More inconvenient truths for the insurance and banking sector! If it weren’t for the fact that, ultimately, WE FUND the marketing they need to portray themselves, their products and services as something they are not, I would love the delicious irony of an industry that SPENDS such outrageous amounts trying to SELL to us instead of INVESTING to make their marketing promises more of a reality, restore damaged reputations, offer greater value and make their employees roles more fulfilling!
Essentially this means that we pay a high premium, so an industry, [guilty of perpetrating “licensed fraud” such as PPI mis-selling] that we don’t trust, can continue to misrepresent itself and misinform us in an effort to obtain our hard-earned, tax paid, cash.
Does this constitute a win/lose relationship, or what!!?
They have become dependent upon our inertia and misguided belief that Politicians/Regulators will make things “better”. The lack of credible alternatives serves them well, as it maintains the income needed to sustain models that are crippled by the complexity they have created to, so efficiently, strip customer value for themselves.
The full presentation makes for interesting/worrying/challenging (delete as appropriate) reading, as does the Executive Summary (click on infographic) and but before tackling that, here is a little “teaser”.
So, what are the messages that the genuine leaders of tomorrow can take from research such as this?
If you have what it takes you really shouldn’t need me to spell it out BUT here are a few clues:
expertise required (not salespeople)
referrals and recommendation (not sales)
business culture is critical
respect your “human capital”, and…
…give your employees a voice (with the means to communicate freely)
inertia isn’t the same as loyalty
Institutions and their leadership MUST CHANGE to (re)build trust
Of course there are other, less obvious, lessons to learn and it is one thing identifying the problems, another to tailor solutions to a particular business…but, if the process starts with recognition of the issues and a genuine desire to change, it is eminently “do-able”.
In a volatile and uncertain economy effecting change may be the difference between survival and extinction. Innovators and “early adopters” will be the one’s to seize and retain competitive advantage.