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There was no doubt that the success of the internet business was vital to the stocks as well as the growth and strategies of the financial services provider. The small national independent banking organization was soon able to position itself as a futuristic innovative multiplicand low cost provider by being able to capitalize on technology and the positive use of the internet. Banister’s initial strategy was to be the “most effective urban middle sized bank leader in corporate services and in the upper income” brackets when it first opened in 1965 as a JP of Banc Suntanned and Bank of America.However, in the early ass’s they began to close several branches and change the focus on product & channel-oriented marketing and soon they were side to able to take advantage of the internet boom. Once a bank which focused on credit cards, loans & mortgages, they now began to offer telephone, internet and virtual banking along with new services such as car insurance and mutual funds etc.Quickly identifying the important role the internet could play, Banterer launched its online site in 1997 and began a three-pronged strategy to make the most of its internet advantage: 1) Partnering with Portals and capitalizing on internet traffic 2) Launch an Internet Branch & lastly 3) Migrating financial transactions from a physical space to something new and ritual.

By the end of 2001, Banterer was processing more transactions online than in their physical bank spaces and banterer. Mom became a benchmark for the industry earning it the ranking of “Best small bank in Europe” and “Best online broker in Spain in 2001”. This was a big surprise given the low internet usage in Spain at the time. Target: The typical profile of Banister’s internet bank user at this time was: Not as loyal as the customers who went to a physical bank Found to be potentially a difficult to cross-advertise/ sell products to Were essentially ore demanding as consumers usually was the online brokerage The target was product-oriented & price-oriented and in general more sax. .

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Y Independent thinkers who wanted to decide what was best suited for them on their own Were 25-40 years old and lived in larger cities Comfortable with computers & technology, Usually high-medium affluent Used multiple channels of communication and liked the fact that there was a physical bank space with manned personnel to visit if need be. We will see through an understanding of this case that the bank evolved to change TTS strategy and widen its core target as we proceed. Like most companies, Banterer faced its share of high’s and lows.During its boom in the Internet sphere, the bank decided to ally with highly trafficked and preeminent online portals to acquire more customers. Banister’s customer acquisition strategy was to form alliances with select prestigious financial websites and search engines. They would maintain a web page within each of these websites, with the hope that their high traffic would gain Banterer some recognition leading to a rise in customer acquisition.

This resulted in many issues. Banterer had to change their look and feel to sync with the portals’ sites, which led to high costs.They also had to maintain the replicated systems on their own servers. They were providing bad service to customers on these portals due to staff shortage. They had to incur a high cost of co- branding fee, which had to be paid to the allied partner annually. Fee paid to the alliance partner for each acquired customer on the partner’s portal was an additional cost, along with Advertising and Promotions fee. Furthermore, it’s competitors began o infiltrate these sites vigorously, by buying over portals for lump sum amounts of money.While Banterer did attain numerous customers through the Alliance approach, the costs of customer acquisition were too high to be Justified.

Hence, they terminated this process and shifted towards a program they called “e-collaborators”. This time, Banterer placed banners on websites that linked users to banterer. Com directly.

They displayed banners on any highly trafficked website that would agree to display it, regardless of that websites content. While this too was a success, it had a ewe drawbacks. People started opening accounts, but did not complete the entire process.

They found a lack of customer interest level. The process of acquisition wasn’t up to mark and customers did not find any incentives to complete the process. Also, the program did not target the segments of market that would be most valuable to the company. Banister’s internet acquisition strategy, as it can be seen through reading the case study, has evolved over a period of time. The strategies that they implemented, of course, had their issues, but they both also had their strengths.

While this idea did to play out as well as Banterer had hoped in practice, in theory, it was a strong idea.To have a web page within another well-known, prestigious web page, would allow consumers to think of Banterer in the same light as the website that Banterer one that was respected, then people would automatically look at Banterer with a certain level of respect as well, simply for their presence on and association to, that website. Rather than finding their advertisements on any random page, Banterer only associated with websites that were not only highly-trafficked, but ones that were ell known and highly esteemed.In addition, the types of websites that Banterer chose to work with were ones that were frequented by their target market.

This meant that they would more likely than not be advertising to a concentrated group of the “right” people that they were trying to get to. The strengths of their second customer acquisition strategy, were greater than the strengths of their first. The second acquisition strategy which Banterer implemented, was an collaborator program.

One strength of this would be the drop in customer acquisition costs.Being that having their banner displayed on these websites was free of charge, the pressure of simply gaining enough new customers to break even with the acquisition costs, was no longer a worry. This change in strategy also opened up their target market. While initially intending to market to those individuals who were more on the professional side, making money, and between a certain age range, Banterer deciding to display their banner across websites which were highly trafficked by every kind of person, opened up their pool of potential customer immensely, and at no extra charge.This also eliminated their narrow standard for what their typical customer should look like, and made them an approachable bank for everyday, not necessarily wealthy, people, a group representing the majority of the population. After analyzing the case study, we concluded that Banterer has several options to continue its growth in the short and long term. They did a good Job implementing the e-collaborator platform and other strategies that placed them on the top of their competition today. In order to come up with solutions, we had to study Banister’s opportunities and threats.

In the short term Banterer should leverage its strength in the online business. This way they will be able to maintain leadership. Being the online bank leader has been their signature, so we suggest they offer customers other online services and experiences. First, we suggest they diversify the places where they advertise.

Partnering with more and different portals will help them reach a greater number of people that can ultimately become part of their market share. Second, they should open social media accounts in Faceable and Twitter.This way, Banterer will create there channels to communicate with customers.

Third, they should develop a mobile application where they offer their customers a convenient and innovative way to handle their finances. This App must be friendly and easy to use, providing customers an easy way to pay bills, check account balances and pay water/electricity bills online. Lastly, another issue Banterer should solve in the short term is the great number of UN-formalized applications they received. We suggest they make simpler applications and to offer an incentive for new clients such as 0% PAR for longerOnline customers are demanding, product-oriented and price-oriented.

We believe they should use all information gathered through CRM (Customer relationship management) and focus their efforts towards developing new products that will be relevant for their clients. Banterer also noticed online customers weren’t loyal. We think Banterer should create a “Banterer Cafe,” which will pretty much work as a retail store. “Banister’s Cafe” would offer a different experience to customers by providing incentives such as a free Wife, and online computers to access online banking.The staff will consist on baristas and experienced bankers that will provide a more personal attention. The purpose of these incentives will be to create an intimate relationship with clients and to develop loyalty in the long term.

Additionally, we suggest they open the Cafe around universities and high schools since this is a significant part of their target market. The CaféГ© will work partnering with schools and offer a tour of the CaféГ© and provide students with bank information like opening accounts in the bank, stocks, loans, etc. As a way to educate and lure future costumers.

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