Value: do you add or extract?
In the June issue of Market Leader, Hugh Davidson identified banks and other sectors as value extractors. In this article, Fiona McAnena sets out the challenge facing marketers in businesses that are not marketing-led, and suggests ways in which they can lead a change for the better.
Imagine that you're at the checkout at Tesco. As your can of baked beans goes through the scanner, the helpful assistant says: "Did you know we have these for 10p less?"
"Great – charge me less, then," you say.
"It doesn't work like that," says the assistant. "You have to say you want it cheaper, and you have to pick up the right can. I've let you know you can get them cheaper – it's up to you to go back up to aisle 74 and get the cheaper one."
Sounds crazy, but the Nationwide thinks it's such a good service that they've made a TV ad about it. Their new 'SavingsWatch' service will 'advise you personally' when the rate changes on your savings account (provided you register for the service). Sounds like progress. But that's not what most people really want. More emails or texts from the bank? No thanks. Just give me the best available interest rate. Full stop.