Financial Services Marketing Insights: A Marketing Compass
What we now call "marketing" began long before the name was coined. In the mid-1800s, traveling salesmen dressed "snake oil" and other tonics in fancy packaging and extolled their virtues to a gullible public. New marketing applications soon proliferated in the belief that marketing could make many new things possible in virtually any business situation. For more than a century, implementation, experience and ultimately strategy have helped marketing evolve from crude beginnings into today's sophisticated practices. Consumer product firms have been the pioneers in the marketing field and have taken the undisputed lead as the creators of marketing's best practices. While sophisticated marketing techniques have spawned consumer giants, most financial services firms had to be dragged, kicking and screaming, into the era of sophisticated marketing. The Advancing State of Financial Services Marketing Financial services marketing has, however, evolved rapidly over the last decade. As a result, the very nature of the marketing function in financial services firms is undergoing a dramatic modification as more attention is paid to marketing-driven processes that impact the entire firm. Our observations suggest that the more progressive financial services organizations are currently going through an intellectual and practical transition that is forcing the reexamination of the role of marketing within their firms. Many have begun to realize that financial marketing responsibilities include not only developing the firm's mission statement and key messages, but also defining its business focus, relevant differentiation, competitive advantages and value proposition. At the same time, however, a number of financial services marketing directors must engage in long-term turf battles with other departments before they can implement worthy financial marketing initiatives that will help accelerate the achievement of corporate goals. In many financial organizations, the persistent problem of differentiating financial marketing from sales still remains largely unresolved. In addition, some financial services marketing directors must still enlist substantial management support just to maintain equilibrium and obtain the opportunity to accomplish even limited objectives. Focusing on the Customer Peter Drucker, a sage of the financial marketing discipline, discussed customer defined value almost 50 years ago. During the last decade his concept of a customer-centric focus has become part of popular marketing literature and is now the guiding principle of financial marketing. Drucker's fundamental mandate that 'the customer's interests must come first' can be summarized by the following statements paraphrased from his extensive writings: - The only valid definition of business purpose is to create a customer.
- What the business thinks it is producing is not as important as what customers think they are buying; what customers consider to be value is decisive.
- Every business has only two basic functions: marketing and innovation.
- Marketing is your whole business as seen from the customer's point of view.
While easy to articulate, customer-centric practices are difficult to implement in most financial services organizations. Obstacles include a prevailing product-push mentality, a focus on short-term profitability, under-investment in financial marketing activities, and the lack of solid market intelligence about the needs and wants of target markets. We believe, however, that in the future the most successful financial services marketing organizations will be those that make Drucker's principles their own through extrapolation, adaptation and creative application. As effective financial marketing evolves to a cross-functional, multi-disciplinary activity, successful firms will create a culture of customer orientation throughout the organization and incorporate advocacy for customer welfare in all corporate decision-making. With the financial services industry currently going through a transformation, management's challenge is to provide the leadership to displace the status quo and create a culture of opportunity. Early adaptors who apply the concept of "integrated marketing" on an organization-wide basis will not only develop a customer-orientated culture, but also create opportunities for innovation, improved performance and incremental profitability. About The Author Mr. Jay Nagdeman, the Founder and President of Suasion Resources, has recently been identified as "One of the financial industry's most innovative marketing minds" by Research Magazine. Mr. Nagdeman previously served as Director of Marketing in financial services firms and as a contributing editor for Barron's. Prior to that, he taught at the business school of the University of Chicago. Copyright © 2004 Suasion Resources Inc. All rights reserved. For additional information, please visit us online at www.suasionresources.com.
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All things being equal, we buy from those we like. That bears repeating: 10 candidates offering the exact same qualifications and benefits, and clients will always go with the professional they feel most comfortable with and like.
I am afraid that there is not much that can be done about character-we are who we are. But, there definitely are some things that you can do to improve your "likeability" ranking.
A good, positive attitude attracts clients. Clients do not want to work with professionals; they want to work with professionals that project a positive attitude. Just as we avoid colleagues that are unpleasant to be around, so do clients avoid contracting professionals that do not project the right attitude.
Show appreciation for having the opportunity to work with a client. Send a card, nothing fancy or expensive, with a personal and original thank you message. You should try it-it works wonders.
Have a genuine interest in your client's best interest. Share you insider knowledge of the industry with your client. When you can not take on a job (maybe you have enough work, or are not qualified for that particular subject matter), reach out to your network and forward the job to a colleague. You can also point clients to web sites that can handle their translation project. Clients appreciate these small acts of kindness, and they certainly do not forget about them!
After completing under graduate school in Japan, I returned to Zambia briefly to help in the family business. We made it a policy to recommend customers to establishments-even if they were competitors-that most likely carried the product that we could not provide. Did customers ever appreciate it! They ended up coming around more regularly and making more purchases. Not only that, but even our competitors started referring their customers to us during stock outs. Of course, we made sure not to run out of stock too often-clients also have businesses to run?
The customary caution is not to introduce the client to a nightmare. A good rule of thumb to follow is to never introduce the client to a product (service) that you yourself would not layout money for.
When clients like you, you are the line up.
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Ultimately, the success of your translation style can only be measured by the number of your clients, and the number of projects that those client entrust you with. That is very much a function of how successful you are in making your clients feel comfortable with your deal-as defined by reputation, professionalism and visibility-and by climbing in the "likeability" rankings.
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