In a conversation with Disney executives I realized that Disney is very clear about its product.
Its rides aren't the best, scariest, or most modern. But the environment is unmatched.
Disney sells happiness.
Starbucks is another example of effective product definition. Starbucks doesn't sell coffee, it sells an experience - a respite in the middle of a busy day, a few minutes of luxury and relaxation.
Most banks, however, have not decided what they are selling or articulated it to their various constituencies.
Some have done so. These include TCF Financial in Minnesota and Commerce Bancorp in New Jersey which sell price/convenience and service/convenience combinations, respectively.
One reason they are a small minority is that the actual products banks sell are not much different. It is the way we sell them that makes the difference.
Ultimately TCF and Commerce sell a customer experience, not a product.
Commerce, for example, offers unusual convenience, in terms of hours and days open as well as services branches services such as its famous coin counters.
Others charge for counting coins. Commerce simply invested in counters for its branches and invites everyone to use them. No headaches - but the impression of convenience and customer care is huge.
Commerce also has a branch look that it replicates again and again, a la Starbucks, to create a consistent customer experience and similar expectations for every branch. As a result, it is one of only a handful of financial institutions whose brand is clearly recognized as standing for something.
The others, such as Citigroup and American Express, are a hundred times larger.
The underlying reason for Commerce's success is management's clarity about what the company is selling. It is selling convenience. Everything - advertising, branch networks, product line, and service - is designed to deliver on that promise.
Customers understand that, and this customer experience appeals to a sizeable segment of the population. The bank is capitalizing on that appeal through unprecedented de novo growth.
Charter One in Cleveland, Northern Trust in Chicago, Synovus in Georgia, and Citizens Business Bank in California are among the others demonstrating a clear product identity. They know what they are selling, and so do their people. That means more consistency of customer experience and brand value.
It is this is the kind of dedication and execution that separates great companies from good ones and promises long-term performance instead of temporary success.
