Justin Basini's blog on Marketing, Branding, Social Media and Financial Services

Obilon Kenobi - thanks for your support. Justin

2010-03-09T22:25:33.676Z

Obilon Kenobi - thanks for your support.

Justin

Tony - thanks for your comment. My real hope for...

2010-03-09T22:24:47.550Z

Tony - thanks for your comment.

My real hope for the future of financial services is that organisations will realise that they have a social role as well as a commercial one. And if the big businesses don't adopt this vision that smaller and new businesses will steal share by delivering social and commercial good.

The biggest organisations, and mostly I'm talking about RBS and LloydsTSB, need to understand that there has been a distinct breakpoint created by their bailing out and being seen to be "too big to fail". All financial services but especially these brands have a responsibility to explain the vision and values for their businesses that make a difference to our society and well being.

Thanks again.

Justin

Excellent analysis of branding for financial servi...

2010-03-09T20:59:29.314Z

Excellent analysis of branding for financial services. I will be referring back to this post many times. Thanks.

Hi Justin Great blog entry. Having spent 18months...

2010-03-09T19:22:49.302Z

Hi Justin

Great blog entry. Having spent 18months with The Co-operative Financial Services (CFS) I believe I can add a comment or two on the Basini Bombshell.

When I left CFS they were knee deep in new current accounts openings. These were mainly new customers switching because of dissatisfaction with current providers. Would these customers have switched if it weren't for the credit crunch? Probably not. Given enough reason the inertia can be overcome.

But they didn't switch for a better product, or a better service. CFS is no better or worse than any other bank in either department. They switched because their sense were heightened to the importance of 'doing the right thing'. Their ehtical and moral compasses were switched on and attuned to alternatives to the mainstream banks' way of doing business. They went for a bank that is "not about being different but about making a difference".

Tony

Jonathan Thank you for taking the time to comment...

2010-02-15T13:51:09.745Z

Jonathan

Thank you for taking the time to comment on my blog. Your points make me want to be a little clearer on my position which I think will help the debate.

The "cancer" that I think is so damaging is less the people in Corporate Affairs / PR departments (many of which I respect) and more the current attitude of businesses that having an opinion is dangerous and success is avoiding any public reaction or dialogue whether positive or critical.

I think this is so damaging because it creates a vicious cycle where making money by giving a good service is somehow seen as "wrong" and exploitative, and this leads to a misunderstanding of the role and benefits of businesses in our society. It also means that there cannot be an informed debate on how businesses should operate, what risks are acceptable, and what practises are unacceptable.
This lack of discussions reduces the trust that businesses place in people to understand these often carefully balanced puts and takes, and means that people have less and trust in businesses - allowing a stereotype of the greedy CEO or Banker to become the norm.

Media training in my experience is too much about avoiding the question or spinning the question round so that you can deliver "a key message". You sound like you might be different, if only because you have the balls to tell a client they are not cut out for media. Unfortunately in Mr Petter's case this would have been valuable advice.

Thanks again for your comments.

Justin

Justin You included my tweet as part of your post...

2010-02-12T23:59:14.046Z

Justin

You included my tweet as part of your posting so I wanted to add to your thoughts. I think generalisations about PR people seeking to hide the truth and stifle discussion are inaccurate and unfair to many of the people with whom I've worked (though I know there are some that match this description). And I do think describing PR people as a "cancer" is somewhat harsh.

Successful PR people build strong relationships with the media and provide spokespeople who are not only capable of putting across the company's perspective, but also make for good TV. As a consequence they are invited back time and time again. That wouldn't happen if they didn't answer questions or didn't tell the truth (their credibility would be destroyed).

I accept that some media training may match the experience you describe, but if so, you've been trained by the wrong people! Any media trainer worth their salt would have had the guts to tell Mr Petter that he is not cut out to be a spokesperson. If he was indeed trained (and I still doubt it), the "coach" also failed to tell him one of the first rules of TV - look at the interviewer not the camera - and they failed to spot or correct his dancing foot! Most importantly they would have told him that you can't get away with non-answers and that effective messages must connect with the audience and the context of the interview - not simply be a list of things that you want to tell people. Spokespeople who are trained well not only represent their companies better, they also communicate more effectively with viewers.

Mr Petter was a disaster for BT and a wate of air time for the BBC's viewers. High quality media training - and probably a different spokesperson - would have allowed BT to present itself in a more empathetic and credible way. Not by failing to answer the questions, but by answering them clearly and well.

Jonathan Hemus

From a reader by email: Interesting views Justin...

2010-02-12T16:17:21.358Z

From a reader by email:

Interesting views Justin, and I tend to agree in principal. However, the main intermediary between business and customer is often the media, who are interested in explosive headlines and selling papers. They have an incentive to ignore the facts around compromise and making a return. Isn't that one of the reasons for "media training"

RIP Cadbury.

2010-01-20T05:19:44.500Z

RIP Cadbury.

Justin, This is very sad. I blogged about it here ...

2010-01-19T16:11:17.601Z

Justin, This is very sad. I blogged about it here - http://badgersview.blogspot.com/2010/01/chocolates.html

Wilf Badger

Justin I couldn't agree more. I am gutted about t...

2010-01-19T16:04:02.979Z

Justin

I couldn't agree more. I am gutted about this and I cannot really explain why. I know cadbury is a global brand with global workers and blah blah blah! But it is English! It's ours and like everything else that is English it is being given away! The taste will change - not because Kraft will be stupid enough to change it but because it will no longer be a British Company. We make so little in this country which makes us weak and reliant on everywhere else. And who exactly is Kraft borrowing the money from? What will happen to Cadbury if they cannot pay?

Given events of the last two years, focusing on mo...

2010-01-19T14:17:22.653Z

Given events of the last two years, focusing on more than short term financial gain is paramount to redeveloping position in the markets. While the deal has seen the Cadbury share price soar, analyst forecasts for the next two years had the company surpassing itself. I fear that as part of the Kraft conglomorate the facets that had made Cadbury a strong brand, in particular its internal culture, quality, global reach and ethical stance, will be sidelined as Rosenfeld et al desperately seek to recoup financial return given they rebuffed Buffett. I don't see this as adding long-term value to either shareholder or consumer. The real value may now be in decline, look at what happened to Terry's chocolate orange...

Minxymoggy thanks for your comments. They are thou...

2010-01-19T12:22:25.605Z

Minxymoggy thanks for your comments. They are thoughtful. I am a shareholder and have received the same financial value from the deal. From that perspective it releases value and your point about exposure to the emerging world is well made.

However viewing "value" more in the round. I worry about other dimensions. Although not an "ethical" investor in the strict sense of the word I want my money to generate a return within the context of a balanced, more socially aware, model. I think this overall is the best way to generate a return whilst balancing risk and "doing the right thing".

I worry that overall value will be destroyed in the long term because Kraft are a company that prizes the financial return over these more balanced considerations.

Thanks for sharing your thoughts.

Justin

Brand value is essentially a concoction of emotion...

2010-01-19T11:55:14.728Z

Brand value is essentially a concoction of emotional attachments towards a given company or product. I'm hugely saddened that the control of Cadbury (and with it Green & Blacks) has passed overseas. Yet I'm not convinced that our love of the brand makes it worth more. That, I believe, is already reflected in the share price. If the love were worth more we'd see it in sales. It's therefore my conclusion it is priced in.

If anything, I see the premium Kraft have paid as being because Cadbury's have far better access to emerging world chocolate markets, particularly India. As India comes of age, it's going to have massive growth in consumption. It is there, not in the Midlands, that Cadbury's value for growth lies.

When Green and Blacks became a part of Cadbury's no-one cared. We felt the brand maintained it's ethical status. With that core skill in maintaining customer perception firmly embedded within Cadbury's, I feel you are vastly over-reacting if you think there will be any visible (or taste!) change other than ownership for some time.

Given that, I think the deal has given me excellent short term value (more than doubled my money in less than a year) now offers me an opportunity to bank gains whilst remaining in the game. Under Kraft, Cadbury have the opportunity to bring their chocolate brands to far more mouths than ever - how is that destroying value? I think the long term view is still strong and the short term rewarding. But ssssh - keep that Whispa to yourself!

Hi JB, glad to see you love the new halifax ad. 1...

2010-01-14T22:31:17.393Z

Hi JB, glad to see you love the new halifax ad. 1 million new reward accounts in a year says that some consumers do care about the £5... anyway less of the defensive retort!!!...

FYI the original widget was patented by Guinness in the 60's but was a technical failure (patent lapsed) before being picked up again by Guinnes sand refined for an 80's launch and again improved in the 90's. I think Boddies made it famous though, and maybe stole the thunder a little....

oh - agree on your "category 4" I've been toying with the idea of joining the jesusphone revolution but waiting for the google nexus entry (clearly protecting their own advertising revenues and future). Strange to think that I got my first mobile in 96' and now couldn't live without it and can't remember what it's like without it. Same can be said for the crackberry and now I really need the full internet experience 24-7 in my pocket... how will it change my life?

Lily - thanks for sharing your thoughts. I couldn'...

2010-01-07T16:03:36.899Z

Lily - thanks for sharing your thoughts. I couldn't agree more especially about banks being "humane". Your attitude is I think very common which is that we all understand banks need to make money and we are fine with that. They should trust us more to understand that.

What we don't like is when they make super-normal profits (as they do in many of their businesses), treat us unfairly, don't follow through on their promises and when things go disastrously wrong (as they have in the past two years) they don't seem to get that the world has changed.

My major fear is that the opportunity to change the banking landscape for the better has not been taken and that we are now seeing a return to the status quo.

Thanks again.

What a great debate! I think banks in general nee...

2010-01-07T15:40:06.360Z

What a great debate!

I think banks in general need to present a more socially responsible and humane picture. Educating children from an early age is the way forward and I think a greater personal, family focus is important and could really improve how we as ordinary people perceive these financial giants.

Now more so than ever, the banks are viewed very coldly: bonuses and profit are what counts, and that's the bottom line. While that's their business and there's nothing ultimately wrong with that (we all need to make money, after all), the way they have acted arounded the bonus scandals has appalled us as a nation: it's not growing consumer confidence and it's certainly not going to stimulate the economy, or their own growth, if they don't make a conscious effort to grow their own personal brand and make an effort to inspire people.

People like something personal, and banking is (arguably) the least personal thing right now. I think First Direct have tried to be a bit more honest with their "Live" campaign (taking live comments from Twitter, Blogspot and elsewhere and showing them, good or bad, on the website) but it's still rather ambiguous and doesn't really inspire or educate. Where's the strategy? What do these comments mean for the future? Where do you go from here?

I really like "A Crocodile For Billy" and it would be great to see more unique and inspiring stuff like that out there in the future from more of the banks. While the current climate has made it necessary to cut marketing budgets, now is the time when a good marketing team is most needed to get these big names back on track and grow consumer confidence. Hopefully one of these executives will read your entry and take consideration!

Lucian, thanks for your thoughtful comments as alw...

2010-01-07T09:43:27.374Z

Lucian, thanks for your thoughtful comments as always. I agree Crocodile for Billy is a positive step - its just so small in the context of the industry and LloydsTSB itself.

More and more I wonder whether the way that most banks are now run, by models, by computers, by obsession with cost at the expense of customer experience, by risk and regulation, by white men who understand numbers more than people, that creating customer focused organisations and brands that can actually engage with people, is structurally and culturally impossible.

Which is why a different model of perhaps smaller, maybe less profitable, but more socially aware financial services organisations should be a model that we explore.

Thanks

Justin

Couldn't agree more at both macro and micro levels...

2010-01-06T17:30:52.200Z

Couldn't agree more at both macro and micro levels. Big picture, I'm continually astonished by big financial institutions' reluctance to engage with their customers, on their customers' terms and at their customers' level, on financial matters of all shapes and sizes.

And thinking specifically about A Crocodile For Billy, I'm equally amazed by the same institutions' lack of interest in starting to build some kind of brand relationships with children, even long before they're likely to become customers in their own right. I've often made the point that my teenage children know exactly what brands they aspire to in virtually every branded market sector - but they don't have any sense at all of who they wants to bank with, save with or buy insurance from. Even from a perspective of pure self-interest, institutions' complete failure to find any significant way of engaging with kids is hugely counter-productive: I'm afraid that Billy and his crocodile represent a very, very small step in the right direction.

Thanks Iain and Dan for your comments. I am consta...

2010-01-06T14:10:16.748Z

Thanks Iain and Dan for your comments. I am constantly amazed at how the triumvirate of the lack of customer focus, regulation and the excuse of outdated or integration of computer systems (perennial in banking) conspire together to ensure that simple service and effectiveness is never the norm. Your blog Dan put it very elegantly - thanks for sharing.

I have recently set up a bank account for a new bu...

2010-01-06T14:02:15.947Z

I have recently set up a bank account for a new business. I found this similarly frustrating. Excuse the plug, but I blog about it here. http://badgersview.blogspot.com/2010/01/business-banking.html

It's ridiculous. On the face of it setting up an accound and financial management should be as easy as the 3 R's - somebody lost the plot somewhere and nobody has reined them in. Justin, perhaps you could lead the charge for reining everyone in?

A good blog Justin. I have just been through the p...

2010-01-06T10:50:13.359Z

A good blog Justin. I have just been through the process of opening bank accounts for three of the children and I am sorry to say it was not without pain. Passport photocopy, terms and conditions, credit checking (yes 11 years of age and getting a credit check) passwords (six numeric only)but not one mention or handout on good financial management skills.

The customer pays for the commission of the servic...

2009-12-27T06:48:30.447Z

The customer pays for the commission of the service charges so as a council is not free. And the first committee, the adviser is likely to also pay an annual fee for the service provider track. Not all services offer the same commission rate path for a possible conflict of interest may occur. The products or services by managing the most senior adviser typically offer the highest commission track.

That looks a lot like a registration code.

2009-12-17T15:48:37.395Z

That looks a lot like a registration code.

Hey Justin, I liked this post, especially the las...

2009-11-30T20:47:27.160Z

Hey Justin,

I liked this post, especially the last piece around cannabalization. If you can create a product/service that will eat into your existing business, someone else can (and will!) as well. If you don't act on your innovation it's only a matter of time before you find yourself losing ground to someone else.

As you can tell from my excessive use of the letter z, I'm now back in the USA. Hope all is well with you.

Regards,
Mark Mattern

Hey Ash, ta for that, would love to see the dvd, a...

2009-11-09T23:12:24.398Z

Hey Ash, ta for that, would love to see the dvd, am sure you got to a similar place way before we did (!). But still, it's interesting as individuals are putting a lot of actions in place to change how their businesses come across and deliver to their customers, so the dialogue is more live than ever. You back in UK soon? Let's chat as you say.