The Competitive Landscape: 3 Keys to Stand Out in Your Rapidly Changing Market

INSPIRED TO HELP YOU SUCCEED1 © 2014 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.

#CGInsight@InspiredbyCG

INSPIRED TO HELP YOU SUCCEED www.carlisleandgallagher.com #CGInsight @InspiredByCG

The Competitive Landscape3 Keys to Stand Out in Your Rapidly Changing Market




What is The Competitive Landscape?


Deepen Your Relationships

Think Outside the Bank

Digitize Your Perspective




Customers and competition in today’s mortgage market


Gen X and Gen Y customer behaviors are constantly shifting

The universal challenge: attract, retain and grow core customers

New competitors are taking market share by delivering a superior customer experience

Your strategic vision must keep pace with technology advancements



UnderstandingGENERATION X &

GENERATION Y

Deepen Your Relationships





XDefining Characteristics of Generation X

1961 1980

aka The MTV Generation

Population: 82.1 million

They ARE: Highly-educated, active, balanced, happy, family-oriented

They ARE NOT: Materialistic, lazy, disenfranchised




$33,000 lost on average

X

45%decrease in wealth totals from 2007 to 2010



YDefining Characteristics of Generation Y

1981 2000

aka Millennials

Population: 80 million

They ARE: “Detached from institutions and networked with friends”

They CONSIDER: Wealth a very important attribute




Student Loan Debt Burden

Y

460%increase in student loan debt from 2004 to 2014




Gen X consumer population has a split personality

Generation X Fragmentation

1961 1980

Programma 101First commercial “desktop computer”

Xerox AltoFirst computer to use mouse, graphics, desktop

Apple IIFirst affordable PC for middle class

1964 1973 1977

Adopt baby boomer behaviors

Borrow baby boomer and Gen Y behaviors

Adopt Gen Y behaviors

Check writers PayPal accounts Mobile Wallet adopters




Gen Y consumer population is complex

Generation Y Complexity

1981 2000

Compaq PortalFirst IBM PC portable computer

World Wide WebWidespread internet access

1982 1983 1986 1991 1997 1999

MotorolaFirst cell phone

IBM PC ConvertibleIBM’s first laptop

Palm Pilot Wi-Fi

Micro budgeters

Delaying traditional life milestones: marriage, family, home ownership

Buying habits motivated more by service and feelings than product and brand appeal



Don’t make assumptions

X & Y

Surveys and analytics are key to

finding the “sweet spots” for

reaching Gen X and Gen Y

customers.

And the results may surprise

you…





XMost active

generation in

mobile banking





92%direct mail is the

best way to reach themY



Understand the appeal of EMERGING AND NON-

TRADITIONAL PLAYERS to refine your strategy

Think Outside the Bank




1

2

3

4

6

8

5

7

10

9

Wells Fargo & Company

Chase

Quicken Loans Inc.

Bank of America

U.S. Bank Home Mortgage

PennyMac

PHH Mortgage

CitiMortgage, Inc.

Nationstar Mortgage

Flagstar

non-bank lenders enter the top 10 in originations

3



Big banks have the most to lose

Non-banks and emerging lenders are making inroads

While banks are distracted by compliance and budget woes, newcomers are grabbing market share

Gen X and Y prefer service and treatment to name brand power

Competition for customers is heating up

80%of U.S. Consumers would consider a mortgage from

a non-bank 1/3Consumers would consider a

mortgage from Walmart

48%Consumers would consider a

mortgage from PayPal



What your non competition is doing right

They are well capitalized, have a clean technology slate and aggressive agendas

Lack of legacy system hurdles and regulatory issues enables spending on innovation, analytics and marketing

They are investing in technologies with seamless customer interfaces, multi media capability (i.e., mobility)

The technology and customer service focus plays directly into what appeals to Gen X and Y

1/3of U.S. Consumers are willing to pay more for a mortgage if it comes with

superior customer service



Keys to Customer Value

Bond BuildersCost Conscious Planners

Cost

Trust

Customer Service

Customer Value Continuum

$$$ $$$$

L H

L H

$

L H

L H

$$$$

L H

L H

CG research shows that mortgage buyers make decisions based on what is most important to them



The Zero Moment of Truth

Stimulus

ZMOTFirst

Moment of Truth

Second Moment of Truth

Pre-Shopping Open Bank Account ExperienceAdvertising





70%of Americans

look at product reviews before a purchase



The “pre-shopping” phenomenon

What is it? How is it done? Why does it matter?

Customers educating

themselves on the

products and service

long before they buy

them

Via the internet, social

media and peer groups

Shoppers can make

purchase decisions at

ZMOT, before they ever

visit the aisle…..or a

bank branch



PROPRIETARY COMMUNITY PARTNERSHIP

ZMOT is coming to a bank near you



Gain new insight into the impact of DIGITALIZATION –

communications, channels, currency and technology

Digitize Your Perspective




What is Omni-Channel?Non-physical

Self-service

Physical

Human-interactive



iPhone

iPhone app

ATM

Branch

SMS

iPad app

WebsiteMortgage and

the Omni-Channel

Experience



iPhone

iPhone app

ATM

Branch

SMS

iPad app

WebsiteMortgage and

the Omni-Channel

Experience

Customer uses

her iPhone to

start the

mortgage

process…



iPhone

iPhone app

ATM

Branch

SMS

iPad app

WebsiteMortgage and

the Omni-Channel

Experience

While getting cash

at the ATM, a

reminder to

complete mortgage

application flashes

on screen…



iPhone

iPhone app

ATM

Branch

SMS

iPad app

WebsiteMortgage and

the Omni-Channel

Experience

Customer gets a

text message

from her bank

with a link to

continue the

process...



iPhone

iPhone app

ATM

Branch

SMS

iPad app

WebsiteMortgage and

the Omni-Channel

Experience

Customer goes to

the website to

continue the

application

process…



iPhone

iPhone app

ATM

Branch

SMS

iPad app

WebsiteMortgage and

the Omni-Channel

Experience

Customer

finishes her

application on her

iPad app…



iPhone

iPhone app

ATM

Branch

SMS

iPad app

WebsiteMortgage and

the Omni-Channel

Experience

Customer goes to

the bank branch

for a meeting to

get advice and

ask questions…



iPhone

iPhone app

ATM

Branch

SMS

iPad app

WebsiteMortgage and

the Omni-Channel

Experience

Customer checks

her application

status on her

iPhone app…



Four RECOMMENDATIONS for making positive changes

to your business

Your New Landscape




INVESTthe time and resources to do a

comprehensive analysis of customer and

market data. And invest in technology

that delivers to plan



ENGAGEwith customers using the full force of

your media and channels – and the

knowledge you’ve gained from surveys

and analytics



PERSONALIZEthe experience by enabling outcomes

across the process, regardless of the

device or the customer preferences



REVITALIZEyour customer base with a new toolkit

and your employees by rewarding

customer-centric behaviors




INVEST

ENGAGE

PERSONALIZE

REVITALIZE

Analyze the data, do the research and commit to technology and talent

Connect with customers in new ways and via multiple channels

Cater to customer preferences no matter where or how they interact with you

CG Recommends

Upgrade capabilities and change perceptions with customers and employees



Carlisle & Gallagher Consulting GroupDoug HautopCG [email protected]

212 South Tryon StreetSuite 800Charlotte, NC 28281704.936.1600

mailto:[email protected]

Date post:	01-Nov-2014
Category:	Economy & Finance
Upload:	carlisle-gallagher-consulting-group
View:	550 times
Download:	2 times

The Competitive Landscape: 3 Keys to Stand Out in Your Rapidly Changing Market

Economy & Finance