A business and communications strategy with transparency at the core is fundamental for competing in today’s market.
Label Insight conducted a survey last year of SmartLabel transparency technology where results showed that 40% of consumers said they would switch brands if one were more transparent than the other. 73% were willing to pay more for brands that were more transparent.
So, in the age of transparency, what does the term actually mean and how is it implemented in financial services?
The usual jargon that comes with transparency revolves around using it as a strategy to boost a firm’s bottom line. However, transparency is also a way to create brand awareness and loyalty (and therefore long-term viability) by providing insight into what’s important to clients.¹Forbes reported that up to 62% of Gen-Ys are willing to become loyal consumers of brands that actively engage with them.²
For financial advice firms, transparency can be integrated into their overall business strategy in a number of ways.
Perhaps the most pertinent is developing a clear and honest CVP (Client Value Proposition). Many firms undervalue their services and this comes down to truly understanding the value their offerings provide clients. Firms fail to realise that adjusting pricing or undercharging (providing a client with more services than they’ve paid for) can lead to distrust and churning. A clear CVP helps to dispel some of the mistrust that may occur with such changes.³
Another way for firms to overcome issues around trust and increase transparency is to face poor performance head on. Providing clients with clear feedback about what went wrong, recommendations and implementing proposed actions are vital in ensuring clients have the trust and confidence that their adviser is able to guide them through rough patches.
Ray Henderson from Business Health suggests that firms can create transparency by ensuring their overall business strategy includes –
- Regular, proactive communication
- Making sure that clients truly understand everything their firm is able to do for them, including tasks beyond financial advice (providing recommendations for legal services, etc…)
To learn more about how to integrate transparency into your firm’s current strategy and how to develop a CVP that clearly outlines all the services your firm offers, register for our upcoming Future Unlimited webinar with Ray Henderson by clicking on the button below.
¹ "Why transparency matters to your business," Social Media Today
² "Why transparency matters to your business," Social Media Today
³ "3 ways to increase client retention through transparency," Entreprenuer