Bank of America Follows Competition with Mobile Banking, Falls Short in Eyes of Consumers
The Application Design with Social Intelligence (ADSI) Model
The ADSI Model was developed by Crimson Hexagon to illustrate how social intelligence can play a pivotal role in an organization’s decision-making and innovation process. In this context, the ADSI Model offers a base framework from which organizations can design and implement a smart model for application innovation by leveraging the voice of the consumer as it relates to distinct business touchpoints. This same model can be employed in traditional product development settings, and used to inform cross-channel positioning strategies as well. Combining both business and competitive insight, the ADSI Model reveals consumers’ desired value elements, and helps the organization to achieve sustainable competitive advantage.
In our previous social intelligence blog post, we explored Bank of America’s traditional and mobile touchpoints through the voice of the consumer. Using the Crimson Hexagon ForSight™ platform, we conducted deep analysis of online consumer commentary and uncovered the drivers behind consumer praise and frustration with BofA’s Mobile Banking product.
In particular, we found that Bank of America’s release of the mobile check deposit feature pleased consumers, accounting for 60% of the conversation. However, praise of this app enhancement quickly eroded over the next three months, as consumers were no longer as impressed by the feature. The proportion of conversation related to mobile check deposit declined by 41%. In sum, Bank of America only achieved a competitive parity and short-term goodwill among consumers. For a complete review of our findings, please refer to part one of this study.
Let’s revisit the ADSI Model.
By strategically leveraging social intelligence, brands in every industry can investigate consumer reactions to existing mobile apps, competitor app features, and traditional customer touchpoints to inform new app development. What’s more, brands can use this intelligence to discover new strategies to complement traditional offerings and address consumer desire for experience enhancements—before the competition.
With the case of Bank of America, we learned that the organization finally heard their customers’ pleas for app enhancement and announced mobile check deposit. Though BofA successfully delivered new value to customers via this channel, the bank was unable to get ahead of the development curve and sustain customer satisfaction.
Instead of reaching for competitive parity, Bank of America could have potentially enjoyed a larger horizon of goodwill if the firm strategically leveraged social intelligence. For example, if Bank of America had employed a cross-departmental model at the outset, enabling stakeholders to gain transparency into the customer experience, the retail bank could have forged and steamlined a new pathway for internal decision-making and innovation. As a result, BofA would have facilitated discovery of what experiential elements consumers truly value and hope to gain, as well as execution of advanced competitive analysis–and would have been in a position to capture this value.
Sophisticated social media analysis can inform product development and positioning initiatives, providing firms with strategic advantage over competitors who are unable to glean relevant insight from all of the online noise.
Products and services are evolving, but not as rapidly as consumer tastes.
The path to achieving competitive advantage requires companies to be proactive in anticipating, identifying, and responding to shifts in their customers’ preferences.
Critical to this endeavor is deep analysis of multiple firm and competitor touchpoints, and the internal dissemination of analytical findings to relevant departments. The good news, however, is that analysis technologies exist that significantly reduce the time required to perform this comprehensive market research and, as we have learned, can achieve a high level of granularity.
We continue our exploration of the mobile channel in a financial context with the advent of mobile payment products. Look out for Crimson Hexagon’s upcoming analyses exploring the mobile payments industry, key players and technologies, as well as consumer review of new retailer implementations.
Be sure to also sign up for our upcoming social intelligence webinar, “How Financial Institutions Can Gain Competitive Advantage Through Social Media Analysis,” on February 6 at 12:00 pm Eastern (9:00 am Pacific).