Yet it has also many organisations that continue to do well. When looking at the retail sector, I do believe that the financial services sector can still learn a thing or two.
It can learn from its mistakes and it can learn from what the good companies do well.
Therefore, here are your five-a-day things to deliver for success:
1. Have a clear proposition
On the whole, successful organisations have a clear vision and market proposition. This proposition is clearly communicated and understood internally. It is also communicated externally, with consistency and clarity. John Lewis is great example of how to do this.
Quite often, as companies grow and markets change, there is neglect of the proposition. Too many retail companies have fallen into this trap, as they focused more on price-wars and short-term thinking.
There are many financial services firms that have also forgotten what they stand for, due to a focus on survival. However, now is the time to step back and re-affirm your vision and your offering to the market place.
Every day, make your proposition part of your five-a-day, to ensure it is still relevant and being delivered the way you want it to.
2. Be client-centric
A word I hear a lot these days is collaboration. And this word can be applied equally with your clients too. This can be achieved by thinking win:win. This involves the ability to guide – and not push – clients through the buying process.
The internet has sprung a new breed of more informed and savvy consumers. If I was to buy a new laptop, for example, I’d do my homework first. When I was ready to buy, I would expect an expert to guide me through the choices and give me recommendations based on my needs.
If someone tried to sell me something that was clearly not right, I’d walk away. The same applies to financial services.
Clients want recommendations and advice; they do not want to be overtly sold to. Successful retailers have cottoned on to this; financial services needs to too. So as part of your five-a-day, make sure you are being client-centric.
3. Think digital
Many retailers were slow to embrace the role the internet plays in the buying process. The same can be said of financial services.
Intermediaries are losing business because their web presence is not up to scratch and lose out on potential referrals. They miss out on potential new clients too, because they have not developed a strategy for how people search on the internet.
We are seeing real growth in smart phones and tablets. Websites must be viewable through such technology or miss out. Then there is social media which will be a big part to play for the sector. So don’t stand still. Instead, make the digital world part of your five-a-day and evolve and embrace change.
4. Deliver it
I have seen plenty of organisations talk a good game, but fail on the delivery. As Joel Arthur Baker said “Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world!”
Excellence in execution means you need the right resources, particularly in the form of people, and the right processes in place to be able to deliver your proposition in a consistent manner.
Consistency is where many retailers struggle, because they have so many different people delivering the experience. Such failings mean that customers become irritated and this then grows due to compound irritation kicking in. This is where word of mouth and social media can work against a company.
Many financial services companies also struggle, due to staff turnover and short term thinking. That is why it is essential to have good internal communications and a workforce that is engaged as part of your five-a-day. And you need to have the WOW factor so clients return and become your advocates.
5. Communicate with empathy
John Lewis does not flog products. It seeks to connect at an emotional level, which it has done very cleverly with music and imagery. You don’t need big budgets to connect at an emotional level, but you do need an awareness of how important this is. Otherwise you’ll be wasting your money.
You need to go beyond product features with communication messages and engage. To discover these emotional levellers, listen to your clients and do regular research.
Finally, don’t forget the need to build strong trust with clients and prospects with your communications, which requires thought leadership. Remember, you are dealing with people, people with varying needs.
Know what these are and address them. It is simple really, as part of your five-a-day, just use the concept of think first, then be understood.
