In the October 15th issue of Marketing News, the cover article, titled “Austerity Marketing”, talks about how marketers need to take a different approach in these difficult economic times, in order to make a meaningful connection to consumers. I agree, especially with the closing statement, “The value proposition, rather than simply the price, is now a primary differentiator, and so it will remain long after the economy rebounds, experts say.” We’ve been saying this to financial institutions for a long time.
How many financial institutions out there have really grasped the reality of this statement? I would argue not many. How often do we see rates as the first thing communicated from a financial institution? Entirely too often.
Financial institutions should take note, and think about how they can establish and build a connection with their customers or members. Real connection, the kind that leads to deeper relationships, higher products per household and loyal customers, requires more than a good (or the best) price. While price is certainly a factor, especially in hard economic times – consumers are also looking to companies with which they have a connection; those they view as credible and trustworthy; those that have a real value proposition.
