1
Standing in Your Customers’ Shoes
Presented by: Martie Woods, Vice President and Chief Experience Officer June 30, 2011
©2011 Deluxe Enterprise Operations. All rights reserved.
2
How the loyalty conversation has changed A case for change Why trust still matters Shifting to value
©2011 Deluxe Enterprise Operations. All rights reserved.
3
Loyalty: The progression of the birthday party
Experiences
Services
Goods
Transformations
Commodities
Joe Pine & James Gilmore Welcome to the Experience Economy
©2011 Deluxe Enterprise Operations. All rights reserved.
4
The Case for Change…
Digitally-savvy kids are changing everything. Including, their boomer parents. Women are taking over. She-conomy. Nationally, minorities will comprise 40% of the population. In CA, they will be the majority.
1. Demographics
©2011 Deluxe Enterprise Operations. All rights reserved.
5
Stop thinking fast and convenient. Think time well spent. Consumers are increasingly picky, yet patient. Not because they think we deserve time to serve them. Because they have iPhones.
2. New Demands
The Case for Change…
©2011 Deluxe Enterprise Operations. All rights reserved.
6
The Case for Change….
Consumers are increasing savings at a rate double what it was in the ‘80s. At the same time, they are spending and borrowing less. Our industry is no longer making its money on deposits and loans. Savings and investment products will prevail. Consumers still expect free.
3. Savings
©2011 Deluxe Enterprise Operations. All rights reserved.
7
The Case for Change….
Niche products and services will prevail. Health, wellness and local foods. Supports movement away from traditional employment. Mid-sized business will be acquired into large corporations, paving the way for more small businesses.
4. Small Business
©2011 Deluxe Enterprise Operations. All rights reserved.
8
The Case for Change…
Consumers do not see a relationship between regulations and product. Nor do they necessarily know whether a constraint they are experiencing is due to a regulation or a bank policy.
5. Regulations
People don’t want to know how sausage is made.
©2011 Deluxe Enterprise Operations. All rights reserved.
9
A New Look at Trust
©2011 Deluxe Enterprise Operations. All rights reserved.
10
Why trust still matters
State of trust Two kinds of trust Impact on your brand
©2011 Deluxe Enterprise Operations. All rights reserved.
11
Trust – 2 Kinds
Micro Trust
Macro Trust
©2011 Deluxe Enterprise Operations. All rights reserved.
12
When the world is good, consumers trust further and further out from their ―inner circle‖.
When the world is bad, consumer‘s trust is held ―closer to home‖.
Trust MACRO
MICRO
©2011 Deluxe Enterprise Operations. All rights reserved.
13
Guiding Principles to Trust
Each consumer weighs decisions against their levels of Micro Trust and Macro Trust.
When distrust is high in either sphere, it compels them to action.
Consumers are looking for ―close to home.‖
Consumers want to trust people and organizations who are close to home.
©2011 Deluxe Enterprise Operations. All rights reserved.
14
Trust/Selling Paradox
Trust
Sell
©2011 Deluxe Enterprise Operations. All rights reserved.
15
Simplicity
Take time to explain policies and terms in clear, simple language, and it feels like added value.
Trust erodes when the deal is too complex, the language is too legal, or conditions change without straightforward explanations.
©2011 Deluxe Enterprise Operations. All rights reserved.
16
Transparency
Transparency is created when the sales conversation includes: - The up and down sides of choice - The benefits and sacrifices attached to their
choice - Information about the inner workings of the
credit union - Disclosure of potential penalties if the
member doesn‘t comply with the terms of their choice
©2011 Deluxe Enterprise Operations. All rights reserved.
17
Presenting Options
Members respond positively to sales situations where they feel they have options.
Options provide them with a sense of shared and feeling that the credit union is ―honoring my thought process.‖
Give the member a sense of control by providing clearly delineated options in sales situations.
©2011 Deluxe Enterprise Operations. All rights reserved.
18
Factual Credibility Feature-based statements are a better way to build trust than
benefits-based statements.
Benefits statements alone are even less effective for members because they‘ve learned that life isn‘t all ‗blue sky‘ and that the benefits statements are meant to persuade.
©2011 Deluxe Enterprise Operations. All rights reserved.
19
Authenticity Trust is built when the conversation feels
genuine and real.
Even scripted sales situations and typical sales language can shift from trust-killer to trust-builder with the addition of authenticity.
Statements peppered with a little bit of relevant fact feel genuine, real, and authentic – and build trust.
©2011 Deluxe Enterprise Operations. All rights reserved.
20
Back It Up Back up your offers with printed literature, comparison charts,
or (even better) hand-written offers.
Product A Product B
2% int. 3% int.
Term: 3mos Term: 6 mos
$500 min $900 min
Jennifer’s Car Loan –
$120/mo
24 mos.
©2011 Deluxe Enterprise Operations. All rights reserved.
21
It‘s All About Trust Watch for the elements of your
conversations that erode trust. Incorporate language, techniques and
tools that build trust.
©2011 Deluxe Enterprise Operations. All rights reserved.
22
Branding – Make a Promise
Execution – Keep a Promise
Make a promise
The Brand Promise
Brand
©2011 Deluxe Enterprise Operations. All rights reserved.
23
Shifting to Value
©2011 Deluxe Enterprise Operations. All rights reserved.
24
Make Money in a New Way
See the opportunities. Stop charging for what costs you money. Start charging for what members value.
©2011 Deluxe Enterprise Operations. All rights reserved.
25
The New Division
Transactional relationships
Deeper relationships focused on achieving
positive financial goals
Plus, an interest in smart
spending
©2011 Deluxe Enterprise Operations. All rights reserved.
26
This is bigger than a product, a service, a program….. this requires a paradigm shift.
©2011 Deluxe Enterprise Operations. All rights reserved.
27
Think About It…
―When you change the way you look at things, the things you
look at change.” - Wayne Dyer
©2011 Deluxe Enterprise Operations. All rights reserved.
28
Why are our members obsessed with FREE?
Because we trained them to be.
©2011 Deluxe Enterprise Operations. All rights reserved.
29
This is what we have promised our customers and members:
―We‘ll hold your money for free.‖
These two words are undermining our ability to create value in the minds of consumers:
―We‘ll hold your money for free.‖
©2011 Deluxe Enterprise Operations. All rights reserved.
30
hold free ―It‘s yours and we are borrowing it‖
―There‘s no charge‖
All of the industry efforts have been focused on eliminating free—not on changing the assumption that the credit union holds their money.
What consumers hear
©2011 Deluxe Enterprise Operations. All rights reserved.
31
To change consumer perceptions of credit unions, it will require more than an individual marketing campaign associated with a product change.
The industry will need to think bigger and join forces.
32
Thank you.