Citi’s CMO believes the bank’s innovative digital innovation and social media banking strategy will strengthen the 200-year-old business and make it more profitable.
On December 5, new chief executive Michael Corbat cut over 84 branches of Citi‘s (@Citi) 4,000 branches, slashing 11,000 jobs. The move is said to be unrelated to the resignation of Michelle Peluso to become chief executive of Gilt Groupe (@giltgroupe).
Citi’s announcements do not relate the job losses to the digital strategy, but in all of the 150 markets it competes in.
On Citi’s first touch in social media, many disagreed with Peluso and it took six months before a customer feedback tool was added to the IT systems.
Although Peluso will be leaving the company in February, she points out that she will continue to supervise the digital operation for the next two months, making her chief of marketing and digital officer.
Peluso also believes that it is important to focus on what customers want rather than to make other financial services companies the benchmark. Customer satisfaction and convenience are the attributes that Peluso quotes as important.
On October 31, ICM research shows that 85% of UK consumers feel unrewarded of their loyalty and less than 10% would recommend the same brand to friends. Yet, only 15% would consider changing providers.
On Doe’s incremental innovation, Peluso gives examples to improve existing practices through customer data with search optimization, landing page design, and display ads. The data also allowed her to argue Citi’s innovation where she pointed out the rise of online credit card customers from 10% to 40-50%. However, she also admitted that the security of digital banking tools is still a concern.
- Citi cuts 11,000 jobs and 84 branches
- 85% of UK consumers do not feel rewarded of their loyalty
- 10% would not recommend the same company to friends
- 155 would consider changing their financial providers
- Online credit card customers increased from 10% to 40-50%
Michelle Peluso, Citi’s Chief Marketing and Digital Officer: “We increasingly believe – given the customers we serve, who tend to be worldly, urban and digitally savvy – that the ability to have branches as an anchor point but use digital to create a wider nexus is a very powerful thing.”
Richard Doe, Chief Executive at ING Direct: “The interesting thing about the payment space is that banks are no longer competing just with each other, they are competing with other operators – PayPal, eBay and so on.”
Dermot Boden, Chief Brand Officer of Citigroup: “I don’t think you can possibly think of marketing without digital. If you do, you’re probably a couple of decades out; I don’t think you can divorce the two.”
Covered by my Visible Banking Team
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