Transparency in the Information Age
Fees. The age-old question. To tell or not to tell? A lot of financial institutions try to hide their fees. Bury them in the fine print. Or just generally make them a complete mystery to consumers. But in this Information Age, that strategy will no longer cut it.
Recently, Brightscope Inc., a provider of 401(k) plan ratings, introduced a new online tool that provides investors with data about how much they are paying for fees in their retirement plans. Tools like the one from Brightscope are helping to usher in an era of transparency that should demand the attention of every financial institution’s marketing department.
Why is transparency so attractive?
More than ever, people feel leery of what they’re being told. After years of “too good to be true” actually being too good to be true, they want trust. They want transparency. Being completely up front about fees is part of that formula. It tells your client that you have nothing to hide and that you’re confident in the value your product provides.
Shouldn’t it be the client’s responsibility to figure it out?
Taking an approach that puts the impetus on your client could backfire. As more and more financial institutions begin to embrace transparency, clinging to such a clandestine approach could ultimately lead to your client’s walking looking to do business with a place they feel will shoot them straight.
So, how do I make my financial institution more transparent?
There are any number of ways to do it – from online tools to office signage and more – but as you explore your options, keep a few things in mind:
- Either commit all the way or don’t bother. Anything less that full commitment and people may think it’s a gimmick and not a legitimate attempt to build trust.
- Transparency is a good thing and merits mention in your sales copy. It’s a benefit that people appreciate.
- Keep it simple. Here’s what we’re offering. Here are the fees. And here’s why we charge what we do. The simpler the message, the more effective it is.
- Look to the future. If transparency in your pricing has you concerned about the value you’re delivering relative to the competition – fix the value problem. Price is one thing. Value is another. Make your value clear (and follow through in delivery) and customers will come back again and again.
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