The Biomimetic Bank
Transforming Bank Marketing
Dr. Graham Hill
Optima Partners, Nyras Capital and Ctrl-Shift
February 2016
SIR KEN ROBINSON @TED
Quote… ”If you are not prepared to be wrong, you will
never come up with anything original” …Unquote
Source: TED 2006 (Watched over 37,000,000 times!)
MARKETING IN THREE ACTS
Marketing has evolved from the 1950s’ Branded
Marketing’ through the 1980s’ Direct Marketing to
today’s Digital Marketing’… its evolution continues
THERE’S A NEW KID IN TOWN
New tools to market to customers are emerging
continuously… some of the recent ones include social
media marketing and content marketing
Source: Marketing Week 2016, Brand Republic 2016, The Drum 2016, Mark Ritson 2015
GOODS-DOMINANT LOGIC
Marketing has lost its raison d’etre with its obsessive
focus on products, sales and revenues… at the expense
of customers, service and value
Source: Vargo & Lusch 2004, 2008
TRAGEDY OF THE COMMONS
Marketing has created a ‘tragedy of the commons’,
where, to overcome declining effectiveness, marketers
have increased the volume of marketing that created it
Source: Hardin 1968, Godin 2005, McConnell & Huba 2006
MARKETING AT A CROSSROADS
Marketing is at a crossroads. It can either continue doing
more of the same and risk becoming irrelevant, or, it
must completely reinvent itself from the ground up
Source: Rust et al 2010, Sheth & Sisodia 2015, Mark Ritson 2015,
BRANDS VS. CUSTOMERS
Marketers are finding out that their focus on building
brands needs to be tempered with an increased focus on
building better relationships with customers
VS
Source: Accenture 2015, Binder & Hannssens 2015, McKinsey 2015
SERVICE-DOMINANT LOGIC
Marketing needs to regain its mojo by increasing its
emphasis on building engagement with customers,
providing ‘service’ and co-creating mutual value
Source: Vargo & Lusch 2004, 2008
THREE MARKETING MONKEYS
Marketing has forgotten how to ask customers three
critical questions: “Who are you?”... “What are you
trying to do?”... And, “How can I help you?”
Source: Christensen et al 2005, Wim Rampen 2013, Bettencourt et al 2014
IT’S THE EXPERIENCE STUPID!
Marketers are coming to realise that they should
compete by offering customers a superior, end-to-end
experience… with experiential marketing built-in
Source: Berndt Schmitt 2000, Pine & Gilmore 2007, Wim Rampen 2013
GO WHERE THE VALUE FLOWS
Marketers should start by understanding how value
flows between the different actors in the customer’s
ecosystem over time
Source: Elke den Ouden 2012, 2013
WHAT’S THE CUSTOMER’S JOB?
Customers have functional, emotional and social ‘jobs-tobe-done’… they hire ‘tools’ to help them get the
outcomes they want from doing the jobs
JOB:
Make a 6mm hole in a
wall
OUTCOMES:
1. Minimise amount of
cleaning to be done
afterwards
2. Minimise likelihood of
drilling too deep
3. Minimise likelihood of
hitting live wires
4. Etc
Source: Levitt 1960 , Christensen et al 2008, Ulwick & Bettencourt 2008
THE CUSTOMER JOURNEY
Customers interact with companies, friends and others
to gain access to the resources they need to get their
jobs done and the outcomes they want
Source: Polaine 2009, David Edelman 2010, KPMG Nunwood 2016
MUTUAL VALUE CO-CREATION
The resources different actors bring enable each to cocreate value for themselves… during interactions in the
journey and as outcomes at the end of it
Source: Promise/LSE 2009, Ramaswamy 2009, Ng 2015
WHAT’S THE NEXT BEST ACTION
Key interactions in the journey may provide the
marketer with ‘triggers’ to help the customer by
providing them with support, service or sales prompts
Source: SAS 2010, IBM 2013, Pegasystems 2014
THE FEELING OF WHAT HAPPENS
The customer journey and its constituent interactions
should be designed to elicit the emotions and feelings in
the customer that the marketer would like
Source: Damasio 2000, Mattilla & Enz 2002, Desmet & Hekkert 2007, Lerner 2014
ALWAYS END ON A HIGH NOTE
The customer journey should get better over time, its
most emotional interaction should be positive and it
should occur at the end of the journey
Source: Arielly & Carmon 2000, Verhoef et al 2002, Kahneman 2013
MINI CASE: ABN AMRO
ABN AMRO uses contextual data about customers, their
purchases, their recent interactions and their current
behaviour to provide support, service or sales prompts
MAKE MARKETING A SERVICE
Marketing should become a service that supports the
customer during each interaction to get their jobs done
and the outcomes they want
Source: Helge Tenno 2012, Ashley Friedlein 2014, Graham Hill 2014
COMPETE ON OUTCOMES
As marketers start to offer Marketing-as-a-Service it is
only a matter of time before they start to compete on
the basis of the outcomes they co-create with customers
Source: Anthony Ulwick 2005, Ng et al 2009, Helge Tenno 2015
THE CMO IS DEAD!...
Companies are replacing their Chief Marketing Officers
with Chief Customer Officers to drive their realignment
around the end-to-end customer experience
Source: Marketing Week 2015, Brand Republic 2015, The Drum 2015
THE LIMITS TO ENGINEERING
The engineering-inspired approach to marketing has its
limits… it struggles to cope with the wide variety of
continuously changing customer behaviours
Source: Joseph Pine 1992, Phil Godsiff 2010, Reeves et al 2016
THE BIOMIMETIC BANK
The next generation of marketing solutions will employ a
‘biomimetic’ approach loosely based on the mechanisms
of morphogenesis found in developmental biology
Source: Jamie Davies 2013, 2015, Nessa Carey 2015, David Moore 2015, John Parrington 2015
INTERACTION OBJECTS
Interactions are captured as ‘objects’, complete with the
methods they can carry out, interfaces to other objects
and internal data used to guide execution
Source: David Taylor 1995, Graham Hill 2015, Nile 2015
EMBRACE MODULAR VARIETY
The object-nature of interactions and their methods,
interfaces and data supports a much wider variety of
interactions, sequencing and the resulting journeys
Source: David Taylor 1995, Graham Hill 2015, Nile 2015
LET THE JOURNEY EMERGE
Rather than being rigidly planned, customer journeys
emerge through the interaction of interaction objects to
create unique journeys for each customer
Source: David Taylor 1995, Graham Hill 2015, Nile 2015
PROBE, SENSE & RESPOND
This biomimetic approach is being tentatively
implemented in a major UK bank as a series of ‘probe,
sense and respond’ development experiments
Source: Eisenhardt & Brown 1999, Snowden & Boone 2007, Reeves et al 2016
ARE YOU READY…
FOR THE BIOMIMETIC BANK
THANK YOU
Dr. Graham Hill
graham.hill@web.de
www.twitter.com/grahamhill
www.linkedin.com/in/grahamhill