Moira Lees, Group SecretaryThe Co-operative Group
Looking to the Future ……
External impacts
• The economy / consumer spending
• Impact of regulatory changes
• Intensity of competition in our core businesses
• The need for increased efficiencies
• Assume constant change & innovation
VALUES
Emphasis on our ‘co-operative difference’
• Our ‘double balance sheet’ / dual objectives
Emphasis on our ‘co-operative difference’
• Owned & democratically by our members
Emphasis on our ‘co-operative difference’
• Distributing our profits to members and other stakeholders
Emphasis on our ‘co-operative difference’
• Increase the focus on our ‘difference’ in our promotional activities, in trading outlets, by our employees etc, etc …….
Emphasis on our ‘co-operative difference’
• We have a social purpose for the right reasons – part of our reason for being – not just to demonstrate CSR / attract PR
Ethical Operating Plan
A ground-breaking three year plan, operating alongside our business plans (adapted for use by independent societies)
Ethical Operating Plan 2012-14 (and beyond…)
Focus on …
• Continuing to ‘raise the bar’, eg, increased online engagement re commercial offer, democratic engagement, social networking etc
• Attracting young members, particularly given regulatory change
• Employee engagement
• Our community proposition (including our work with schools)
• Our Membership Proposition +
• Our Customer Proposition +
+ Currently under review in TCG
Reviewing TCG’s Membership Proposition
Membership is fundamental to being a co-operative • Co-operatives exists to meet the common needs and
aspirations of their members• Our start-point is that Membership remains
fundamental to co-operative businesses • It’s fundamental both to commercial success and our
success as a co-operative• It follows that our goal should be for members to not
only be engaged with the values and principles that sit behind the business, but also commercially active in driving growth
Our Customer Proposition - Trust is a key requirement
“It’s only the best marketers, unfortunately, who truly realise that you have to be trustworthy … because being trusted makes you money.”• For a vibrant, multi-faceted organisation delivering wide-ranging products and services, Trust is especially important• It sets expectations as to why customers should do business with us and is a key benchmark for consistency, delivery and service recovery• It is a vital component of any future-facing brand looking to succeed in a world where consumers are increasingly sceptical• Customer research tells us that Trust is a key driver
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Trust – a combination of rational and emotional factors
• Rational is largely a function of “What we do”
• Customer out-take is “I trust them to…”
• We must deliver on functional expectations
• We must strive to be relevant to our customers’ lives
• Especially important for our more transactional businesses
• TCG’s customer segmentation work has been essential in spotting gaps and informing opportunities
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• Rational is largely a function of “Who we are”• Customer out-take is “I trust them because…”• We must flex our most trusted assets• We must ally our point-of-difference to our customers’ lives• Especially important for our more relationship businesses• Our unique Co-operative heritage, brand values and purpose are
unrivalled signallers of credibility, integrity and emotional trust
Rational Emotional Deep Trust
+ =• Does what I want
• Delivers on
functional drivers
• On my side
• Delivers through brand values
Competitors lead
The Co-operative in process of developing
Competitors struggle to convince
Co-operative heritage and DNA convinces
We are advantaged as it is harder for competitors to get Emotional Trust
But Trust is complex and needs to be earned ….
The Co-operative Movement
Work increasingly closely with other consumer co-operative societies and the wider Co-operative Movement - ‘Unity is strength’
Moira Lees, Group SecretaryThe Co-operative Group
Looking to the Future ……