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INDUSTRY INSIGHTS FOR WHEN THE WORLD EMERGES FROM COVID-19 ABOUT THIS REPORT Creative transformation has never been as important as it is now. The scale and impact of COVID-19 has been unprecedented and while business, the government and society grapple with the current reality, we are also anticipating the impact and opportunities of a post-COVID world. We have asked a selection of our own sector experts to provide their insights on the current situation and consider the opportunities that might emerge. This has formed the WPP’d Smart Series. These are not intended as academic “white papers”; rather, they offer some key insights and actionable opportunities in a concise, digestible form that might trigger some new thinking for your business or organisation. If you would like to discuss these further please contact the authors directly - you can find their details on the last page. INSIGHT FROM COVID-19 OPPORTUNITY TREND 1: WALLET WELLBEING. The single greatest concern among Australians during the COVID-19 crisis isn’t their physical health – it’s their financial health. When they return to the new normal, they’ll be more risk averse and fiscally conscious than ever before. This will mean thinking about their long-term financial planning in a more holistic way to encompass savings, superannuation, investments and insurance. The opportunity here is to help Aussies get financially fit again. There’s a chance to reset the role of banking from transactional to transformational in the same way that the Barefoot Investor prompted Australians to rethink their financial wellbeing. This means providing impartial, actionable insights to more engaged audiences by launching a financial fitness app with regular insights, running virtual financial bootcamps or sharing inspirational small business success stories. TREND 2: TRUST ME, I’M A BANKER. People turn to the brands they know and trust in times of crisis. This is already playing out in the banking sector, with Net Promoter Scores for the Big Four banks all jumping to their highest levels since the Hayne Royal Commission. Although the challenger brands are still well ahead, the COVID-19 crisis is acting as a circuit breaker. It’s halting their momentum and reopening the door for established players. Banks need to go big on emotional brand communications. Larger financial institutions benefit from scale through an outsized share of customer acquisition and retention, as well as greater efficiency in share of voice versus share of market. Investing at higher levels of SOV/SOM with about 86 per cent of spend in long-term brand building will enable your financial services brand to reset perceptions, restore trust and recover lost customers by sharing purpose-led local community initiatives and rewarding generous giving. TREND 3: TAP AWAY. The long-anticipated embrace of digital currencies and conversion to a cashless society has been significantly accelerated by COVID-19, despite a recent spike in cash hoarding. Combined with a sharp increase in ecommerce adoption and call-centre backlogs, the future financial services customer will be increasingly digital and difficult to engage. It’s time to become the virtual bank that requires virtually zero effort. That means doubling down on digital experiences, streamlining customer service and proactively managing financial wellbeing. Look for ways to deploy conversational artificial intelligence (AI), remove the need for branch visits or phone calls, and offer virtual checkups for important services like home loans. BANKING AND INSURANCE Joe Lunn AUTHOR 7 May 2020 DATE
Transcript of INDUSTRY INSIGHTS FOR WHEN THE WORLD EMERGES FROM … › - › media › Project › WPP ›...
INDUSTRY INSIGHTS FOR WHEN THE WORLD
EMERGES FROM COVID-19
ABOUT THIS REPORT
Creative transformation has never been as important as it is now. The scale and impact of COVID-19 has been unprecedented
and while business, the government and society grapple with the current reality, we are also anticipating the impact and
opportunities of a post-COVID world.
We have asked a selection of our own sector experts to provide their insights on the current situation and consider the opportunities that might emerge. This has formed the WPP’d
Smart Series. These are not intended as academic “white papers”; rather, they offer some key insights and actionable
opportunities in a concise, digestible form that might trigger some new thinking for your business or organisation. If you would like to discuss these further please contact the authors directly -
you can find their details on the last page.
INSIGHT FROM COVID-19 OPPORTUNITY
TREND 1: WALLET WELLBEING.
The single greatest concern among Australians during the COVID-19 crisis isn’t their physical health – it’s their financial health. When they return to the new normal, they’ll be more risk averse and fiscally conscious than ever before. This will mean thinking about their long-term financial planning in a more holistic way to encompass savings, superannuation, investments and insurance.
The opportunity here is to help Aussies get financially fit again. There’s a chance to reset the role of banking from transactional to transformational in the same way that the Barefoot Investor prompted Australians to rethink their financial wellbeing. This means providing impartial, actionable insights to more engaged audiences by launching a financial fitness app with regular insights, running virtual financial bootcamps or sharing inspirational small business success stories.
TREND 2: TRUST ME, I’M A BANKER.
People turn to the brands they know and trust in times of crisis. This is already playing out in the banking sector, with Net Promoter Scores for the Big Four banks all jumping to their highest levels since the Hayne Royal Commission. Although the challenger brands are still well ahead, the COVID-19 crisis is acting as a circuit breaker. It’s halting their momentum and reopening the door for established players.
Banks need to go big on emotional brand communications. Larger financial institutions benefit from scale through an outsized share of customer acquisition and retention, as well as greater efficiency in share of voice versus share of market. Investing at higher levels of SOV/SOM with about 86 per cent of spend in long-term brand building will enable your financial services brand to reset perceptions, restore trust and recover lost customers by sharing purpose-led local community initiatives and rewarding generous giving.
TREND 3: TAP AWAY.
The long-anticipated embrace of digital currencies and conversion to a cashless society has been significantly accelerated by COVID-19, despite a recent spike in cash hoarding. Combined with a sharp increase in ecommerce adoption and call-centre backlogs, the future financial services customer will be increasingly digital and difficult to engage.
It’s time to become the virtual bank that requires virtually zero effort. That means doubling down on digital experiences, streamlining customer service and proactively managing financial wellbeing. Look for ways to deploy conversational artificial intelligence (AI), remove the need for branch visits or phone calls, and offer virtual checkups for important services like home loans.
BANKING AND INSURANCE
Joe Lunn
AUTHOR
7 May 2020
DATE
INSIGHT FROM COVID-19 OPPORTUNITY
TREND 4: FIRST OUT OF THE GATE.
As Australia emerges from the COVID-19 economic downturn, the distribution of growth will be more extreme than ever before. A phased reduction in isolation measures and economic support will mean winners and losers across industry sectors and geographies. Some will be surprising.
Navigating these changes will require agile audience segmentation. Banking and insurance brands will need to rethink consumer and business audience segments, adapting to emerging needs and mindsets in the new normal. You’ll need to overlay regional and industry-specific factors to personalise a phased rollout of communications as needs and mindsets evolve.
TREND 5: NO LONGER AT A PREMIUM.
Insurance companies are experiencing reduced demand from customers, with enforced isolation leading to a decrease in crime, accidents and injuries. Insurers are at risk of losing members if they can’t provide tangible reasons to remain covered.
The best response is to focus on protection and prevention rather than payouts. In a more risk averse world, become the insurance company which helps and rewards members, proactively protecting the people and things they care about the most. This might mean providing free risk assessments, trusted tradie certifications or home scanner apps.
JOE LUNNChief Strategy OfficerMindshare
As Mindshare CSO, Joe works with clients to accelerate business growth through innovative media thinking. He’s also Chairman of the Media Federation of Australia Awards Committee and Effectiveness Expo, helping promote best practice work across the industry. Joe’s previous experience includes five years in Paris leading global strategy and accounts; launching O2 Priority in the UK; and working as an intelligence officer in a Federal Government agency. He’s also a published author, including La Publicité à l’Heure de la Data (‘Advertising in the Age of Data’, Dunod France). He’s worked with many leading financial services companies over the past 20 years, including NAB, IAG, HSBC and comparethemarket.com.
INDUSTRY INSIGHTS FOR WHEN THE WORLD EMERGES FROM COVID-19
Banking & Insurance | 7 May 2020
THE STORY BY THE NUMBERS:
1 Kantar COVID-19: INSIGHTS, March 23, 2020
of Aussies are looking for more proactive support about financial
security and planning1
of Aussies are worried the virus will be worse than an economic
recession1
of Aussies say that affordable pricing, deals and promotions should be the most important focus for the Banking sector1
of Aussies say that affordable pricing, deals and promotions should be the most important focus for the Insurance sector1
