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  • 1. Data protection 2013 How can financial services regain consumer trust? Friday 8 February Thursday 7 March #dmafs#dmadata Sponsored by by Supported Insight partner
  • 2. Welcome from the ChairBill Gilbert, Chair of DMA Financial Services Council#dmafs Sponsored by Insight partner
  • 3. Agenda8.30am Registration and breakfast9.00am Welcome from the Chair Bill Gilbert, Chair of DMA Financial Services Council9.10am Research findings Paul Seabrook, Director and Co-Founder, fast.MAP9.40am Using added value products to improve satisfaction Giles Desforges, Senior Vice President for Northern Europe, Affinion International10.10am Visual trends in the financial services industry Micha Schwing, Creative Planning Manager, Getty Images10.30am Panel discussion10.55pm Closing comments from the Chair Bill Gilbert, Chair of DMA Financial Services Council Sponsored by Insight partner
  • 4. Research findingsPaul Seabrook, Director and Co-Founder, fast.MAP#dmafsSponsored by Insight partner
  • 5. How can Financial ServicesRegain Consumer Trust?Paul Seabrook – fast.MAP
  • 6. Trust is implicit in many different ways
  • 7. Trust amongst key sectorsQ: Please rank the following industries on how far you trust them Source: fast.MAP December 2012 N = 2,494 Nov-12 vs. Mar 11 Mobile phone companies 5% Charities 4% Car companies 4% Financial industry 1% Home media package providers 0% Government -2% Utilities -3% Media (newspapers etc.) -9%
  • 8. Trust in FS Q: How far do you agree with the following statement? ‘In the current economic climate I trust the Financial Services industry to look out for mSource: fast.MAP December 2012 N = 2,494 45% 40% 36% 57% 35% 30% 28% 50% Nov-12 Dec-11 Mar-11 Jun-10 25% 14% 22% Dec-09 20% Jul-09 9% Dec-08 15% 11% 10% 5% 3% 0% Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree
  • 9. Trust: Again FS seen as having goodcredentials
  • 10. Methodology 18 questions were submitted via a self completion online survey to fast.MAP’s nationally representative Consumer Voice panel Sample size = 2,494 Field work November 2012 Results representative of the UK population based on age and gender (18+) Panellists were incentivised by £250 prize draw
  • 11. RECOMMENDATION & Satisfaction
  • 12. Recommendation generally positiveQ: On a scale of 0-10, how likely would you be to recommend your main bank to a friend or colleague? Source: fast.MAP December 2012 N = 2,49 25% 23% 20% 17% 15% 14% 14% 11% 11% 10% 5% 4% 3% 2% 1% 0% 10 – Highly 9 8 7 6 5 4 3 2 1 – Highly likely unlikely
  • 13. Satisfaction also generally positiveQ: On a scale of 0-10, are you satisfied with your main bank? Source: fast.MAP December 2012 N = 2,494 30% 25% 25% 21% 20% 18% 15% 13% 10% 9% 8% 5% 2% 2% 2% 1% 0% 10 – Satisfied 9 8 7 6 5 4 3 2 1 – Not Satisfied
  • 14. NPS ScoreSource: fast.MAP December 2012 N = 2,494 BANK NPS First Direct 44% Co-op 35% NatWest 15% Other not listed above 9% HSBC 8% Barclays -1% Halifax -5% Santander -15% Lloyds Banking Group / Lloyds TSB -16% RBS (Royal Bank of Scotland) -22%
  • 15. Just over 1 in 10 are thinking of switching in the next 12 monthsQ: How likely are you to switch your bank in the next 12 months? Source: fast.MAP December 2012 N = 2,494 60% 57% 50% 40% 30% 21% 20% 11% 10% 8% 4% 0% Very likely Likely Unlikely Very unlikely Don’t know
  • 16. CONFUSING Messages
  • 17. Relentless news about banks….
  • 18. SatisfactionQ: On a scale of 0-10, are you satisfied with your main bank? 30% 25% 25% 21% 20% 18% 15% 13% 10% 9% 8% 5% 2% 2% 2% 1% 0% 10 – Satisfied 9 8 7 6 5 4 3 2 1 – Not Satisfied
  • 19. REALISTIC &Savvy
  • 20. Free BankingQ: Do you currently receive free banking? No, 18% Yes, 82%
  • 21. Expectation that free banking will reduceQ: Do you expect free banking services from your bank in the next 2 years? Source: fast.MAP December 2012 N = 2,494 No, 11% Maybe, 23% Yes, 67%
  • 22. WHAT TO DO Now
  • 23. Focus on the positives
  • 24. Core Product Holding Score (Includes current account) – Banks with 3% or above share: Avg = 1.96Q: Thinking about your primary bank you have just selected, please indicate any products or services that you might CURRENTLY have with Source: fast.MAP December 2012 N = 1,714
  • 25. Core Product Holding Score (Includes current account) Banks with 3% or above share Vs Bank: Avg = 1.96Q: Thinking about your primary bank you have just selected, please indicate any products or services that you might CURRENTLY have with Source: fast.MAP December 2012 Average
  • 26. NPS ScoreSource: fast.MAP December 2012 N = 2,494 BANK NPS First Direct 44% Co-op 35% NatWest 15% Other not listed above 9% HSBC 8% Barclays -1% Halifax -5% Santander -15% Lloyds Banking Group / Lloyds TSB -16% RBS (Royal Bank of Scotland) -22%
  • 27. Core Product Holding Score (Includes current account) Vs Benefits:Q: Thinking about your primary bank you have just selected, please indicate any products or services that you might CURRENTLY have with Source: fast.MAP December 2012 Note: this is across all banks, not just those ove
  • 28. What products do you have with your main bank?Q: Thinking about your primary bank you have just selected, please indicate any products or services that you might CURRENTLY have with Source: fast.MAP December 2012
  • 29. Recommendation Vs Product HoldingQ: On a scale of 0-10, how likely would you be to recommend your main bank to a friend or colleague? Source: fast.MAP December 2012
  • 30. Satisfaction Vs Product HoldingQ: On a scale of 0-10, are you satisfied with your main bank? Source: fast.MAP December 2012
  • 31. Other FS products; market opportunities for main bankQ: And now please select any of these products and services that you have but NOT with your main bank fast.MAP December 2012 N = 2,494 Source: Home Contents Insurance 39% Buildings Insurance 33% None of the above 30% Pension 26% Savings Account 26% Life Insurance 23% Mortgage 19% Cash ISAs 19% Stocks and Shares 14% Stock ISAs 10% Standard Current Account 10% Loan 9% Equity Release 5% Credit Protection 4% Packaged Current Account (typically you pay a monthly… 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
  • 32. Market demand for the next 12 monthsQ: Please look at the following and select any that you think you are likely to need / consider buying in the next 12 months. Please tick all tha Source: fast.MAP December 2012 N = 2,494 Not in the market for any of these products or services 60% Home Contents Insurance 20% Buildings Insurance 15% Cash ISAs 11% Savings Account 10% Mortgage 5% Loan 3% Life Insurance 3% Stocks and Shares 3% Stock ISAs 3% Standard Current Account 3% Pension 2% Packaged Current Account (typically you pay a monthly… 2% Equity Release 1% Credit Protection 1% 0% 10% 20% 30% 40% 50% 60% 70%
  • 33. Where people will lookQ: Where do you think you are likely to look for these products and services? Please tick any of the below that you would considerusing when searching for these products and services. Only shown for products selected in previous question Source: fast.MAP December 2012 N = 1,006
  • 34. Non-core product holdingQ: Please look at the following list of non-core financial products and services and tick any that you currently have with any company Motor breakdown cover 44% None of the above 38% Travel insurance 27% Home emergency cover 17% Mobile phone insurance 14% Identity theft protection 11% Lock and key cover 10% Card blocking and re-order service for any card 8% Gadget insurance 5% VIP lounge access 4% Travel discount booking service 3% Credit management 2% Event discount booking service 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Source: fast.MAP December 2012 N = 2,494
  • 35. Bank’s share of theseQ: Of the products and services you selected below, which are through your bank? Source: fast.MAP December 2012 N = 1,094 No – none of them are via my bank 63% Travel insurance 21% Mobile phone insurance 13% Motor breakdown cover 12% Identity theft protection 10% Card blocking and re-order service for any card 8% Home emergency cover 5% Lock and key cover 5% Gadget insurance 3% VIP lounge access 2% Travel discount booking service 2% Credit management 2% Event discount booking service 1% 0% 10% 20% 30% 40% 50% 60% 70%
  • 36. Understanding of theseQ: Are there any of the following that you don’t understand what they are? Source: fast.MAP December 2012 N = 2,494 I know what all of them are 65% VIP lounge access 15% Event discount booking service 13% Credit management 12% Lock and key cover 9%Card blocking and re-order service for any card 9% Travel discount booking service 6% Gadget insurance 6% Identity theft protection 4% Home emergency cover 3% Motor breakdown cover 1% Travel insurance 1% Mobile phone insurance 1% 0% 10% 20% 30% 40% 50% 60% 70%
  • 37. CREDIT PROFILESecurity
  • 38. Credit Profile attitudesQ: Thinking about your credit profile, please select the most appropriate statement below: Source: fast.MAP December 2012 N = 2,494 I’m not currently doing anything, but plan to in the future, 23% I’m not currently doing anything and don’t plan to, 41% I take proactive steps to protect and manage my profile, 36%
  • 39. Bank’s role with credit profileQ: Do you think your bank should be doing more to help you manage your credit profile? Source: fast.MAP December 2012 N = 2,494 Yes, 43% No, 57%
  • 40. Technology concerns: Contactless PaymentQ: How concerned are you about the security of the following? Source: fast.MAP December 2012 N = 2,494Contactless payments using mobiles (not internet banking) 30% 27% 22% 5% 6% 10% Contactless payments using card 24% 27% 26% 9% 6% 8% Contactless payments using fobs 27% 23% 24% 5% 6% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very Concerned Concerned Neither concerned or unconcerned Unconcerned Not concerned at all Don’t know
  • 41. COMMUNICATIONPreferences
  • 42. Communicating with banksQ: Please look at the following ways you might be communicating with your bank or credit card company and select any that you CURRENT Source: fast.MAP December 2012 N = 2,494 Online banking / servicing 75% 12% 2% 11%Visit a high street bank at least once a month (not a 56% 27% 5% 12% cashpoint / ATM outside) Telephone banking 33% 33% 7% 28% Contactless payments using card 18% 39% 5% 38%Contactless payments using mobiles (not internet 4% 38% 6% 51% banking) Contactless payments using fobs 3% 34% 5% 58% Use Facebook to communicate with my bank 2% 24% 6% 68% Use Twitter to communicate with my bank 2% 22% 7% 69% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Currently do Would consider doing Do but wish to stop Don’t know what this is
  • 43. Communication received Q: Please look at the following ways you might be communicating with your bank or credit card company and select any that you CURRENTLY receive: Source: fast.MAP December 2012 N = 2,494 Receive general communication via post 60% 16% 11% 13% Receive statements online 59% 22% 3% 16% Receive statements via post 54% 19% 10% 17% Receive communications via email 43% 29% 6% 22% SMS / text received from bank general communication 21% 30% 8% 40%Receive phone calls about my products and services / new 13% 28% 20% 39% ones 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Currently receiving Would consider receiving receive but wish to stop Don’t know what this is
  • 44. Drivers of service. It’s not all about numbers and %sQ: What is most important to you when considering satisfaction with your bank. Please use the scale provided: Source: fast.MAP December 2012 N = 2,49 Customer service 42% 19% 16% 9% 7% 5%0% 1% 1% Are available when I need to speak to them 40% 19% 16% 8% 7% 5% 1% 1%1% Online banking experience 38% 19% 13% 7% 8% 5% 1% 7% 1% A branch local to me 36% 17% 15% 10% 9% 6% 2% 3% 2% Rates of interest offered 32% 17% 16% 9% 12% 8% 1% 3% 1% Choice of products available 20% 11% 18% 15% 17% 9% 3% 4% 2% No queues 19% 14% 19% 17% 14% 9% 3% 3% 2% Telephone banking experience 16% 10% 14% 13% 13% 11% 4%3% 14% Keep me updated about new products and services 14% 9% 16% 12% 18% 11% 5% 4% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10 – Very Important 9 8 7 6 5 4 3 2 1 – Not important at all
  • 45. Contact channel preferencesQ: How do you prefer to be contacted by Source: fast.MAP December 2012 N = 2,494 2012 Vs 2011 Email Letter Mobile Landline Text/SMS call call Mortgage Lender 2% -9% 0% -1% 1% Investment provider -1% -7% 0% 0% 0% Building Society 1% -9% 0% -2% 1% Pension Provider 1% -8% 0% 0% 0% Credit Card provider 0% -3% 0% -2% 0% Insurance provider 2% -6% -1% -1% 0% Bank 9% -6% -1% -3% 1%
  • 46. Contact channel preferencesQ: How do you prefer to be contacted by Source: fast.MAP December 2012 N = 2,494 Bank 38% 48% 4% 7% Insurance provider 30% 42% 3% 23% Credit Card provider 30% 38% 3% 27% Pension Provider 21% 36% 40% Building Society 22% 31% 43% Investment provider 19% 25% 52% Mortgage Lender 17% 23% 57% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Email Letter Mobile call Landline call Text/SMS Not applicable
  • 47. WHAT TO DO Now
  • 48. The Importance of Testing – Richard BensonThere are only two rules in direct marketing.Rule 1: test everything. Rule 2: Refer to Rule 1 Secrets of Successful Direct Mail, 1989
  • 49. Decisions marketers have to make Variable How many Possible combinations Audience 5 5 Offer 4 20 Incentive 4 80Endorsement 3 240Outer envelope 3 720 PS 4 2880 Price 4 11520
  • 50. There are two routes you can go down…
  • 51. Traditional Campaign Testing Control Control100 days GO LIVE ; INVOLVE CONSUMERS
  • 52. The problems with traditional testing… One pack fits all Not cost effective to segment Control pack is very difficult to beat Few tests a year ( 2 or 3 ) Many new initiatives failYou might know what works but not why – so what do you learn as amarketer from this for your other campaigns? Therefore off line DM as a channel is not as effective as it might be.
  • 53. D
  • 54. Buried insight • 2 x ‘D’ for DMAD • One per company • Each one qualifies the finder to £1,000 of research questions • Starting from midday Thursday 7th March for 24 hours • Open only to attendees of this conference • Web address is www.fastmap.com • Email EXACT PAGE AND LOCATION paul.seabrook@fastmap.com • 2 x winners notified Monday 11th March
  • 55. Thank you
  • 56. Using added value products toimprove satisfactionGiles Desforges, Senior Vice President for Northern Europe,Affinion International#dmafsSponsored by Insight partner
  • 57. Thursday 7th MarchHow can Financial Servicesregain consumer trust?Using Added Value Products to Improve Satisfaction 57
  • 58. Contents • Affinion Overview • What are Added Value Products and why are they important • Why Customer Engagement is key • Improving Customer Relationships 58
  • 59. Affinion Overview59
  • 60. Affinion Overview Helping you Recruit. Reward. Retain.Affinion is the leadingglobal provider ofcustomer loyalty andengagement solutions. 4,250 Global associatesWe help many of theworld’s leading financialorganisations connectand engage with theircustomers, creating 20rewarding relationships. 180 Million consumers Call centres providing continuous support across a wide array of product and loyalty solutions 5,500 17 Countries around the world Clients and marketing partners 60
  • 61. Affinion Overview Retention AcquisitionOur custom programs enable youto better understand, engage andfulfill customer needs leading tosignificantly enhanced brandloyalty and material value.We have proven tools andtechniques to influence everystage of a customer’s experience Satisfactionwith your brand, from acquisitionto overall level of satisfaction. Loyalty & engagement 61
  • 62. What are AddedValue Products?62
  • 63. Commodity 63
  • 64. …to Customer Experience 64
  • 65. What are Added Value Products in Financial Services? Protection Leisure Mobile Dining Gadget and personal possessions Travel Motor breakdown Shopping Home emergency Cinema Personal information (identity) Events Personal credit status (credit management) Short breaks Lock and key Activities and attractions Warranty & repair Purchase protection 65
  • 66. The Importance ofAdditional Products66
  • 67. Added Value Products Improve Key Financial MeasuresAffinion research shows that added value products improve customer KPIs * Average of different Affinion clients in Germany 67
  • 68. … and Improved Financial MeasuresResearch in America showspackage benefits also increasecustomer, tenure, deposits andoverall lifetime valueAverage difference betweenfree checking and an enhanced,fee-based checking accountwith Affinion benefits Source: NetGain! Data analysis, First Manahattan Consulting Group Data analysis, Affinion Checking client analysis 68
  • 69. The DMA Financial Services Tracker shows theycan Improve Satisfaction: Satisfaction vs Product holding Source: fast.MAP December 2012 69
  • 70. …and also Improve Likelihood to Recommend Recommend vs Product holding Source: fast.MAP December 2012 70
  • 71. Engagement is Key71
  • 72. Current Engagement is LowAffinion research shows that awareness and engagement is low Many are not utilising their benefits as they are not familiar with what they have and what the benefit is. “For a while I didn’t realise what account I had...and that I was paying for it! Now I realise, it’s good.” Affinion /TNS Research 72
  • 73. But When Awareness is High…These customers have a strong sense of valuefrom their AVA - and remain loyal and satisfied“ “ My account has already paid for itself this year. I’ve had my money back. I’ve had my £12.95 a month back on the 25% I’ve had back on download tickets.” Leisure benefits can offer real “I use the concert tickets all the time… that’s kind of the main reason Ive got it” savings and even a sense of privilege; generating a sense of value and strengthening loyalty “The travel benefits are a really great perk.. Go and sit there and have a couple of vodkas and “The concierge is fantastic, I get a phone call from whatever. You know, it just makes him saying, ‘By the way, your anniversary is coming the whole experience nicer. You ” up, do you want us to order flowers?’, Thank you, know, youre going to get a chair, I’m not in trouble anymore” you get a bit of service.” Affinion /TNS Research 73
  • 74. Improving CustomerRelationships74
  • 75. Five Key Factors for Improving Customer Relationships1. Relevant Products2. Differentiate3. Relevant and Personalised Communications4. Reduce Customer Effort5. Choice and Evolution 75
  • 76. 1. Relevant ProductsChanging modelswithin the marketplaceto enable customersaccess to products 76
  • 77. 1. Relevant ProductsTargeted productsaimed at helpingcustomer in specificdecisions 77
  • 78. 2. DifferentiateLeisure benefits canprovide real differentiationin a commoditisedmarketplace ‘Customers utilising their leisure benefits tend to be the most satisfied, as the benefits are used in an active way, increasing engagement and sense of good value for money’ Affinion qualitative research 2012 Providing banks with increased positive touchpoints and engagement opportunities that create positive brand experience 78
  • 79. 3. Relevant & Personalised Communications 79
  • 80. 4. Reduce Customer EffortBarriers to utilisation are a key concern for customersWe have recently been talking to customers about Mobile Phone Insurance “My phone is my life”What customers say: “I want to •Immediacy of replacement, wherever I am speak to “Know who I one •One direct call does it all am, trust person” me” •Personalised, empathetic customer service •Remove barriers to claim “Make it •No bureaucratic (paper based) claims “I am easy” process, no jargon reasonable, so treat me •Simple and fair excess amount / exclusions fairly” •Proactive progress updates “Keep me •Surprise and delight me “I want my informed” loyalty to be recognised”TNS Global focus group research conducted for Affinion undertaken in October 2012 80
  • 81. 4. Reduce Customer Effort 81
  • 82. 4. Reduce Customer Effort What should Mobile Phone Insurance look like? 82
  • 83. 5. Choice and EvolutionDifferent customers have different needs Singles/Couples Families with Children Empty Nesters no children • Renting a home • Mortgage stretched • High home-equity • Spontaneous • On a budget • Visit same places • Friends are very important • Plan, Plan, Plan for • Use a service again & again • Go out often all activity if receive good service • 1or 2 person household • 3 to 6 person household • Occasions; family are • Lower asset holding • High asset but high debt important LOOKING FOR LOOKING FOR LOOKING FOR • Good-value cover • Treats & affordable escapism • Reassurance of brands • Propositions that support • “Value” they can trust a mobile lifestyle MOTIVATOR MOTIVATOR MOTIVATOR The Social Angle Family Solution Quality & Safety 83
  • 84. 5. Choice and EvolutionEvolving products to fit today’s customers requirements 84
  • 85. Conclusion• Added Value Products drive improved customer measures both financial and non-financial• However it is vital to back this with engagement strategies• There are 5 factors for improving customer relations:  Relevant Products  Differentiate  Relevant & Personalised Communications  Reduce Customer Effort  Choice and Evolution 85
  • 86. THANK YOU 86
  • 87. Visual trends in the financial servicesindustryMicha Schwing, Creative Planning Manager, Getty Images#dmafsSponsored by Insight partner
  • 88. Getty Images
  • 89. The moment for a new conceptionof capitalism is now; society’s needsare large and growing, whilecustomers, employees, and a newgeneration of young people areasking business to step up.Michael Porter and Mark KramerCreating Shared Value
  • 90. In the post-commercial society,consumption becomes one of themost important ways of expressingviews and values, in contrast to thecommercial society whereconsumption primarily expresseslifestyle.Tom BeckmanEDC Prime PR Stockholm
  • 91. Re-Imagining Value
  • 92. The New Wealth
  • 93. Small Business
  • 94. Responsibility
  • 95. Thanks!
  • 96. Panel DiscussionBill Gilbert, Chair of DMA Financial Services CouncilPaul Seabrook, Director and Co-Founder, fast.MAPGiles Desforges, Senior Vice President for Northern Europe,Affinion InternationalMicha Schwing, Creative Planning Manager, Getty Images#dmafsSponsored by Insight partner
  • 97. Closing remarks from the ChairBill Gilbert, Chair of DMA Financial Services Council#dmafs Sponsored by Insight partner