Blog Categories:

• Current Affairs
• Customer Experience
• Customer Loyalty
• Customer Retention
• Customers
• Film
• Food and Drink
• Marketing
• Music
• Sports
• Travel
• Uncategorized
• Usability
• Vox
• Web/Tech
• Weblogs

Blog Archives:

• July 2008
• June 2008
• May 2008
• April 2008
• February 2008
• January 2008
• December 2007
• November 2007
• October 2007
• September 2007
• August 2007
• July 2007
• June 2007
• May 2007
• April 2007
• March 2007
• February 2007
• January 2007
• December 2006
• November 2006
• October 2006
• September 2006
• August 2006
• July 2006
• June 2006
• May 2006
• April 2006
• March 2006
• February 2006
• January 2006
• December 2005
• November 2005
• October 2005
• September 2005
• August 2005
• July 2005
• June 2005
• May 2005
• April 2005
• March 2005
• February 2005
• January 2005
• December 2004
• November 2004
• October 2004
• September 2004
• August 2004
• July 2004

Contact Vox to learn about how we can help you create a comprehensive Customer Experience that drives bottom-line results dramatically higher.

I was on the Citibank site this morning and happened to notice a new product being offered: the Ultimate Savings Account, with an APY of 4.65%. I found this interesting as I have an eSavings Account, which was Citibank’s new product last summer as it moved to be compete with the likes of ING Direct’s and Emigrant Bank’s eSavings products. Right now, Citibank’s eSavings is paying 4.5% APY.

After a quick review of both products, they appear to be almost identical, although with the Ultimate product you don’t need to have a Citibank checking account. So why offer the new product versus, rather than say just raising the eSavings interest rate? And as a customer, why wouldn’t I open a new Ultimate account, move all my eSavings money to this new account, and then just close the eSavings account after that?

But then I took a second look at these products and here’s the rub: To open an Ultimate Savings account, it must be as a stand alone account. Apparently this means it’s the only Citibank account you hold. If you have checking, MMA, etc. accounts with Citibank you’re only eligible for the eSavings. This really perplexes me. Why is Citibank telling me as an existing customer of eight years that I matter less than someone only looking to maximize their online savings return?

I think this another case of a bank showing that they speak of customer retention ‘til the cows come home, but in reality they just don’t get it. I’m not going to leave Citibank over this particular .15% APY difference, but the bank’s message sticks with me loud and clear and will influence the future of my relationship with them. That five-year CD I was considering – well, maybe I should hit bankrate.com before deciding what bank to purchase it from, or that mortgage re-fi? Maybe a trip to guaranteedrate.com would be more fruitful than a visit to my local Citibank branch…

If banks focus new product strategies solely to rate-of-return bargain shoppers, then maybe it’s time we all just start behaving that way.