TRUST INSTRUMENTS

Transcription

TRUST INSTRUMENTS
TRUST INSTRUMENTS
possibilities and costs
RIAD workshop 5 June 2009 Brussels
Ton Wagemans - Considerati
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Creating trust
Consumers/SMEs:
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information clutter
need to take many decisions everyday
little time for decision making
often lack specific background
knowledge
check your reputation online
compare products/services online
base decisions on opinions of others
generally avoid risks
avoid the unclear or complicated
no trust no transaction!
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Motives
for selfself-regulation
Grow business
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meet demands for transparency and
ethical behaviour (CSR)
avoid or postpone government
regulation
promote industry
distinguish from non-professionals in
industry
Take industry to the next level
it is a qualifier!
!
qualifier
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Self-regulation model
customers
other players
costs
monitor
How
monitor
result monitor
‘Trust’
organisation
Study
lobby
office
certification
branding
Self-Regulation
Instruments
Time
organisation
study
lobby
office
certification
stakeholders
Technical
Behavioural
Informative
Contractual
Dispute settlement
benefits
Why
Tangeables
loss of share to
new entrants
scores
certificates
Intangeables
awareness
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Critical Succes Factors
Common Vision & Goals – Long term Commitment
Critical Mass - Finance – Competent Staff
Branding - Monitoring
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Examples of self-regulation
and trustmarks
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it’
it’s dynamic
Where does RIAD stand?
Challenges & considerations
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Well organised association, complicated message
What message? Targets?
What are you willing to invest and what is the expected return?
Is this just PR or do you really want to take the level of consumer
protection a step further?
How many consumers/SMEs have actually seen and responded to
your existing code of conduct?
How to deal with non-participation? New players?
Does new trustmark (=brand) not cannibalize your existing
brands?
How are you going to deal with differences between countries?
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The RIAD Code
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A promise to trade fairly and in a transparant way
Communicates existing regulation in a clearer way
More than just a nice communication tool?
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Self-regulative instruments for creating trust
1. Technical instruments: standardisation, and regulation by technology
2. Behavioural instruments: codes of conduct (practice, ethics, honour,
professional or sectoral), protocols, statements, gentlemen’s
agreements, covenants
3. Informative instruments: seal of approval (logos or labelling),
certification, recognition schemes, awards
4. Contractual instruments: negotiated general terms and conditions
5. Dispute settlement instruments: arbitration, binding
recommendation, mediation, ombudsman
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Case Thuiswinkel.org
How to develop a ‘trusted’ trustmark
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10 years development time, at start 30 members
Trustmark core values: reliability, security, quality & service
Now 1000 members > annual legal and financial certification
Supported by Consumers organisation > general terms
70 % of online buyers know trustmark
Certification by independent party, complaints handling, dispute
resolution, financial security
Strong financial basis and excellent expert team and back-office
Good relationship with government and other stakeholders
Strong PR-machine > annual awards gala
Invest in monitoring results
Connected at EU-level > Emota member
Enforcing rules strictly and educating members
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Self-regulation model for
RIAD
customers
other players
costs
monitor
How
monitor
result monitor
‘Trust’
organisation
study
lobby
office
certification
branding
Self-Regulation
Instruments
Time
organisation
study
lobby
office
certification
stakeholders
CoC/ convenant
Certification
Trustmark, Award
Negiotiated T&C
Dispute settlement
benefits
Why
Tangeables
loss of share to
new entrants
scores
certificates
Intangeables
awareness
Image
Critical Succes Factors
Common Vision & Goals – Long term Commitment
Critical Mass - Finance – Competent staff
Branding - Monitoring
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A RIAD Trustmark
What to do and to expect
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Check your basis / define certification criteria
Design trustmark logo, website and clear messaging
Set up office and organisation
Set up certification procedure
Set up complaints handling procedure
Continuous investments in marketing towards possible members
Continuous investments in marketing towards consumers/sme’s
and institutions
Lobby
Continuous investmenst in office/back-end and multi-lingual
helpdesk / complaints handling
Obligation to patrol and enforce
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Cost elements for self-regulation
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Drafting code / certification criteria > € 30,000
Organisation set-up costs >
€ 25,000
Logo design >
€ 5,000
Office facilities >
€ 40,000 annually
Staff for organisation (spokesman, secretary, lobbyist, lawyer,
marketeer) > 3-5 FTE >
€ 300,000 – 500,000 annually
Independent certification >
€ 5,000 per member
Complaint handling >
€ 0 – 100,000 annually
Enforcement >
€ 0 – 50,000 annually
Promotion / marketing >
€ 50,000- ? annually
Multi-linguality >
€?
Travel & representation >
€ 100,000 - ? annually
Etc.
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Critical success factors
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COMMON VISION & GOALS: agreement on joint vision and goals and
respecting cultural, legal and language differences
CRITICAL MASS: a broad basis within and strong representation from
the sector are vital for launching successful trust instruments
FINANCE: a good and sustainable financial plan
COMPETENT STAFF: trust instruments need to be managed carefully
and intensively
BRANDING: reaching target audiences
MONITORING: measure the success of your trustmark and adjust
LONGTERM COMMITMENT: enhancing trust is a lenghty process that
requires continous attention and investments
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It is about ……
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being competitive in todays (online) environment
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it is a qualifier - invest as it is essential
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maximize PR towards consumers, other stakeholders especially
governments > create a brand
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be able to deal with the responsibilities a trustmark creates
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the back-office and processes must be excellent
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do it right or don’t do it.....and no pain, no gain
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act swiftly, will take a lot of time
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Ton Wagemans
CONSIDERATI
Come see us in
Amsterdam!
www.considerati.com
+31 6 278 611 88
wagemans@considerati.com
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