Communication is the key weapon in regaining trust
Highlighted in the FSA’s recent annual report is an apparent loss of trust in the UK’s retail financial services, especially following the impact of payment protection insurance misselling.
This has left customers feeling that they are as well-off making their own decisions, which in turn has led to them getting used to using price comparison websites as a source of information.
But what customers really need is guidance to make the right decision - which is why many still choose to use intermediaries, who are experts in what they do.
With the Aberystwyth floods our team searched for the contact details of 29 policy holders living nearby
Allowing customers to use a culture based on price not benefits, it gives the intermediary a handle to hold on to valuable customers.
So the trust the FSA is talking about is not just how you look after your customers and the reputation you build, it is also a key component in driving the sale of suitable financial solutions.
So how can you gain trust? A simple but fundamental answer is through communication.
Letting your customer know that they have the right solutions and not necessarily the cheapest, telling them they have the right products and not one that has such a high excess that there is little benefit in having it.
It’s through building relationships based on reinforcing your promises and making them feel at ease.
With the recent Aberystwyth floods, our claims team searched for the contact details for 29 policyholders that a broker had highlighted were living in or near the affected villages.
The team called these customers to check if they were okay and needed any assistance.
Fortunately all were unaffected but I’m sure the policyholders will be reflecting on that phone call and thinking about their advisor and insurer in a new and trusting light.
So when the FSA highlights the need to regain consumer confidence in the financial services world, why not spend some time looking at how you can not only gain consumer confidence but also drive performance levels.
Home insurance is a great starting point, people do claim and that’s where a great experience in repairing leaking pipes, replacing carpets or helping find alternative accommodation while the house is drying out can add real value to a long term client-advisor relationship.
After all, in the financial service world trust is what we are really selling.