Need to build [or restore] customer trust?:: Corporations must join the Collaborative Economy


JO has nicely summarised what I have (unknowingly, in the beginning) been mapping-out in my mind as a viable alternative to the unsustainable model(s) adopted by the insurance industry and wider Financial Services industry. All I need now is to identify the ‘risk leaders’ of tomorrow. If that sounds like you, please get in touch.Adopt the Collaborative Economy Value Chain

Right now, customers are sharing media and ideas on social technologies, in the near future, they’ll use similar technologies to share products and services, which will cause a ripple of impacts far more disruptive than what we’ve seen before.

[The Collaborative Economy is an economic model where ownership and access are shared between people, startups, and corporations]

Report: Corporations must join the Collaborative Economy | Web Strategy by Jeremiah Owyang | Social Media, Web Marketing.

Use yer heid:: conventional wisdom requires a sound basis


Here is a piece that I found particularly interesting. The full article can be found here.

Neuroplasticity refers to the brain’s capacity to modify its organization, pertaining to the acquisition of new skills and learning. Several decades ago, the consensus was that the neocortical areas were immutable after a certain stage of development. However, recent studies determined that environmental changes could alter cognition by modifying neuron connections in adults. What’s more, it was determined that stress is the key factor in boosting plasticity, and learning, in the nervous system.

In other words, when the going gets tough, the tough get going. The brain says to itself: “Oh, my survival is at risk, so I’d better start thinking and learning really hard right now.” It’s only when you have skin in the game that you’ll really focus and learn.

Unfortunately there are still too many people who have difficulty in coming to terms with the FACT that, the others, who have always been around and tended to make things all right, can no longer be relied upon to do so!

Who’s that then?neural plasticity

The institutions that we were brought up to trust.

Organisations that could be trusted but who have shown themselves more concerned about holding on to power and/or wealth, than responding to he changes that right-minded people are, increasingly, calling for. Any innovation is on their terms and, first and foremost, for their benefit – destructive creation.

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Social business:: an outward sign of "inner well-being"


In case any aspiring business leaders are still in any doubt about the merits of integrating a social media presence into their Corporate strategy, hopefully, these few words will prompt some further thought. Not because I am trying to sell anything to anyone but because it isn’t every firm can afford to offer the TRANSPARENCY that stakeholders increasingly demand: competitors weaknesses can be your strength

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The conundrum facing insurance [courtesy of Clay Shirky]


If guys like Clay Shirky and Seth Godin “did” economics we wouldn’t be in the mess we are in now! These guys don’t think about critical issues in the conventional, College-taught, manner of an unreal world. They focus upon the world AS IT IS, AND NOT HOW WE CONVINCED OURSELVES IT WAS!

The challenge for, such as insurers, is how to embrace the lessons of the “the Digital Age” and to redesign the current, unsustainable, model. Read more of this post

The Comfort Consumer Trend in Financial Services: Trust and Safety


Datamonitor are  “flogging” a new report so these words are theirs and (in this instance at least) not mine!

I have been banging on about the need for FS companies to realise the error of their  ways and to “open up” so that they can really engage with customers using, in particular, social media. But the obstacle that refuses to go away is the need to embrace TRANSPARENCY!

Is their a more damning indictment of the state of our FS industry? Well YES…it is contained in the “HIGHLIGHTS” section below I have highlighted again so no-one within the industry can claim that they didn’t realise!

OK so you can win, even retain customers on price but that isn’t sufficient to sustain profitable retention levels when your price rises…even if others are also on the increase. Inertia has, for long enough, been a reliable source for retention too but these are times of austerity and it is a very foolish few who merely accept what they are told.

Then there is that old favourite of banks and credit card issuers…”indebtedness”. These guys love it because it is cheaper than earning loyalty through offering fair deals and decent service but, what they should now realise is that these unlucky customers won’t be around for too long. They either cannot afford their debts and you both lose (after you have taken a “haircut”).

You could “win” by getting back what you are owed BUT lose a customer for life…as well as the custom of anyone who asks them about their experience of dealing with your company. People’s practical experience will always trump the outbound sales effort of a spotty youth or a glossy campaign declaring undying love for customers. See below: REMEMBER THEY DON’T TRUST YOU OR LIKE YOU AND YOUR MARKET WILL DISAPPEAR AT THE FIRST OPPORTUNITY OR SIGN OF CREDIBLE COMPETITION.

Consumers in the FS industry look for protection and reassurance from their providers in order to feel a sense of safety. The loss of trust as a result of the global downturn has left consumers feeling uncertain. Trust needs to be rebuilt, not only to offer consumers financial safety but also to increase consumer engagement and build better relationships with customers.

Features and benefits

  • Strengthen customer relationships by driving an increase in consumer engagement.
  • Demonstrate customer knowledge via an understanding of how the Comfort trend can be used to rebuild trust on a regional level.
  • Satisfy consumer demands through understanding consumers’ need for protection and reassurance.
  • Restore trust by learning how to demonstrate real concern for consumers and the safety of their finances.

Highlights

The highest demand for Comfort is seen in Brazil and South Africa where 78% of consumers demand this Megatrend. The demand for this trend is low in most of Europe where consumers badly affected by the downturn no longer trust their FS providers to protect them.