This Presentation was made in 2012 to Massachusetts Bankers Association on how to use Blue Ocean Strategic Thinking in Growing Bank Insurance Sales.

1. Massachusetts Banking Association
Andrea J. Simon PhD
March 1, 2012

2. Challenge for today
Reviewing research:
If you are selling insurance and investments,
only x% of your customers are participating.
How can you change that?
If you aren’t selling insurance or investments,
should you rethink your decisions?
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3. For Both Of You
For your customers, how can you find
innovative ways to provide these services so
you make it:
Easier and simpler for customers to buy
and use what they need
Less complicated and more attractive for
nonusers to get the services they need
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4. The Times They Are A 'Changing
Financial Services are changing, or ?
Should you think about changing
your culture
Customers are changing, and fast
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5. Is It A Time To Redefine Success?
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6. Why Crisis Drives Change
Change is literally
pain. Brain fights
change.
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7. Could a Blue Ocean Strategy Help?
Find a new way to “see, feel, and
think” about what you are doing
Find a Blue Ocean Strategy
Find customers that want to use you
for Insurance, Investments and
Other services

8. In a Blue Ocean…
Create a New Market Space
Find Non-Users
Create demand for your products
See and Feel things in ways not there before
Make it simpler, easier and less complex
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9. Interesting but,
HOW DO I DO THAT?
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10. Classical Music in a Blue Ocean?
Andre Rieu
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11. This is probably what you remember?
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12. What Did He Do? New Market Space
Classical Music Pop Music
Traditional Setting Untraditional setting
Dress in classic form Colors, fashion
Conductor’s back Conductor’s Personality
Disengaged Face First
Focused on adults Totally engaged
Funeral Young and Old
Party
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13. Results? “A Maestro for the Masses”
WSJ: Friday, June 11, 2010
Dutch conductor and violinist André Rieu is the king of 'crossover'
classical music. Can his balloon-filled spectacles make it in the U.S.?
At concerts like this one at the Wiener Stadthalle, Mr. Rieu grossed about
$96 million on tour last year. That haul landed him at No. 6 among the
world's top touring acts, according to Billboard's 2009 tally—ranked just
below U2, Madonna and Bruce Springsteen, and above Britney Spears,
Coldplay and Metallica.
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14. What did he create?
A BLUE OCEAN STRATEGY
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15. In Times of Change You Need…
A Real Strategy
A well-defined, integrated,
cohesive approach
to a challenge and an
opportunity
A clear, simple story
What’s your
hook?
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16. All Strategies Ask…
Which customers or
markets will we target?
What distinguishes us?
What value proposition?
Why key processes give
us competitive advantage?
What are the human,
technological or
organizational enablers of
the strategy?
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17. Classic Strategic Thinking
Takes market structure
as a given.
Drives you to carve out a
position against the
competition
Trying to capture
segments among the
same set of users.
Reel in the
competition
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18. So, How Do You Win?
Grabbing a
bigger share of
the “red-ocean”
market is a zero-
sum game—
One wins, the
other loses.
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19. But in a Blue Ocean Strategy
Create a New Market Space
by
Creating Demand
Among Non-users
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20. What might this mean for you?
SHOULD YOU FIND A BLUE
OCEAN STRATEGY?
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21. Some Blue Ocean Strategies

22. Ford versus the Horse
Went after people
who drove horses
Completely Changed
our Mode of
Transportation
New culture for Ford

23. Yellow Tail®
Went after non-wine drinkers
Only 15% of Americans drank wine-
Red Ocean
85% drank other things: Blue Ocean
Strategy: Turn non-drinkers into
frequent enjoyers.
Change the Culture: Retailers and
non-wine drinkers
Results: »Dominating the overseas
export market, [yellow tail]® is the
fastest growing imported wine in
US market history. »
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24. Southwest
In Bankruptcy People who Drove between
Hubs Shorter Distances
Completely different culture
Business
Travelers 2010 Financial Statistics
• Net income: $459 million
Union • Total passengers carried: 88 million
• Total operating revenue: $12.1
billion
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25. ING DIRECT
June 2011: Capital One Buys ING Direct, and
Customers Start to Freak Out (still pending)
Remember that in 2007 ING Direct paid 4.5% on a savings
account, while the average account gave 0.46%, according
to Bankrate.com
Then there was the fast-food aesthetic: simple,
inexpensive service.
ING Direct offered exactly one type of savings account and
one type of checking account. There were no fees and no
minimum balances
Blog post: Customer, “I’m going to stay with them until they
make changes, then bail for a local credit union”
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26. What about BankSimple?
Simple and Easy
Built around a mobile app!
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27. Why BankSimple?
Why BankSimple?
“Banks are lazy. They charge fees when no
fees are necessary. They make life hard
when it doesn't need to be. They don't
provide up-to-the-minute information to
customers about their own money. Banks
have become adversaries rather than
advocates for their customers.”
“Simple is not a bank. We replace your bank
and provide the clarity and sophistication
that you need to manage your finances.”
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28. Going Totally Mobile
Fast Company: October 27, 2011
First Look: BankSimple’s iPhone App Aims To Reimagine
Your Money
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29. Pattern Here: Still are the Same but…
CHALLENGE TARGETED NONUSERS ALTERNATIVES
ANDRE RIEU NON-CONCERT ROCK, POP, JAZZ
GOERS/YOUNGER EVERYTHING BUT
PEOPLE CLASSICAL MUSIC
FORD NON-CAR DRIVERS HORSES
YELLOW TAIL NON-WINE DRINKERS BEER/HARD LIQUOR
SOUTHWEST NON-FLIERS DROVE DISTANCES
ING DIRECT/ BANKSIMPLE SAVERS/MOBILE LOTS OF OPTIONS
WHAT ABOUT YOU? WHO ARE YOUR WHAT ARE THEIR
NONUSERS ALTERNATIVES?

30. So you are a Bank
IS THIS FOR ME?
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31. Important trends for you
65% of the children being raised by single
parents—What are you doing for them?
Women are going to be >50% dentists;
45% doctors—How are you targeting them?
All those savers of 401Ks are going to start to
live off them—How can you help them?
Young people think of careers in 4 year cycles—
What might you do for them?
93% of Valentine’s Day Purchases were being
done online—What could that mean for mobile
banking?
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32. Let’s think about these trends
Who is using your bank today? Who could?
Who is buying investments and/or insurance
elsewhere, or not at all? What are those unmet
needs?
What kind of culture will make them trust you? How do
you tailor this for nonusers?
Create the right environment for them? Who are you
built for? Women or for men? Hi Touch or Hi Tec?
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33. Where do you find a Blue Ocean Opportunity?
SHIFT YOUR FOCUS
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34. A Blue Ocean Focus
Focus on:
Adding Value + Innovation
Making the Competition Irrelevant
The Nonuser
Aligning your Organization
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35. Please, don’t ask them what they need
Henry Ford’s quote:
“If I had asked people
how I could improve
their transportation
they would have told
me to make their
horses go faster.”
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36. Can you find a Blue Ocean?
It could open up an entirely new
opportunity for you!
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37. Simon Associates Management Consultants
1905 Hunter Brook Road
Yorktown Heights, NY 10598
www.simonassociates.net
asimon@simonassociates.net
Skype andrea.j.simon
@simonandi
Phone 914-245-1641
Cell 914-261-1631
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