In the (post-)crisis era, challenging the status quo through innovation will be critical to restore profitability in the financial sector. The commoditisation of products within the industry is making it very difficult to compete on price. Moreover, a whole array of non-banking entities is entering the market to close the gap between the offerings of banks and the needs of customers. Suddenly, banks face competition from telcos, supermarkets, tech firms and innovative start-ups, all experienced in building online relationships and developing and marketing transparent products. In this paper we explain how financial institutions can install structural collaboration trajectories with key stakeholders (consumers, employees, management) in order to develop true value propositions consumers are willing to pay for.

2. Part 1 : Introduction

3. In the (post-)crisis era, challenging the status quo
through innovation will be critical to restore profitability
in the financial sector. The commoditisation of products
within the industry is making it very difficult to compete
on price. Moreover, a whole array of non-banking
entities is entering the market to close the gap between
the offerings of banks and the needs of customers.
Suddenly, banks face competition from telcos,
What to expect? supermarkets, tech firms and innovative start-ups, all
experienced in building online relationships and
developing and marketing transparent products.
In this paper we explain how
financial institutions
can install structural collaboration
trajectories with key stakeholders (consumers,
employees, management) in order to develop true value
propositions consumers are willing to pay for.

4. Time to innovate is NOW!
So from a bank‟s point of view the competitive frame
of reference has expanded considerably and at a
frightening pace. “Customers judge across their entire set of
experiences rather than just comparing your
As a result, only
financial institutions which organization to others like it. We want our
invest in service innovations taking technology to be as intuitive and user-friendly as
Apple products, the service we receive to be as
advantage of a profound understanding of
thoughtful as we might get from Nordstrom, and
consumer needs and demands will be able to personalization and ease of payment as good as
outperform competition. (IBM Institute for Amazon’s”
(Forbes, Rita McGrath, Five Big Trends in Business Innovation in 2012).
Business Value 2010)
However…
…impediments to innovate are probably more persistent in the financial sector than in any other industry. Strict
regulations, low margins, legacy, long time to market, focus on short-term financial success, commoditisation of
services & products, IT-driven NPD, lack of organisational structures & funds fostering innovation… most often result in
banks embracing the opposite of an open-innovation-minded culture. (Accenture Research, 2010)

5. With the rise of web 2.0 and social media, new
tools are available for organisations to facilitate
open innovation and structural collaboration
Here’s the processes. In the next chapters, we explain why
and how to install structural
solution! collaboration trajectories with internal
and external stakeholders (consumers,
employees, management), what the keys to
success are and the implications for the
organization. We end with concrete cases in the
telco, aviation and financial sector.

6. Part 2 : Structural Collaboration

7. When we talk about open In most cases, this
innovation or structural collaboration starts with a pilot
collaboration, we refer to the project. If the test is
integration of the voice of successful, the collaboration
the customer in all decision- can gradually be built up in a
making flows of your more structural manner. Less
than one out of ten companies
company. In most companies,
which co-create with their
customers are only allowed to
Power to give their feedback at the very
end of a decision-making flow
customers also uses this
collaboration for launching new
products or services. We could
through traditional market
the people research. This paper gives
insights on how to involve
say that the focus of co-
creation is mainly on the
initiation of new ideas. But
the customer in every single even if consumers are more or
phase of the decision- less continually involved in the
making flow on an on-going process of dreaming up new
basis. Currently, only 3% of all ideas, this is still not enough to
allow us to speak of „structural
companies have experience
collaboration‟.
with developing new products
and services with their
consumers.

8. Structural collaboration means that the customer is
involved in all aspects of your company’s life. This includes:
1. Getting new insights: Exploration of the target group. Listen directly to how
they perceive the product and service quality in order to optimize the commercial
portfolio. This also implies discovering new market trends and unmet needs from
your most relevant customers.
2. The development of new ideas and fine-tuning of existing ideas:
Create new commercial value together with the customer.
3. Key role during implementation: Include customers during the
implementation phase to make sure that your interpretation of their ideas is correct.
4. Continuous evaluation and optimization: Use the customer‟s voice as a
continuous flow of information to improve loads of smaller, tactical issues and to re-
shape the future of your company, your customer being your primary consultant.

9. Overview of structural collaboration and business issues
And it pays off: a recent article in the
„Harvard Business Review‟ claimed
that companies are more able to
solve all their main business
issues if they collaborate closely
with their consumers. The good
news is that consumers are also
willing to help companies out with
this: more than half of them want to
collaborate with one of their
favourite brands on one or more of
these issues. The goal of this paper
is to look into the necessary
ingredients for a company to
structurally get the consumer on
board.

10. The objectives of structural collaboration
Based on 17 interviews with senior executives of (global) brands from different industries, we came to the
conclusion that companies that are working on structural collaboration with their customers have four clear
objectives in mind with this approach:
1. Create better products, improve the 3. Add consumer feeling to the gut feeling. A lot of
customer service and communicate in a managers rely on their gut feeling, which is wonderful.
Structural collaboration should add „consumer feeling‟ to
more impactful way. This is by far the most
it. By collaborating so often, managers create the ability to
important objective for large brands in order to
put on the consumers‟ hat during a meeting and think as
collaborate with consumers. By succeeding in this
the consumer. Which helps them to make more
objective, the overall performance of the
consumer-relevant choices.
organization will increase.
2. Become more agile. By involving customers in 4. Marketing & PR. Companies that are listening and
every phase of a decision-making chain, things that involve consumers in decision-making are popular
move faster. Companies can make better nowadays. Tell all your customers that you take decisions
decisions more rapidly and have a better feeling of based on consulting other customers, and they will like
what will be needed to be equally successful in the you more. Leveraging the internal collaboration platforms
future. A big plus in today‟s fast-moving world. towards the external communication has an impact on the
overall perception. This is not the main goal, but a very
welcomed indirect effect.

11. It‟s clear that structural collaboration with consumers is
not about having the right technology to make it
happen. It is about a mentality shift for most
organisations. A shift from a „we know best‟ attitude
towards an open mentality. The most beautiful result
An evolution, of collaborating companies is the creation of what we
just called the „consumer feeling’. Adding the
consumer feeling to the gut feeling of companies is
not a revolution the biggest change one can achieve through structural
collaboration.
To reach this situation, a number of steps need to be
taken. Based on our research, we learned that all
companies started small and evolved towards bigger
and bigger collaboration projects. In the end,
collaboration was really embedded in their organization.
It was a process of change, not a revolution.

12. The evolution towards structural collaboration happens
in three steps:
1. Collaboration always starts with a first-time try out. Companies organize a co-creation project in which
they allow the customer to participate in one specific project. Most frequently occurring examples are co-
creation of a new product, a new package or new marketing communication.
2. If this try-out is experienced as a success, the second step is to apply collaboration on a project-based
level in the organization. In this stage, companies have the habit to involve customers in every
important new project they work on.
3. After a while, it becomes hard for them to take decisions without the voice of the customer during the
process and they decide to collaborate structurally.

13. Three pillars for structural
collaboration with your customers

14. 1 Select the right participants
In our opinion there are two types of - meaningful - Companies that want to involve the customer in
structural customer collaboration : an open online more strategic decisions and that have a need for in-
platform where everyone can participate and a depth feedback, tend to work with a closed online
closed online community where you select the community with a limited number of relevant
people to join in. In the large open communities you customers. If you want to solve a specific
have little direct control over who joins and who management problem, it is better to discuss possible
doesn‟t.
The members come together in a solutions with a smaller, closed group of between 50
and 150 of people with a keen interest for your
very spontaneous way to discuss particular
category. It could also be a group of your most
subjects of their interest. Your role with ardent fans, fans you have carefully vetted and
regards to these people is simply to listen. This will selected yourself. The major advantage of this
allow you to discover a series of unfulfilled market approach is that you have everything in your own
needs, which may eventually lead to new products hands - and this is advisable if you don‟t want the
and services. Of course, you are also free to ask whole world to know what decisions are being taken.
them questions, but you should always remember
that these are open communities - anyone else
might be listening to their answers!

15. 1 Select the right participants
Having said that, it is important to acknowledge that not Research has shown that without this kind of
every customer will be able - or is suitable - to help you emotional commitment people seldom are
solve management problems. To give your company interested enough to contribute effectively to an
access to the right advice on a daily basis, you need to you need to
online community. In other words,
listen to the right (and relevant) people. For your talk to people who are interesting and
communities you should seek to attract people who interested. If they don‟t have an opinion or if
can offer added value. The minimum condition is the natural motivation to take part is missing,
that they have a clear commitment to the your community will not achieve what you want it
to achieve. But natural engagement is not
company and what it stands for. They may be experts
sufficient, in order to make your community a real
in the sector, knowledgeable and enthusiastic amateurs
success you need to manage it well. Several
in the sector or just big fans of your brand.
things are important: be open and transparent
about the goals of each project, listen actively
(allow participants to put their issues on your
agenda too), make it a fun experience (after all
people are doing this in their spare time) and give
enough feedback on what you did with their
answers.

16. 2 Internal communication is not enough
Internal = External
Managers show more interest in a project or Sharing your collaboration work with the whole
approach which gets external credits than in a organisation and the rest of the world has several
project with a sole internal focus. In other advantages. Next to an increase in motivation of your
words: make sure your structural management, it will also increase the motivation of your
collaboration is not completely taking communities‟ participants. Further, research has shown
that consumers have a higher trust level towards and a
place behind the scenes of your
better perception of co-creating brands. So, there is also a
organization. commercial benefit to leveraging your efforts externally.

17. 2 Internal communication is not enough
Internal = External
There are a few communication tactics you can apply to increase the internal and external impact of your
collaboration process:
Meet-up with participants: Go for tangible Bite-size & Apply content marketing
Collaboration occurs on a results: If you work creative techniques: Don‟t
digital platform but it is an together with your reporting: Share communicate once or twice
interaction between people. consumers on a about your collaboration, but
the results of your
To increase the interaction structural level, make talk about it more frequently.
collaboration in a
and the emotional bonding, sure you have concrete Use three levels of content: big
short, compelling
make sure your employees deliverables. These content campaigns (e.g. when
and creative way
meet up with these people in results (e.g. new you have BIG news: launch of
with your
the real world as well. Show products, insights, employees. Make an initiative or showing the end
them around in your company, advertising, result), content projects (e.g. a
sure it is easy to
tell them your challenges and packaging…) should be theme you talk about for a few
digest and to
treat them like part-time shared with the world in days/weeks) and content
share.
employees. order to make the updates (small, daily updates
collaboration aspirational with relevant information).
for the market and for
the manager involved.

18. 3 Measure impact
there is need for evidence that the approach works. Therefore
To keep the collaboration flow going,
we advise to use a number of clear success indicators that you can measure during the
implementation of structural collaboration in your organization. There is no standard list of KPIs
to use; they differ from company to company, as they are closely linked to the company culture and the
company‟s (long-term) objectives. There are a few KPIs that apply to all companies to follow up on the impact of
structural collaboration.

19. 3 Measure impact
Success of innovation, impact of Cost reduction: by integrating the voice of the
communication and improvement of customer customer in the entire decision-making flow, the cost
service: by involving customers early in the of ad hoc market research should be reduced. Next
process, your company will take better decisions. to that, by creating better products and services
Product launches, new advertising campaigns and based on the input of the market, the impact of
so on should have a higher success rate than before word-of-mouth will increase, which may lead to
the collaboration was implemented. lower media budgets.
Consumer feeling of the organization: you can Brand perception: listening actively will humanise
measure to what extent your management has a your brand and make it more popular.
better feeling of the attitude and behaviour of your
target market. The goal is that managers think as
consumers and improve their performance through
this newly acquired skill.
Define your KPIs, measure them and
celebrate success!

20. Need for changes in internal implementation
processes
Collaboration should lead to decisions that In other words: it is important to start with a try-out,
are taken through a between the market and but it is equally important to start with a long-term
view. Make sure you know where you're going. After
your company. The proof of structural
collaboration is in the implementation of the ideas. In the try-out, it is a matter of including collaboration
order to succeed in this crucial step, there is a need into projects where the fit feels right. People
to change the internal decision streams. The (internally and externally) get bored rapidly. Make
challenge is to integrate consumer feedback sure you have a flow ready in your collaboration
process to keep the conversations going. Plan with
and input into every phase of the decision
room for flexibility. Once you have completed a
cycle. Remember that structural collaboration does number of successful collaboration projects, the
not come overnight. It starts with a try-out that fits possibility to move forward to structural collaboration
within the existing culture. Make sure that as from the will arise.
start you know what your next step will be.

21. Make sure that, along the way, you take into account
these last tactical tips to make collaboration work:
Have clear objectives for each collaboration project
Involve all stakeholders early in the process
Manage expectations
Have a community manager
Create internal and external credibility

22. 1. Have clear objectives for each collaboration project. Make sure not to collaborate just for the sake of
it. To get the feedback of consumers in the decision flow, the objectives have to be very clear, and in line
with the business goals.
2. Involve all stakeholders early in the process. The higher the number of departments involved at the
beginning of the process, the better. In order to integrate the collaboration flow in the decision flow, it is
crucial to have a buy-in from the relevant teams.
3. Manage expectations. Collaboration won‟t lead to the next big idea for your company. Customers are
great sparring partners, but don‟t set your expectations too high. Make sure that during the integration of
their feedback in the decision flows, everybody is aware of what to expect from the collaboration.
4. Have a community manager. Make sure to have assigned somebody to manage the community. This
person is responsible for managing the conversation with participants in the collaboration process and for
sharing the insights internally. He or she brings the consumer‟s voice to life within the company.
5. Create internal and external credibility. By delivering results and integrating the voice of the customer
in your decision flows, you will gain credibility among the participants in the collaboration platform.
Credibility among employees will also grow as they will see that the collaboration adds value. Marketing
your collaboration efforts is not a bad thing, but it should not be the only thing.

23. Part 3 : Cases
how we applied the above framework
In this last chapter, we demonstrate
for important players in the (financial) services sector. We report on 2
successful co-creation pilots in the telecom and aviation sector that -eventually-
resulted in a long-term connection between all parties involved. We also show how
the financial sector is gradually opening up and starting to implementing their first true
co-creation trajectories surfing the waves of social media and web 2.0.

24. The Telenet case:
The Launch of Yelo

25. Telenet is the largest provider of broadband cable services in Belgium. Its business comprises the provision of
analogue and digital cable television, high speed Internet and fixed & mobile telephony services. By launching a
new service in Beta and integrating the voice of the user in the further development, Telenet co-created unique
value with customers.
With the purpose of securing (1) market leadership and (2) first mover advantage, Telenet‟s mission
statement comprises “generate impact through happy clients spreading positive word-of-mouth”, turning the
ground swell phenomenon to their advantage. Therefore, they launched a new service in Beta and different
internal teams (R&D, marketing, communication, management, even de CEO, Duco himself) collaborated with a
user group in an online pre-launch community on the further development of this application.

26. During the official (press) launch of By integrating the voice of the
Yelo, an application bringing customer in the development of this
new service, consumers were not
digital TV to mobile devices
only collaborating on improvements,
like the iPhone, iPad and
they actually co-defined the
(portable) computer, users were
development roadmap and the
invited to provide feedback on social
media. 100 participants were go-to-market strategy for the
recruited from the open community following years.
to join a 3-week closed pre-launch This roadmap is structured around a
This co-creation approach
community to allow in-depth model generated by consumer
resulted in highly satisfied users,
discussion of the uncovered themes, feedback, differentiating between
collaboration on improvements and basic expectations, satisfying with83% being satisfied to
to structure the development improvements and addictive new very satisfied, turning users
roadmap. After the community, features. 30 out of 45 user- into real brand
feedback was shared on social generated and prioritized
ambassadors. About 1 out of 7
media again, offering all users a improvements have already been
iPhone and iPad users in the
chance to join the dialogue. added to the roadmap, ranging from
Belgian market installed Yelo.
bugs and interface changes to
content features. More than 50% of
Recently, similar co-creation
the last update were user-generated
initiatives have been set up for a
changes.
large Belgian Bank and a
worldwide issuer of credit cards.

27. ING Student House
Leveraging on the next generation

28. ING, a global financial institution of Barbera Van der Wal, Senior
Dutch origin, has the ambition to Research Manager, ING retail: “Our
become THE bank for students and marketing challenge was to gain
experience with an online community
wants to have full understanding
as a tool for structural collaboration
of the life of students and their
with key target groups. The goal was
banking needs. to generate relevant customer insights
In the 'ING Student House' community in the fuzzy front end of the innovation
the different marketing teams gained funnel, to test marketing ideas and to
insights into the daily life of 150 co-create with the target group”.
students by discussing, among Eventually, the community provided
others, themes such as income, ING with a rich and detailed view
expenditure, financial administration, of the life of students nowadays. Susanne Streng, Segment Marketer,
banking and insurances, during 3 In a closing workshop with the ING ING retail: “For me the added value of
months. The focus was on how ING Marketing-students team, over 100 the collaboration project was not only
can add relevance to student (smaller and bigger) ideas were the concrete outcome, but also
generated to better match ING to the installing a real dialogue with the
clients. In that perspective marketing
needs and wishes of their student
ideas were evaluated and co-created target and ACTING upon true
clients. The NPD department now has
with the students. customer centricity. Engaging
a clear view on the directions for the
development of the new student customers in structural collaboration
is the ultimate brand touch-point
positioning, and thecommunity
turning them into true brand
provided them with a rich source of
ambassadors”.
customer quotes, brand reflections
and unsolicited feedback.

29. It’s not only about technology and
youngsters…

30. To further improve the experience of In a second phase, another group of
travellers, Air France-KLM, the frequent travellers placed the
French-Dutch airline holding insights into perspective with their
company, wanted to connect with stories and came up with ideas on
their customers on an emotional the “My Transfer Idea” community, a
3-week creative journey. Analysis of
level. Transfer flights in particular
the ideas resulted in 32 concept
are complex situations, evoking a lot
boards; the 4 most feasible were
of emotions, mostly negative. To
integrated in a quantitative and
approach this situation as an
emotional concept screener.
opportunity and to demystify the
innovation process, InSites
This “My Transfer Idea” project does
Consulting and Air France-KLM
not only use the emotional
collaborated on a complete and
experience of travellers as a starting
staged co-creation project, point for innovation in service
centralised around the emotional
design, the emotional layer is
service perception. By connecting
present in the complete
with Air France and KLM frequent
flyers in an insightment community, innovation approach and
10 insight platforms were defined, connection with the frequent
emphasizing their needs, emotions flyers.
and expectations.

31. Also in the financial sector, a wide range of Both groups were followed for 3 months, with a
target groups and business challenges have meet & greet between the second and third
been tackled by long-term customer months. The results revealed different types of
connections using online platforms: autonomous investors embodying different
needs and insights on the dynamics between
- In the aftermath of the financial crisis, a 1- the investors and account managers. In the
year intensive collaboration process (via an end, quick wins, short-term actions and
online community) was set up between strategic projects towards the target group
different internal teams (active involvement were defined.
of the CEO) and customers of 2 large
banks facing a merger. The goal was to - Also in a more sensitive context, true
keep the finger on the pulse and generate customer-centricity is key - nothing makes a
customer insights on the integration, so that basher bash more than not being able to tell it
the teams could act upon them and control to your face - whether it is about how to
damage or loss due to the fusion. handle a compensation trajectory towards
investment customers or giving meaning to
- With the purpose of better servicing their your brand after re-branding.
autonomous investors, a large Belgian
retail bank installed a dedicated community
among autonomous investor customers and
account managers (with a sub-community
per profile).

32. Research team
Tom De Ruyck Delphine Vantomme
+32 9 269 14 07 +32 9 269 15 20
tom@insites-consulting.com delphine@insites-consulting.com
@tomderuyck http://www.linkedin.com/in/delphinevantomme
http://www.linkedin.com/in/tomderuyck

33. Want to know more about
research in the
financial sector?
Delphine Vantomme
Business Director Financial Services
+32 9 269 15 20
delphine@insites-consulting.com