April 7, 2014
The Commonwealth Government is considering plans to change the law to allow tellers to give general financial advice and sell financial products on commission.
Journalists reporting this say it may be good for financial institutions/bad for consumers or financial planners and shouldn’t happen.
The problem not addressed in the news: – Branch-based activity is diminishing rapidly.
The marketing research evidence:
Data suggests that over the last fifteen years:
* The proportion of customers visiting a branch has declined to just about half of the total customers.
* Over the same time, Internet bank and smart phone app use has grown from almost nothing to use by half the customers.
* And of Internet users, three quarters Internet bank at least monthly while only one in five visits a branch at least monthly.
The response needed
The important response for the finance industry is to establish how to engage with and to sell to the fast increasing number who Internet or app bank, while still engaging with the declining proportion who are branch visitors.
There may be similar changes in your industry, with reporting concentrating on those that may nor be the core ones that will generate more business for you.
We can help you to identify what your customers are doing and what motivates them, so you can sell to them more effectively.
To discuss how we can assist you further, please call or email Philip Derham now.
To find out more, contact Philip Derham – by email at Philip.Derham@derhamresearch.com.au or by mobile phone 0414 543 765 or by telephone (+61) 03 9897 3011.
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