What consumers expect from banks and insurersNext Level in Social Media – June 8 2011
Relationship with financial institutions has changed Consumers are calling for1 transparency and simplicity Consumers become more and2 more self-directed Consumers rely on the wisdom of3 crowds4 Consumers are revaluing values5 Consumers prefer to be close’
Consumers relationship has changed The key to restoring trust: day to day customer experience • Drivers related to day to day customer service determine 40% of trust • Financial stability determines 20% of trust • Proof points: - touch point performance - customer facing employees - ease of doing day to day business
Consumers relationship has changed Pace in which trust is restored = Quality of interactions x Frequency of interactions
1. Consumers call for transparency and simplicity
1. Consumers call for transparency and simplicity• One in five consumers is willing to pay extra for simplicity.• The simpler the buying process, the higher the conversion rate and enhanced customer satisfaction• The simpler the product range, the less ‘purchase stress’, which leads to higher response, less final disappointment.• The simpler the product, the higher the appreciation, customer satisfaction and recommendations to family, friends, acquaintances and colleagues• Simplification of products and services results in a 15% to 40% increase in retention.• The simpler the product, the more innovative the image of the supplier.
2. Consumers are more and more self directed• They value their independence. Have a critical but fair attitude towards financial institutions. Show relatively less brand loyalty.• Like to be in control and make their own financial decisions. Tend to rely firmly on their own judgment. Value expert advice, but this does not necessarily involve a person. Discuss money matters with peers.• Take a strong interest in their personal finance. Are willing to invest the time and effort required to manage their finances, gathering information from a wide variety of sources. Look for a high degree of transparency and competence.
3. Consumers rely on the wisdom of crowds• Majority of consumers who use social media do so in order to obtain the opinion of friends and peers• ‘People like me’ and ‘recommendations from friends/family’ are far better sources of trust than any branded form of communication• 64% of consumers who pick an insurer based on friends’ advice are satisfied with their choice.• 59% of consumers using social media do so in order to get the opinions of others who have already gone through the purchase processForrester, BCG
3. Consumers rely on the wisdom of crowds Hotel Price Score Reviews Hotel 1 € 175 5.5 100 x Hotel 2 € 200 8 1x Hotel 3 € 225 8 100 x
3. Consumers rely on the wisdom of crowds Insurance Prijs Score Reviews Ins A € 1,000 5.5 100 x Ins B € 1,150 8 1x Ins C € 1,300 8 100 x• Percentage of claims paid in full• Number of phone calls to get claim paid• Time it takes for a decision to be made• Time it takes to receive money• Satisfaction rating• Number of legal disputes
Social media as a facilitator Changed Being relationships close Self Social Values directedness Media Transparancy & Wisdom Simplicity of crowds
Back to the roots Continuous dialogue Promise = proof Brand fans
Aligning social media and business challenges1. Alignment with business areas Service Brand2. Integration in current mix of Sales Proposition activities3. Use as a platform for innovation
Aligning social media and business challenges Service platform Continuous dialogue Web care Communication Service Brand Sales Proposition Sales promotion Co creation New sales channel Brand & product extensionsInspired by Ingmar de Lange et all
Brand – awareness, reputation and preference Continuous dialogue 1. New communication platform in addition to Communication traditional media Service Brand 2. Opportunity to engage (communities of) Sales Proposition customers. Building brand fans by relevant dialogues
Proposition – co creation and product innovation 1. Use the crowd to gather relevant insights Service Brand 2. Use social dynamics to innovate products Sales Proposition and services Co creation Brand & product extensions
Proposition – social dynamics for product innovation
Sales – sales promotion and new channels 1. Use social media for campaigns and sales promotion Service Brand 2. Build new sales channels for specific target groups online Sales Proposition Sales promotionNew sales channel
Service – web care & service innovationService platform 1. Web care as pro- active service Web care channel; listen, respond and solve Service Brand the problem 2. Use the crowd for Sales Proposition service innovation; create platforms for self service
Conclusions• Social media can serve as a crucial element in restoring trust. It offers the opportunity for an open dialogue with customers.• Alignment with relevant business areas, objectives and goals is crucial. Social media is never a stand-alone theme.• Measure impact and relevance. Social media thrives on the quality of relationships and interaction. Not on quantity alone.• Align and manage online with offline activities. Good customer experiences are not created in silos.
More information?Patrick RuijsPartner VODW@email@example.com