Date: 22.10.09

1. Mutual respect Thoughts on the marketing of mutual financial service providers Date: 22.10.09 A presentation to: Mutuals Forum ‘09

2. The context - why we’re here We believe there is a unique and urgent opportunity to promote Mutual Financial Service providers to the general public. Previous attempts have failed or stalled because they have been too much about philosophy and not enough about modern, practical benefits or undeniable facts. We want to change that....

3. We have many facts on our side 2.5p extra in every £1 of insurance premium goes to the customers themselves if they use a mutual. It costs 35% more to run a plc than a mutual. All demutualised financial providers lose efficiency post plc conversion.

4. The 7 key qualities of mutuals Growing popularity and strength globally Greater efficiency Higher returns Innovative service standards Stability and consistency Values driven Local and community focused

5. A climate of fear and uncertainty,a closing window Having been exposed to the greediness of banks and their complicated maze of financial instruments and trading, consumers are tempted again towards the values of mutuals… However, a year on, the window of opportunity is closing. The sleeping giants are awakening once again : investigating how they can redefine themselves as ‘trusted brands’. Many consumers will sadly remain passive unless presented with a viable and clear alternative.

6. Not above reproach ourselves We also have to guard against the reputations of mutuals becoming sullied. Only on Monday this week reports were emerging to blacken the name of mutuality in the financial press… Mutuals need to respond to hastily to these claims and attack is the best form of defence. We must prove to people that mutuals are a desirable and strengthening club they should join.... www.thisismoney.co.uk - 19.10.09

7. Growing popularity and strength in the UK One in three of the UK population are members of a mutual. 8m more members of mutuals than listed owners of shares. 500,000 + have become members of new mutuals. 23m members of building societies, 15m holders of a mutual insurance policy. Let’s look at an example of how an individual UK mutual can be transformed through shrewd marketing....

8. Where they were UK’s Largest Friendly Society 164 year history 2.5 million customers Managing £8billion of assets Were top 20 spender on direct marketing Only 3% spontaneous awareness.

9. What we did Ran research programmes, audits and workshops amongst key stakeholders. Created a platform, with “What If”, from which to express their rejuvenated positioning across all of the brand’s touch-points. Then evolved a compelling and expressive name, identity and communications plan to market this positioning.

10. Sharp with a heart The behaviours of a mutual With the performance of a PLC

12. Results Prompted brand awareness up from 52% to over 70% Consideration up from 2% to 12-15% Now the fastest growing online financial brand Turned a group operating loss into a c£50m profit in 2008 “I believe The Partners work has been a key factor in our brand’s success” - David Radford, Group Marketing Director, LV=

13. An international perspective Whilst the growing strength of mutuals in the UK is reassuring we perhaps need to also paint a new global perspective. We invented mutual financial service providers but it’s another invention we’ve failed to leverage. 7% of the UK insurance market is held by mutuals compared to a global average of 25%.

14. An international perspective Demonstrating to the UK that mutuals are chosen by some of the savviest consumers in the world can help to transform their image. We’re not dusty, provincial institutions but at the global leading-edge.

15. International example

16. A new community hub Local events boards Non uniform Local music, concerts, web and support

17. A relaxed space Break the convention Relax and enjoy the experience

18. Engaging with the community Lemon‘aid’ ‘change bank in a tin’ vending machine Ice cream in summer and soup in Winter

19. But did it work? 6Stores$140mAssets

20. 187$8bn Over 10 year period But did it work? 6Stores$140mAssets

21. The collective campaign for mutuals we are suggesting A visual symbol/marque that every mutual financial services provider can use in its marketing and communications material e.g. in branch, on the web-site, in literature, on advertising. This would act as a ready identifier for the public. A summary sentence/call to action for consumers to sign up to mutuals to their own financial advantage. This would accompany the symbol. Strategic PR to support and explain the Symbol/Marque and Call to Action. A fully-interactive, public web-site, with content & functionality that informs, petitions & links to individual mutuals. It would also encourage ‘user-generated content’ and blogs by consumers, journalists & community groups.

22. Other key elements of the campaign Schools education, perhaps done by 18 to 21 year-olds on lecture tours, plus pdf lesson plans. Guerrilla marketing to take our message to the streets. A broadcast partner prepared to commission documentaries: Channel 4 or BBC. An ad campaign possibly piggy-backing individual campaigns by mutuals e.g. 10-second stings that feature the Mutuality marque.

23. Target audience Research published by Scot Am / AMI suggests that there are three target audiences particularly attracted to mutuals already: The Financially Savvy based on value and service 18 to 30 year-olds to whom mutual values are increasingly important. C2DE’s based on “Mutuals are down-to-earth people like us” We must leverage the power of the first two to the population at large and remain earthy to the third.

24. How to appeal to this target audience Need to be hard-nosed, practical, commercial and contain reference to global mutuals. We mustn't be vague, nostalgic or anti-plc for your own sake. We should have a tone-of-voice that is warm, witty and humane. We must be visually brilliant, and use a lot of native wit and modern viral marketing to leverage value. We must learn to speak with your target audience in the right place and the right time. Let’s not market our products…let’s share them. Let’s make our audience our advocates and new business winners.

25. The role of advocacy Advocacy has always been strong in the mutuals sector. Now advocacy is a rising global trend thanks to the increase in Social Media as the main marketing channel of choice “ On the internet, your biggest competitor is not other companies. But, the quality of your own products, and the authenticity of your message. Ads are no longer the way to sell more products… It's not about how you market your products; it's about why you created it.”Thomas Baekdal - writer and blogger

26. How might a campaign be organised? A.M.I., B.S.A. Mutuo and A.F.S. have been round the table with The Partners to discuss an Action Plan in 2008/ 2009. A.M.I. have got the ball rolling with agreed common messages to be used by all their 38 members. We need powerful voices to join us.....yours!

27. Paul Twivy Board Director Strategy Consultant Thank you. Helen Jones Business Development Manager