Are You “Sticky?”
Are you “sticky?” Let me explain.... In the corporate world, there's an expression called "stickiness" that many businesses, especially banks and insurers, utilize to describe the behavior of their clients. Customers open accounts, often in exchange for some short-term promotion, schedule repeating deposits and/or withdraws, and then don't leave. EVER. A level of comfort develops between the customer and the business. Of course, financial institutions have learned to take advantage of this. Perks associated with a specific type of account are slowly removed, interest rates provided are reduced, or teaser discounts are discontinued. Like the age-old frog in a boiling pot of water the customer doesn't notice, but he or she is being "cooked." Sure, maybe not to death, but they are certainly no longer getting a good deal. The slow drip downward is imperceptible. Against their own self-interest, stickiness has kept them there, along with a few million other people, long after the benefits of continuing a relationship had ended.
So what to do? First, one of my jobs is to make sure you don't get too sticky. Except with me :) When it comes to your own, personal, finances, know that there are reasons we review your financial plan periodically and this is one of them. You should contact your independent insurance broker at least every other year and have them re-quote your insurance coverage. If you have a savings account, explore (or ask me) where the best interest rates are currently being offered. These are but two examples of “avoiding the stick.” As you go through this month, think about all the places you may be sticking - everywhere from the bank where you opened your first account when you were ten to the places you buy clothes, grocery shop, or dine. Are you still getting the best? Or are you stuck?