The Challenge
After the Financial Crisis in 2009 the number of unbanked households in the US stood at 7.6% – almost 10m homes in which no one had a checking or savings account.
Crazy.
Imagine a city nine times the size of Chicago with no bank accounts.
That’s a lot of bills getting paid in cash at counters around the country.
In 2017 the number of unbanked households was still massive (6.5%).
And Kroger saw an opportunity to grow grocery revenues – if it could serve these people better and give them a reason to visit their stores instead of the competition.
But how?
The Approach
Obviously we all know innovation is about solving problems...
So why is it that so many people don't start with understanding the problem first?
That’s why we love Moneyball so much....
Scout: We’re trying to solve the problem here, Billy.
Billy (Brad Pitt): Not like this you’re not. You’re not even looking at the problem.
Scout: We’re very aware of the problem.
Billy (Brad Pitt): OK, good. What’s the problem?
*Crickets*
(The scene is here if you want to watch it.)
Pay counters are everywhere but do any of those companies really understand why customers struggle?
That’s why we use Jobs To Be Done (JTBD).
And that's why it’s the only innovation methodology we still use after 10 years of building digital products.
Allow us to bring the story to life for you.
The Insight
The JTBD interviews we did told us that being unbanked is like having a part-time job (on top of your existing job).
Every time you need to pay a bill or make a transfer you have to find the nearest counter and pay with cash. Not to mention making a stop at home to get the cash if you’re short.
A lot of bills are due monthly, but people without accounts tend to have jobs with irregular pay. It’s one heck of a juggling act making sure you put the money aside in time – but not too soon or you'll be short for something else.
You need to keep up with payments without tying up money that could be used for groceries and other essentials that week.
These customers weren’t just unbanked — they were underserved by design.
The Innovation
So – we helped Kroger Money Services design a product to keep track of payments due and money coming in.
It helped customers fit payments in around their lifestyle, rather than the other way around.
When they were near a payment location, the app let them know there was one nearby and what they needed to pay now vs what they could defer until a later date.
"By the way, why not pick up some inexpensive groceries while you're here?"
Easy.
Would you like to help your team start with the problem next time?