Katie Jordan gives an insight into a week at MRM, giving all the gossip from her working week while highlighting what news has interested MRM over the past seven days

Yes, it’s official – we have all survived Blue Monday, the most depressing day of the year. Hooray! Well, that is if you chose to believe that Blue Monday is more than just the PR hype many claim it to be. Anyway, the point still remains that we have survived the week, and this is despite temperatures plummeting to as low as -10.5c in parts of the UK, leading Britain to become colder than Moscow.

This has definitely not gone unnoticed in the office with groans and moans escaping from us all as we all struggle to adapt to the sudden arctic chill – apart from Cat, who has sneakily headed off to a holiday in Tanzania to lap up some much needed sunshine! Jealous? Us? Never!

Sadly, disaster has struck in the news this week with the Italian luxury cruise ship Costa Concordia capsizing late last Friday resulting in 11 dead and 21 still missing. This tragedy has caused a stir within the communications industry with numerous people commenting on the poor crisis PR from Costa Cruises.

Other big news this week includes the news that Wikipedia took its site offline on Wednesday as part of the protests against anti-piracy laws in the US. This has proved to be a very effective way to raise awareness for the protest against SOPA and PIPA, with 162 million tuning into the Wikipedia blackout page, causing it to trend on Twitter immediately. Indeed, according to Wikipedia statistics #wikipediablackout constituted 1% of all tweets on Wednesday. With people tweeting around 177 millions tweets a day, that works out roughly 1.7 million tweets – crikey!

In client news, Paradigm has some exciting news for us this week with its plans to launch its corporate wrap next week as a standalone business. The SEI-powered platform will have a group personal pension at the heart of the offering, alongside a workplace ISA and general investment account. Watch this space…

Yesterday, Openwork also held their annual conference in Birmingham, which Chris had the pleasure in attending. This year’s conference promised to be a little different from previous years, focusing on exactly how Openwork will support advisers and their businesses through 2012 and beyond. Attendees were not disappointed when it was announced Openwork is to launch an App enabling advisers to obtain protection quotes via Apple mobile devises. Oh, and did I mention Lenny Henry hosted the event?

Last but certainly not least, today we say goodbye to our very own Hils, who after five fantastic years with us, will be flying the nest to pastures new (well not that new, she’s moving in house to Cofunds, one of our clients, so will still be close-by) She will of course be missed greatly but we wish her all the best in the future – and look forward to toasting her departure with a few cheeky drinks after work.

In her latest blog, MRM’s Katy Allison provides some ‘who, what, when and where’ lessons from some of the latest news stories that have hit the press.

Lesson #1: Who is it about?

"Ethics?" (image from http://bit.ly/Aq2f)

In what can be looked at as a lesson for all spokespeople, Daily Star editor Richard Desmond, who arrived at the Leveson inquiry on Thursday last week, was berated for telling the High Court that he doesn’t know the meaning of the word “ethical”. With media ethics a hot topic in this industry (my colleague Charlotte Banks posted a blog on the UK Bribery Act earlier this month) it is true that guidelines are hazy – but with Desmond’s authority in the tabloid press and the way in which he worded his testimony, it is who he is as a spokesperson that made his comments particularly unwise…

Lesson #2: What happened?

Twitter trouble (image from http://bit.ly/wv2XCx)

On Monday this week, The Economic Times in America posted an article on the ever-increasing use of social media in workplaces, highlighting a study conducted by The Ethics Resource Center which found that the use of social networking sites is “leading to the decline of ethical behaviour in many businesses”. The problem, according to the research, is that we have become so used to sharing information via Twitter and Facebook on all aspects of our lives, posting ‘public information’ and ‘confidential information’ has become much more difficult to define. This one is by no means a new lesson -  but perhaps a useful one to remember.

Lesson #3: Where did it take place?

(image from @FinePersonn http://yfrog.com/)

At the weekend, news spread quickly of the tragic sinking of Cruise ship Costa Concordia. As the sequence of events dominated newspapers, front pages were splashed with shocking images of the accident. An important lesson here is where stories are placed. The juxtaposition of this cruise ship holiday advert with a photo of the Concordia was not a good move by this particular newspaper. Similarly, the Belfast Telegraph’s placement of it’s ‘Win A Dream Holiday’ competition right above its reporting of the Concordia news and the Guardian’s exclusive ‘Give Queen a new royal yacht…’ headline (more on this below), printed slap bang next to the disaster photos, was badly misjudged. This kind of mismatching doesn’t do much to sympathise with a story – be you a journalist, media buyer or reader.

Lesson #4: When did it take place?

Oops! (image from http://bit.ly/Ak2irx)

Also on Monday this week, the Guardian splashed the exclusive news that education secretary Michael Gove believes a new yacht could be a suitable mark of respect  for the Queen for her diamond jubilee. Alongside news of massive Olympic spending and rising transport costs -  the timing of Gove’s letter did not really rally him support for the idea. As a double lesson in timing, the day the news hit the papers was also  Blue Monday, dubbed the most depressing day of the year thanks to the arrival of Christmas credit card bills in homes across the country…

This week Cat Ommanney discusses the changing attitude towards the consumer and how the power tables have taken a surprising change for the better

The old adage, “the customer is always right” seems to have been lost in the vortex of time as companies develop new ways to ensnare and intrigue their target audience. Where employees were once taught to nod and smile and to bend over backwards to help the customer, we are now seeing an increasingly less accommodating array of staff. Perhaps it’s just me, but on many an occasion I have raised a query with a waiter / shop assistant / service desk only to be dismissed sharply and told that “it’s company policy” to operate in a certain way, and that…in short, I’m wrong.

However, it seems that the tables are turning. Now, an unexpected silver-lining to the cloud of the looming recession is that the power is back in the consumer’s hands. In the ever-fiercer fight to win customers, firms are having to vie not just to get our attention, and thus our hard-earned cash, but also to keep it. The BBC recently posted an interesting article on our aversion to queuing and how it leads some to just walking away rather than face a wait. VirginMedia (@VirginMedia) have picked up on this and in order to enhance the customer experience and ensure that they don’t lose vital customers, they have made phone queuing an interactive experience – where callers can choose the music that they listen to from a monthly updated jukebox. Similarly, James Ashton’s (@mrjamesashton) recent comment in the Evening Standard called for retailers to keep shoppers interested this year or face a ‘brutal 2012’.

It’s not just the recession that is causing this change of events. The strength of social media means that consumers are becoming ever more vocal when it comes to the service that they receive. Twitter and Facebook in particular can be incredibly influential tools. It is every PR team’s dream to see a comment praising their client’s service and recommending it to others. However, this double edged sword means that it is equally easy for a business to be dragged through the mud when customers tweet their complaints and problems that they are experiencing. How to prevent this? Well, to ensure that service is not lacking and that any difficulties are resolved quickly and politely. A great example of this can be seen below with Halifax’s (@Halifax_Online) strategy of responding to each of their complaints individually, openly and politely:

While good social media isn’t a substitute for good customer service, the world wide web is a vital platform to encourage engagement between the consumer and the provider. The customer has had enough of being fobbed off, particularly in this economic climate, and has started to uprise – firms take note – or risk the consequences.

MRM, the London-based financial services PR consultancy, has promoted Chris Duncan to the position of director, with immediate effect.

Chris has worked as a senior consultant at MRM for almost five years and has played a significant role in the success of the business to date.

As a director, Chris will work closely with founding directors Andrew Appleyard and Richard Wheat to ensure the business continues to develop and grow in line with their ambitions for the future.

Chris joined MRM in February 2007 from the Lloyds TSB corporate communications team. Prior to that, he was a financial journalist, working latterly as investment editor at leading trade paper Money Marketing.

Commenting on the appointment, Andrew Appleyard said:

“I have known and worked with Chris for many years. He is an operator of the very highest quality who has played an important role in helping MRM become the business it is today. This promotion is in recognition of the contribution he has made over the years and will ensure we are able to make even greater use of his experience and knowledge as we look to continue to develop and grow the business.”

Katy Moore gives an insight into a week at MRM, giving all the gossip from her working week while highlighting what news has interested MRM over the past seven days

The big news this week is that after endless squabbling and delays, European leaders have finally reached a deal on eurozone debt in an attempt to resolve the region’s crisis. The markets instantly perked up at the news but only time will tell how long they will stay that way.

Now, on Monday 31^st October, humanity will reach a milestone – the 7billionth person is due to be born. That little baby is going to be quite a celebrity! But have you ever wondered what number you were? Happily, this little tool will tell you. And for anyone’s who’s interested, I was number 4,716,911,593.

It has been a very sad week at MRM Towers this week as our beloved Auntie Jules will be leaving on Friday. And although she isn’t even leaving the building, she will be sorely missed. So on Wednesday we gave her a proper send off where MRM-ers both past and present came to our local bar to wish her well. She has promised to continue making cakes, so that’s good!

But as sad as we will be, we have plenty of exciting things in the pipeline to keep us busy. On Wednesday, the lovely people from Nucleus will be in town doing a workshop with the talented team at Incisive Media on everything about the wrap industry. And on Thursday, Mike Hughes from Castle Trust will be a guest speaker at the MICE conference. Hooray for him!

You may have noticed that this blog has been posted a little earlier than usual. And it will actually be my last for a while as I am jetting off to sunnier climes tomorrow. Hooray! But don’t worry, I will be thinking of you all the time while I’m here. See you all in a couple of weeks!

Many of tomorrow’s enterprising pensioners will become self-employed consultants, online traders or run odd-job businesses to make ends meet, according to researchers.

A generation of ‘Wearies’ – Working, Entrepreneurial and Active Retirees – could be forced to continue working into their seventies and beyond due to hardships caused by the looming pensions crisis.

Effectively ruled out of employment by age, they will set up their own businesses, according to the study for Friends Life by think tank Future Foundation. Many of tomorrow’s OAPs will look to supplement their retirement savings by become self-employed in their later years.

Many are likely to supplement their income buying and selling goods on websites like eBay, while others will turn their front rooms into offices or cottage industry workshops or a nursery. Those with manual skills might set up gardening or home help businesses to make money helping neighbours, academics predicted.

Martin Palmer, head of corporate benefits marketing at Friends Life, said:

“We’re expecting the traditional image of the pensioner with slippers and rocking chair to change completely.

“Many will not have saved adequately for a secure retirement and, with years of fiscal austerity taking their toll, by 2020 many people in their seventies simply will not be able to afford to give up working.

“Necessity is the mother of invention and Wearies will be among the most innovative and entrepreneurial contributors to the UK economy, despite their senior years.”

People from across Britain were asked about their attitude to working in retirement as part of the study, entitled “Pensions: Crisis and Reforms”.

Over half (51%) of those who are already retired said they would be prepared to do part-time work to boost their pensions. But the figure rises to three-quarters (75%) among those who are yet to retire.

Of those currently working:

• 59% said they would consider selling “unneeded or little-used possessions online”
• 34% said they would “run a small, one-person business from home”
• 21% would consider “gardening for elderly neighbours or for the Council”
• 18% would be prepared to do “social services work for the community”.

Asked to consider housing options:

• 14% of current workers said they would consider “moving in with other family members” and 12% “moving in with my children”
• Of those still working, one third (33%) said they would rent out a spare room to a lodger and 29% of those retired agreed.

MRM's Charlotte Banks

Ahead of the Federal Reserve’s 2011 annual conference, MRM’s Charlotte Banks looks at the role of QE and how it affects the market

Federal Reserve chairman Ben Bernanke, will deliver a speech at the Fed’s annual conference in Jackson Hole. This will hopefully end months of speculation about whether the US will be partaking in another round of quantitative easing (QE), or at least give the world an idea of what it intends to do about the economic crisis.

Over the last few weeks the industry has been debating whether there should be more QE through bond buying. This will hopefully boost the money supply in the economy as the normal process of cutting interest rates is not working.

Generally, lower interest rates encourage people to spend money and not save it. However, it is clear that this is not happening at the moment. Consumers are not spending money and companies are also hoarding cash. An article in the Telegraph today reveals that Nationwide’s Consumer Confidence Index confidence fell last month and is likely to continue falling in August.

Seeing as interest rates are already at a historical low of 0.5% and are unlikely to go lower, the Bank of England (BoE) has the option to pump money into the economy directly. This is done by buying assets such as government or corporate bonds. The thought process behind this is that by buying bonds the BoE is reducing the supply of bonds therefore increasing the demand for new bonds and making it cheaper for companies to borrow money.

Looking back on previous attempts at QE there have been numerous debates on whether this is effective or not. Chris Bowie, manager of the Ignis Corporate Bond fund, says not everything about QE has worked.

“QE has had a distortionary effect on consumer prices and hasn’t always been beneficial for consumers,” he says.

He also points out that as inflation has remained high in the UK and the US, and commodity prices have been significantly higher, it is hard to see what the effects of QE have been.

However, on the other hand, Bowie says QE has partly worked in the sense that asset markets were supported whilst it took place.

It is hard to say whether Bernanke will announce details of further QE in his speech tomorrow. It is widely known that he signalled the start of QE at the 2010 annual conference, but whether he will repeat this trick remains a mystery. Markets have already begun to factor in the possibility of further QE and as a result have risen, albeit marginally, on the hopes of further stimulus.

In a comment piece this week, Stuart Thomson, chief economist at Ignis Asset Management said that QE3 is not likely in the near-term, but believes the Fed will be forced to pursue additional QE during 2012. He also said the key question is whether the UK will lead or follow the US.

“We believe that the UK should pursue QE before the Fed, because fiscal austerity is more acute in the UK and the requirement for loose monetary policy to offset this economic squeeze is consequently more pressing. But we are acutely aware of the difference between prescription and description,” he said.

Martin Bamford, managing director at IFA firm Informed Choice, thinks it is unlikely Bernanke will announce specific details of QE3 in his speech, but says he is likely to provide some positive clues about the future of monetary policy in the US.

With regards to a further round of QE in the US, Bamford says this is probably needed, on balance, to ensure their economy does not return to what would be a damaging recession.

“Given the importance of the US to world economic recovery, decisions made by US policy makers can have a direct impact on all of us.

“In the UK, the Bank of England is carefully balancing interest rates, price inflation and economic recovery.  They are doing the sensible thing at the moment by keeping additional QE in reserve.  Pumping more money into the markets would stimulate the economy, but it could also result in much higher than tolerable price inflation and then a need to hike interest rates which would crush chances of a sustained economic recovery,” he concludes.

MRM’s Katy Allison looks at the significance of trust in a financial services world.

Do you trust your friends? Your colleagues?  Your mum? That’s probably why you get along with them as well as you do – or – if you don’t trust them – the reason you don’t get along.

But what about your customers? Do you trust them and how much trust do they actually place in you? Being seen as trustworthy has become a much bigger consideration for all companies, and, along with politicians, the media and now the police, financial services are sitting in the glare of the public’s ‘trust spotlight’ more than at any other time in modern history.

This is because, at the end of the day, financial services are supposed to know more than most industries about their customers’ needs, and the placing of your financial future into somebody else’s hands is surely one of the biggest leaps of faith a consumer can make. When that trust breaks down…well, we all know what happened during the expenses, phone-hacking and banking crises.

But trust between financial services providers and their clients is not a one way thing.

Of course it is important to offer quality customer service and relevant products to maintain a good relationship, but it is also important to earn a customer’s respect – and to receive it you need to give it. The ultimate demonstration of the faith you have in your customers is to actually pass the reins of business decision-making to them by asking “what do you want from this service?”  and then trust their judgement by providing whatever it is they have asked for.

Recently, the social media space has made this a whole lot easier for firms, allowing instant dialogue to take place between staff and clients and, of course, potential clients. Online (and public) feedback, website polls and forum discussions can all reveal the true thoughts and wants of the public, because online is a wider and more accessible communication channel than most.

Rather than just listening to this feedback however, companies are realising customers are trustworthy enough to participate in actual business strategies. Rather than just listening to feedback, firms are beginning to ask for it and implementing the suggestions they receive.

On the global stage, Starbucks has a website dedicated to just this concept. Mystarbucksidea.com is dedicated to the submission and rating of customer suggestions. The most popular ideas, from a new flavour of frappuccino to alternative loyalty point schemes, are considered and rated by fellow visitors to the website. The most highly rated ideas are then taken into account by Starbucks developers who put the workable suggestions into production.

This is a great case study of the mutual benefits of a trusting relationship, but it’s not just the multinationals cottoning on the gains to be had.

On a much more local business level – in my Auld Reekie hometown to be precise – The Hive is an independent nightclub and bar which uses its Facebook page to great effect to garner the exact theme nights, drinks lists and even decor their clientele wish to see and experience. Through the use of discussion boards and message streams, The Hive lays bare the ways in which small firms can build a Facebook community that customers feel they can partly run. 

The trick for financial services firms is to grasp this technique and make it their own. This is what Zopa, the ‘real people’ P2P loan provider did to great effect through its successful development of an online community spirit. By bringing customers closer to them and allowing them to act as moderators on Zopa forums, customers became brand ambassadors and spread the word of their positive experiences – and we all know people highly trust recommendations from their peers.

As trust is such a key aspect of a company’s relationship with its customers, it is worth nurturing. Just as we all probably need to check in with that friend we have been meaning to ring – firms need to make sure they do the same with their customers to keep trust fresh.

New and existing users will now also benefit from all risk profile descriptors being Plain English approved. Distribution Technology is the first in the market to be awarded the Crystal Mark for using language appropriate to non-specialist investors to ensure risk profiling tools allow advisers to demonstrate that the language they have used is ‘fair, clear and not misleading’.

The financial planning and sales software provider has additionally produced a Best Practice Guide to provide practical support to users of the Dynamic Planner risk profiling tools. The Guide is based on the information received from back testing against thousands of risk profiles, carried out by Oxford Risk (a leading provider of psychometric profiling) which seeks to address these issues.

Ben Goss, CEO of Distribution Technology, says: “Understanding a customer’s attitude to, and capacity for, taking risk is a core part of the financial advice process. That’s why we are committed to ensuring that our risk profiling services are the best they can be, whether that’s our risk profiling tools, which sit at the heart of Dynamic Planner, or our fund risk profiling service, that allows advisers to build portfolios using funds aligned to the same risk profiles.

“We believe the increased take up in Q1 is evidence of a flight to quality following the FSA finalising its risk-suitability guidance; it will be looking to see how firms have acted on the report and we can expect to see it apply its ‘intrusive and intensive supervisory approach’ with vigour to ensure it addresses ‘vague’ descriptions that do not effectively explain or differentiate risk levels. Providing high quality, robust risk profiling tools requires a deep understanding of technology, consumer psychometrics as well as investment and financial planning all of which underpin the Distribution Technology offering and the Plain English Crystal Mark will give firms additional confidence that they are meeting FSA requirements.”

Atkins, who joins from MHP where he was an associate director, has worked both in-house and in agency. He assumes the role of senior consultant within the 15-strong consultancy.

Working across a range of existing MRM clients, Atkins will also be heavily involved in new business activity. 

“I have known Jon for many years and am pleased that we have finally got the chance to work together,” said agency director Andrew Appleyard. “He is a top quality operator with a huge amount of experience and enthusiasm, which will benefit the whole team as we continue to develop and grow the business.”
 
“This is great move for me,” said Atkins. “MRM is an ambitious and forward-thinking consultancy with a great reputation, an impressive client list and an extremely bright future. I am thrilled to be getting involved at this stage in the business’ development and look forward to playing my part in its future success.”