L2 Digital IQ Index®: Financial Services (2011) by L2

SCOTT GALLOWAY NYU Stern

Financial Services JUNE 8, 2011

A Think Tank for DIGITAL INNOVATION

Clinic

06. 24.11 | NYU Stern

Mobile & Geolocal http://L2MobileandGeolocal.eventbrite.com/

Agenda 8:15

Registration & Breakfast

11:30

Module 2: Mobile & Prestige

9:00

Module 1: The Big Picture

Paid, Earned, & Owned Tactics for Creating & Marketing Mobile Apps

Rachel Pasqua VP of Mobile, iCrossing

Scott Galloway Founder, L2

Top Trends in Mobile Luxury Brands Need to Know

Innovative Mobile Advertising Strategies for Prestige Brands

Brian Jurutka SVP, Mobile & Telecommunications, comScore, Inc.

Anne Frisbie VP & Managing Director, North America, inMobi

Mobile/Social Engagement for Prestige Brands Jake Furst Business Development Manager, Foursquare

Best Practices in Prestige Mobile Campaigns

Welcome

Understanding Todayâ&#x20AC;&#x2122;s Mobile Ecosystem

Suzanne Mumford Product Manager Mobile Ads, Google

11:00

Break

Scott Galloway L2

Brian Jurutka comScore, Inc.

Jake Furst Foursquare

Suzanne Mumford Google

Aaron Sedlak Creative Director, Sarkissian Mason Patrick Sarkissian CEO & Founder, Sarkissian Mason

Prestige Case Studies

Maureen Mullen Lead Researcher, L2

1:30

Conclusion

Rachel Pasqua iCrossing

Anne Frisbie inMobi

Aaron Sedlak Sarkissian Mason

Patrick Sarkissian Sarkissian Mason

Maureen Mullen L2

Digital IQ Index ®:

Financial Services

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INTRODUCTION

Killer App: The Internet Each day the financial services industry delivers tens of billions in product, all in zeros and ones. In a study by the American Bankers Association, 44 percent of consumers between the ages of 18 and 54 indicated that online banking was their preferred channel.1 Among households with income greater than $75,000, Pew estimates that the number increases to 71 percent.2 The sibling credit card industry also finds the future of customer acquisition, retention and loyalty to be in online channels. However, while financial services consumers have voted with their browsers, the industry allocates only 12 percent of its marketing budgets to online channels.3

The New Land Grab

Smart, but Shy

The primary levers in the retail banking industry over the past

Some brands get it and are allocating substantial resources

20 years have been massive broadcast media spend and a

to digital. American Express, top ranked in our study, is firing

land grab for real estate to increase convenience and drive

on multiple fronts, collaborating with companies, including

brand awareness in local markets. However, a focus on cost-

Foursquare, Zynga, and Apple’s iTunes, to signal innovation

cutting driven by the financial crisis, coupled with an increas-

and redefine traditional notions of customer service and loyalty

ingly digital consumer, is reshaping the landscape.

rewards. Retail banks JPMorgan Chase and Bank of America

At an investor conference in March 2011, Bank of America announced it planned to cut its retail presence by 10 percent as consumers increasingly shift to online and mobile channels.4

are at the forefront of mobile innovation with mobile banking initiatives, SMS alerts, and QR code campaigns. However, even among the digital leaders there is significant low-hanging fruit.

Cutbacks in brick and mortar are reflected industry wide. In

For an industry built on relationships and community, few brands

June 2009, FDIC-insured financial institutions had 99,550 retail

have been able to translate their offline tactics to the new social

branches but that number declined to 98,517 in 2010. Innova-

ecosystem; many are still trying to determine how to incorporate

tion in digital and mobile is the new battlefield where share will

Facebook, YouTube, and Twitter into their marketing mix.

be won or lost. 1. “ABA Survey Shows More Consumers Prefer Online Banking,” American Bankers Association, September 30, 2010.

4. “BofA begins to cut back on branches,” Rick Rothacker, McClatchy Newspapers, April 11, 2011.

2. “Use of the internet in higher-income households,” Pew Internet & American Life Project, November 24, 2010.

5. Ibid.

3. eMarketer, April 2011. © L2 2011 L2ThinkTank.com

Digital IQ Index ®:

Financial Services

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INTRODUCTION O N L I N E vs . offl i ne sources : H o w Consumers Select a Credit Card

Digital IQ = Shareholder Value

(December 2009)

Our thesis is that digital competence is inextricably linked to

Credit Card Brand Site

shareholder value in the financial services industry. Key to managing and developing a competence is an actionable metric. This study attempts to quantify the digital competence

Search Engines

26%

Local Bank Branch

26%

Recommendations from Family & Friends

of 27 retail banks and credit card issuers. Our aim is to provide

22%

Direct Mail

19%

Third-Party Reviews/Consumer

and help managers at financial services brands achieve greater

12%

Phone with Representative

return on incremental investment.

12%

Mail with Representative

Like the medium we are assessing, our methodology is dynamic,

Online Message Boards & Blogs

and we hope you will reach out to us with comments that improve

Online Newspapers

10% 9% 8%

Print Newspapers/Magazines

at scott@stern.nyu.edu.

Sincerely,

Source: “Credit Card Consumer Trends,” Compete, April 1, 2010.

Online Consumer-Generated

our approach, investigation, and findings. You can contact me

= OFFLINE SOURCES

25%

Product Comparison Sites

a robust tool to diagnose digital strengths and weaknesses

= ONLINE SOURCES

42%

10%

20%

30%

40%

50%

Scott Galloway G R O W T H O F O N L I N E B A N KI N G As a Percentage of Internet Usage by U.S. Households

Founder, L2 Clinical Professor of Marketing, NYU Stern

(July 2010)

PREFERRED BANKING METHODS OF U.S. CONSUMERS

100

(August 2010) Unknown: 7%

Telephone: 6% Online: 36% Mail: 8% Source: “American Bankers Association (ABA) Survey Shows More Consumers Prefer Online Banking,” ABA Press Release, Sept. 30, 2010.

ATM: 15%

Branches: 25%

MILLIONS

Mobile: 3%

33% 43%

54% 61%

77% 80% 62% 76% 59

27% 37

25 20

80% 80%

= ONLINE Banking

Source: “2010 Consumer Billing and Payment Trends Survey,” Fiserv, July 14, 2010.

12 0

2000

2001

2002

2003

2004

2005

= Internet USage

2006

2007

2008

2009

2010

Digital IQ Index ®:

Financial Services

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A B O U T T H E R A N KI N G S C AT E G O R I E S

140+ Genius Digital competence is a point of competitive differentiation for these brands. Interactive sites enable custom product selection and selfservice support. These brands have creatively engineered their messaging to reach consumers on a variety of devices and online environments.

110-139 Gifted These brands typically are active in mobile and social media, visible on search engines, and are implementing strong digital marketing campaigns.

90-109 Average Digital presence is functional yet predictable, and innovation efforts are uninspired and lack ambition. Boilerplate marketing.

70-89 Challenged These brands’ bare-bones sites provide only basic functionality. Digital campaigns are an afterthought. Demonstrate an inability to activate their social communities.

<70 Feeble Investment does not match the opportunity.

M E T H O D O LO G Y

Site - 25%: Effectiveness of brand site. • Technology: Load Time, Video, Integration • Navigation: User Interface, Site Search • Products: Information Availability, Social Sharing, Reviews, Comparison Tools • Account: Product Sign-Up, Transaction Functionality, Cross-Sell • Customer Service: Availability, Options, FAQs • Site Innovation: Interactivity, Content

Digital Marketing - 25%: Marketing efforts, off-site brand presence, and visibility on search engines. • Search: Traffic, SEM, SEO, Web Authority, Mobile Search • Email: Frequency, Content, Social Media Integration, Promotion • Digital Marketing: Presence, Innovation, Web Advertising • Blog Presence: Mentions, Sentiment

Social Media - 25%: Brand presence, community size, content, and influence on major social media platforms. • Facebook: Likes, Growth, Post Frequency, Engagement • Twitter: Followers, Growth, Tweet Frequency, Online Voice • YouTube: Views, Number of Uploads, View Growth, Content

Mobile - 25%: Compatibility and marketing on smartphones and other mobile devices. • Mobile Site: Compatibility, Functionality, Ability to Transact • iPhone/iPad Applications: Availability, Popularity, Functionality, Promotion, Ability to Transact • Android & Other Applications: Availability, Popularity, Functionality, Promotion, Ability to Transact • Innovation: Geolocal, Advertising, QR Codes, Commerce

Digital IQ Index ®:

Financial Services

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D I G I T A L I Q R A N KI N G CREDIT CARDS

Rank Brand

Category

PNC Bank

Retail Banking

95 Average

Mobile money maven was the first to introduce mobile transfers in January 2010, but lackluster social media presence results in mediocre IQ

TD Bank

Retail Banking

94 Average

Garnering 80 percent growth in followers, @TDBank_US extends the brand’s convenience to the Twittersphere

SunTrust Bank

Retail Banking

93 Average

SunTrust bank boasts solid mobile scores, but social media efforts are a bit light

BB&T

Retail Banking

92 Average

Renowned retirement tools on site score points, but no Facebook or Twitter brand presence

U.S. Bank

Retail Banking

88 Challenged

Second after Chase to launch remote check cashing capabilities

Union Bank

Retail Banking

75 Challenged

Strong site search does little to overcome other digital shortcomings

U.S. Bank Cards

Credit Cards

74 Challenged

Broken card comparison breaks U.S Bank’s promise of service

Regions Bank

Retail Banking

69 Feeble

Save with Regions microsite is the only thing working in this digital branch

HSBC Bank USA

Retail Banking

66 Feeble

The world’s local bank has struggled to find the right neighborhoods online; no mobile presence cripples IQ

KeyBank

Retail Banking

64 Feeble

Poor technology incorporation on site and absence on Facebook and YouTube leave KeyBank grappling with how to unlock the power of digital

Fifth Third Bank

Retail Banking

63 Feeble

QR code direct mailing allowed Fifth Third customers to register debit cards for incentives, but with no Facebook footprint it’s still Feeble

RBS Citizens

Retail Banking

53 Feeble

No presence on social media leaves RBS Citizens on permanent bank holiday online

Diners Club

Credit Cards

17 Feeble

Can’t apply for a card online; old school, in a bad way

Digital IQ Class

RETAIL BANKING

Description

Digital IQ Index ®:

Financial Services

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KEY FINDINGS

D I G I TA L I Q D I S P E R S I O N % of Organizations per Digital IQ Class

Digitally Deft More than two-thirds of the Financial Services brands ranked were classified as “Average” or above, and 48 percent registered a “Genius” or “Gifted” ranking. The IQ dispersion of

GENIUS: 7% American Express Bank of America

Digital IQ

>140

the industry surpasses the digitally-sophisticated Automobile industry, where 39 percent of brands recorded Genius or Gifted IQs in L2’s 2010 Digital IQ Index®: Automobiles study. Financial Services also outpaces overall Digital IQ scores of the Beauty Industry (37 percent Genius or Gifted) and the Luxury Industry (36 percent Genius or Gifted).

Chase Cards Capital One Cards Citibank Chase Discover ING Direct

Much of the sector’s strong scoring is the result of substantial

Wells Fargo

investments in mobile innovation: average mobile scores were

Citibank Cards

two to three times higher than those of most consumer industries. Buttressed by super-Genius brand American Express,

GIFTED: 41%

Bank of America Cards

AVERAGE Digital IQ Score By Category

CREDIT CARDS

110

Digital IQ

110-139 RETAIL BANKING

Visa Capital One

the Credit Card category outpaced Retail Banking, registering

AVERAGE: 19%

an average IQ of 110 versus 94, respectively. MasterCard PNC Bank TD Bank SunTrust Bank

“ Unlike many categories of business we look at,

Digital IQ

90-109

BB&T

many, but not all, Financial Services companies are doing a good job in the digital space because

online represents a business and transactional platform for the industry. In some respects, Financial Services offers an interesting forward view for other businesses.

” —Andrew McLean | U.S. CEO PHD Network

CHALLENGED: 11% U.S. Bank Union Bank U.S. Bank Cards

Digital IQ

70-89

FEEBLE: 22%

Regions Bank HSBC Bank USA KeyBank Fifth Third Bank RBS Citizens

Digital IQ

<70

Diners Club

Digital IQ Index ®:

Financial Services

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KEY FINDINGS AMERICAN EXPRESS: Head of the Class

Card Recommendation Tools: Multiple highly interactive and robust recommendation and comparison tools help consumers choose the perfect card.

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KEY FINDINGS AMERICAN EXPRESS: Head of the Class YouTube: With almost 7.5 million views, the channel is more than just a repository for commercials—it is a true branded entertainment portal bringing to life Amex membership privileges.

Members Project: Uses social media to encourage people to vote, volunteer, and donate to worthy causes.

Daily Wish: Online flash sales of curated products available in limited quantities at significant discounts to Amex cardholders only.

Digital IQ Index ®:

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KEY FINDINGS

SCVNGR: Amex powers paperless redemption of daily deals via LevelUp.

AMERICAN EXPRESS: Head of the Class

Funding Farmville: American Express customers can use their Membership Rewards points to purchase Purple Cows and other limited edition virtual goods in popular Zynga social games such as FarmVille.

Social Currency:

Geo-Local Loyalty: Amex customers earned cash back by checking into specific locations in Austin on Foursquare during SXSW. © L2 2011 L2ThinkTank.com

Site designed to give young adults advice for managing their personal finances. Accompanying Foursquare-powered mobile app allows users to check-in, earn badges, and track and share their purchases with friends while shopping.

Digital IQ Index ®:

Financial Services

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KEY FINDINGS

SITE CONTENT & TOOLS % of Brand Sites With & Without the Following:

Low-Hanging Fruit 4%

An analysis of brand sites across the Index suggests that many

96%

are still stuck in a 1.0 mentality. Although every site with the exception of Diners Club allows customers to sign up for an

11%

account or apply for a credit card, most fail to provide touch

= WITH TOOL = WITHOUT TOOL

Online Sign Up 89% Retail Branch Locator

points associated with a more traditional retail environment. Nearly half of sites do not incorporate live chat or offer cross-

11%

sell opportunities, both of which could garner additional share

89% Calculators

of wallet. 19%

The biggest missed opportunity in the industry is the use of social-sharing tools. Less than one third of sites offer any form of social sharing around financial products or site content, and

19%

only 22 percent incorporate Facebook open graph technology,

81% Online Tutorials/Demos

a proven tactic for driving incremental traffic.

22%

% Year-Over-Year Traffic Growth Brand Sites With & Without the Following: 10%

78% Videos

I M PA C T O F S I T E T O O L S & C O N T E N T O N T R A F F I C

81% Multiple Languages

30%

70% Dynamic Recommendations

= WITH TOOL

4.0%

4.3%

48%

= WITHOUT TOOL

52% Live Chat

3.3% 52%

48% Cross Selling

-5%

-4.5%

-4.8%

56%

44% Product Comparisons

-10% 70%

-11.5% -15%

30% Social Sharing

Dynamic Recommendations

Product Comparisons

Live Chat

78%

22% Facebook Open Graph

Digital IQ Index ®:

Financial Services

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KEY FINDINGS EMAIL MARKETING % of Brands With & Without the Following:

Empty Inbox While 66 percent of consumers say email is their preferred channel for receiving financial information,6 only 27 percent of

Email Opt-in

offered emails that linked to social media or were viewable on a mobile device. However, while email is underutilized, according to a study by Synovate Mail Monitor, U.S. households received 2.25 billion direct mail credit card offers in 2010, an increase of 62 percent over 2009.7 Although that growth reflects the economic recovery,

73%

= WITH TOOL = WITHOUT TOOL

brands allow email opt-in through their customer acquisition site. While the majority followed up with marketing emails, none

27%

Welcome Email

19%

81%

Additional Marketing Emails

15%

85%

Link to Social Media on Email

100%

Email Viewable on Mobile

100%

there appears to be an opportunity to shift marketing dollars

from mailbox to inbox.

25%

50%

75%

100%

Search Wars Search ad spend by the financial services industry, was up 78 percent year over year in the first quarter of 2011, while

pa i d searc h tact i cs % of Brands Participating in the Following for Branded Search Terms (April 2011)

click-through rates declined 35 percent and traffic to brand sites in the study remained virtually flat.8 Traffic in the credit

75%

60%

card category was actually down 11 percent from March 2010

60%

to March 2011. During April, half of the credit card brands and 41 percent of banks were purchasing competitor brand terms.

50%

For several brand searches, as many as four brands were bid-

CREDIT CARDS

50% 41%

41%

ding against each other and popular comparison portals and consumer finance sites for top terms.

RETAIL BANKING

20%

25%

12% 0% 6. “Recharging Credit Card Marketing to Meet Evolving Consumer Expectations,” Epsilon, July 20, 2010. 7. “After the Crunch: How Credit Card Issuers Market to Consumers Online,” eMarketer, January 2011. 8. “Paid Search Quarterly Benchmarking Report,” Marin Software, April 28, 2011. © L2 2011 L2ThinkTank.com

Google

Bing

Paid Search

Google

Bing

Competitive Buying

Digital IQ Index ®:

Financial Services

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KEY FINDINGS T op 8 R E F E R R A L & D E S T I N AT I O N S I T E S : FINANCIAL SERVICES SITES

Web Dying, Facebook Thriving

Upstream and Downstream Traffic to and from Search Engines, Facebook, Competitor Sites, and PayPal

One of the reasons for diminishing traffic to brand sites is the maturation of the web and the rise of Facebook. In 2001, the ten most-visited sites on the web accounted for 31 percent of U.S. page views, in 2006 it was 40 percent, and in 2010 it was about 75 percent, suggesting the medium and long tail of the

100%

100% 95%

= SEARCH

web are decreasing in importance.9

= Facebook

on the Internet.10 Although only 59 percent of brands in the Index maintain some form of Facebook presence, 86 percent

= Competitor

86%

Facebook alone accounts for 12.3 percent of all consumer time

= paypal

82% 80% 73%

register Facebook as a top-eight source of traffic to their brand site and 95 percent register the social media giant as a top-8

64%

destination site, suggesting the platform is well-integrated into the financial services ecosystem on the web.

64% 59%

60%

55%

Disrupter PayPal is also well represented in traffic to and from brand sites with 64 percent of brands registering the online payment system as a top-eight source of traffic to their domains. 40%

20% 16%

15% 12%

10% 3%

% of Brands

% of Traffic Upstream Traffic To Brand Site

% of Brands

% of Traffic

Downstream Traffic From Brand Site

9. “The Web is Dead, Long Live the Internet,” Chris Anderson and Michael Wolff, Wired Magazine, August 17, 2010. 10. “The 2010 Digital Year in Review,” comScore, February 8, 2011. © L2 2011 L2ThinkTank.com

Digital IQ Index ®:

Financial Services

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KEY FINDINGS S O C I A L M E D I A P E N E T R AT I O N

Wallflowers

% of Brands on the Following Platforms

The Financial Services industry is a latecomer to social media,

100%

and adoption lags other industries. Twitter is the most popular platform for brands in the study and more than two-thirds

75%

68%

manage at least one account on the platform. Brands have less

59%

footing on Facebook and YouTube with 59 percent maintaining

59%

50%

some presence on the platforms. 25%

In a survey by ROI Research, 50 percent of customers indicated that the reason they follow a financial services company

on Facebook or Twitter is that they consider themselves a loyal customer of the institution.11 However, with a few notable exceptions—American Express (every platform) and Chase Commu-

Twitter

Facebook

YouTube

nity Giving (Facebook)—most financial services companies have struggled and are still trying to find a voice on these platforms. A V E R A G E N U M B E R O F “ L IK E S ” F or B R A N D FA C E B O O K PA G E S BY I N D U S T R Y

Introverts

(May 14, 2011; N=# of Brand Pages)

Only 28 percent of companies in the Index maintain a brand Facebook page, the most common way brands in other indus-

600,000

552,969

tries utilize the platform. Instead, they mimic the strategy employed by broadcast media, creating separate pages around

500,000

episodic marketing programs and sponsorships.

373,639

400,000

Because their Facebook strategy, as an industry, has not been anchored around brand pages, “likes” trail those of other

”

300,000

industries. For example, the Luxury and Beauty industries boast an average number of “likes” per brand page of 553,000 and

174,718

200,000

374,000, versus only 92,000 for Financial Services brands. 92,301

100,000

0 11. “S-net (The Impact of Social Media),” ROI Research Sponsored by Performics, September 9, 2010. © L2 2011 L2ThinkTank.com

Luxury

Beauty

Travel

Financial Services

(N-71)

(N-41)

(N-69)

(N-10)

Digital IQ Index ®:

Financial Services

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KEY FINDINGS Finding a Place on Facebook Instead of brand pages, many financial services organizations

FA C E B O O K A C C O U N T C AT E G O R I Z AT I O N

have opted to build Facebook communities to support a specific

% of Brands with the Following Types of Accounts:

marketing program. Pages linked to sponsorship marketing are the most popular and are employed by 28 percent of brands in the Index.

50%

= BRAND = SPONSORSHIP

Visa’s “Visa Go World” page backing the brand’s sponsorship

= PRODUCT

of the 2012 London Olympics and the “Visa Fans for Life” page

= BRAND PERSONALITY

supporting Visa’s NFL partnership have been some of the most

= CAUSE = RECRUITMENT

40%

successful sponsorship pages. The two largest Facebook pages in the industry, Chase Community Giving and American Express’ Members Project, both promote social responsibility initiatives.

30%

28%

20%

“

In Financial Services, it is not enough to be ‘liked’ or be ‘Gifted’; that is the cost of entry. These com-

14%

panies, especially after a difficult few years, need to be trusted advisors, best in class, and show love and be loved. Therefore, ‘Genius’ is the bar that Financial Services companies need to rise to.

14%

10%

”

—Andrew McLean | U.S. CEO PHD Network

0% Brand

Sponsorship

Product

Cause

Brand Recruitment Personality

Digital IQ Index ®:

Financial Services

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KEY FINDINGS

top 1 0 B R A N D S : FA C E B O O K “ L IKes ”

top 1 0 FA S T E S T- grow i ng faceboo k accounts

(March 2011)

(January–May 2011)

Capital One

10,851%

Chase: Community Giving 2,583,130

American Express: Members Project

799,735

American Express

602,263

Capital One

153,864

American Express: Zync Visa: Go World

128,742 96,137

Visa: Signature

74,965

Visa: Fans for Life

70,868

Discover ING Direct

57,259 42,474

= 50,000 FACEBOOK LIKES

Visa: Power to the Shopper

2,490%

196%

Wells Fargo

Discover

119%

American Express

93%

Discover: Peggy

84%

Chase: Chase Sapphire

73%

U.S. Bank

42%

ING Direct

41%

KeyBank

36% 0

200%

400%

600%

800%

Digital IQ Index ®:

Financial Services

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KEY FINDINGS Bigger Isn’t Always Better

T O P 1 0 Faceboo k i nteract i on rate : B rand pages

A lot of lip service is paid to the size of a brand’s Facebook

Ratio of Average “Likes” on Brand Posts to Size of Community

community, but equally important is the level of fan engage-

(May 2011)

ment. Across brand pages in the study, U.S. Bank, with about 7,000 likes, and KeyBank, with slightly more than 1,000 likes, boast the highest interaction per page measured by the percentage of the community that reacts by liking or commenting

on brand posts.

U.S. Bank 4.1%

Citibank U.S.

American Express

ING Direct

Sun Trust

Visa: Power to the Shopper

Discover

MasterCard

#10

Capital One

1.0%

U.S. Bank engages customers through community news, links to partners, and a contest to celebrate the birthday of its mascot, Captain Shield. KeyBank brings a local feel to its page, targeting posts around education, social outreach, and branch

0.8%

events happening in the cities where it operates.

“

It is not surprising, given the business challenges

0.5%

and the service nature of this category, that social media represents probably the biggest challenge

and opportunity. The uncontrolled editorial environment and usergenerated content world of social is challenging to all companies, but to these businesses it has unique issues—some structural, some regulatory, and some about ‘permission to interact’ in their consumers’ media environment.

”

—Andrew McLean | U.S. CEO PHD Network

KeyBank 3.8%

0.4%

0.3%

Digital IQ Index ®:

Financial Services

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KEY FINDINGS Searching for a Pulse

Peggy, Discover’s fictitious customer service rep, wishes Facebook fans a happy birthday

When looking across all Financial Services Facebook pages, the two that were most interactive belonged to two very different brand spokespeople. Citi CEO Vikram Pandit’s page registered the highest interaction rate in the study, with more than six percent of his 1,300+ Facebook community reacting to his posts from public speeches and other public relations announcements. Number Two? A surprising counterpart: Peggy, the quirky foreign customer service rep from Discover’s TV commercials. Peggy posts Happy Birthday pictures to fans, discusses how he spends his free time (“watching a baseballs game on the internets”) and gives even more personality to the muchloved character.

“ The more successful companies are exploiting

digital’s unique ability to be a knowledge resource, information-sharing mechanism, a two-way dia-

logue pipeline, and relationship-building tool. This is based on the critical business need to be an outstanding e-commerce/business platform on which they conduct business in addition to marketing.

”

—Andrew McLean | U.S. CEO PHD Network

Citi’s CEO Vikram Pandit has the hightest interaction rate of any Facebook page in the Financial Services industry

Digital IQ Index ®:

Financial Services

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KEY FINDINGS = BRAND

T O P 1 5 Faceboo k i nteract i on rate : A L L pages

= SPONSORSHIP = PRODUCT

Ratio of Average “Likes” on Brand Posts to Size of Community

= CAUSE = BRAND PERSONALITY

(May 2011)

Citi: Vikram Pandit, CEO 6.5%

KeyBank 3.8%

SunTrust: SunTrust Racing

= RECRUITMENT

ING: NYC Marathon

Chase Sapphire

1.4%

#10

Visa: Fans for Life

#11

Discover: Careers

#12

Citibank U.S.

#13

Citi: Citijobs

#14

American Express

#15

ING Runners

1.4%

3.3%

Discover: Peggy 4.8%

Wells Fargo: Wells Fargo Championship 2.7%

1.1%

1.0%

0.9%

U.S. Bank 4.1%

BB&T: Lighthouse Project 2.6%

0.8%

Digital IQ Index ®:

Financial Services

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KEY FINDINGS The Twitter Teller Of the 68 percent of brands using Twitter, two-thirds provide real-time customer service through the micro-blogging platform. Of those, 80 percent host a dedicated customer service account and 70 percent put a face to the team, personalizing the handle through names and photos of reps. American Express has pulled away from the industry with nearly 133,000 followers on its @AmericanExpress public relationsoriented Twitter account. As @AmericanExpress listens and responds to users, it frequently loops in dedicated customer service handle @AskAmex to deal with more complicated client concerns.

American Express’ @AskAmex is dedicated to solving customer service issues

Twitter page @AmericanExpress, the brand’s public relationsoriented account

Digital IQ Index ®:

Financial Services

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KEY FINDINGS

B E S T I N T W E E T: top 1 0 followers

T op 1 0 FA S T E S T- G R O W I N G T W I T T E R A C C O U N T S

(May 2011)

@BofA_Community @AmericanExpress

662%

@FifthThird

359%

132,678 @VisaNGL @Discover

17,255

@INGDIRECT

16,901

@BofA_Help

14,654

@ChaseGiving

11,603

@MasterCard

10,492

@AskAmex

220%

@KeyBank_Help

92%

@TDBank_US

80%

@BofA_Tips

80%

@PNCNews

75%

8,743

@BofA_Careers

@WellsFargo

56%

@Citi

53%

@PriorityClub

51%

8,242

@WellsFargo

7,643

@Ask_WellsFargo

7,126

200%

400%

600%

= 2,000 TWITTER FoLLOWERS

Digital IQ Index ®:

Financial Services

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KEY FINDINGS Mobile Mania The Financial Services sector is one of the most sophisticated

MOBILE SITE & SMARTPHONE APP FUNCTIONALITY

when it comes to providing mobile capabilities for its custom-

% of Brands With & Without the Following:

ers. Most brands are taking a multi-pronged approached to their mobile strategies, providing a buffet of options, including

94%

apps, dedicated mobile sites, and SMS alerts to buttress their

11%

89% View Account Activity

offerings. More than two-thirds of the brands host a mobile site or app; HSBC Bank USA and Diners Club are the only two

= WITH TOOL = WITHOUT TOOL

18%

82%

13%

organizations failing to provide a dedicated mobile experience.

MOBILE SITES:

87% ATM/Branch Locator

24%

SMARTPHONE APPS: = WITH TOOL = WITHOUT TOOL

76%

22%

78% Intra-Account Transfers

MOBILE PRESENCE % of Brands With the Following :

35%

65% 11%

89%

100%

Bill Pay

82% 75%

74%

76%

73%

24%

67%

33% Rewards

50%

41%

76%

24% 22%

25%

78% GPS

14% 82%

18%

78%

Smartphone Mobile App Websites

SMS Alerts

Text Banking

22% Person-to-Person Payments

iPad App

n/a

11%

89% Mobile Deposit

Digital IQ Index ®:

Financial Services

Want to know more about your brand’s ranking? CONTACT US Bank of America’s interactive “Facts About Fees”

FLASH OF GENIUS Smart Money Bank of America: “Facts About Fees” Chase: “Blueprint” Wells Fargo: “My Money Map” For some people, being smart with money is easy. For the rest of us, there are online resources. Several brands have focused on interactive financial education. Bank of America’s new site is full of interactive resources that bring educational content to life. Videos and polls answer commonly asked questions and link to relevant BofA product and service pages. The “Facts About Fees” microsite features educational modules. Similarly, the BofA “InfoCenter” is a one-stop shop for FAQs, demos, step-by-step printable guides, and videos by topic. Videos are shareable via email, and users can vote them up or down, adding a layer of authenticity to the tutorials. These

Chase’s “Blueprint” payment planning service

tools are only useful if found, however; BofA’s navigation layout makes that difficult, requiring several clicks to access content. Chase’s Blueprint is a payment planning service that lets customers manage their spending and borrowing on their own terms by selecting various features such as “full pay,” “split,” “finish it,” or “track it.” On the service’s microsite, animated human avatars guide users through flipboard tutorials, explaining the differences between customizable features. Wells Fargo rolled out “My Money Map” in December 2010 in response to popular personal financial management providers like Mint.com, Buxfer, and moneyStrands. The service allows account holders to see their spending, budgeting, and savings in clean, simple charts with a single click. Users can also set short- and long-term goals and budgets.

Wells Fargo’s “My Money Map”

Digital IQ Index ®:

Financial Services FLASH OF GENIUS

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ING Bank’s “official blog of Savers”

Stimulating Savings ING: “We, the Savers” SunTrust: “Live Solid Network” Visa: “@Practical Money” Several organizations have tapped into the new culture of savings, creating digital tools and content to educate consumers about money management. ING Bank’s “We, the Savers” blog proclaims itself the “official blog of Savers” and is full of informational posts about topics such as home buying, retirement, and changing government regulations. With socially shareable posts, community polls, an RSS feed, and an iGoogle Gadget, the blog successfully incorporates Web 2.0 tools to enhance spread. Similarly, SunTrust has developed the “Live Solid Network,” a highly interactive site organized around key life areas: wellbeing, money, relationships, retirement, future plans, and children. In each section, SunTrust has curated articles, videos, audio recordings, polls, quizzes, and more. Users can explore the site section by section, saving content as they go. SunTrust’s “Live Solid Network”

On the social media front, Visa’s director of financial education, Jason Alderman, tweets from @PracticalMoney with tips on spending money wisely and links to Visa-authored articles on such topics as planning affordable summer getaways. The account also links to non-Visa articles and videos in the news relating to personal financial health.

Digital IQ Index ®:

Financial Services

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FLASH OF GENIUS Taking the City by Storm wells fargo To celebrate and highlight its recent return to the New York market, Wells Fargo filmed a “flash mob” of dance and musical performers at Times Square on April 7, 2011. Riding the wave of flash mob popularity and its placement as a YouTube sponsored ad, the seven-minute video garnered more than 187,000 views within one week. To date, the video has been viewed more than 1.2 million times, eclipsing any other upload on a brand channel.

Wells Fargo celebrates their New York roots with a flash mob performance

Digital IQ Index ®:

Financial Services

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FLASH OF GENIUS

W E L L S FA R G O : Y O U T U B E C H A N N E L V I E W S P E R D AY (April 12–May 6, 2011) 100,000 91,860

80,000 74,653 71,345 66,770

65,208

61,834

61,121

60,000

“Wells Fargo Flash Mob Times Square” Video Posted

55,023

58,675

58,247

57,042

57,552

55,505 55,550

56,881

55,367

48,044

37,943

40,000

35,073 29,402

19,854

20,000

2,636

1,911

1,127

4/13

4/14

4/15

0 4/12

4/16

4/17

4/18

4/19

4/20

4/21

4/22

4/23

4/24

4/25

4/26

4/27

4/28

4/29

4/30

5/1

5/2

5/3

5/4

5/5

5/6

Digital IQ Index ®:

Financial Services

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FLASH OF GENIUS March Madness on Facebook capital one Capitalizing on the fervor surrounding the annual NCAA Men’s Basketball Tournament, Capital One launched a Facebook sweepstakes in February for two tickets to the Final Four, requiring users to “like” the brand’s page to enter the contest. Three days after opening the sweeps, Capital One’s likes grew from just under 4,000 to more than 80,000. The brand’s page continued to grow as the campaign was advertised in an email to current Capital One customers and promoted through other marketing channels, including Facebook advertising. By the end of the month, the brand saw a 3,700 percent increase, growing to more than 150,000 likes.

Capital One’s Facebook page

Capital One’s NCAA sweepstake campaign for “likes”

Digital IQ Index ®:

Financial Services

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FLASH OF GENIUS C A P I TA L O N E : FA C E B O O K “ L IK E S ” P E R D AY (January 28–February 28, 2011) 34,784

25,372 24,634

25,000

“Three days left” call to action 22,697 Repair of technical difficulties with sweepstakes entry announced

20,000

15,000

Capital One “NCAA Basketball Sweepstakes” begins

10,000

Reminder posted for followers to enter sweepstakes

8,935

6,145 4,544

5,000

5,096

3,086 2,404 1,725

1,386

1/28 1/29 1/30 1/31 2/1

2/2

2/3

2/4

657

250

2/5

2/6

2/7

2/8

1,200 1,121 969

703

606

613

490

389

440

2,019

481

2/9 2/10 2/11 2/12 2/13 2/14 2/15 2/16 2/17 2/18 2/19 2/20 2/21 2/22 2/23 2/24 2/25 2/26 2/27 2/28

Digital IQ Index ®:

Financial Services

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FLASH OF GENIUS The Mobile Bank CHASE In 2007, Chase introduced mobile banking via SMS (text messaging). Mobile users, even those without smartphones, can text simple shorthand commands to their accounts to perform functions like checking balances and viewing transaction history. For smartphone users, Chase’s highly rated Mobile app (available for both iPhone and Android) was the first to allow customers to deposit checks using their phone’s cameras and the first to support person-to-person transfers. A recent update to the iPad version of the app makes it the first tablet app to offer mobile check deposit.

Chase’s mobile banking app

Chase educates users with mobile banking demos

Digital IQ Index ®:

Financial Services

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FLASH OF GENIUS Priceless App mastercard MasterCard’s Priceless Picks iPhone app is designed to allow users to explore the “priceless things” in life. The app hosts thousands of user-recommended experiences, shops and restaurants. Users can add reviews right from their phones. The app features a filter so that users can quickly find the priceless pick that is most relevant to them. With both 3D and 2D maps, the app is great for exploring new locations and discovering new things.

MasterCard’s Priceless Picks app

Digital IQ Index ®:

Financial Services

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FLASH OF GENIUS Everywhere You Want to Be... Through Your Browser VISA Visa has its sights set on owning the “digital wallet.” Instead of pulling out the plastic, soon purchases will be made with the wave of a mobile phone at the point of sale or with the press of a single button online. The company is launching a personal payments system to support social and e-commerce and investing in mobile payments startup Square, challenging PayPal. Visa is testing near field communication supported mobile payments, and last August launched Rightcliq, an online shopping assistant with social integration. Essentially a browser add-on, Rightcliq enhances the e-commerce shopping experience. Users can save items in a “Wishspace,” organize favorites into bundles, and compare items side-by-side. Rightcliq also enables users to incorporate friends and family into their purchasing journey and decisions via email and Facebook.

Visa’s RightCliq allows users to save items in a “Wishspace”

Visa has its sights set on launching the “digital wallet”

Digital IQ Index ®:

Financial Services

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FLASH OF GENIUS Your Card, Your Way american express zync Eighty percent of banking and financial institutions used crowdsourcing to develop and launch new products and programs.12 Targeted at young adults, ZYNC by American Express, whose

Users can customize their Zync card to fit their lifestyle

mission is to “help you enjoy more of the things you’re into…,” has set the gold standard. Its self-expressive motif is overwhelmingly evident throughout the ZYNC product page, from the ability to flip or scroll through fun icons that lead to individual “Pack pages” featuring bold graphics down to such user-friendly copy, as “Meet ZYNC” or “Create yours.” Through the “ZYNC Tank” microsite, Amex solicits feedback and allows consumers to have direct conversations with members of the marketing and product teams. User reviews are featured prominently on the application page, openly inviting visitors to listen or contribute to the conversation around ZYNC.

C R E D I T C A R D P R O D U C T “ L IK E S ” (May 2011) The American Express ZYNC card has more “likes” than these four cards combined.

Visa Signature: 74,965 American Express ZYNC

Chase Freedom: 34,963

128,742

Chase Sapphire: 2,291

Chase Blueprint: 14,125

Total: 126,344

Digital IQ Index ®:

Financial Services

Want to know more about your brand’s ranking? CONTACT US The BB&T “Lighthouse Project”

FLASH OF GENIUS Banking on a Cause FINANCIAL SERVICES COMPANIES DO GOOD Hostility toward large financial institutions is common. Many companies are turning to social media to amplify their corporate social responsibility efforts and generate goodwill. Chase Community Giving is the flagship example with nearly 2.6 million fans on Facebook. Chase keeps its community engaged by giving them true agency: their votes, through a Facebook app,

Chase Community Giving

determine which charities receive awards up to $500,000. The American Express Members Project offers its million strong Facebook community the ability to identify and enroll for volunteering opportunities, donate to a charity, and share their inspirational stories, all within custom tabs. Cause marketing on Facebook is not limited to the big name players: BB&T’s Lighthouse Project has a page that highlights its employees’ commitment to volunteering in their communities. FINANCIAL SERVICES C A U S E M A R K E T I N G O N FA C E B O O K Facebook Page

“Likes” May 2011

BB&T: Lighthouse Project

2,436

Capital One: Connect One

4,364

SunTrust: Live Solid American Express: Members Project Chase: Community Giving

15,595 799,735 2,583,140 The American Express “Members Project”

Digital IQ Index ®:

Financial Services

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TEAM SCOTT GALLOWAY Professor of Marketing, NYU Stern Founder, L2 Scott is a Clinical Professor at the NYU Stern School of Business where he teaches brand strategy and luxury marketing and is the founder of L2, a think tank for digital innovation. Scott is also the founder of Firebrand Partners, an operational activist firm that has invested more than $1 billion in U.S. consumer and media companies. In 1997, he founded Red Envelope, an Internet-based branded consumer gift retailer (2007 revenues: $100 million). In 1992, Scott started Prophet, a brand strategy consultancy that employs more than 250 professionals in the United States, Europe, and Asia. Scott was elected to the World Economic Forum’s “Global Leaders of Tomorrow,” which recognizes 100 individuals under the age of 40 “whose accomplishments have had impact on a global level.” Scott has served on the boards of directors of Eddie Bauer (Nasdaq: EBHI), The New York Times Company (NYSE: NYT), Gateway Computer, eco-America, and UC Berkeley’s Haas School of Business. He received a B.A. from UCLA and an M.B.A. from UC Berkeley. MAUREEN MULLEN L2 Maureen leads L2’s research and advisory group and has benchmarked and/or developed digital and social media initiatives for more than 300 prestige brands. She began her career at Triage Consulting Group in San Francisco. At Triage, she led several managed care payment review and payment benchmarking projects for hospitals, including UCLA Medical Center, UCSF, and HCA. She has gone on to lead research and consulting efforts focused on digital media, private banking, M&A, insurance industry risk management, and renewable energy economics for professional firms and academics. Maureen has a B.A. in Human Biology from Stanford University and an M.B.A. from NYU Stern. R. DANIELLE BAILEY L2 Danielle began her career at The Home Depot, Inc., where she led a variety of internal consulting engagements focused © L2 2011 L2ThinkTank.com

on supply chain, merchandising, and in-store process improvement. She went on to manage the implementation of award-winning mobile initiatives for several large media clients, including The New York Times Co., NBC Universal, Disney/ABC, Maxim magazine, and Zagat. Danielle has a B.S. in systems engineering from the University of Virginia and an M.B.A. from NYU Stern. CHRISTINE PATTON Creative Director, L2 Christine is a brand and marketing consultant with more than 15 years of experience creating brand identities and marketing communications for aspirational and luxury brands. She began her career at Cosí, where she developed the brand and oversaw its evolution from concept through growth to 100 restaurants. Since then she has provided creative direction for a wide array of clients, including the launch of Kidville and CosmoGIRL! magazine. Most recently, she led creative services at ELLE during the most successful years of the magazine’s history, developing innovative integrated marketing programs for advertisers. Christine received a B.A. in Economics and Journalism from the University of Connecticut and an M.B.A from NYU Stern. TANUJ PARIKH L2 Tanuj began his career as a project manager at the Center for Economic Transformation at the New York City Economic Development Corporation, where he worked on a variety of initiatives designed to grow the city’s innovation economy. Tanuj is also the co-founder and director of UniThrive.org, a peer-to-peer student lending social enterprise. In 2007, he was a Kenya-based Fellow for Kiva. org, the world’s first peer-to-peer lending marketplace for the poor. Tanuj received his A.B. in Government with a secondary in Economics from Harvard University. ANDREA DERRICKS L2 Andrea began her career in the Next Generation Leaders Program (NGL), a unique one-year program run by the Direct Marketing Educational Foundation (DMEF) that

selects top college graduates to rotate through a range of companies, gaining a 360-degree education in direct/ interactive marketing. While in the program, Andrea worked at Wunderman NY, eScholastic, Goodman&Company, and Harte-Hanks, gaining experience in business development, analytics, strategy development, research, and project management. After graduating from NGL, Andrea joined Goodman&Company, a strategic marketing consultancy. At Goodman, she worked on innovative strategies for PayPal, SAP, Microsoft, and Guthy-Renker. Andrea serves on the board of directors for DMEF and received her B.A. in American studies from Columbia University. ANDREW McLEAN U.S. CEO, PHD Since joining as the US CEO of PHD, an Omnicom Media company, PHD has won the largest media account of 2010 (GSK), been named Ad Age’s One To Watch in 2011 and voted by The Delaney Report as 2010’s Media Agency of the Year. This fast start comes after Andrew spent 11 years at WPP, most recently as the most senior client leader in GroupM. Andrew began his media career in publishing before entering the agency business as a television buyer in the late 1980s. Quickly rising to a lead position at DMB&B’s UK operation, he oversaw top accounts including Burger King and Procter & Gamble. In the mid 1990s, an offer from Disney led to a five year tour of duty highlighted by successful campaigns for blockbusters like The Lion King, Toy Story, and Armageddon, and the lead role in consolidating their media business. Moving back to the agency world in 1999, McLean was asked by Young and Rubicam to join The Media Edge, their fledgling media operation in New York. He was a key player in the merger with CIA that led to the creation of Mediaedge:cia. For nearly a decade, Andrew was MEC’s most senior client leader, managing U.S. and Global client teams and leading a period of unprecedented growth. In January 2009, he was promoted to Chief Development Officer for GroupM and named a member of their Global Executive Committee—a position he held until being asked by Omnicom to join their media operations in his current role.

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06 . 24 .11 L2 Clinic Mobile & Geolocal Every year has been touted the “year of mobile.” However, looking back at 2010, predictions and estimates on the explosive growth of mobile devices, smart phones, and the ubiquity of mobile web have all reigned true; we are now at

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