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Data protection 2013
Friday 8 February
#dmadata
Supported by
How can financial services
regain consumer trust? Thursday 7 March
#dmafs
Sponsored by Insight partner
Welcome from the Chair Bill Gilbert, Chair of DMA Financial Services Council
#dmafs
Sponsored by Insight partner
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
Research findings Paul Seabrook, Director and Co-Founder, fast.MAP
#dmafs
Sponsored by Insight partner
How can Financial Services Regain Consumer Trust?
Paul Seabrook – fast.MAP
Trust is implicit in many different ways
Trust amongst key sectors
Source: fast.MAP December 2012 N = 2,494 Q: Please rank the following industries on how far you trust them
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%
Trust in FS
Source: fast.MAP December 2012 N = 2,494
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 me’
3%
11%
36%
28%
22%
Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Nov-12
Dec-11
Mar-11
Jun-10
Dec-09
Jul-09
Dec-089%
14%
57%
50%
Trust: Again FS seen as having good credentials
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
RECOMMENDATION &
Satisfaction
Recommendation generally positive
Source: fast.MAP December 2012 N = 2,494 Q: On a scale of 0-10, how likely would you be to recommend your main bank to a friend or colleague?
17%
14%
23%
14%
11% 11%
3% 2%
1%
4%
10 – Highly likely
9 8 7 6 5 4 3 2 1 – Highly unlikely
0%
5%
10%
15%
20%
25%
Satisfaction also generally positive
Source: fast.MAP December 2012 N = 2,494 Q: On a scale of 0-10, are you satisfied with your main bank?
21%
18%
25%
13%
9% 8%
2% 2% 1%
2%
10 – Satisfied 9 8 7 6 5 4 3 2 1 – Not Satisfied
0%
5%
10%
15%
20%
25%
30%
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%
Just over 1 in 10 are thinking of switching in the next 12 months
Source: fast.MAP December 2012 N = 2,494 Q: How likely are you to switch your bank in the next 12 months?
4%
8%
21%
57%
11%
Very likely Likely Unlikely Very unlikely Don’t know
0%
10%
20%
30%
40%
50%
60%
CONFUSING
Messages
Relentless news about banks….
Satisfaction
Q: On a scale of 0-10, are you satisfied with your main bank?
21%
18%
25%
13%
9% 8%
2% 2% 1%
2%
10 – Satisfied 9 8 7 6 5 4 3 2 1 – Not Satisfied
0%
5%
10%
15%
20%
25%
30%
REALISTIC &
Savvy
Free Banking
Q: Do you currently receive free banking?
Yes, 82%
No, 18%
Expectation that free banking will reduce
Source: fast.MAP December 2012 N = 2,494 Q: Do you expect free banking services from your bank in the next 2 years?
Yes, 67%
Maybe, 23%
No, 11%
WHAT TO DO
Now
Focus on the positives
Core Product Holding Score (Includes current account) – Banks with 3% or above share: Avg = 1.96
Source: fast.MAP December 2012 N = 1,714
Q: Thinking about your primary bank you have just selected, please indicate any products or services that you might CURRENTLY have with them:
Core Product Holding Score (Includes current account) Banks with 3% or above share Vs Bank: Avg = 1.96
Source: fast.MAP December 2012
Q: Thinking about your primary bank you have just selected, please indicate any products or services that you might CURRENTLY have with them:
Average
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%
Core Product Holding Score (Includes current account) Vs Benefits:
Source: fast.MAP December 2012 Note: this is across all banks, not just those over 3%
Q: Thinking about your primary bank you have just selected, please indicate any products or services that you might CURRENTLY have with them:
What products do you have with your main bank?
Source: fast.MAP December 2012
Q: Thinking about your primary bank you have just selected, please indicate any products or services that you might CURRENTLY have with them:
Recommendation Vs Product Holding
Source: fast.MAP December 2012 Q: On a scale of 0-10, how likely would you be to recommend your main bank to a friend or colleague?
Satisfaction Vs Product Holding
Source: fast.MAP December 2012 Q: On a scale of 0-10, are you satisfied with your main bank?
Other FS products; market opportunities for main bank
Source: fast.MAP December 2012 N = 2,494 Q: And now please select any of these products and services that you have but NOT with your main bank
4%
4%
5%
9%
10%
10%
14%
19%
19%
23%
26%
26%
30%
33%
39%
Packaged Current Account (typically you pay a monthly…
Credit Protection
Equity Release
Loan
Standard Current Account
Stock ISAs
Stocks and Shares
Cash ISAs
Mortgage
Life Insurance
Savings Account
Pension
None of the above
Buildings Insurance
Home Contents Insurance
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Market demand for the next 12 months
Source: fast.MAP December 2012 N = 2,494
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 that apply:
1%
1%
2%
2%
3%
3%
3%
3%
3%
5%
10%
11%
15%
20%
60%
Credit Protection
Equity Release
Packaged Current Account (typically you pay a monthly…
Pension
Standard Current Account
Stock ISAs
Stocks and Shares
Life Insurance
Loan
Mortgage
Savings Account
Cash ISAs
Buildings Insurance
Home Contents Insurance
Not in the market for any of these products or services
0% 10% 20% 30% 40% 50% 60% 70%
Where people will look
Source: fast.MAP December 2012 N = 1,006
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
Non-core product holding
Source: fast.MAP December 2012 N = 2,494
Q: Please look at the following list of non-core financial products and services and tick any that you currently have with any company
2%
2%
3%
4%
5%
8%
10%
11%
14%
17%
27%
38%
44%
Event discount booking service
Credit management
Travel discount booking service
VIP lounge access
Gadget insurance
Card blocking and re-order service for any card
Lock and key cover
Identity theft protection
Mobile phone insurance
Home emergency cover
Travel insurance
None of the above
Motor breakdown cover
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Bank’s share of these
Source: fast.MAP December 2012 N = 1,094 Q: Of the products and services you selected below, which are through your bank?
1%
2%
2%
2%
3%
5%
5%
8%
10%
12%
13%
21%
63%
Event discount booking service
Credit management
Travel discount booking service
VIP lounge access
Gadget insurance
Lock and key cover
Home emergency cover
Card blocking and re-order service for any card
Identity theft protection
Motor breakdown cover
Mobile phone insurance
Travel insurance
No – none of them are via my bank
0% 10% 20% 30% 40% 50% 60% 70%
Understanding of these
Source: fast.MAP December 2012 N = 2,494 Q: Are there any of the following that you don’t understand what they are?
1%
1%
1%
3%
4%
6%
6%
9%
9%
12%
13%
15%
65%
Mobile phone insurance
Travel insurance
Motor breakdown cover
Home emergency cover
Identity theft protection
Gadget insurance
Travel discount booking service
Card blocking and re-order service for any card
Lock and key cover
Credit management
Event discount booking service
VIP lounge access
I know what all of them are
0% 10% 20% 30% 40% 50% 60% 70%
CREDIT PROFILE
Security
Credit Profile attitudes
Source: fast.MAP December 2012 N = 2,494 Q: Thinking about your credit profile, please select the most appropriate statement below:
I’m not currently doing anything, but plan to in
the future, 23%
I take proactive steps to protect and manage my
profile, 36%
I’m not currently doing anything and don’t plan
to, 41%
Bank’s role with credit profile
Source: fast.MAP December 2012 N = 2,494 Q: Do you think your bank should be doing more to help you manage your credit profile?
Yes, 43%
No, 57%
Technology concerns: Contactless Payment
Source: fast.MAP December 2012 N = 2,494 Q: How concerned are you about the security of the following?
27%
24%
30%
23%
27%
27%
24%
26%
22%
5%
9%
5%
6%
6%
6%
15%
8%
10%
Contactless payments using fobs
Contactless payments using card
Contactless payments using mobiles (not internet banking)
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
COMMUNICATION
Preferences
Communicating with banks
Source: fast.MAP December 2012 N = 2,494
Q: Please look at the following ways you might be communicating with your bank or credit card company and select any that you CURRENTLY do:
2%
2%
3%
4%
18%
33%
56%
75%
22%
24%
34%
38%
39%
33%
27%
12%
7%
6%
5%
6%
5%
7%
5%
2%
69%
68%
58%
51%
38%
28%
12%
11%
Use Twitter to communicate with my bank
Use Facebook to communicate with my bank
Contactless payments using fobs
Contactless payments using mobiles (not internetbanking)
Contactless payments using card
Telephone banking
Visit a high street bank at least once a month (not acashpoint / ATM outside)
Online banking / servicing
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
Communication received
Source: fast.MAP December 2012 N = 2,494
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:
13%
21%
43%
54%
59%
60%
28%
30%
29%
19%
22%
16%
20%
8%
6%
10%
3%
11%
39%
40%
22%
17%
16%
13%
Receive phone calls about my products and services / newones
SMS / text received from bank general communication
Receive communications via email
Receive statements via post
Receive statements online
Receive general communication via post
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
Drivers of service. It’s not all about numbers and %s
Source: fast.MAP December 2012 N = 2,494
Q: What is most important to you when considering satisfaction with your bank. Please use the scale provided:
14%
16%
19%
20%
32%
36%
38%
40%
42%
9%
10%
14%
11%
17%
17%
19%
19%
19%
16%
14%
19%
18%
16%
15%
13%
16%
16%
12%
13%
17%
15%
9%
10%
7%
8%
9%
18%
13%
14%
17%
12%
9%
8%
7%
7%
11%
11%
9%
9%
8%
6%
5%
5%
5%
5%
4%
3%
3%
1%
2%
1%
1%
1%
4%
3%
2%
2%
1%
2%
1%
1%
0%
9%
14%
3%
4%
3%
3%
7%
1%
1%
Keep me updated about new products and services
Telephone banking experience
No queues
Choice of products available
Rates of interest offered
A branch local to me
Online banking experience
Are available when I need to speak to them
Customer service
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
Contact channel preferences
Source: fast.MAP December 2012 N = 2,494 Q: How do you prefer to be contacted by
2012 Vs 2011
Email Letter Mobile
call
Landline
call
Text/SMS
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%
Contact channel preferences
Source: fast.MAP December 2012 N = 2,494 Q: How do you prefer to be contacted by
17%
19%
22%
21%
30%
30%
38%
23%
25%
31%
36%
38%
42%
48%
3%
3%
4%
57%
52%
43%
40%
27%
23%
7%
Mortgage Lender
Investment provider
Building Society
Pension Provider
Credit Card provider
Insurance provider
Bank
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Email Letter Mobile call Landline call Text/SMS Not applicable
WHAT TO DO
Now
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
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
There are two routes you can go down…
100 days
GO LIVE ; INVOLVE CONSUMERS
Control
Control
Traditional Campaign Testing
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.
D
D
Buried insight
• 2 x ‘D’ for DMA
• 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
• 2 x winners notified Monday 11th March
Thank you
Using added value products to
improve satisfaction Giles Desforges, Senior Vice President for Northern Europe,
Affinion International
#dmafs
Sponsored by Insight partner
57
How can Financial Services
regain consumer trust?
Using Added Value Products to Improve Satisfaction
Thursday 7th March
58
• Affinion Overview
• What are Added Value Products and why are they important
• Why Customer Engagement is key
• Improving Customer Relationships
Contents
59
Affinion Overview
60
Affinion Overview Helping you Recruit. Reward. Retain.
Affinion is the leading
global provider of
customer loyalty and
engagement solutions.
We help many of the
world’s leading financial
organisations connect
and engage with their
customers, creating
rewarding relationships.
4,250 Global associates
20 Call centres providing continuous support 180
Million consumers across a wide array of product and loyalty solutions
17 Countries around the world
5,500 Clients and marketing partners
61
Retention Acquisition
Loyalty & engagement
Satisfaction
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
with your brand, from acquisition
to overall level of satisfaction.
Affinion Overview
62
What are Added
Value Products?
63
Commodity
64
…to Customer Experience
65
What are Added Value Products in Financial Services?
Protection
Mobile
Gadget and personal possessions
Motor breakdown
Home emergency
Personal information (identity)
Personal credit status (credit management)
Lock and key
Warranty & repair
Purchase protection
Leisure
Dining
Travel
Shopping
Cinema
Events
Short breaks
Activities and attractions
66
The Importance of
Additional Products
67
* Average of different Affinion clients in Germany
Added Value Products Improve Key Financial Measures
Affinion research shows that added value products improve customer KPIs
68
Source: NetGain! Data analysis, First Manahattan Consulting Group Data analysis,
Affinion Checking client analysis
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
… and Improved Financial Measures
69
The DMA Financial Services Tracker shows they
can Improve Satisfaction:
Source: fast.MAP December 2012
Satisfaction vs Product holding
70
…and also Improve Likelihood to Recommend
Source: fast.MAP December 2012
Recommend vs Product holding
71
Engagement is Key
72
Current Engagement is Low
Affinion research shows that awareness and engagement is low
“For a while I didn’t
realise what account
I had...and that I was
paying for it! Now I
realise, it’s good.”
Many are not utilising their benefits as they are not familiar
with what they have and what the benefit is.
Affinion /TNS Research
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.”
“ “I use the concert tickets all the time…
that’s kind of the main reason I've got it”
“The concierge is fantastic, I get a phone call from
him saying, ‘By the way, your anniversary is coming
up, do you want us to order flowers?’, Thank you,
I’m not in trouble anymore”
“The travel benefits are a really
great perk.. Go and sit there and
have a couple of vodkas and
whatever. You know, it just makes
the whole experience nicer. You
know, you're going to get a chair,
you get a bit of service.” ”
Leisure benefits can offer real
savings and even a sense of
privilege; generating a sense of value
and strengthening loyalty
Affinion /TNS Research
74
Improving Customer
Relationships
75
Five Key Factors for Improving Customer Relationships
1. Relevant Products
2. Differentiate
3. Relevant and Personalised
Communications
4. Reduce Customer Effort
5. Choice and Evolution
76
1. Relevant Products
Changing models
within the marketplace
to enable customers
access to products
77
1. Relevant Products
Targeted products
aimed at helping
customer in specific
decisions
78
2. Differentiate
Leisure benefits can
provide real differentiation
in a commoditised
marketplace
Providing banks with increased
positive touchpoints and
engagement opportunities that
create positive brand experience
‘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
79
3. Relevant & Personalised Communications
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
What customers say:
“I want to speak to
one person”
“My phone is my life”
“Know who I am, trust
me”
“Make it easy”
“I am reasonable, so treat me
fairly”
“Keep me informed”
“I want my loyalty to be recognised”
•Immediacy of replacement, wherever I am
•One direct call does it all
•Personalised, empathetic customer service
•Remove barriers to claim
•No bureaucratic (paper based) claims
process, no jargon
•Simple and fair excess amount / exclusions
•Proactive progress updates
•Surprise and delight me
TNS Global focus group research conducted for Affinion undertaken in October 2012
81
4. Reduce Customer Effort
82
4. Reduce Customer Effort
What should Mobile Phone Insurance look like?
83
5. Choice and Evolution
Different customers have different needs
Singles/Couples
no children Families with Children Empty Nesters
• Renting a home
• Spontaneous
• Friends are very important
• Go out often
• 1or 2 person household
• Lower asset holding
• Mortgage stretched
• On a budget
• Plan, Plan, Plan for
all activity
• 3 to 6 person household
• High asset but high debt
• High home-equity
• Visit same places
• Use a service again & again
if receive good service
• Occasions; family are
important
LOOKING FOR
• Good-value cover
• Propositions that support
a mobile lifestyle
LOOKING FOR
• Treats & affordable escapism
• “Value”
LOOKING FOR
• Reassurance of brands
they can trust
MOTIVATOR The Social Angle
MOTIVATOR Family Solution
MOTIVATOR Quality & Safety
84
5. Choice and Evolution
Evolving products to fit today’s customers
requirements
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
86
THANK YOU
Visual trends in the financial services
industry Micha Schwing, Creative Planning Manager, Getty Images
#dmafs
Sponsored by Insight partner
Getty Images
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
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
Re-Imagining Value
The New Wealth
Small Business
Responsibility
Thanks!
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
Closing remarks from the Chair Bill Gilbert, Chair of DMA Financial Services Council
#dmafs
Sponsored by Insight partner