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Trust as a competitive advantage in Financial Services


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Trust as a competitive advantage in Financial Services. Campaign Asia Finance Spotlight Conference, October 2012

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Trust as a competitive advantage in Financial Services

  1. 1. Trust as a competitive advantage in the Financial Services Industry John Sinke Regional Marketing Manager, Asia The views expressed are mine and not those of CMC Markets. CMC Markets
  2. 2. Bonded Trust Affective Trust Functional Trust
  3. 3. Who do I trust?
  4. 4. Banker bonuses Mergers & AcquisitionsWhy customers have lost trust in their banks TRUST Global Financial Crisis CRISIS High fees Government bail outs Poor customer experience Failing banks
  5. 5. Global Consumer Banking Survey 2011 (Ernst & Young) • Huge investments • No bail outs • Entrepreneurial endeavour • Wealth creation Poor Level of Service / Product Offering
  6. 6. Trust crisis is not caused by the Great Financial Crisis Trust has been low for a long time…
  7. 7. • Buying expertise of provider • Ongoing consumer relationship • Less likely to compare products • Inertia is rife (‘all the same’)has its roots in the nature ofconsumer finance products
  8. 8. Financial Service Providers exploit consumer inertia? • Low headline prices• Poor product and service quality • Competing for first time buyers
  9. 9. is criticalis critical
  10. 10. “If your customers don’t trust you. You can spend as muchtime, effort and money as you want on marketingcampaigns, branding and advertising. It will barely move the needle.” Justin Basini (ex-Capital One)
  11. 11. Price? Promotion? Price? People? Place? TRUST Customer trust Business Performance Economically Beneficial
  12. 12. Trust will soon becomethe most significantdifferentiator for onlinebusinesses.
  13. 13. Transactions  Relationships Social Media RevolutionDemocratisation customer experience
  14. 14. T= I + C+P Trustability Intent to act in Competence to Proactively customer’s best do so interest “Doing the right thing” “Doing things right” “Proactively”Source: Peppers & Rogers Group
  15. 15. Using insights to proactively engage customers Customer Feedback Customer Intelligence Behavioural Analytics Data
  16. 16. Branches and contact centre at the centre of trust efforts Voice Email SMS Exceptional Support (TRUST) Online IVR Mobile SocialBehind every great brand is a great brand experience
  17. 17. “It’s already toolate by the timeyou’re doingcustomer service.”“The bestcustomer serviceis if the customerdoesn’t need tocall you, doesn’tneed to talk to you.It just works.”
  18. 18. “Too many banks hide behind account “We prefer customers who fit the terms and conditions” bank’s approach”“Authenticity is delivering the customer “You don’t need a points programme; experience promised” you just need to answer the phone”“Customer experience is not what we “It’s what the customer thinks it is” think it is”
  19. 19. “Contact centre isambassador of trust relationship”
  20. 20. ©2010 CMC Markets
  21. 21. ©2010 CMC Markets
  22. 22. ©2010 CMC Markets
  23. 23. ©2010 CMC Markets
  24. 24. It’s already too late by the time you’re doing customer service TRUST Five Steps: 1. Acknowledge long term value customer 2. Ensure a quality product or service 3. Improve IT / Contact Centre Systems & Customer Analytics 4. Maintain robust voice of customer feedback 5. Stewardship for customer relationships Source: Peppers & Rogers Group
  25. 25. It’s already too late by the time you’re doing customer service Financially not viable?! - Technology/Social Media: - Fuel expectations in trust - Demands transparency - Economically attractive - Economic benefits over time Source: Peppers & Rogers Group
  26. 26.
  27. 27. TRUST CRISIS • Customers have lost trust in banks• Trusts crisis linked to nature of consumer finance • Trust is critical in transaction and relationship 1. Acknowledge long term value customer 2. Ensure quality product or service3. Improve IT / Contact Centre Systems & Analytics 4. Maintain robust voice of customer feedback 5. Stewardship for customer relationships COMPETITIVE ADVANTAGE
  28. 28. Thank you! John Sinke Twitter: @johnsinkeLinkedIn:
  29. 29. Sources:• Global Consumer Banking Survey 2011. A new era of customer expectation by Ernst & Young• Have you earned your customers’ trust? White Paper 2011 by inContact and Peppers & Rogers Group• A confidence crisis? Restoring trust in financial services, by John Springford, The Social Market Foundation, July 2011• The Bezos doctrine of ruthless pragmatism. By Barney Jopson, Financial Times, 9 July 2012• The changing face of Asian personal financial services. Kenny Lam and Jatin Pant, McKinsey, September 2011.• Financial report: Domestic banks have more local appeal. Remo Notarianni, Campaign Asia, 3 November 2011• Financial report: Bank on trust. Matthew Carlton, Campaign Asia, 3 November 2011• Why should anyone buy from you? Earn customer trust to drive business success, Justin Basini, 2011.• Building trust and loyalty in retail banking: the critical role of customer communications management, White Paper May 2012,• International Banking, Retail renaissance, The Economist, May 2012.• Extreme Trust. Honesty as a competitive advantage, Don Peppers & Martha Rogers, 2012.• The converged lifestyle. Consumers and Convergence 5. KPMG International, December 2011• Private banking in Asia: going beyond trust and confidence. Singapore Management University, November 2010• Financial Services, the blame game. Financial Times, 30 September 2012• The three bitter pills you need to take to restore brand trust. Marketing Week, 20 October 2011.• Time for finance to get ‘back to basics’? Money Marketing, 2 August 2011• Nick Brien: Marketing now has 5Ps. Campaign Asia, 18 September 2012• Megabanks lose more consumer trust while community institutions make gains. The Financial, 11 September 2012• The future for finance as expectations are on the rise - Part II. Sara de Dios, 25 July 2012,• Edelman Trust Barometer, 2012 Annual Global Study• Edelman Trust Barometer, 2012 APAC Results• Edelman trust Barometer. 2012 US Financial Services and Banking Industries• Financial crisis, five years on: trust in banking hits new low. The Guardian, 9 August 2012• Consumer trust in financial services is underpinned by effective communications., 8 June 2012, communications/••••• Finance Report: Brands fail to connect with Asian consumers. Campaign Asia, 15 October2012• Understanding Asian Mass Affluents, Fox OneStop Media, October 2012