Bank of America Puts a New Spin on Cross Selling and Online Banking
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13 March 2009Jacob Jegher
Bank of America recently introduced a new program called Add it Up. This creative program allows BofA credit or check card holders to receive cash back (on their credit card or deposited to their BofA checking account) when they shop online at a variety of merchants. It's an interesting move as banks don't typically tie themselves into other industries (retail in this case). The partnerships with retail merchants are certainly a creative way of marketing and relationship building. There is a long list of merchants to choose from and the cash back percentages are quite decent. A couple of things caught my eye: - This is a great way to cross sell.You need to enroll for this via BofA online banking. In other words, if you have a BofA credit card but don't bank online with them, you must now open an account. Or vice versa (bank online, need to get a credit card). A good way to cross sell and tie complementary products together. - The offer is attractive since people are trying to save money. The rewards offered here are exactly what US consumers are looking for. Money is tight and folks will be more than happy to save wherever they can. - This is the time for banks to solidify customer relationships. Consumers are wary, banks are shaky. This is a move that cost-conscious consumers will appreciate and it can certainly contribute to the relationship stickiness factor. It is important to note that this is NOT a new concept. Receiving a discount or cash back for online shopping has been available for some time through a variety of consumer sites. Examples are www.fatwallet.com and Live Search. Users of these sites don't have much incentive to switch to BofA. However, Existing BofA customers who are new to the cash back concept will find a lot to like.
Industry or Business Focus
Asia-Pacific, EMEA, LATAM, North America