Some marketers avoid acknowledging even the slightest negative word. That’s not just naïve but risky. When a negative tweet can reach millions, the only question is whether you want to try turning complaints to your benefit or leave them to them run rampant on their own.
That is why last week I dared digital banking marketers to show their laundry. For a look at how that can be a winning strategy, I commend you to respected catalog marketer Levenger. They publish every customer review, good or bad, of every product, and bazaarvoice guarantees it. Even more courageous, review sort options include “rating–low to high.”
These are not acts of self-sabotage. For one thing, posting the negative increases the credibility of the positive. For another, Levenger uses bad reviews to showcase good policy. Take, for instance, the response they posted to a criticism of their iPad Mini folio: “…We apologize this case did not meet your expectations … Customer satisfaction is our first priority and we offer a 100% guarantee on all of our products. Please contact our customer service center at 1(800) 544-0880 to discuss how we can make this right.” Or take their reply to an unhappy leather billfold owner, which, besides offering a replacement, says, “… We have forwarded your concerns to our Product and Development team for review … [and they] have made improvements to the design of the wallet that will eliminate previously encountered problems.”
With a few lines, Levenger shows that they willingly replace or refund, that feedback does not fall on deaf ears, and that the design team actually uses feedback to improve products. You may be dissuaded from buying the folio or billfold, but your confidence in the risk-free nature of doing business with Levenger will only rise.
Occasionally there is the odd complaint from the customer who thrives on being displeased. (We all have them.) Levenger doesn’t take the bait, and counts on reasonable customers to understand.
Do not turn up your nose because the catalog business isn’t the banking business. Catalogers were the original interactive marketers. (Benjamin Franklin had a mail-order catalog.) We ignore 200-plus years of the art of customer interaction and satisfaction at our peril.
So, bankers, back to you. Do you have the courage to publish pans as well as praise, put on display your approach to handling complaints, and use valid feedback to improve products and practices?
Capital One deserves five stars for launching, free of charge, the kind of digital tool you’d expect from a brand committed to serving cardholders’ best interests.
A new Credit Tracker tab on Cap One’s mobile app shows cardholders: their credit score; factors making up the score; calculators showing how increasing, paying down, or paying off balances can affect the score; and alerts.
Besides providing information for its own sake, the tool shows promise for helping people better manage their credit. Capital One reports that, during testing, customers with access to the tool improved their credit status.
Surveys and voting-with-wallets show that today’s consumers value transparency. The Credit Tracker provides that, along with useful tips. Capital One should create a commercial with Samuel L. Jackson promoting Credit Tracker, and they should air it
every damn day. I mean, every single day.
Things have flipped. Not long ago the likes of Starbucks and McDonald’s enjoyed a competitive advantage by providing free onsite Wi-Fi. Today, that’s pretty much de rigueur. Providing onsite Wi-Fi is not so much a competitive advantage as not providing it is a competitive disadvantage.
Likewise, offering mobile banking, once the sign of a forward-thinking financial institution, no longer impresses. To do that, mobile banking must do more than function. It must connect.
We have made strides since the original hardware-delivered bank experience known as the ATM. Though you could name them, paint them, network them, and install more of them in more places than the competition, still, an ATM was pretty much an ATM. Today’s digital banking, however, needn’t be so clone-like. As yet, not too many banks seem to realize that. Unlike old ATM technology, today’s digital technology and devices allow for positive interactions, even personal ones, with a strong brand.
Here’s a quick look at how a few forward-thinking financial institutions are breaking out of the “Functional Only” box.
Tip: People will spend time on your site—when it’s fun. Walk into any public place and watch the number of people interacting with portable devices instead of with each other. While you’re at it, note that no one is making them do it. People willingly engage with the likes of Facebook, Twitter, Pinterest, Minecraft, Flipboard, and more because, well, these virtual places have personality, and they’re fun. Some financial institutions have given their websites social and entertainment appeal, and found that clients return more often and linger longer. Need I point out that returning more often and lingering longer build loyalty and present a marketing opportunity?
Get ’em young. Ordinary financial institutions stew about attracting rising generations once they come into money of their own. Smart financial institutions start earlier, when those generations are still kids. They load their sites with educational pages, games, social tools, and more. By the time young people with no money morph into young adults with careers and money of their own, they have been already won over.
Personalize the impersonal. At first it seemed that the use of technology in banking would eliminate the personal touch; instead, it turns out that technology can convey it. A good interactive system connects clients with bank people via live chat, tweets, social media, and even, when desperate times call for it, telephone. A screen is no longer a barrier. It is a conduit.
Check register? What’s a check register? Even the staunchest paper defender must concede that checks are obsolescent. If the majority of people do not want to write checks, it follows that the majority do not want to write their transactions in a check register, either. But that doesn’t mean they want to give up oversight and control of their money. Hence the rise, indeed, the inevitability of online Personal Financial Management (PFM) tools.
I dare to you to show your laundry. It’s becoming increasingly fashionable for companies, financial institutions included, to post client reviews on their websites. But if readers suspect that you parade the praise while conveniently hiding the pans, you lose all credibility. At that point, posting reviews is no more effective than not posting reviews. That is why some brave banks post negative comments right along with positive ones. With the negative ones, they also post the bank’s response as to how it plans to make things right. This validates the rave reviews, which creates trust, and shows clients how you deal with problems, which, if you handle them properly, also creates trust. Don’t worry about the occasional irrational client who can’t be pleased. Your customers are on to them more than you think.
There are two problems with ideas like the above. First, they cost money. But then, it costs more not to make the investment, thereby losing clients to a competitor who does. Second, they require vision, which, let’s be honest, is often what “can’t afford it” really means. If someone anonymously printed this article and left it on your desk, you know who you are.
For details and examples of the above plus other ideas, I commend you to the The Financial Brand post, “12 Technology Trends Shaping Financial Marketing.”
It’s always flattering to be featured on FinancialBrand.com. This morning they published my new article, Avoiding Digital Parity. I suppose I could cut and paste it here, but why, when you can click here and read it on FinancialBrand.com? While you’re at it, explore the site. Lots of good, useful information is there. —Matt