Robert Limb CUSTOMER/CONSUMER BEHAVIOUR AND TRENDS

Welcome to the

Age of the Customer

IBANZ Conference, 2014

Building trust and adding value

(in a data driven, automated world)

IBANZ Conference, 2014

1. My belief: The Age of the Customer

2. Your industry: Looking in, survey results

3. Seven customer trends: What could impact you

4. Building Trust: New light through old windows?

50 minutes together

1. The Age of

the Customer

How committed are you to your

customers?

How do you see your customers?

Trust: The new gold

“Transparency may be the most disruptive and far reaching

innovation to come out of social media”

(Paul Gillian, The new influencers)

“Social media has transformed our world into one great

big small town dominated by the strength of relationships, the

currency of caring and the power of word of mouth”

(Gary Vaynerchuk, The Thank You Economy)

Intimacy as marketing strategy?

- Play the long game

- Tell the truth always

- Go the extra mile

- Make it always about the customer

- Understand what matters personally

- Take the blame

- Listen always and be interested

- Ask great questions

- Create shared agenda

David Maister: The Trusted Advisor

How do we win

intimacy?

Whose example will you follow?

Don’t just listen, understand

Put customer desires over engineer’s preferences

The Empty chair

Don’t settle for 99%

Respect today’s customer

Strive to create a customer centric company

Don’t be afraid to say sorry

Image source://wired.com/images_blogs/business/2011/09/amazonFIRE0011.jpg

Whose example will you follow?

Image source://wired.com/images_blogs/business/2011/09/amazonFIRE0011.jpg

Which path will you choose?

2. Where are you today?

Outside looking in:

Brokers Customers

“We have become

complacent”

“It’s been good

business but ugly

at times”

“So much harder to

sell on price –

fewer insurers

fewer options”

“Churn and burn

mentality creeping

in”

“ Fewer

relationships,

less satisfying”

“ The broker &

customer

relationship

is at the heart

of long term

success”

“ I still love the

relationships I

have built up”

“ Managing risk

couldn’t be a more

fundamental

responsibility to

take on”

“Wary and

more litigious ”

“Less trusting of

our industry”

“Want the best of

both worlds”

“Asking about what

value we add”

“Busier than ever,

less head space”

“Challenged by

technology and

compliance”

“Are we learning

or just doing?”

IBANZ Customer survey results

Online survey completed by over 60

attendees of the 2014 New Zealand

IBANZ Conference

Q1. Which statements did you agree with?

Approving our customer

experience is one of our

organisations top 3 priorities

3.8

MOST LEAST

Our customers expect more

from us 4.2 It is tougher to build

relationships 2.5

The mining of customer data

has become more important 3.9 Business is less personal 2.6

It has become harder to do

business 3.8 Brokers are less trusted 3.7

Q2. Looking ahead

1. Developing value added services (4.0)

2. We will be using data to target and pre empt behaviours (3.2)

3. Transparent pricing will be the norm within a year (3.0)

Q3. What are the biggest opportunities to improving

your business?

1. Growing economy

2. Growth from existing clients

3. Specialisation of services

Q4. What are the biggest threats to your business?

1. Direct competition, especially the banks

2. Commoditisation of SME insurance

3. Less underwriters

4. Talent management - training and retention

Two

questions

for the future

1. How will I

deliver value?

2. Do we have and execute

a clear value proposition?

“It takes far less energy to move from

first-rate performance to excellence

than it does to move from

incompetence to mediocrity”

Peter Drucker

"In our experience, the number one obstacle to

great service is the emotional unwillingness to

embrace weakness.

But it couldn't be clearer that to win in one area,

you must lose in another. Some part of your

service offering must be thrown under the bus.

Choosing bad is your only shot at

achieving greatness. And resisting it is a recipe

for mediocrity"

Frances Frei

UPS Foundation Professor of Service

Management at Harvard Business School.

1. Control

2. Data

3. Simplicity

4. Trust

5. Help before selling

6. The art of listening

7. Thank you

Myth

Image source://callofduty.wikia.com/wiki/AC-130

Reality

Connected customers are:

1. Complex

2. Nonlinear

3. Irrational

4. Emotional

5. In control

Source: “Meeting the changing needs of connected customers” (Forrester, 27th June, 2013)

#1 Control

Why self monitoring data will change your lives

Uber is a ridesharing service based in San Francisco, California, United

States. The company uses its own smartphone application to

connect passengers with drivers of vehicles for hire, whereby

customers use the app to request rides and track their reserved

vehicle's location. As of September 16, 2014, the service was

available in 45 countries and more than 100 cities worldwide,

and was valued at more than US$15 billion.

#2 Use data to

deliver personal

value

Image source://www.mediameerkat.com/blog/tag/nike-fuel-band/

“Spend less time using data to tell customers about you,

and spend more time telling them something

about themselves”

(Source: HBR Blog Network: Mark Boncheck, 3rd May 2013)

“You will make more friends in two

months by becoming interested in

other people than you can in two

years by trying to get other people

interested in you”

Dale Carnegie,

How to win friends and influence people, 1936

#3

#4 Trust

#5 Helping before selling

#6 Put

“Thank you” back to work

#7 Make listening

an art form

1. Control : How can I let go of more control and grow advocacy ?

2. Data: How can I use data to help my customers (as well as sell better)

3. Simplify: What will I simplify? Why?

4. Trust: How can I make trust a competitive weapon?

5. Help before selling: How can I proactively help my customers?

6. Listening: How can my value proposition be shaped by my customers?

7. Thank you: How am I demonstrating that I value my customers?

Some questions you could ask

4. Trust

…..a firm reliance on the integrity, ability or

character of a person or thing; a confident belief; a

faith.

“Structures and processes do not build trust.

People build trust”

(Source: Max de Pree - Leadership is an Art)

Trust and

Confidence

Relationships will

thrive

Relationships will

survive... and

potentially thrive

Relationships

will be vulnerable

Relationships

will die

Successful RM is about building trust,

not just technical knowledge

Technical Competence HIGH LOW

HIGH

TRUST Credibility + Reliability + Intimacy

Self Orientation

Source: The Trusted Advisor, Maister,

Green & Galford

=

Reliability

Reliability • Focus on managing expectations

• Always keep client informed

• Always return emails and calls quickly

• Make commitments around small things that you know you can deliver – and do it

• Send agenda and meetings notes in advance

• Make sure meetings have clear agendas and objectives

• Fit in with the way the clients likes to do things

• Always follow up

• Reconfirm events before they happen

• Don’t over promise

• Be there for your client

• Listen and playback

• Don’t blame others; take responsibility

Intimacy

Intimacy • Telling the truth – always

• Going the extra mile

• Providing insights and inspiration beyond core area of expertise

• Ask surprising questions

• Candor and challenge: expressing your opinion, having a point of view and asking the tough

questions (in the right way)

• Building shared agendas

• Empathy with your clients situation

• Noting feelings

• Opening yourself up

• Find the fun

Summary: If you want to win on customer

1. Customer: An asset not just an opportunity

2. Trust is gold: It is yours to own

3. Be clear about your value proposition: Play to your strengths

4. Business is personal: Don’t lose your ability to leverage that

Image source://gapingvoid.com/2007/05/19/technology-changes/

Thank you!

Data enabled. Creatively inspired. Customer obsessed.

Robert Limb, Managing Director

robert.limb@rapp.co.nz

0274 790 040