also to banks.
On all points where the lines of the matrix connect big fights erupt.
Normally the ones with the biggest mouth and the most power-seats wins. Not necessarily the ones with common
sense.Recognize it?
Eysink Smeets Retail Business Consultants
Lessons from retail: Think mono-channel.
And stop thinking multi-channel.
Eysink Smeets Retail Business Consultants
There is a lot of talk about multi-channel.
Internet
Face-to-face advice
Branches
Mobile
Call-centre
Eysink Smeets Retail Business Consultants
But basically the large retail-bank are still very much mono-channel In their thinking. Not in reality though.
with advisors in them, and a call-centre to regulate the phone-calls to the advisors
...and of course, you can do your internet-banking with us as well.
Branches Digital
Eysink Smeets Retail Business Consultants
Don’t go against the trend: a bank is 100% information.So be mono-channel: digital plus some supporting channels.
Advisors Digital
Eysink Smeets Retail Business Consultants
Lessons from retail: Package solutions.
Eysink Smeets Retail Business Consultants
Leveling out the financial waves of income and costs in a life.That is why banks exist; that is the core-job of any bank.
Eysink Smeets Retail Business Consultants
The real problems for the farmer are the financial impact of the flu. His income and costs waves will become seriously un-leveled.
Eysink Smeets Retail Business Consultants
Translate these fears, dreams, ambitions into real banking solutions.Restrict yourself to that. And that only.
Eysink Smeets Retail Business Consultants
The real innovation is in packaging those client’s fear, desires, etc.Package that set of solutions for that client-group: create a PMC.
Eysink Smeets Retail Business Consultants
This usually doesn’t require much innovation on your products.Treat them as components of the real product.
Product
Component
People
Component
Eysink Smeets Retail Business Consultants
Lessons from retail: Consider non-value
positioning.
Eysink Smeets Retail Business Consultants
Everybody is looking for High Value/High Price in banking.Why not try the Low Value / Low Price corner instead?
1. This is where the normal life-cycle of most companies starts. Starting as challenger,
with price as the main weapon of attack.
High ValueLow Value
Low Price
High Price
2. The dominant years is when you are in the NoCompromise corner. Mrs. Consumer doesn’t have to accept a compromise; neither on value, nor on price.
3. Then the lazy fat years are entered. Offering High Value, but demanding from Mrs. Consumer
the compromise of High Price.
4. The end of the game, the company has been pushed into the Double Compromise corner,
and is on the way out.
Eysink Smeets Retail Business Consultants
Zum Abschluß:
Eysink Smeets Retail Business Consultants
Steckt viel Retail im Retailbanking?
Eysink Smeets Retail Business Consultants
Nein.
Eysink Smeets Retail Business Consultants
Es gibt nicht viel Retail im Banking.
Eysink Smeets Retail Business Consultants
Retailbanking würdeviel besser sein
mit viel mehr Retail drin.
Eysink Smeets Retail Business Consultants
Das wird nicht passieren wenn Retailkonzepten
nur als oberflächige Kosmetik benutzt werden.
Eysink Smeets Retail Business Consultants
Ein Retailbank muss von Kopf bis Fuss
auf Retail eingestellt sein.
Eysink Smeets Retail Business Consultants
Noch Fragen?
Eysink Smeets Retail Business Consultants
Smeets...we change retail
© Eysink Smeets
Business Consultants bv
World wide retail
business consultants
www.eysinksmeets.com
2015
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1015 AA Amsterdam
The Netherlands
Phone +31 20 6265573