Is creating differentiation all about taking creative risks? Our panel of experts discuss.
In a survey conducted earlier this year, two thirds of our Members cited creating differentiation as their key challenge. As part of our annual Marketing Trends Report, we asked a panel of experts to discuss this finding and suggest ways in which marketers can address this key issue. Here is a summary from the report.
Achieving differentiation is a problem faced by marketers across the financial services industry. As the chart shows, the issue affects all sectors, albeit some more than others. But perhaps we shouldn't be surprised by this finding? After all, every sector has a plethora of providers, selling much the same in the way of products. When we dug a little deeper into the findings, we found a correlation between the size of the marketer's budget and the degree to which creating differentiation was a challenge - the more money marketers have, the easier they find it to differentiate. So, what did our panel of experts think? Read on to find out more...
If a business is to truly differentiate itself, our panel of experts agreed that it will need to come from the top down. Any point of differentiation must be cultural and embedded into a single-minded proposition, rather than be achieved through a marketing campaign. Some good examples of this include Co-operative Bank’s stance on ethical values, Nationwide’s unwavering commitment to Members, and First Direct’s excellence in service. Regardless of sector, it's important to be single-minded about what makes the business different, and then live those values every day, and throughout the organisation.
Encourage a braver marketer In addition, the Executive Board should move away from short-term thinking and the need for instant results, which is largely driven by their own remuneration structure, and focus on risk and compliance. Their tendency to be conservative is getting in the way of creativity, and genuine differentiation needs time, and it needs budget. Marketers must be given the freedom to take creative risks, and the permission to fail.
Attract new talent and work hard to keep them Differentiation also needs talented marketers. We need to be braver and recruit experience from outside the industry, otherwise the same people and the same ideas keep circulating. Attracting young, creative people with new ideas is key, but our industry suffers from a reputation of being staid and boring as we continually battle with regulation and governance. It comes back to being able to take creative risks. Without that mandate from above, we’ll struggle to attract and keep new talent.
To read more of this discussion, and other trends affecting marketers within financial services, download the full 2019 Marketing Trends Report here.
1. Lead the charge for a single-minded proposition that truly differentiates the business.
2. Ensure there is a marketing champion on the Board, to influence budget decisions and advocate the benefits of taking creative risks.
3. Create a forward-thinking team within marketing that sits outside of BAU.