Examples of Themes, Not Niches March 19, 2010
Posted by nichebanking in Bank customer segmentation, Niche banking, Niche banking examples, Nicheruptive.trackback
To continue the conversation from our previous post, Themes vs. Niches, and to help understand the difference between themes and niches, let’s take a look at some examples of themes. Then, by comparison, when we look at niches, it will be clear how they differ.
A good example of themes can be found in Sin City. Take, for instance, the Paris casino and the Venetian casino in Las Vegas. These are essentially exactly the same product, just with different motifs. They are both still casino/hotel/resorts with the same business model.
Some people may incorrectly argue they are niches. That’s not the case for these companies–here’s why:
- They make money the same way: they sell hospitality experiences, provide gambling, shopping and other activities. Their revenue and expense categories are very similar.
- The experience they deliver is the same. Sure, things “look” like Paris or Venice at either venue, but the experience they are selling is the same.
- The experience is not authentic–it’s cosmetic and faux.
- The experience is not engineered specifically for customers of a certain segment. People don’t come to The Venetian because they have a common love for Venice; they come because they want a fun Las Vegas experience…which is the same as what the Paris sells.
There are existing theme banks. Take Redneck Bank for instance. Catchy, funny and gets attention. But does it create a true experience tailored to a certain group of people who align with being rednecks? And does it make money in a unique way that is centered around this redneck service? Nope. It’s just like any other bank, but it comes in a different flavor.
The world deserves true niche banks. That’s where Nicheruptive comes in.
That’s why casinos in Vegas are called “themed resorts.” You can’t open a casino without having a theme. Even some of the early hotel/resorts knew this (e.g., Tropicana).
When I had an ad agency in Las Vegas, I worked with a casino developer. He’s one of the guys who came up with New York, New York. We worked together on some concepts that never got executed but were nonetheless interesting. One was for “Hurricane Harry’s,” an Indiana Jones adventure-style legend. Another was for “Hotel Transylvania,” with a macabre, 24x7x365 Halloween theme. (Alas, like many schmucks in Vegas, the guy skipped town without paying the agency.)
Themed resorts is a great way to put it. And there are a few themed banks, too. And in all fairness (while themed banks is NOT what we’re doing here at Nicheruptive) one could argue that themed banks are more interesting than traditional banks and their “brands.” In other words, a themed bank actually may be slight improvement for the industry as a whole, and I think it may actually be worthwhile for the industry to dabble in those themes a little more. But the true niche banks we’re developing will take that whole concept to the next level.