Finding the highest-value customers with digital: not as simple as it seems

Many digital and retail leaders are frustrated. “What do I have to DO to get into the best digital customer relationships?” they ask. “How can I build a business case where the payoff is anywhere as certain as the sky-high cost (that I probably can’t get approved this year anyway)?” is another one. Here’s another favorite I here: “We’re just going to be a fast-follower in digital” is another common refrain I hear, yet privately these same folks tell me the only thing they are rapidly doing is losing their younger and more profitable customers.
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The unending identity theft problem: focus must expand from access prevention to consumer empowerment

The Target data breach is just one in an unending series of privacy exposures that create anger, disbelief and fear. Yet just as sure as it was not the first, it won’t be the last and trying to hold back unauthorized access to private data is akin to trying to hold back the sea. Yes we need better data security, and industry initiatives like PCI are vital to doing so, but with increased automation more individuals, applications and connected devices will create more access requirements, in turn giving birth to new problems at a pace that rivals attempts to stop unauthorized access. Data security is essential, but it’s time to realize that data security alone is not enough. Read the rest of this entry »

Yes, I really did just accept an a position on the Consumer Advisory Board of the CFPB! (Consumer Financial Protection Bureau)

I just accepted a position on the Consumer Advisory Board of the CFPB. This will require several trips a year to Washington, DC along with several touch-points, and I’m looking forward to getting acquainted with the CFPB’s staff and other 24 Consumer Advisory Board (CAB) members. I have a lot to learn!

I can’t get enough of innovation and digital strategy. My 30 year career started in merchant e-commerce technology, with numerous product management/leadership/launch roles before moving over to product-innovation research some fifteen years ago. The CFPB was formed after the global financial services meltdown  Read the rest of this entry »

Bank Wars Underscore the Relationship between Data Breaches and Fraud

I was quoted using unusually provocative language (for the conservative banking industry) in the New York Times on Saturday , in which I referred to First American Bank’s public calling out of Bank of America as “hot bank on bank action”.  Reporter Ron Lieber used the words “punk rock fashion” to precede my quote, as he went on to describe the jarring public dispute on Read the rest of this entry »

Technology increasingly giving banks different customers?

We all expect that residents of one locale–from Utah to Illinois or Alabama–will be different, on average from that of another. So why do customers of one bank–such as #BankofAmerica, #CitiBank, PNC, or Wells Fargo–also have equally strong degrees of uniqueness? Technology increasingly has a lot to do with why one banks’ customers differ from another, and we need to ensure we remain focused on the customers of the future rather than just catering to current demands.

PNC has embraced fascinating new technologies, from mobile to online and PFM, and as a result they have more (Gen Y.1 18024 YO) young adults than any other large bank today. In fact, I was once conducting industry research at an Occupy movement site Read the rest of this entry »

Competitive customer-experience research is vital when making changes to the customer’s channel experience

Competitive customer-experience research is vital when making changes to the customer’s channel experience, because results can bring either a financial windfall or disaster. Financial institutions and their vendors must survey their customers, using survey-based research in order to understand how the release of new mobile or online features is changing customer usage patterns across not only all other channels, but with their customers activities at competitors as well.
Actual example: a couple of years ago we used a Javelin n=5,000 survey to assess how consumers of each of the nation’s top banks interact with their primary financial institution (PFI). Specifically, with many new electronic alerts offerings rolling out at that time we wanted to understand how consumers reacted across all channels of their PFI, and how this compared across all top US banks. Banks’ own data certainly would not yield such findings. We learned that BofA and Citibank customers responded to electronic alerts in positive ways, such as logging into accounts electronically. Meanwhile, customers of RBS Citizens were responding in disastrous ways, such as reducing the use of cards, calling customer service or going into branches!
You can only improve on what you’re aware of, and multi/omnichannel and competitive research can be a cost effective way to drive positive change.

Competitive customer-experience research is vital when making changes to the customer’s channel experience, because results can bring either a financial windfall or disaster. Financial institutions and their vendors must survey customers, using survey-based research in order to understand how the release of new mobile or online features is changing customer usage patterns across not only all other channels, but with their customers activities at competitors as well.

Actual example: a couple of years ago we used a Javelin n=5,000 survey to assess how consumers of each of the nation’s top banks interact with their primary financial institution (PFI). Specifically, with many new electronic alerts offerings rolling out at that time we wanted to understand how consumers reacted across all channels of their PFI, and how this compared across all top US banks. Banks’ own data certainly would not yield such findings. We learned that BofA and Citibank customers responded to electronic alerts in positive ways, such as logging into accounts electronically. Meanwhile, customers of RBS Citizens were responding in disastrous ways, such as reducing the use of cards, calling customer service or going into branches!

You can only improve on what you’re aware of, and multi/omnichannel and competitive research can be a cost effective way to drive positive change.

BTW, I rarely blog these days as I’ve found Twitter to be more my speed. Follow me on Twitter as #jimvandyke