...Capital One Intro * Determine strategy for a mass media campaign. Goals: * Maintain competition with Canadian banks * Raise brand awareness * Position bank in the market place 1. What is the bank’s target customer segment? 2. Which advertisements should it use? 3. What is the right advertising plan? Canadian Banking Industry 13 domestic banks (6 majors with 90% market share, 7 smaller with 2% market share) 11 foreign banks with 7% market share. 93% of Canadians have a banking relationship and typically consolidate all their banking needs with one provider. Credit Cards Big increase in circulations of credit cards to 53.4million following arrival of US based competitors. Common for banks to run their credit card business as an integrated operation within retail banking. Marketing was aimed at existing customers via branches. Retail banks had low cost of capital than Capital One and MBNA hence they garnered a greater share of new acquisitions. More than half of card applicants are received in store. Capital One 49 million global customers and $105bn in managed loans Credit cards, auto loans, home equity, small business loans, installment loans, consumer financing and savings products. Founder’s belief: information, technology, testing and great people can deliver highly customized financial products. Relied heavily on proprietary Information-Based Strategy to tailor products based on huge amounts of...
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...There is a policy at Capital One Labs in Arlington that if a team needs more than two pizzas for dinner, the group is probably too big. Staying small has been a top priority for the 2½-year-old technology incubator, a spinoff of the McLean-based financial services giant. Unlike its much larger parent company, Capital One Financial Corp., Labs operates much like a startup — albeit a well-funded one — in an office dotted with beanbag chairs, throw pillows and an arcade machine built by employees. Keeping teams small allows Capital One Labs to be nimble and move quickly. The company’s recent mobile wallet was born out of Capital One Labs, as was its recent partnership with Apple Pay. About 50 employees work on a dozen projects at any given time. Banks and credit unions are reinventing themselves as quasi-technology companies, coming up with new branch prototypes, payment systems and security protocols. With cybersecurity breaches becoming a major concern that costs the industry hundreds of millions of dollars, executives say the need to keep up with the latest technology has become not only important, but also vital. PNC this year opened new “universal branches” in Rosslyn and Washington’s Tenleytown neighborhood, where teller lines have been replaced by tablet-toting employees. Wells Fargo, which is experimenting with applications for Google Glass, has taken similar measures, picking the District of Columbia for its first high-tech locations. Even smaller...
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...leadership. We often hear about one’s skills to lead from the front or lead by example. Such leadership behaviors are only possible if the golden rules of ethics are strictly adhered to. An ethical leadership encourages living the values of institutional beliefs. It helps in developing brand loyalty, productivity and a healthy work environment. Over the past several years, I’ve been lucky enough to experience and thrive under a leadership that knows, respects and honors the virtues of ethical behavior. It would have been hard for us, as employees of Chevy Chase Bank, to endure the stress and strain of merger with Capital One Bank, were we not blessed with effective leadership. Our leadership’s ‘business as usual’ approach helped us to keep move and wade through the murky and muddy waters of the corporate rigmarole. Almost a year and a half after the merger, looking back, one can safely say that the ethical behavior demonstrated by our leadership is what helped us keep our jobs and survive the tests of...
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...Lunchables, and pudding cups, and all you do is swipe a piece of plastic through a machine? “It’s like, the bank gives the money to the store, then the bank sends me a bill, and ... well, it’s kinda complicated.” If you think that’s tough, try to see your credit card the way Richard D. Fairbank does. To the founder and CEO of Capital One Financial Corp., that slab of plastic is the key to an information machine—a machine fueled by data on who you are, what sort of people you live among, whether you’ll carry a balance or avoid finance charges at all costs. This data machine may offer the closest thing ever invented to perpetual motion, because the more you use the card, the more data it produces. The machine takes your bytes, combines them with transactions by millions of other cardholders—and before long, it can pinpoint what you’re likely to buy next, whether you’ll respond to a pitch for long-distance telephone service, and how likely you are to sign up for Internet banking. Fairbank, MBA ’81, built that data machine—and revolutionized the credit industry. Before Fairbank, all credit cards cost the same: 19.8% annual percentage rate, $20 fee. Before Fairbank, no one had ever heard of teaser rates, “superprime” cards charging just 9.9% interest, or credit cards printed with your kids’ pictures. Since Fairbank—to be precise, since October 1991 when he rolled out the first cards to break the plastic price barrier—credit cards have become hotly competitive, customized products with thousands...
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...Lunchables, and pudding cups, and all you do is swipe a piece of plastic through a machine? “It’s like, the bank gives the money to the store, then the bank sends me a bill, and ... well, it’s kinda complicated.” If you think that’s tough, try to see your credit card the way Richard D. Fairbank does. To the founder and CEO of Capital One Financial Corp., that slab of plastic is the key to an information machine—a machine fueled by data on who you are, what sort of people you live among, whether you’ll carry a balance or avoid finance charges at all costs. This data machine may offer the closest thing ever invented to perpetual motion, because the more you use the card, the more data it produces. The machine takes your bytes, combines them with transactions by millions of other cardholders—and before long, it can pinpoint what you’re likely to buy next, whether you’ll respond to a pitch for long-distance telephone service, and how likely you are to sign up for Internet banking. Fairbank, built that data machine—and revolutionized the credit industry. Before Fairbank, all credit cards cost the same: 19.8% annual percentage rate, $20 fee. Before Fairbank, no one had ever heard of teaser rates, “superprime” cards charging just 9.9% interest, or credit cards printed with your kids’ pictures. Since Fairbank—to be precise, since October 1991 when he rolled out the first cards to break the plastic price barrier—credit cards have become hotly competitive, customized products with thousands...
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...Capital One 1 Running head: CAPITAL ONE Capital One: The American Credit Card Company’s Growth Strategies Alicia Holden BUS499 Capital One 2 1. Identify and describe the key environmental forces that have immediate strategic implications for Capital One. There are many key environmental forces that have an immediate strategic implication for Capital One. First, the credit card industry has reached a high level of competition. This is a period of mergers and consolidations. Some institutes are selling off their credit card portfolio, others merging operations you might say that the industry is undergoing a period of flux. Secondly, the rise of personal bankruptcies has a direct barring on the credit card portfolio of Capital One. Thirdly, the economy; when the economy is in recession many things have a direct bearing on Capital One. Employees lose their jobs and fall behind on their credit card payments, this directly affects cash flow. Credit card holders may file for bankruptcy thus resulting in a bad loan discharge or times are just hard and are late paying their credit card payments. Capital One also faces a potential risk from its practice of funding from securitization. Capital One had to shift away from sub prime loans to a larger portion of prime loans as a result of federal regulations and many...
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...Case Study 5.1: Capital One creates value through e-business Capital One Capital One, a leading bank that offers credit card, saving, loan and insurance is based in UK, Canada and the US, was established in 1995. It is an outstanding candidate to study for business experts because it is a highly profitable financial company, which generated a net income of 1 billion dollars in their first ten years. Capital One creates competitive advantage to exceed competitors. Why is Capital One successful? Capital One adapted Information-Based Strategy (IBS) to make important decision by conducting tests. As a company, Capital One believes IBS has made its business successful by reducing the risks and studying business and customers closely to make the best decision and innovation. Capital One thrives to provide customized option for customers at the lowest price possible. In order to satisfy customers, Capital One offers many financial plans and service that suits each individual. Capital One delivers excellent products at a low cost. Capital One was able to succeed because of consistent and excellent customer care. Capital One picks up 90 million calls per days and handles all matters as soon as possible. Capital One provides convenient online services where people can sign up for services during their convenient time. Furthermore, Capital One has made the process of transfer from another bank to Capital One easier and faster through SmartSwitch. Capital one has achieved many loyal...
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...Revolution Capital One is winning big in the cutthroat world of credit cards by changing the rules. Its mission: Deliver the right product, at the right price, to the right customer, at the right time. Its method: Never stop testing, learning, or innovating. By Charles Fishman The telephones at Capital One Financial Corp. ring more than one million times a week. People call to ask about their MasterCard balance, or whether a recent payment was received, or why their interest rate has jumped. And more than 1 million times a week, here's what happens — before a caller hears the first ring: The instant the last digit is punched, high-speed computers swing into action. Loaded with background information on one in seven U.S. households and with exhaustive data about how the company's millions of customers behave, the computers identify who is calling and predict the reason for the call. After reviewing 50 options for whom to notify, the computers pick the best option for each situation. The computers also pull and pass along about two dozen pieces of information about the person who is calling. They even predict what the caller might want to buy — even though he or she isn't calling to buy anything — and then they prepare the customer-service rep to sell that item, once the original reason for the call has been addressed. All of these steps — the incoming call, the data review, the analysis, the routing, and the recommending — happen in just 100 milliseconds. That's one-tenth of...
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...Case questions 1. What is their business strategy to grow profitably and compete over the long term? Capital One Success Factors Pilot Strategy (first stages) • Initially, they began with a pilot strategy at Signet Bank to test their customer targeting systems • Successful and profitable within a couple years – created Capital One Competitive Edge (risk analysis) (redemption offers) (customer loyalty) (targeted offers) • Recognized large customer base in high risk credit customers • Developed IS with data analytics that determined probability of receiving money from high risk customers • Targeted credit options through wide array of data (web streams, credit reports, club cards & memberships) *** • Successful in determining fraudsters and extremely high risk profiles • Allowed a credit building option to people who weren’t allowed credit elsewhere • Successfully expanded customer base through the internet by testing advertisements Customer Retention (customer service) (long term retention) • Real-time data available to customer service agents that showed available credit options to individual customers • Data analysis through SAS Institute and Brio to determine whether or not customers were lying about other offers in order to receive a lower APR • Capital One has lowest default rates among credit companies • Data analysis can eliminate fraudsters and help retain truthful customers Finding Profit with Risk • Advanced data analysis software...
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...Case questions 1. What is their business strategy to grow profitably and compete over the long term? * Get customer data from whatever sources are available, loading it onto our systems and analyzing it * Put together products that will appeal to different types of people, by testing whether hypotheses are right, looking at the result of these tests, modifying the hypotheses and testing again, and so on * It is all centered around understanding and analyzing information * Capital One can address a much wider group of potential credit card customers, offering credit facilities to individuals who traditional card companies regard as high risk * To do so, it Aggregates as much data as possible on customers - from credit checking information to lists of people's hobbies 2. Describe how Capital One uses information to implement their strategy? What kinds of information do they use and where does it come from (sources)? * The slab of plastic is the key to an information machine—a machine fueled by data on who you are, what sort of people you live among, whether you’ll carry a balance or avoid finance charges at all costs. * This data machine may offer the closest thing ever invented to perpetual motion, because the more you use the card, the more data it produces. * The machine takes your bytes, combines them with transactions by millions of other cardholders—and before long, it can pinpoint what you’re likely to buy next, whether you’ll...
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...Section 1 Capitol Project Deborah Kirk University of Phoenix HCS 517 Debra Vaughn April 25, 2016 Many healthcare organizations set goals and objections and write mission statements that reflect the way they want the public to see how healthcare is provided. This is done to guide how their healthcare providers practice daily. In order to meet these goals and objects it is necessary to have in place processes and procedures to ensure the results will be what is expected which is a positive patient experience and outcome. In order for our organization to reach this goal there is a coaching and execution package that will provide step-by-step processes and procedures to ensure that everyone is doing the same thing at the same time with every patient every day. This package is called the Studer Principles® offered by the Studer Group Corporation®. This package is detailed and contains the necessary information to educate all staff in evidence based leadership that will foster a relationship between leadership and staff. The package will also provide every employee with the tools necessary to perform their jobs more efficiently to increase positive patient outcomes and experiences. This will be a new way of learning but will do so in a way that everyone will be on the same page and speaking the same language. After reviewing the strategic plan for the Fayetteville Veterans Administration Medical Center there are a number of goals and objectives covered in this document...
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...Case Analysis External Assessment for Capital One Bank Rita Brown-Tiggs August 6, 2015 MGT 680 – Strategic Management Problem Statement The external environmental factors in strategic planning are essential for the prosperity of any business. Managers perception and knowledge of the internal and external changes in an organization will determine the organization’s activities to be engaged in as identified and its ability to monitor business activities to measure customer’s basic levels of expectation with the product and services in doing business with similar banks within a specific area. The external environmental factors to be considered is to look at the climate, economy, technology, political, and legal factors to best determine the product or service to be offered currently or if there are activities that need to be increased or decreased based upon the information gathered during this assessment. The research and development departments of the organization will incorporate value to the services being provided the organization’s ability to correct concerns within the organization from the older versions of what is currently being offered to its customers currently. Analyzing Case Data The Capital One Bank has completed its due diligence when considering the next steps necessary to review all issues of concern and satisfy its customers without loosing its original standards to continue to gain a strong foot hold within the industry....
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...appointed the manager of the Cross Sells team at Capital One, which evaluates opportunities to market non-credit card products to our credit card customers. These cross sells usually involve building relationships with outside vendors who sell us products that we, in turn, can sell to our customers at a premium. One potential cross sell opportunity that is sitting on your desk right now is the Prepaid Phone Card - a piece of plastic you can use to pay for long distance telephone calls. You use the card by calling in to a 1-800 number, entering the card's PIN number, and then entering the destination telephone number. The minutes left on the card are kept track of by the outside vendor - your only responsibility is to market the product in a way that maximizes profit for Capital One. Take a few moments to consider some of the most important factors that will influence your decision on whether to pursue the Phone Card cross sell. When you've come up with some ideas, click here to continue. Below is a list of some of the most important questions you should consider. Please take a moment to compare your list with the one below. Hopefully, you'll find a few of your answers on the list, plus a few more that you hadn't thought of. How much does each Phone Card cost Capital One? Are there any other costs involved, such as a...
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...Hey friends, We know there is a lot of excitement in the community surrounding the Lollipop updates for the One, and for good reason. We are just as excited as you are. We never intended to keep you waiting. Unfortunately, we ran into some unexpected roadblocks. First, there was an unforeseen OS signing issue, which has recently been resolved. Our camera module had stability issues on Lollipop, and we had to rebuild it for compatibility. Several other crucial drivers, including our Wi-Fi drivers, also needed to be updated to work flawlessly with the upgrade. Admittedly, it took a little more time than we had planned, but we only release updates that we are proud of; that means refusing to take shortcuts or deliver sub-par experiences. With all of that in mind, here are the official release dates for Android Lollipop on the OnePlus One: CM 12S: The official OTA update for the OnePlus One will be released on or before March 30, 2015 OxygenOS: The official release of our own Lollipop-based ROM will be available for download on or before March 27, 2015 To show you how serious we are about this commitment to our community, we are prepared to put our money where our mouth is. If we miss either one of these deadlines, we will give away five (5) 64GB OnePlus One devices to our fans. Reply to this thread to be eligible. It’s our little way of saying thank you for being patient and for joining us on our journey to create amazing, user-driven experiences. Never...
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...Capital One Bank Customer Service Training Design Capital One Bank’s business strategy has been to buy regional banks to get access to their deposits, which the company uses as a cheap source of funding for its more lucrative, high annual percentage rate, credit card operations; an internal growth strategy. There is a dichotomy in their customer service strategy; the banking operation requires a relationship with the customer that allows the customer to feel that their money is going to be taken care of. The credit card operation requires a relationship with the customer that allows the customer to feel that they will be taken care of when there is an absence of money. The customer service issues arise by introducing a new task and possibly new technology to both the existing banking employees and existing credit card employees. Focus groups of Subject matter experts, questionnaires, online technology, interviews of employees and customers and observation are the techniques that can be used to conduct this needs assessment. However, as a great deal of banking and credit card operations takes place online and over the phone, of particular value will be the utilization of online technology; even face to face banking and credit card operations occur with an employee in front of a computer. Help desk management software can be used to collect data and help identify the most frequently occurring customer service issues so that training can be focused on specific issue resolution;...
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