1. What consumers expect from banks and insurers
Next Level in Social Media – June 8 2011

2. Relationship with financial institutions has changed
Consumers are calling for
1 transparency and simplicity
Consumers become more and
2 more self-directed
Consumers rely on the wisdom of
3 crowds
4 Consumers are revaluing values
5 Consumers prefer to be 'close’

3. Consumers' relationship has changed

4. 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

5. Consumers' relationship has changed
Pace in which
trust is restored = Quality
of interactions x Frequency
of interactions

6. 1. Consumers call for transparency and simplicity

7. 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.

8. 2. Consumers are more and more self directed

9. 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.

10. 3. Consumers trust on the wisdom of crowds

11. 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

12. 3. Consumers rely on the wisdom of crowds

13. 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

14. 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

15. Social media as a facilitator
Changed Being
relationships close
Self Social
Values
directedness Media
Transparancy & Wisdom
Simplicity of crowds

16. Back to the roots
Continuous
dialogue
Promise
= proof
Brand
fans

17. Aligning social media and business challenges
1. Alignment with
business areas
Service Brand
2. Integration in
current mix of Sales Proposition
activities
3. Use as a
platform for
innovation

18. 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 extensions
Inspired by Ingmar de Lange et all

19. 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

20. Brand – communication platform

21. Brand – continuous dialogue to create brand fans
Every 8
seconds
somebody
somewhere
recommends
First Direct to
a friend

22. Brand – communities

23. 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

24. Proposition – co creation

25. Proposition – social dynamics for product innovation

26. 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 promotion
New sales channel

27. Sales – sales promotion by social media

28. Sales – Facebook as a new sales channel

29. Service – web care & service innovation
Service 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

30. Service – twitter care

31. Service – service innovation

32. 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.

33. More information?
Patrick Ruijs
Partner VODW
@patrickruijs
pruijs@vodw.com