Voices: the CMB Blog

Another Super Bowl weekend is upon us and it’s another year that my team isn’t in it. Worse yet a dear friend (and client) of mine forced me into an early-season wager pitting my poor team against her juggernaut Denver Broncos, to see who would have a better season. Unfortunately, the Pats are out of the Super Bowl, and I am out one lobster dinner. 

Luckily, I’ve got a cunning plan to recoup that loss and I’m happy to share it: your office's Super Bowl Squares. I can hear you already “Jim, Super Bowl Squares have all the strategy of the card game War!" But I’m here to explain how you can get an edge in this classic living-room lottery. So if you are looking to get a leg up on your best friend, 86 year old aunt, or 13 year old nephew you’ve stumbled onto the right blog. 

At CMB we pride ourselves on turning data into actionable decisions. So with that backdrop in mind:

You already know that some combinations are preferred over others (specifically combinations containing zeros, threes, and sevens).  But do you know how much better one combination is than another? Well, assuming you are in one of the pools that pays out quarterly here’s what you need to know:

There are 28 combinations that have a positive expectation. That is, if you had one of these combinations every year, you’d expect to win more money than you lost (of course that assumes you are playing for money, which obviously none of us are!). Anyway, here are the 28 combinations that you should feel pretty good about:

7-0/0-7

0-0

3-0/0-3

7-7

7-4/4-7

7-3/3-7

4-0/0-4

4-1/1-4

3-3

4-3/3-4

7-1/1-7

6-0/0-6

4-4

6-3/3-6

1-0/0-1

7-6/6-7

But what if you don’t have one of those combinations?  Well, this is where the “turning data into actionable decisions” part comes in…There are 5 combinations worth paying a substantial premium for. Yes, that’s right if you aren’t lucky enough to get a good combination you might consider taking action and finding someone who isn’t good at math (or hasn’t read this blog) and buying their combination. Below are the five combinations that each have an expectation of at least 4x. So if you can separate Aunt Millie or little Bobby from one of these squares for anything less than 4 times the per square price, you’ll be doing ok.

7-0/0-7

0-0

3-0/0-3

However, maybe you’ve been lucky enough to land one of these top 5 combinations and you're watching the game with people who overvalue these combinations.  I’ve already told you that you should be willing to pay up to 4x for each, but what if you wanted to sell?  Since only 0-0 has an expectation greater than 7x, try to get someone to pay in excess of 7 times the buy-in for the others. For 0-0, get at least 9x.

Lastly, maybe you are one of those people who like to zig when others zag. Here are two combinations that have a close to even money expectation (actually around .8), but may seem to others to be far worse. Perhaps you could make someone an offer of 50 cents on the dollar for one of these:

3-1/1-3

4-6/6-4

Whatever you do, stay warm, enjoy the game, don’t eat too much, and NEVER drink and drive.  Good luck!

Jim is VP of CMB’s Financial Services practice, he'll be watching the big game on Sunday...and DVRing Downton Abbey.

The next time you attend a market research conference, listen very, very carefully. That dull buzzing sound you hear is the collective whine of hundreds of market researchers lamenting their inability to get a seat at the big kids' table or even just some recognition for all the value they provide.

 I know it hurts, but it’s time to do some soul searching and address the all too common ways market researchers get in their own way:

• over-reliance on statistical significance

• inability to put oneself in the business partner’s shoes

• focusing on research objectives rather than business objectives

• unwillingness to commit to a point-of-view regarding what the data means

I’m not the only one who’s picked up on these industry-wide weaknesses; witness the popularity of the mysterious Angry MR Client on Twitter and GreenBook.  There isn’t a silver bullet that will fix all of the issues facing our industry, but I am sure of this: we need to communicate better.

Over and over I hear people lament that researchers need to do a better job “telling stories.”  I agree completely, and it’s something we have prided ourselves on at CMB for the last 5-10 years.  Lucky for us, while there’s always been and always will be a “story” to tell, there are now so many more tools to help us elicit that actionable insight from the stream of data.  Say what you will about the rise of the quants but there’s much to be said about the art of data, and that can mean taking a visual approach to data—no, not a pie chart.

At CMB, we have graphic designers who, in addition to making our PowerPoint reports look great, have also designed some great infographics.  There are so many more mediums for storytelling available to us and it would be crazy not to take advantage of them.  Maybe there’ll always be an audience for the traditional PPT report/presentation, but I’ll bet there’s also an audience for an infographic, like the one below, highlighting key takeaways:

We’ve provided these for Customer Experience and Brand Tracking engagements and our clients really enjoy them. Easy to read visuals, like infographics, are a great way to socialize key takeaways across an organization where not everyone needs to go through a huge deck. 

We’ve also gotten great feedback on our Prezis – mini movies that add energy and emotion to the story.  Check out this one that we’ve dummied up to tell the story of a fictitious bank. 

ABC Bank Video from CMBinfo on Vimeo.

We’ve given these in advance of an annual presentation and the result has been increased attendance, improved engagement, and better solution-brainstorming. 

These are just two really simple examples of how you can take storytelling to the next level, engage your audience in the insight, and perhaps get that seat in the C-Suite.

Jim is Managing Director of CMB’s Financial Services practice. He enjoys sweeping historical dramas and is working on his Downton Abbey infographic.

Stephanie Kimball, our Marketing Operations Manager, created the infographic and Prezi you see here. She gets her inspiration from many places, including the 3 million Redbox movies she rents every week.

As we prepare for Super Bowl XLVII we thought we'd share, once again, Jim Garrity's tips for picking Super Bowl Squares. Originally published 4/4/2011.

If you believe the news you might imagine Americans have a pretty low opinion of bankers. It seems cut and dried; the recession laid bare a lot of anger over banks’ role in the economy’s crash.  But new insights from our Consumer Pulse research on banking approval, suggest bank customers’ views are a bit more balanced. We asked over 1,400 bank and credit union customers how they felt about their primary bank and the industry as a whole.  

We found that while it’s true that most Americans aren’t happy with the banking industry they are pretty happy with their own banks. This kind of discrepancy isn’t shocking or unusual— Congress has abysmal approval ratings, but people tend to rank their own representatives quite highly, clearly personal experience counts for a great deal.  

When we looked at customers' banking approval and experience we found some things worth noting:  

• Approval ratings vary by bank type. Community banks and credit unions were rated more highly than regional and large national banks, with credit union customers giving high marks to many elements of their banking experience, from fees and rates to commitment to the community and remote banking offerings. In fact 85% of credit union customers rated the value they got from their bank as “excellent.”

• As for what doesn’t appear to impact approval ratings, those with household incomes under 50k gave just slightly higher approval (51%) to their banks, compared to those making 100k or more (47%).

• Just 9% of customers who disapprove of their banks (and 2% of all respondents) say they’re actively looking for a new bank, but willingness to make the switch also varies by bank type. A full 22% of regional bank customers who disapprove of their bank say they are actively looking for a new bank, versus only 7% of large bank customers. One explanation for this disparity is that while large banks are known for accessibility and product breadth, and small banks are recognized for personal service and lower fees; regional banks are often chosen for their proximity. And as we’ve seen in our previous Consumer Pulse research, increasingly that is not enough.

•  Wondering why customers so displeased with their bank, end up staying? Over half (54%) agree switching banks is a hassle.

Amidst the real anger and displeasure aimed at banks and the banking industry as a whole, the real message may be: don’t underestimate the power of the customer’s banking experience. Fewer than one in five of respondents agreed that “all banks are pretty much the same.” This is good news for banks who can take the opportunity to differentiate themselves from the competition and from a terrible industry reputation.

Download The Future of the full-Service bank Branch here.

Posted by Jim Garrity, Jim is Managing Director of CMB’s Financial Services    practice. He isn't looking to switch banks anytime soon.

Thirty years ago, the ATM revolutionized banking convenience by letting customers conduct their business at any time, and without stepping foot in a branch— there are now several generations who can’t remember a time before you could just “hit the machine.”  But all that automation meant fewer bank customers face to face with bank reps and the products they sell. Decades later, rising cost pressures, new regulations, consumer desire for added convenience, and diminishing returns on full-service bank branches have created an economic challenge for banks.

To understand the impact of these changes, through our Consumer Pulse we explored customer perspectives on bank convenience, fees, and branch alternatives. We found what bank customers say they value, doesn’t necessarily match up with what they’re actually doing.  We asked people how important having a branch nearby was to their sense of banking convenience—most (67%) reported it was “very important.”  Taken by itself this isn’t a shocking statistic; we know bank customers appreciate personal service and convenience. But asked how often they actually go to a bank (not an ATM—a full-service branch) nearly half (45%) go fewer than 5 times per year.   

What explains this disconnect between what consumers say they need and what they actually use?  Online and mobile banking services mean customers can conduct most transactions from the comfort of their home or office. Although a trip to the local branch is often unnecessary when you can check your balance, transfer funds, or make payments from your phone, customers find full-service branches appealing. Still, fond memories may not be enough to keep branches, as customers know them, open.  

For the first time in over a decade, banks are closing branches faster than they’re opening them, and banks are looking to alternatives with lower overhead and operating costs. To understand what alternatives were most and least appealing, we asked respondents to participate in a trade-off exercise to evaluate new banking concepts. When forced to choose, customers were willing to give up their local branches rather than see fees rise. These findings suggest branch proximity, while still important to many, is not as critical to a convenient banking experience as it might have been in the past.

One of the alternative banking concepts we tested was the” teller-less” branch. The teller-less branch is largely automated, but sales professionals are available to discuss bank products, and customer representatives are available by phone. In one of the more surprising findings, customers said they would rather have their local branch close altogether than have it replaced with a teller-less branch. This finding, while counter-intuitive, is telling—banks will need to educate their customers on how new banking concepts will affect and benefit them.

While the full-service bank branch may become a thing of the past, banking convenience and service are as relevant to today’s bank customers as ever—even as the modes of service change.

Download the full report: The Future of the full-Service bank Branch here.

Posted by Jim Garrity, Jim is Managing Director of CMB’s Financial Services practice. He hasn’t stepped foot in his bank branch in months.