1) A presentation was given at a DMA Financial Services Council event on consumer trust in financial services.
2) Research findings showed that trust in the financial services industry remains low but recommendation and satisfaction with main banks is generally positive.
3) The presentation discussed focusing on core products and benefits, improving the customer experience through added value products, and opportunities for cross-selling other financial products to improve trust and the customer relationship.
How can financial services regain consumer trust presentations
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 Chair
Bill Gilbert, Chair of DMA Financial Services Council
#dmafs
Sponsored by Insight partner
3. Agenda
8.30am Registration and breakfast
9.00am Welcome from the Chair
Bill Gilbert, Chair of DMA Financial Services Council
9.10am Research findings
Paul Seabrook, Director and Co-Founder, fast.MAP
9.40am Using added value products to improve satisfaction
Giles Desforges, Senior Vice President for Northern Europe, Affinion
International
10.10am Visual trends in the financial services industry
Micha Schwing, Creative Planning Manager, Getty Images
10.30am Panel discussion
10.55pm Closing comments from the Chair
Bill Gilbert, Chair of DMA Financial Services Council
Sponsored by Insight partner
7. Trust amongst key sectors
Q: 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 m
Source: 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
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
12. Recommendation generally positive
Q: 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 positive
Q: 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 Score
Source: 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 months
Q: 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
21. Expectation that free banking will reduce
Q: 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%
24. Core Product Holding Score (Includes current
account) – Banks with 3% or above share: Avg =
1.96
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 N = 1,714
25. Core Product Holding Score (Includes current
account) Banks with 3% or above share Vs Bank:
Avg = 1.96
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
Average
26. NPS Score
Source: 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 Holding
Q: 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 Holding
Q: 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 bank
Q: 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 months
Q: 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 look
Q: Where do you think you are likely to look for these products and services? Please tick any of the below that you would consider
using 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 holding
Q: 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 these
Q: 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 these
Q: 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%
38. Credit Profile attitudes
Q: 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 profile
Q: 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
Payment
Q: How concerned are you about the security of the following? Source: fast.MAP December 2012 N = 2,494
Contactless 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
42. Communicating with banks
Q: 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 %s
Q: 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 preferences
Q: 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 preferences
Q: 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
48. The Importance of Testing – Richard Benson
There 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 80
Endorsement 3 240
Outer envelope 3 720
PS 4 2880
Price 4
11520
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 a
marketer from this for your other campaigns?
Therefore off line DM as a channel is not as effective as it might be.
54. Buried insight
• 2 x ‘D’ for DMA
D • 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
56. Using added value products to
improve satisfaction
Giles Desforges, Senior Vice President for Northern Europe,
Affinion International
#dmafs
Sponsored by Insight partner
57. Thursday 7th March
How can Financial Services
regain 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
60. Affinion Overview Helping you Recruit. Reward. Retain.
Affinion is the leading
global provider of
customer loyalty and
engagement solutions.
4,250 Global
associates
We help many of the
world’s leading financial
organisations connect
and engage with their
customers, creating 20
rewarding 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
Acquisition
Our custom programs enable you
to better understand, engage and
fulfill customer needs leading to
significantly enhanced brand
loyalty and material value.
We have proven tools and
techniques to influence every
stage of a customer’s experience Satisfaction
with your brand, from acquisition
to overall level of satisfaction.
Loyalty & engagement
61
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
67. Added Value Products Improve Key Financial Measures
Affinion research shows that added value products improve customer KPIs
* Average of different Affinion clients in Germany
67
68. … and Improved Financial Measures
Research in America shows
package benefits also increase
customer, tenure, deposits and
overall lifetime value
Average difference between
free checking and an enhanced,
fee-based checking account
with Affinion benefits
Source: NetGain! Data analysis, First Manahattan Consulting Group Data analysis,
Affinion Checking client analysis
68
69. The DMA Financial Services Tracker shows they
can 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
72. Current Engagement is Low
Affinion 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 value
from 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 I've 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, you're going to get a chair,
I’m not in trouble anymore”
you get a bit of service.”
Affinion /TNS Research
73
78. 2. Differentiate
Leisure benefits can
provide real differentiation
in a commoditised
marketplace
‘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
80. 4. Reduce Customer Effort
Barriers to utilisation are a key concern for customers
We 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
82. 4. Reduce Customer Effort
What should Mobile Phone Insurance look like?
82
83. 5. Choice and Evolution
Different 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 Evolution
Evolving 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
91. The moment for a new conception
of capitalism is now; society’s needs
are large and growing, while
customers, employees, and a new
generation of young people are
asking business to step up.
Michael Porter and Mark Kramer
Creating Shared Value
92. In the post-commercial society,
consumption becomes one of the
most important ways of expressing
views and values, in contrast to the
commercial society where
consumption primarily expresses
lifestyle.
Tom Beckman
EDC Prime PR Stockholm
103. Panel Discussion
Bill Gilbert, Chair of DMA Financial Services Council
Paul Seabrook, Director and Co-Founder, fast.MAP
Giles Desforges, Senior Vice President for Northern Europe,
Affinion International
Micha Schwing, Creative Planning Manager, Getty Images
#dmafs
Sponsored by Insight partner
104. Closing remarks from the Chair
Bill Gilbert, Chair of DMA Financial Services Council
#dmafs
Sponsored by Insight partner