This past Saturday marked a new protest in the era of "We Are the 99%" with an action-message: Bank Transfer Day.
A clear and simple statement of "we're not gonna take it," and we're taking our money elsewhere to show you that we mean it. Big banks are finding new ways to impose fees on lower-yielding accounts, yet disregarding the damage to their reputation. As was seen in Bank of America's reversal of the $5 monthly fee for debit card usage, the consumer is defiantly taking a stand, consumers are fed up with feeling like a pawn.
Put another way, banking customers are beginning to wonder why they have to pay so much in a variety of fees, when they (in good faith) give banks their money to hold, and thus the banks can make money by: 1) loaning that money out, or 2) by receiving a fee everytime the consumer pays for a purchase with their bank card. In other words, consumers KNOW that the banks make money off of their money and their shopping habits. And they also know that the banks are not losing money, they're just not making as much in profits.
So what's a big bank—or big business—to do?
3 Ways Businesses Can Manage Fees in a Positive Manner
1) Create Clear Fee Structures: Consumers don't like to be nickled-and-dimed, look at all the ruffled feathers from the new policies in the travel industry. It's infuriating, and worse, creates brand animosity where customers feel the need to tell relatives, collegues, and friends about how they suddenly and unexpectedly had to pay for this, that, and the other thing. Nominal services or items that used to be free, but now have significant costs make me feel that they just lost at the shell game.
2) Give Consumers Something for Free: Studies show that by giving someone something, improves happiness. Now that corporations have the rights of people, they need to act like people and give. Nominal things that can be given for free: once-a-month use of a non-bank ATM (e.g., 7-11 or the competitor big bank) or one cocktail per customer on a flight. Even if the corporation doesn't earn the emotional benefit of giving, the recipient does and these small things can create incredible goodwill and loyalty.
3) Charge for Services that Can Be Done More Cheaply Online: If someone still wants a paper bank statement in the age of the internet, charge them $3 per month—it's a little high, to help boost conversion, but not so much that it's outrageous when one considers the cost for printing, paper, mechanical envelope stuffing, and postage. Those who decide it's worth $36 a year, will happily pay the fee, while the rest of your customers will log on. This is similar to the fee airlines impose for booking through the call center and the results have easily increased online usage and reduced customer booking calls, all of which is saving the airlines millions.
That said, businesses need to be conscientious of what the fee is for: will the customer perceive this to be understandable or annoying? For example, flying from Los Angeles to Europe with a plane change on the East Coast—suddenly there's a bag fee because the traveler is in domestic airspace, even though the full route of the ticket is to another continent. That's a nickled-and-dimed technique that should have the fee immediately waived the moment the customer checks in (online or at the terminal).
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Ultimately, consumers want a positive experience when interacting with the businesses they've chosen to trust. The protesters of Occupy Wall Street and Bank Transfer Day are more likely the beginning ripples of what will be a larger wave as this decade progresses. It is imperative that businesses understand consumer sentiments (as the people who run the business are consumers to!) and respond in-kind.
