Do strong brands really save you commoditisation? · 2018-09-28 · 5th May 2016 Financial Services...

Do strong brands really save you from commoditisation?

5th May 2016

Financial Services Forum

Mike Rocha

Global Director

Brand Valuation

@mikerocha73

@InterbrandUK

Interbrand pioneered

the idea that brands

have tangible value

Making brands a

boardroom conversation

“Most Useful Rankings to CEOs”

- PR Week

1. Fortune 500

2. Best Companies to Work for

3. Interbrand’s Best Global Brands

2 | Financial Services Forum | Interbrand | May 5th 2016

3

A brand is a living business asset, brought to life across all touchpointswhich, if properly managed creates identification, differentiation and value.

By definition, strong brands do save you from commoditisation



More than a computer


More than a car

| Financial Services Forum | Interbrand | May 5th 20166

More than sports gear

Strong brands generate growth and value primarily through

their effect on three key levers

7

Drive

choiceCommand

a premium

Build

loyalty

Leading to increased

revenue growth..

..increased profit ..and reduced risk


This in turn drives superior financial returns

Source: Interbrand analysis with data sourced from Thomson Reuters and Best Global Brands

Best Global Brands portfolio versus

S&P 500 and Morgan Stanley Composite World Index


However, historically, this has not been the case for financial services brands

9

Best Global Brands portfolio versus

S&P 500 and Morgan Stanley Composite World Index

Source: Interbrand analysis with data sourced from Thomson Reuters and Best Global Brands| Financial Services Forum | Interbrand | May 5th 2016

The role of brand in driving choice in financial services

has historically been low…

67%64%

61%

53%49%

46%42% 41% 39%

36%33%

29% 27% 25% 23%18%

15%

Role of Brand by Industry 2015 Functionally-led purchaseEmotionally-led purchase

25% 10%

Role of Brand Range - FS

Source: Interbrand analysis with data sourced from Best Global Brands 201510 | Financial Services Forum | Interbrand | May 5th 2016

11

Customer inertia Attractive sector for top talent

In 2014, 57% of UK consumers

had been with their personal

current account (PCA) provider

for more than 10 years and

37% for more than 20 years

(source: Retail Banking Marketing

Investigation, CMA, October 2015)

Market concentration

The result: Brand and customer-focus has not historically been a high priority for senior management

Why has that been the case?

77%(Source: The Guardian Taking on the 'Big Four' banks is the hardest job on the high street, 6 April 2012)

Market share of ‘Big Four’ after

HBOS rescue by Lloyds


But the rules are changing…

Source: Capgemini - Shifting Sands: Banking in the Digital Era

55% of bank executives view

non-traditional players as

a threat to traditional banks


Competition is increasing, technology is breaking down barriers to competition,

giving customers more choice

Source: PwC, 2014. Retail Banking 2020

Technology brands with historically higher roles of brand are entering the market

67%64%

61%

53%49%

46%42% 41% 39%

36%33%

29% 27% 25% 23%18%

15%

Role of Brand by Industry 2015 Functionally-led purchaseEmotionally-led purchase

Source: Interbrand analysis with data sourced from Best Global Brands 2015

50% 15%

25% 10%


In 2008, just 8% of Harvard Business School graduates moved into tech. In 2015, the figure had risen to 24%.


Technology is the new honey pot for top talent

Source: ITProPortal

of millennials have stated they

are ready to switch banks, while

12% said they would switch for

as little as a free monthly coffee*

* Source: Rufus Leonard

(in North America) switched their

primary bank within the past 12

months – compared to 10% of

customers 35/54 and 3% of

people 55 and older*

** Source: Accenture

99% 18%


Attitudes are shifting, especially among Millenials

Open platforms in asset management is increasing the

role of brand in this sector


These trends mean brand in financial services will

be more important in the future than in the past

Global Financial Crisis Reputational Damage

Competition

Attitudes

Top Talent

Open Platforms

Open platforms in asset management is

increasing role of brand in this sector

Competition is increasing, facilitated by technology Technology is the new honey pot for top talent

Attitudes are shifting, especially among millennials


SO HOW DO YOU BUILD A STRONG BRAND?

The modern brand: How the world experiences your company

Business Strategy

Brand

Customer ExperienceReflected through the

experience at every

interaction and touch-point


Which is why we see customer-centricity and brand as

top priorities for financial services leaders

* Source: PwC – Global CEO Survey * Source: PwC Banking 2020 Survey


But to deliver a seamless customer experience CEOs and CMOs face a major challenge

Retail

ExperienceSocial

Media

Customer

ServiceCS

Team

Digital

TeamSales

Team

Marketing

Team

Product

Team

Comms

IBE

Media

Channels

Product

People

HR

TeamMedia

Team

Int.

Comms

TeamCMO


Compounded by multiple external partners and geographies

North

AmericaEurope

Africa

Asia

Middle

East

Global

CMO

GLOBAL/ LOCAL AGENCIES


There are thousands of things you could change

to improve the brand experience


25

What you need is a clear roadmap to identify and prioritize actions

that will have the most impact on growth

And a means to align your organization around those priorities


External factors

Clarity Commitment Governance Responsiveness

Authenticity Relevance Differentiation Consistency Presence Engagement

An organising framework for brand and business growth – Brand Strength

Internal factors


We analyze the current strength of the brand, prioritize focus areas and activate

strategies to improve performance

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First:

Analyze

Authenticity

Relevance

Differentiation

Consistency

Presence

Engagement

Clarity

Commitment

Governance

Responsiveness

Authenticity

Relevance

Differentiation

Consistency

Presence

Engagement

Clarity

Commitment

Governance

Responsiveness

Second:

Prioritize

Third:

Activate

Brand

Experience


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Join us for an exclusive, bite-size workshop where we will explore disruptive future scenarios shaping tomorrow’s world as well as the opportunities they present for brands and businesses in the financial services industry.

For more information and to register: https://redcirclefuturescenariosfinancialservices.eventbrite.co.ukor email [email protected]

Thank you!

5th May 2016

Financial Services Forum

Mike Rocha

Global Director

Brand Valuation

@mikerocha73

@InterbrandUK

Do strong brands really save you commoditisation? · 2018-09-28 · 5th May 2016 Financial Services...

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