do not put content on the brand signature area 2010 © copyrights protected innovation ahead of the...

2010 © Copyrights Protected

InnovationAhead of the Curve

Arkadi Kuhlmann


What if the Idea Had a Name?

ING DIRECT was born in an age of broken promises. If we were going to earn people’s trust, we had to do it by turning our backs on

what marketing had become.


What if We Started Over?

When you’re trying to re-invent something, nothing can be sacred.


Banking or Retailing?

“Do not go where the path may lead; go instead where there is no path and leave a trail”- Ralph Waldo Emerson


How Do We Innovate?

Leading Americans Back to Saving

What are we doing?

We Simplify Financial Products

How we do it?

Save Your Money TM

Our Brand Promise


Value Based Differentiation

EmployeeEngagement

Cost EfficientOperational Excellence

CustomerAdvocacy

BrandExperience

CompetitiveAdvantage


• Short Term Focus

• Rules Driven

• Supply Focused

• Follow Best Practice Industry Models

• “Hire for Skill”

• Hide Behind Bundled Offers

• Long Term Focus

• Behavior Driven

• Leapfrog Standards

• Demand Focused

• Retail Model

• “Hire for Attitude”

• TransparentStandalone Value

• Make Money

• Multiple Products

• Out-source Work

• Back-end Focused

• Serve Everyone

• Rigid & HierarchicalOrganization Structure

• M&A Focused

• Driven by Financial Targets

• Innovate Once

• Maintain Status Quo

• Opportunistic Growth inDisjointed Areas

• React to Technological Changes

• Strong Organic Growth

• Stable Profits

• Constant Innovation

• No Entitlement Culture

• Strategic Growth inNew & Selected Areas

• Exploit TechnologicalOpportunities

• United by a Cause

• Build a Franchise

• Few High Value Products for Select Customers

• In-house Work

• Front-end Focused

• Marketing & ITDrive Company

• Nimble & AdaptiveOrganization Structure

Sustained Innovation Stimulus Execution

Tra

ditio

nal

Dis

rup

tors


What if Everyone Could Win?

That was the impossible question that gave birth to this idea called ING DIRECT.

10


Building a Track Record – Consumers Love a Winner

► # 1 Direct Bank

► # 1 Savings Bank

► # 9 Bank (residential mortgages)

► #15 Bank (domestic deposits)

► #19 Bank (assets)

► 7.6M Customers

► 8 Cafes

SeattleSt. Cloud

Minnesota Café New York Café

President Obama Inauguration Event, Delaware Office

Source: FDIC Q3’09

11


Innovate Products

Savings Interest Checking

Mortgages Investment

12


Innovate Every Moment of Truth

• 3,989EO ATM transactions

• 36,474Purchases using EO

• 9,179Billpay transactions

• 11,912ShareBuilder trades

• 104,279Web transactions

• 60,000ACH pushes

• 149,000ACH pulls

• 690Emails received from customers

• 2,405Sharebuilder Mobile Views

• 10,134Customer calls

• 6,500Customer calls answered in 20 seconds

• 16,363Clicks on our web banners

• 304,228Customer web logins

• $4,523,193Interest paid

• $43,000,000 Gross mortgages funded

• $47,253,000Net deposits inflow

• 955New Sharebuilder Accounts

• 7,120Web Impressions on WeTheSavers.com

• 2,933Cups of coffee served

• 4,443Café customers

• 3,181New OSA accounts

• 1,256New customers

• 93,000Sharebuilder log ins

• 3,000,000People watching our TV ads

• 360,791Cross-Sell Emails

• 454,548Acquisition Emails

• 1,716Website Password Recovery

13


Branding

14


Engaging Messages

15


Continuous Innovation Rewarded

DisruptorsSoul SearchersOnce Golden Boys

AppleSouthwest Palm

Source: Yahoo Finance

Apple 3M Google

Southwest Microsoft Starbucks Borders

Palm Kodak Xerox Yahoo AOL Chrysler Ford

16


Marketing

Experience marketing in Manhattan with live promoters

Orange Brand Driver campaign

Savings promotion on Black Friday

Marketing campaign on Hulu.com

TM

17


Keep Your Customers Connected

Websites our Customers Visit

Facebook, 61%

LinkedIn, 31%

MySpace, 11%

Twitter, 9%

Others, 3%

None, 30%

Twitter

You Tube

Hulu

FaceBook

18


Customers’ Vote of Confidence

Wins Returning BusinessDelivering on Brand Promise

Thinks ING DIRECT is overall better than others

Planning to increase balancewith ING DIRECT

Thinks ING DIRECT website better than others

Ease of becoming customer of ING DIRECT

91%Satisfaction with

ING DIRECT

82%

75%

9 out of 10

9 out of 10

80%

100%

120%

140%

160%

180%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Length of Customer Relationship

Dep

osit

Bal

ance

Gro

wth

(%

of Y

ear

1 O

peni

ng B

alan

ce)

7.6% Average Balance CAGR

19


What if We Gave Something Back?

This has never been just a business. It’s a cause.

20


ING DIRECT is Customers and Their Communities…

21


We, the Savers

22


New Normal

► Price conscious consumers

► Growing federal deficit & public debt

So who will win ?

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Dec-85 Dec-88 Dec-91 Dec-94 Dec-97 Dec-00 Dec-03 Dec-06 Dec-09

3mth Treasury Unemployment

► Higher natural unemployment

► Threats of inflation/ stagflation

0%

2%

4%

6%

8%

10%

1990 1995 2000 2005 2010

Savings Rate

23


Think Greenfield

24


Re-engineer

The Product

Innovate

The Process

The Customer

Supply-driven InnovationFinancial services’ need for profit

Demand-driven InnovationConsumers’ need for value

25


What if We Aren’t Finished?

There is always going to be a better way to do this.

26


27


Road to HappinessLessons from Innovation

►Build Innovation-centered Culture: Hire for Attitude and Reward Failure

►Create Cycles of Creative Destruction: You will Never be Finished!

►An Inventor’s Kryptonite: Financial Planning and Marginal Optimization

►Be Demand-side Driven: Avoid Supply-driven Thinking

►Facing the Brutal Truth: An Organization’s Capabilities Define its Deficiencies

►Markets that Don’t Exist Cannot be Analyzed

►Outside Forces Control Allocation of Your Internal Resources: Align Them!

do not put content on the brand signature area 2010 © copyrights protected innovation ahead of the...

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