All of this back and forth can cause compliance issues for businesses and uncertainty for customers.  As we know, uncertainty can cause stress, fear and anxiety.  To make matters worse, that uncertainty hinders any economic recovery.  Good, bad or indifferent, the United States economy needs confidence and credit, to grow.  The smaller the supply of either, the less opportunity there is for economic growth.  If I lose my credit card rewards program, I might not have the confidence in my financial ability to take that trip I was planning.  After all, I only budgeted for hotel and meals, but planned to use reward miles for the flight.  Because of the uncertainty caused by my credit card situation, I might call off the whole trip.  That means there is less money being pumped into the economy and the seemingly perpetual downward spiral continues.  If customers are concerned that they might have to pay higher annual fees to keep their credit cards (because banks desperately need to recover lost revenue), that is money customers will not spend.  And the spiral continues. Notice I said if “customers are concerned” that the bank is raising fees they will not spend.  The bank might not ever actually raise the fees, but the concern is enough to change spending behavior.  Therefore, the companies that want to emerge from this recession as market leaders need to factor human psychology into their marketing and communication strategy more than ever before.

How does this apply to TransPromo and customer communications?  (Yes, I do have a point.  Did you doubt me?)  Note that I referenced the fear and uncertainty as factors potentially hindering economic growth.  This has always been an issue in Keynesian economics.  Today, however, this uncertainty is far more acute as people cope with their belief  that it was the banking system and government, the very entities charged with ensuring the smooth operation of the economy, that let them down.  Today people fear for their future and their children’s future, they are uncertain about what, if anything , the government can, or should, do to help turn around the economy.  Confusion reins when it comes to health care, taxes, environmental protection, deficits and war.   It is no wonder that there has been an increase in people seeking assistance from mental health professionals to cope with lost jobs, lost homes, and lost self-esteem.  Intelligent credit card issuers must seize the opportunity to communicate with their customers consistently, honestly, personally and in a manner that builds trust and confidence.  In their book, Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism, George A. Akerlof and Robert J. Shiller (here is the NY Times Book Review), the authors argue that like the Great Depression in 1929, the current economic crisis is the result of human psychology more than monetary policy.

So again, what the heck does this have to do with TransPromo?  I put it to you that smart organizations, financial institutions as well as every other company that wants customers, need to start communicating more effectively with their customers to calm them down and to keep or gain their trust.  Further, sending 12 page, static “modifications” to card holder agreements is not going to do the trick.  Sure, there were strategic reasons banks did this.  But those reasons cause further mistrust and did not help explain, in plain English, what changes are going to impact THAT PARTICULAR CUSTOMER.   That is where TransPromo comes in (you thought I would never get there, didn’t you?).  Personalized communications, with messages that help to alleviate fear and anxiety, will go a long way toward building that trust.  Earning that customer confidence will make your company the trusted one people want to deal with when things get better.  And things will get better.

Now is the time to build an integrated communication strategy.  Now is the time to plan your goals, plan how you will reach those goals, plan how to measure your progress toward those goals and plan how to improve your results. TransPromo is a means to accomplish all of this in a way that is almost guaranteed to be seen by the customer.  So put clear, personalized information on your transactional documents.  Don’t just do what is legally required and nothing more.  Go the extra mile and provide as much information as the customer can use.  Knowledge is power.  When people feel they have more power, they are more confident.  When customers and prospects feel more confident, and your company is the source of that positive emotion (even if it is subconscious), they will trust your company over your competition.  Therefore, a laser-like focus on earning your customer’s trust must be a priority for every person in your organization.

All of the new regulations and all of the changes to those regulations present an opportunity to differentiate your company, to separate your company from pack.  TransPromo is but one tool to accomplish this, but it is a powerful tool.  You will surely need other tools to complete a comprehensive strategic communication plan, and we will address those other tools in future articles.  The take-away here is that in these times of uncertainty, developing a communication strategy that builds trust and confidence will earn you rewards that dwarf the investment.

As always, if you have any questions, please contact us.  Our mission at White Space is to help our customers build communication strategies that foster trust and create good will.  If you have any thoughts or experiences you would be willing to share, please leave a comment.  We are all smarter together than any of us are alone.

 One part of the law requires credit card issuers mail or deliver periodic statements at least 21 days before they are due.  That is a change from the prior law, which was 14 days.  Another part of the law that became effective August 2009 requires card issuers provide at least 45 days notice of any APR increase or other significant change in terms. 

Please notice that these laws are all focused on CUSTOMER COMMUNICATION. 

Massive Legislation - the cure for insomnia

 Come February 22, 2010, we will have to deal with laws that are completely reshaping the way we handle transactional documents.  The law imposes requirements that are likely add at least a half page to the average statement.  This is a great opportunity for everyone in the TransPromo and marketing field. 

 An opportunity to open a dialog with our customers.  An opportunity to use individual statements not only to comply with the law, but also to improve our communications with customers.