A debate we started at The Financial Services Forum with around 50 marketeers from different parts of the industry.

1. Endsleigh Insurance
The true value of brands
Justin Basini and Tom Farrand
Financial Services Forum October 2009

2. Endsleigh here?
Why are you Insurance
Learning?
Networking?
Escaping?

3. Endsleighhere?
Why are we Insurance
The same reason as you

4. Endsleigh session to be interactive
We’d like the Insurance

5. Endsleigh Insurance
…and challenging

6. Endsleighhaven’t got all the answers
Because we Insurance

7. Endsleighhere
Why we are Insurance

8. Endsleigh Insurance
No group hugs

9. Endsleigh Insurance
No „live‟ twitter

10. Endsleighwhat to take back to your desks or throw away
You decide Insurance

11. Endsleigh Insurance
“The true value of brands is not
exploited in financial services”

12. Endsleigh Insurance is not exploited in financial services (15 mins)
The true value of brands
1. How do you define the true value of brands?
2. Using your definition and examples, explain why you agree or disagree with
the statement
3. What one thing could organisations do to unlock more value from brands?

13. The true value of brands is not exploited in financial services (15 mins)
1. Sustainability – brand as a source of competitive advantage
EndsleighisInsurance say about you
Brand value what people
What you stand for? Your values
Point of differentiation through what you stand for
A premium – loyalty, better value
Brand and customer experience
2. Virgin part of a larger portfolio, Co-op contribute to the environment (belief?)
Adding value over and above price
Financial services brands are afraid – connecting with the reality
Brand is about internal alignment over and above logo and graphics
Lack of bravery – prevailing mediocrity
3. Customer insight, service not sales
Brand coming from the top down – embedded throughout the organisation
Bravery in leadership – leadership (CMO/CEO) turnover
Consistency and sustainability
Measurement – bridging the gap between “feeling” and numbers/value
Listening to customers, constant dialogue
Is there any talent in marketing in financial services?
We are brand guardians in marketing, the whole organisation owns the brand

14. Endsleigh Insurance
Building on that…
A point of view

15. Theme #1
Endsleighbe powerful psychological entities …
Brands can Insurance
… for customers
… for employees
… for shareholders

16. Brands are coherent ideas that connect with our
Endsleigh Insurance
brains and influence what we think and do

17. Theme #2
Endsleigh Insurance hidden bubble in our economy
But we‟re creating another
Brand asset
value is
outstripping
perceived
customer value

18. Endsleigh Insurance
The „brand bubble‟
Intangible brand value
estimated on balance sheets
The brand bubble
Consumers’ actual perceived
value of brands
Value to consumer
Price
Value to company
Cost
Source: John Gerzema/Edward Lebar Y&R, Market Leader, Sept 2009

19. Endsleigh Insurance up a larger proportion of enterprise value
Intangible assets are making
60
50
% entreprise value
40
30
20
10
0
1950s 1960s 1970s 1980s 1990s 2000s
Source: BAV databases and Y&R historical research (Market Leader Sept 2009)

20. Endsleigh Insurance
That number is still increasing…
2006
72% of value of Dow Jones Market Cap is intangible
Fortune
2007
70% of value of S&P 500 is intangible
Accenture
Source: Market Leader Sept 2009

21. Endsleigh Insurance value as total of company value is greater still…
For strong brands, brand
84%
Source: Brand Finance, Market Leader Sept 2009

22. Endsleigh Insurance
The „valuation gap‟ according to consumers
Perception
If brand value is increasing…. Reality (over last 10 years)
So should brand trust Less trusted than ever
50%
Brands should be more liked and admired Less liked and respected
12%
Brands should be better known Less salient than ever
20%
Quality perceptions should be increasing Quality perceptions decreasing
24%
Brands should be more differentiated
Differentiation declined in 40/46 categories
(inc. financial services)
Source: BAV 1993-2007 brand data. Copernicus, Jack Trout and Kevin Clancy (Market Leader Sept 2009)

23. Endsleigh Insurance
Why?
The valuation
models don‟t
recognise the
customer reality

24. This is being driven by the convergence of four major trends that are
causing major disruption
Endsleigh Insurance

25. Trend #1
Endsleigh Insurance
Our economic model is
no longer delivering
improvements
in our well-being
By engaging, brands can
work with customers to
deliver solutions

26. We are certainly getting
Endsleigh Insurance richer
We are certainly getting older
We are working more
We are getting fatter
More crime
We are voting less
1840 1900 1950 2000 2008

27. Endsleigh Insurance
Overall we are
not getting
more satisfied
1840 1900 1950 2000 2008

28. Endsleigh Insurance
Trend #2
We’re consuming resources as though there are 3 planets, not 1
Sustainability isn’t compatible with consumerism in it’s current form
Brands can lead the agenda across markets with customers and employees,
to deliver a more sustainable future
Source: WWF, One Planet Living 2009

29. Endsleigh Insurance
Consumerism, and the marketing that drives it, developed
with the aim of maximising the use of available production
We built in planned obsolescence to products
Changed categories to be consumption based
Invested in constantly adding and not taking anything away

30. Endsleigh Insurance
The population explosion of the past 200 years means that not
all developing economies can take the same approach
There are not enough resources
Source: WWF, One Planet Living 2009
Source: US Census

31. Endsleigh Insurance
So we will either create
more competition for
resources like
commodities and energy

32. Endsleighto explore and
Or we need Insurance create new models
Putting the wider sustainability and social agenda at the heart

33. In financial services, there are some with radical vision
Endsleigh Insurance
“Valuable though these activities unquestionably are, there is an overriding need to
extend the understanding of corporate sustainability to include responsibility for
building the business as a whole in a way which enhances the common good.
Corporate sustainability is not an adjunct to the company‟s business, it is about the
raison d‟etre of the company itself.”
Sir Stephen Green, Chairman HSBC, Frankfurt 2009

34. Endsleigh Insurance
Trend #3
The internet has delivered unprecedented access to information and enabled
widescale connectivity between people. And its only the start
The role of brands going forward will be
less about pushing a message and
more about engaging in the debate

35. Endsleigh is rapidly changing the developed world
The internet Insurance
Information access and connectivity are exponential in growth
Social Media has overtaken porn
as the #1 activity on the Web
1 out of 8 couples married in the U.S.
last year met via social media
Years to Reach 50 million Users
Radio 38 Years
TV 13 Years
Internet 4 Years
iPod 3 Years
Facebook added 100 million users
in less than 9 months
iPhone applications hit
1 billion in 9 months
If Facebook were a country it would be
the world‟s 4th largest between the
US and Indonesia

36. Endsleigh Insurance
People are using the
power of the internet to
connect and drive radical
action around a range of
issues large and small
250,000 protestors signed
up via Facebook to Anti-
Farc demonstrations across
the world

37. Endsleigh Insurancethe medium of the movement
Iran protests: Twitter was

38. Endsleigh Insurance

39. Endsleigh Insurance
But change is slower when
it comes to the micro-
level issues that concern
and frustrate people day-
to-day

40. Trend #4
Endsleigh Insurance
Social, commercial and financial structures
built to support our economy are breaking
down
Big opportunity for brands to deepen
relationships as signposts in a changing
and unsettling world

41. Engagement in democracy at
Endsleigh Insurance
lowest ever levels
A whole generation is just not interested in current politics
50% of 18-24 year olds
voted in Big Brother
38% of them voted in the
2005 general election
70%
were interested in the environment,
taxation and healthcare

42. Endsleigh Insurance
Organised religion is breaking down …
Only 26% believe in a personal god
70% do not believe Jesus
was the son of God
50% never go to
church

43. Endsleigh Insurance
Being replaced by different forms of
spirituality and fantasy

44. Endsleigh Insurance
The traditional
organizational
model is breaking
down. It’s much
harder to control
Tesco turn their
organization charts
upside down
How many of us blog or tweet about work?
How many of us actually tell the truth?

45. Shareholder activism is increasing
Endsleigh Insurance
20%
Increase in shareholder resolutions
Between 2001 and 2005
How will people feel when the banks
pay out billions in bonuses?

46. The are my presentation charts
world is a more We are
Endsleigh Insurance
Here more fearful
difficult place to (being afraid of something
increased 25% between 2001
navigate and 2005
We are
less trusting
(e.g. In businesses from 57% in
2008 to 37% in 2009)
There are
more wars
(348 in 2007)
We are spending more
money on military
(up 50% from 2000, to $1.2trn in
2007)

47. 17th February 2009
Sir Nicholas Stern
Endsleigh Insurance
declares we need
$400bn in global green
investment …
…President Obama
pledges up to $112bn for
investments in green
technologies
Green is the new black

48. Endsleigh Insurance
What does this mean
for you and your
brands?

49. A turning point
Endsleigh Insurance
The opportunity is for brands
and marketers to redefine their
markets by fundamentally
reassessing what and how
they contribute to society

50. Endsleigh Insurance
The value of brands in
this scenario is to create
positive engagement
with employees and
customers around ideas
that provide solutions

51. Endsleigh Insurance
Credit card company?
There‟s a debt crisis
There‟s a huge group of
people don‟t how to
budget
How can you make
budgeting as easy as
doing Facebook? Or
gaming?

52. Endsleigh Insurance
Pension provider?
People find it really hard
to visualise what money
invested today looks like
as income at retirement
As a result, they‟re doing
very little. What about
using gaming to help
people understand future
scenarios and risk?

53. Endsleigh Insurance
Retail bank?
There‟s a majority of
financially unconfident
people
What can you do to teach
children (and adults) how
to better manage their
money?

54. Endsleigh Insurance
Insurers?
Premiums continue to
rise as people consume,
lose, damage and claim
more
How can you help
consumers learn to
protect, repair and
prolong versus replace?
Or use and track only
what they consume to
reduce their premiums?

55. Endsleigh Insurance
All FS providers…
We all know that current
regulation over
communications impedes
understanding
How can we change this?
And find new and better
ways to engage people
effectively?

56. Endsleigh Insurance
All FS providers…
We have incredible amounts of data and insight into our
customers
Why can‟t we use this to guide, personalise and help?

57. Endsleigh Insurance
All FS providers…
People are forming ever
bigger, and organised
communities of interest
How can we find ways to
tap into the greater
purchasing power and
specific needs they have
to create completely new
kinds of purchasing,
borrowing and saving
tools?

58. Endsleigh Insurance
Brands that successfully
tackle these issues will
create deeper connections
which is their
social imperative
And through this create
demand, loyalty and
advocacy which is their
commercial imperative

59. Endsleigh Insurance
Thank you
Get in touch with us to continue the conversation
Justin Basini Tom Farrand
07786548395 07748116479
justin@basini.com tomf@pipelineideas.com
www.basini.com www.pipelineideas.com (online Nov 2009)
@justinbasini (Twitter) @tomfarrand (Twitter)
Blog: www.blog.basini.com