I don't want a relationship with you

C&G sent me a text this morning to welcome me as a new customer. I was only barely aware that I was. I’ve just remortgaged through a broker I’ve used for the last 4 years and now I’m on my third mortgage and third different provider. The only contact I needed with my last provider was to sign the form and then ring them to ask what was the best deal they could offer me at the end of the fixed rate period. It was a smooth process but not a relationship. My relationship clearly exists with the broker who takes all the hassle out of the process and has managed to get me great deals – yes I did check the market and realized that after 2 hours surfing the websites I was wasting my time trying to find a better deal. For me, choosing a mortgage is therefore just a matter of price.

At Budd we’ve talk for a long time about customers not wanting a relationship with their bank, or any financial service provider for that matter. So what can companies do to address this challenge? Still focusing on the basics is a critical factor. Sending a welcome text is not going to change my behavior in 2 years time, especially if they mess up on the straightforward process of processing my new application. In fact, in 2 years time I’ll probably look around for a new mortgage and if they can come close to the same deal I might stay with them. So how can they be competitive on the product? By being competitive on customer service. Reducing unnecessary contact, as we have talked about for a few years, is not just about reducing your costs but improving your service – as Amazon and others are demonstrating with Skyline more and more. Reduce costs to enable more competitive products, then wow me with basic service that works and I might still be a customer in 3, 4 or 5 years time (maybe longer!).