2006-09-20T15:28:27Z tag:weblogs.jupiterresearch.com,2008:/analysts/buchner//2 Movable Type Copyright (c) 2008, Asaf Buchner 2006-09-20T15:28:27Z 2006-08-18T22:51:23Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.900 2006-08-18T22:51:23Z

To get even with my broadband provider increasing the monthly fees to $45, I switched back to dial-up at a mere $7 a month. I thought dial-up would not be so bad. Besides, I relied on my neighbors’ benevolence to supply me with cheap (free) and fast WiFi connection. However,...

Asaf Buchner Broadband To get even with my broadband provider increasing the monthly fees to $45, I switched back to dial-up at a mere $7 a month. I thought dial-up would not be so bad. Besides, I relied on my neighbors’ benevolence to supply me with cheap (free) and fast WiFi connection. However, as mooching is proving unreliable (and is probably posing me some security risks), I find myself dialing often to my ISP. And to my “astonishment” dialup is really slow… I don’t think I can bear it much longer. I don’t know if we ever asked consumers whether they switched back to dialup but I expect that the numbers will be very low. 2006-09-20T15:28:13Z 2006-08-14T17:11:44Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.899 2006-08-14T17:11:44Z

I needed to open a few new bank accounts for research purposes and figured that it would be a good opportunity to test online account opening. Our survey found that while the vast majority of online consumers prefer applying for a new account at the branch, there is a segment...

Asaf Buchner Commerce I needed to open a few new bank accounts for research purposes and figured that it would be a good opportunity to test online account opening. Our survey found that while the vast majority of online consumers prefer applying for a new account at the branch, there is a segment that would rather apply online. I tried opening new accounts at five major banks (B of A, Chase, Wachovia, WaMu and Wells Fargo). I discovered that banks still need to work on their online application processes. All five banks allow new customers to open an account online. In fact, Wachovia and WaMu promote the product in the main banner on their homepages. However, opening the account was not so easy. The process was rather smooth with Chase and Wells Fargo. Wachovia asked me to come to a branch and B of A needed to evaluate my application for a few days. WaMu has a great application; it’s lean and straightforward. WaMu rightly claims that it takes less than seven minutes to complete the process. However, WaMu’s application crashed three times before I was able to complete it, so I can’t say it was a great experience. I’ll write more about it in my upcoming research, so stay tuned. 2006-09-20T15:27:59Z 2006-08-09T16:32:25Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.898 2006-08-09T16:32:25Z

The NYT has an interesting article today about banks’ branch strategy. The article concludes that branch growth will slow down, or not. While the focus of my coverage is online, I am fascinated by the future role of the branch. A recent JupiterResearch consumer survey asked online consumers to identify...

Asaf Buchner Commerce The NYT has an interesting article today about banks’ branch strategy. The article concludes that branch growth will slow down, or not. While the focus of my coverage is online, I am fascinated by the future role of the branch. A recent JupiterResearch consumer survey asked online consumers to identify their channel of choice for different banking activities. It is not surprising that for the opening of new accounts and the acquisition of new products (excluding credit cards), the branch is still the preferred channel. The online channel, however, is the preferred one for conducting market research. Banks should therefore align their channel strategy with the consumer preferences. For example, they should allow consumers to research online, identify an offering that appeals to them and then apply for the very same product at the branch. I will write about this topic later this year but if you are a client and would like more granular data, feel free to contact me. 2006-09-20T15:27:32Z 2006-06-29T14:47:09Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.897 2006-06-29T14:47:09Z

With credit card customers holding multiple cards in their wallet, issuers struggle to make their card the “chosen one.” A current Citicard promotion gives their credit card holders a $5-10 monetary incentive (depending on the card) when they register their Citi credit card with Google Checkout and make a first...

Asaf Buchner Commerce With credit card customers holding multiple cards in their wallet, issuers struggle to make their card the “chosen one.” A current Citicard promotion gives their credit card holders a $5-10 monetary incentive (depending on the card) when they register their Citi credit card with Google Checkout and make a first purchase. Their hope is that if (or once) Google Checkout is successful, consumers will continue to use their default payment option, which will be a Citi credit card. Hypothetically, Citi could have run this promotion without Google’s consent or co-operation. However, since this is not the case, there must be something in it for Google. Citi will probably advertise the service to the card members, increasing awareness and sign-up numbers. In addition, I suspect Citicard gave Google better a deal on the interchange fees... 2006-09-20T15:27:05Z 2006-06-28T18:07:08Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.896 2006-06-28T18:07:08Z

In a recent report [clients], I stressed the growing importance of the online channel as a tool for marketing additional products and services. In that respect, the secure section of the site is still underutilized. This is in part because the online marketing group does not manage the secure site...

Asaf Buchner Commerce In a recent report [clients], I stressed the growing importance of the online channel as a tool for marketing additional products and services. In that respect, the secure section of the site is still underutilized. This is in part because the online marketing group does not manage the secure site (silos) and in part because marketers are still seeking the best way to approach their task-oriented secure visitors. I looked at what some financial institutions are doing: Citibank (online banking). As customers log into their account they receive a screen promoting paper statement suppression, unless they have already opted-in for the service. There are banners within the secure site and the signing-off confirmation page is also used for the promotion of products/services. Chase (credit cards). After logging in, a screen comes up with an offer. Customers need to tick a box in order not to see the same advertisement again. I was shown an ad for balance transfer and in a later session one for paper statement suppression (although I already opted-in). There are links and banners in the secure site. Amex (credit cards). The secure section shows featured offers below the account information (almost like an insert). There are links on the right side of the page for additional services (alerts, statement suppression). 2006-09-20T15:26:38Z 2006-06-09T20:57:40Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.895 2006-06-09T20:57:40Z

Alitalia re-did its website recently, adding some features to the online reservation interface and improving the look and feel of the site. Overall, I like the new site and the added features, which include a “flexible dates” search option. However, the English version of the site throws a word or...

Asaf Buchner Commerce Alitalia re-did its website recently, adding some features to the online reservation interface and improving the look and feel of the site. Overall, I like the new site and the added features, which include a “flexible dates” search option. However, the English version of the site throws a word or two in Italian in each screen, which is pretty amusing (if not sad). One (old) feature that I really like is the ability to hold a reservation for 24 hours without buying the ticket. However, this feature is only available for members of their frequent flyer club. 2006-09-20T15:26:12Z 2006-06-08T19:12:56Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.894 2006-06-08T19:12:56Z

It’s interesting to observe how both Amazon and PayPal attempt to lower costs by driving consumers to a cheaper payment-processing alternative. I have an Amazon Visa credit card. Every time I shop at Amazon, the first payment choice is that Amazon card on which Amazon pays low (if any) inter-change...

Asaf Buchner Commerce It’s interesting to observe how both Amazon and PayPal attempt to lower costs by driving consumers to a cheaper payment-processing alternative. I have an Amazon Visa credit card. Every time I shop at Amazon, the first payment choice is that Amazon card on which Amazon pays low (if any) inter-change fees. When I choose another card, at the checkout page Amazon still tries to convert me to Visa Amazon by touting their accelerated rewards program. While I usually resist (I prefer not to receive a bill for that particular card), it is a tempting proposition. PayPal tries to push the bank transfer alternative by defining it as the default option. If I change it to pay with a credit card, they show me a screen listing the benefits of paying through a bank transfer. PayPal has been doing it for a while now, so it must be working on some consumers. However, I find none of their arguments particularly appealing and I personally choose to pay with a credit card for the rewards and the no-interest credit. PayPal: No finance charges or bills to pay The "no-bill" argument is somewhat appealing (Jupiter clients should check out Ed’s report: The Move to Debit from Credit). However, I suspect most consumers already receive a credit card bill and do not pay finance charges. Besides, consumers can still pay with a debit card. PayPal: You are 100% protected against unauthorized payments sent through your PayPal account Great, but credit cards offer similar and sometimes better protection than PayPal. PayPal: We keep your bank account details private Good to know, but this is a re-assurance rather than an incentive to use a bank transfer. 2006-09-20T15:25:44Z 2006-06-06T23:26:34Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.893 2006-06-06T23:26:34Z

I went to an Advertising Club luncheon today carrying that title. It was interesting, but not shocking. For one, there was more focus on the online channel compared to last year’s event. Some interesting comments included: Laurine Garrit (TD Ameritrade’s CMO) spoke about marketing brokerage services when stocks are falling....

Asaf Buchner Commerce I went to an Advertising Club luncheon today carrying that title. It was interesting, but not shocking. For one, there was more focus on the online channel compared to last year’s event. Some interesting comments included: Laurine Garrit (TD Ameritrade’s CMO) spoke about marketing brokerage services when stocks are falling. In these times investors are insecure and scared and the messaging should focus on the advice that the brokerage can give them to sort out their investments. Giunero Floro (Ameriprise’s Head of Advertising, Branding and Media) talked about the hot topic of marketing financial planning to baby boomers, a generation that is not very trustful and does not have time to learn about their finances. Ameriprise responds by being personal, focusing on the positive, and developing relationships for the long run. Nick Utton (E-trade’s CMO) spoke about the importance of holistic measurement and the lack of mechanisms to account for the offline effect on online applicants (and vice versa). This is an area that I will be looking into later this year. 2006-09-20T15:25:16Z 2006-06-01T16:33:00Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.892 2006-06-01T16:33:00Z

I was discussing with Haim Oren, our partner in Israel, my upcoming research, when he came up with the term “Web-to-Bank”. Similar to “Web-to-Store” it describes online research activity that leads to an application at the branch. On a related note, we are working on the Financial Services and Payments...

Asaf Buchner Commerce I was discussing with Haim Oren, our partner in Israel, my upcoming research, when he came up with the term “Web-to-Bank”. Similar to “Web-to-Store” it describes online research activity that leads to an application at the branch. On a related note, we are working on the Financial Services and Payments consumer survey. I encourage clients that would like to see a draft of the survey or contribute to contact us. 2006-09-20T15:24:49Z 2006-05-31T17:46:27Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.891 2006-05-31T17:46:27Z

American Banker [subscription] covers an interesting initiative by HomeStreet Bank. The Seattle thrift created a new website, where horror banking stories can be shared. HomeStreet advertised the site offline, but only exposed its affiliation to the initiative 2 weeks into the campaign. It’s not clear yet if the campaign is...

Asaf Buchner Commerce American Banker [subscription] covers an interesting initiative by HomeStreet Bank. The Seattle thrift created a new website, where horror banking stories can be shared. HomeStreet advertised the site offline, but only exposed its affiliation to the initiative 2 weeks into the campaign. It’s not clear yet if the campaign is successful (the site got 7,000 hits so far) but it’s quite telling to read the stories, assuming that they are genuine. I went over 20 of the 72 stories currently posted on the site. It is not a surprise that half of the complaints are around fees. While everybody hates paying fee, I believe that creating a clear and easy-to-understand fee structure can address some of the consumer resentment. Other complaints revolve around the quality of service or lack of flexibility. 2006-09-20T15:24:23Z 2006-05-24T15:14:19Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.890 2006-05-24T15:14:19Z

I had a few instances recently where I paid with an American Express credit card and was not required to sign the receipt (my card was just swiped). Other payment networks have similar programs that allow merchants to forgo the signature for purchases below $25. Security aside, it is pretty...

Asaf Buchner Commerce I had a few instances recently where I paid with an American Express credit card and was not required to sign the receipt (my card was just swiped). Other payment networks have similar programs that allow merchants to forgo the signature for purchases below $25. Security aside, it is pretty cool and does save a few seconds of annoying wait. However, it still feels strange and confusing, especially since not all merchants adopted this feature, so I never know what to expect. On a related note, one of the selling points for contact-less credit cards is that they save time. My colleague who built our contact-less payment forecast [clients] often raises the issue of where the timesaving really comes from. Namely, given that many contact-less purchases will be below $25 and will therefore not require a signature, is there a significant incremental timesaving from the contact-less element? 2006-09-20T15:23:56Z 2006-05-23T15:54:38Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.889 2006-05-23T15:54:38Z

Talking about online banking security… Maybe it’s better to take a closer look at what is happening offline… The WSJ has an article today [subscription] about the theft of a laptop computer and an external drive containing the personal records of 26.5 million US veterans. This, of course, is yet...

Asaf Buchner Commerce Talking about online banking security… Maybe it’s better to take a closer look at what is happening offline… The WSJ has an article today [subscription] about the theft of a laptop computer and an external drive containing the personal records of 26.5 million US veterans. This, of course, is yet another episode in a saga of very similar events. And yet, the number is overwhelming. If this information reaches the wrong hands, it can lead to an identity theft disaster. So far, there is no evidence that the computer was stolen for that purpose, but in the criminal circles where this type of information is traded, a database like that is probably worth millions of Dollars. The frustrating aspect in these events is that the consumers are helpless … there is nothing really they can do to prevent it from happening. They can, however, try to minimize the damage after the discovery of the event. The government has set up a website and a help-line (800-333-4636) to support concerned consumers. 2006-09-20T15:23:29Z 2006-05-22T15:19:35Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.888 2006-05-22T15:19:35Z

With short interest rates at their highest levels since 2001, consumers, banks and the press pay more attention to the yields offered on savings accounts, in particular on new online only accounts. The NYT covered it two weeks ago [TimeSelect] and the Washington Post discussed it yesterday. I wanted to...

Asaf Buchner Commerce With short interest rates at their highest levels since 2001, consumers, banks and the press pay more attention to the yields offered on savings accounts, in particular on new online only accounts. The NYT covered it two weeks ago [TimeSelect] and the Washington Post discussed it yesterday. I wanted to draw our clients’ attention to a report that I published about the topic a few weeks ago. One of the questions that I was trying to answer was whether banks use high rates as a bait to attract new customers. It is probably the case for those institutions offering high-interest accounts. In fact, at the Post’s article Citi’s Catherine Palmieri speaks about cross-selling home-equity loans to these customers. However, I spoke to two top-ten US banks who are not offering high rates or special Internet only acconts. Their approach was that with the current narrow spreads they could not compete on rates. Rather, they compete on their comprehensive offering including their extensive branch network. It will be interesting to see if they would give up this approach. Especially now, that Citi is in the game. 2006-09-20T15:23:03Z 2006-05-11T15:49:05Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.887 2006-05-11T15:49:05Z

The WSJ has an article today about collaboration between Amerisave and a mortgage education site run by a former finance professor [subscription required]. According to the journal, the “Mortgage Professor” will expose the lender’s profit margins so that consumers can be sure that they are not being “ripped-off”. Not surprisingly,...

Asaf Buchner Commerce The WSJ has an article today about collaboration between Amerisave and a mortgage education site run by a former finance professor [subscription required]. According to the journal, the “Mortgage Professor” will expose the lender’s profit margins so that consumers can be sure that they are not being “ripped-off”. Not surprisingly, this is a very appealing proposition for consumers [clients should refer to Jupiter’s Mortgage Purchase Funnel report]. However, I am a little bit skeptical. In an Amerisave micro-site the professor laments about the lack of transparency in the mortgage industry – consumers don’t know how much money the lender is making. However, as the site correctly points out, consumers are also in the dark as to the wholesale prices of automobiles. The Internet definitely created price transparency, but I am not sure lenders (or car dealers) will be quick to share their costs as well. In addition, the journal reports that the parties did not agree on the compensation the professor will receive for each referral. I’m not doubting this guy’s integrity, but I feel that receiving compensation for referring leads makes this deal more of a lead generation agreement than a service for the consumer. In the name of transparency, I hope these fees will be displayed as well… 2006-09-20T15:22:35Z 2006-05-09T20:36:23Z tag:weblogs.jupiterresearch.com,2006:/analysts/buchner//2.886 2006-05-09T20:36:23Z

Yesterday night I went to hear Yossi Vardi speak at an Israeli Business Forum event. For those unfamiliar with the name, Mr. Vardi acquired a reputation of an Internet expert (in Israel and beyond) after in 1998 he led the $400 million sale of Mirabilis (“ICQ”) to AOL. His experiences...

Asaf Buchner Commerce Yesterday night I went to hear Yossi Vardi speak at an Israeli Business Forum event. For those unfamiliar with the name, Mr. Vardi acquired a reputation of an Internet expert (in Israel and beyond) after in 1998 he led the $400 million sale of Mirabilis (“ICQ”) to AOL. His experiences obviously extend far beyond that. It was interesting to get his perspective on the state of the Internet and how Israel’s culture fits in. Yossi spoke about the four phases in the Internet’s evolution, from being a university network, to expanding to public use, through a “nuclear winter” to the current revival. Obviously there was a lot going on during that “winter” only that the financial markets were closed. To his approach, the Internet’s structure (scattered and de-centralized) is a perfect fit with the Israeli culture, explaining the abundance of Israeli success stories (ICQ, Checkpoint, or even Cyota and LivePerson, to name a few). Vardi paralleled the behavior of the Nasdaq in the late 1990s/early 2000s to that of the Dow Jones in the late 1920s/early 1930s. For those fond of predictions, Vardi thinks we are currently 40% on the way to the peak. Jupiter makes forecasts, for instance, about the US online population [Subscribers]. However, we do not forecast the performance of the financial markets, so I won’t comment.