LFS Conveyancing Conference Treating customers fairly and profitably 26 September 2013 Victor Olowe Director, Winzest Consulting

Nagging question Source: Winzest Consulting

What is treating customers fairly? Source: Winzest Consulting

Profitability League Table (Hypothetical Profit League Table – Conveyancing Firms) Source: Winzest Consulting

How businesses are wired? Source: Winzest Consulting

Treating Customers Fairly Matrix Source:Winzest Consulting

Capacity to Experiment “I don’t think that you can invent on behalf of customers unless you’re willing to think long-term, because a lot of invention doesn’t work. If you’re going to invent, it means you’re going to experiment, and if you’re going to experiment, you’re going to fail, and if you’re going to fail, you have to think long term.” (Jeff Bezos, Amazon)

Pricing power “The cost of being a conveyancer….. - Low fixed fees…” (Eddie Goldsmith, Conveyancing Association)

Pricing power “The single most important decision in evaluating a business is pricing power.” “If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you’ve got a terrible business.” (Warren Buffet)

Another Roger Bannister? Source: Winzest Consulting

Treating Customers Fairly Matrix Source:Winzest Consulting

Possible barriers to change Source: Winzest Consulting

Key Drivers of Change Source: Winzest Consulting

Smarter Competition Source: Winzest Consulting

Smarter Competition Source: Winzest Consulting

Smarter Competition Bad profits “… Though bad profits don’t show up on the books, they are easy to recognise. They are profits earned at the expense of customer relationships...” “…Bad profits strangle a company’s growth, primarily through the detractors they create…” Fred Reichheld, Rob Markey & Andreas Dullweber (Bain & Company)

Smarter Competition Bad profits “… Whenever a customer feels misled, mistreated, ignored, or coerced, profits from that customer are bad. Bad profits arise when companies shortchange customers by delivering a poor experience. When sales reps push overpriced or inappropriate products onto trusting customers, the reps are generating bad profits. When complex pricing schemes dupe customers into paying more than necessary to meet their needs, those pricing schemes contribute to bad profits…” Fred Reichheld, Rob Markey & Andreas Dullweber (Bain & Company)

Smarter Competition Good profits “… Good profits are dramatically different. If bad profits are earned at the expense of customers, good profits are earned with customers’ enthusiastic cooperation. A company earns good profits when it so delights its customers that they willingly come back for more – and not only that, they tell their friends and colleagues to do business with the company…” Fred Reichheld, Rob Markey & Andreas Dullweber (Bain & Company)

Smarter Competition Good profits “… Satisfied customers become, in effect, part of the company’s marketing department; they become promoters. The right goal for a company that wants to break the addiction to bad profits is to build relationships of such high quality that those relationships create promoters, generate good profits and fuel growth…” Fred Reichheld, Rob Markey & Andreas Dullweber (Bain & Company)

Smarter Competition Good profits “..A truly customer-focused company is one that lives up to the Golden Rule. Employees treat customers the way they would want to be treated if they were customers. That means avoiding bad profits entirely…” Fred Reichheld, Rob Markey & Andreas Dullweber (Bain & Company)

Smarter Regulation Better Tools

Smarter Consumers (How customers pay?) Source: Seth Godin

Smarter Consumers Better Information Collaborative Decision Making Connection Economy Better Information Collaborative Decision Making Connection Economy

Moving to the next level Treating customers fairly framework Source:Winzest Consulting

Summary Are we asking the right questions? Source: Winzest Consultin g

Summary Source: Winzest Consulting

Summary  Although the next two to three years looks promising  The long term future is still uncertain  The challenge to find the right talent may continue  Unless this sector is perceived to be more sustainable  The new disruptive competitors are unknown  But the regulators may look different  The influence of channel partners may wane  But customers’ expectations will surely change  And the businesses that remain intelligently focused on customers will thrive Are we making good or bad profit?

Further information Relevant papers at Setting Profitable Fixed Fees through Value Based Pricing Developing a Better Customer Service Culture Are we making good or bad profit?

For further information please contact us : winzest.co.uk