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What consumers expect from banks and insurers
Next Level in Social Media – June 8 2011
Relationship with financial institutions has changed
Consumers are calling for
transparency and simplicity1
Consumers become more and
more self-directed2
Consumers rely on the wisdom of
crowds 3
Consumers are revaluing values4
Consumers prefer to be 'close’5
Consumers' relationship has changed
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
Quality
of interactions
Frequency
of interactions
Pace in which
trust is restored = x
Consumers' relationship has changed
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
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 trust on the wisdom of crowds
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 process
Forrester, BCG
3. Consumers rely on the wisdom of crowds
3. Consumers rely on the wisdom of crowds
Hotel Price Score Reviews
Hotel 1 € 175 5.5 100 x
Hotel 2 € 200 8 1 x
Hotel 3 € 225 8 100 x
3. Consumers rely on the wisdom of crowds
• 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
Insurance Prijs Score Reviews
Ins A € 1,000 5.5 100 x
Ins B € 1,150 8 1 x
Ins C € 1,300 8 100 x
Social media as a facilitator
Transparancy &
Simplicity
Social
Media
Wisdom
of crowds
Values
Being
close
Self
directedness
Changed
relationships
Back to the roots
Continuous
dialogue
Brand
fans
Promise
= proof
Aligning social media and business challenges
Service Brand
Sales Proposition
1. Alignment with
business areas
2. Integration in
current mix of
activities
3. Use as a
platform for
innovation
Aligning social media and business challenges
New sales channel Brand & product extensions
Service platform Continuous dialogue
Sales promotion Co creation
Web care Communication
Service Brand
Sales Proposition
Inspired by Ingmar de Lange et all
1. New communication
platform in addition to
traditional media
2. Opportunity to engage
(communities of)
customers. Building
brand fans by relevant
dialogues
Brand – awareness, reputation and preference
Continuous dialogue
Communication
Service Brand
Sales Proposition
Brand – communication platform
Brand – continuous dialogue to create brand fans
Every 8
seconds
somebody
somewhere
recommends
First Direct to
a friend
Brand – communities
1. Use the crowd to
gather relevant
insights
2. Use social dynamics
to innovate products
and services
Proposition – co creation and product innovation
Brand & product extensions
Co creation
Service Brand
Sales Proposition
Proposition – co creation
Proposition – social dynamics for product innovation
1. Use social media for
campaigns and sales
promotion
2. Build new sales
channels for specific
target groups online
Sales – sales promotion and new channels
New sales channel
Sales promotion
Service Brand
Sales Proposition
Sales – sales promotion by social media
Sales – Facebook as a new sales channel
1. Web care as pro-
active service
channel; listen,
respond and solve
the problem
2. Use the crowd for
service innovation;
create platforms for
self service
Service – web care & service innovation
Service platform
Web care
Service Brand
Sales Proposition
Service – twitter care
Service – service innovation
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.
