Looking to the Future ……
Moira Lees, Group Secretary
The Co-operative Group
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
Emphasis on our ‘co-operative difference’
• Our ‘double balance sheet’ / dual objectives
VALUES
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 wideranging 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
12
Trust – a combination of rational and emotional factors
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•
•
•
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
•
•
•
•
•
•
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
13
But Trust is complex and needs to be earned ….
Rational
+
• Does what I want
• Delivers on functional
drivers
Competitors lead
The Co-operative in
process of developing
Emotional
=
• On my side
• Delivers through
brand values
Competitors
struggle to convince
Co-operative
heritage and DNA
convinces
Deep Trust
We are
advantaged as it
is harder for
competitors to
get Emotional
Trust
The Co-operative Movement
Work increasingly closely with other consumer
co-operative societies and the wider Co-operative
Movement - ‘Unity is strength’
Looking to the Future ……
Moira Lees, Group Secretary
The Co-operative Group