KQ Article

Let’s face it. The consumer today is clearly in charge — and this reality could not be more apparent than in financial services. Customers and members are highly skeptical and selective, and emotions often trump reason in where they direct their business.

They also prefer service providers that are uncomplicated, authentic and transparent. If one financial institution is lacking in any of these areas, consumers will simply go to a competitor down the street.

This issue of The Deluxe Knowledge Quarterly sheds light on the complex motivations behind current consumer behavior, to help us better align our brands and offerings with their needs.

The lead article, written by noted emotional scientist Dan Hill, explains how the heart often precedes — and overrides — the head in consumer decision-making. “We’re not nearly as rational as we imagine,” he writes. “[The consumer] thinks and decides matters in a manner much closer to Homer Simpson than Mr. Spock.”

In “The Contradictory Consumer,” former Target trend leader Robyn Waters urges us to embrace our paradoxical nature as a means of winning over customers. Human beings want to both stand out and be part of a group, she explains, and today’s market leaders are those that can fulfill these opposing needs simultaneously.

We also offer an excerpt from the brand-new book, Yes! 50 Scientifically Proven Ways to be Persuasive, authored by preeminent social psychologist Robert Cialdini. He cites several fascinating studies revealing how the effective use of the word “because” can dramatically improve customer relationships.

In addition, we publish statistics from a problem-resolution pilot conducted by 2007 Collaborative members in their own branches and call centers. The numbers don’t lie, and these results confirm that the group’s conclusions are clearly on the right track. All the articles stress the immense opportunity awaiting financial institutions that best meet the needs of today’s complex consumer. As you’ll find by reading further, doing so is quite simple.

_{© 2010 Luann Widener}