Tuesday, 8 May 2012

Turning RDR to a marketing advantage.

IFAs and Financial Service organisations are only too aware of the requirements of RDR to their business. The Retail Distribution review (RDR) is the latest wave of the hand from the FSA in their continual attempts to turn the Financial Services Market in the UK into a safe and level playing field.

Major changes come into effect from 1st January 2013, yet so far only half of the industry has implemented the changes needed to comply.

Key criteria for change are:

1. Clear charging creating structured fee based service levels.

2. Clear service provisions, explaining what the client gets and how actions will be implemented.

3. Increased professional status for qualified advice and efficient service.

Communication is the key to all elements of the change. Yet, ironically, the FSA hasn’t communicated the changes to the British financial consumer – that’s down to the IFA also.

In working with Greycoat Financial Services, a Westminster based IFA, we have used the requirements for change as the ultimate excuse to deconstruct and rebuild the business.

Not only have we produced a full portfolio of compliance-proofed materials, procedures and a marketing database to support the CRM – but we have helped the client to fully understand and feel comfortable about who they are and how their future relations with clients will work.

We’ve given Greycoat ownership of RDR and a positive proposition to build their business profitably from the changes it has required them to make.

Part of the process has used Simon Sinek’s The Power of WHY to review and structure key areas of internal and external communications:

“Knowing the WHY can inform your actions as a brand, your brand voice, its character, and everything else that helps build it into something people want to have a relationship with.”
Attributed to Simon Sinek.

Most but not all know WHAT they do – but WHAT in who’s perspective?
WHAT = fundamentals, intellectual property, the ‘business fuel’, USPs, KSPs, what makes a customer buy what they buy and is that in fact what you think you are selling!


Very few businesses truly understand WHY. So, what is WHY?

This is how Simon Sinek introduces his inspirational ideas:

WHAT and HOW are vital, yes – they determine quality, viability, functionality, price, value, margin. We all make rational (WHAT) purchase decisions every day … because it’s there at the time I want it.

The WHY is often forgotten in the content-driven, busy world of the Financial Services SME. By forgetting it we miss a major trick.

WHY is what you make it:

The value to the FS practitioner in understanding and applying / interpreting this thought process to their own business is what sets them apart from the competition.

Think about it - I'm not going to tell you the answer (because there really isn't a magic 'fits all' solution) this week because I want to develop the thinking in the next blog.

If you would like to discuss it further in the mean time please:
call Rodney Bashford on 07500 896 783

All businesses know HOW they do what they do – or do they?
HOW = manufacture, sales, service, admin, logistics, finance etc.

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