Dakota Bank Case
Great Dakota Bank
Case Assignment Questions
1. What is the value proposition for online banking? Explain. How should Great Dakota Bank communicate this value to its customers?
The value proposition for online banking is to ensure customers how valuable and useful online banking can be for them. Customers who engage in online banking are able to constantly keep track of their spending, pay bills online, transfer money between accounts, and know where their money is going out and coming from. Although not mentioned here, with today’s advanced technology, a user of online banking has the ability to virtually bring their bank with them wherever they go with the use of smartphone apps. By heavily advertising the advantages of online banking—the time, convenience, and ease of using the product—customers may start to see the usefulness. The article states that some customers were reluctant to use online banking due to the belief that Internet security was low. Although this may seem like an issue that the bank has no control of, there are still things that could be done to reduce the fear; advertise why Dakota Bank’s online banking is secure, provide tips of how the customers can make their accounts as secure as they can possibly be, and provide them with information about what the bank will do to help and fix the situation would the unlikely event of online banking theft occur. By offering specific benefits to customers who use the service, customers feel like the service offers value to them and therefore gain a sense of worth. The decision to promote online banking by offering people who signed up the first 6 months free service in addition to free checking, entering a large sweepstake, and receiving $50 in cash, encourage customers to sign up. After all, what do they have to lose? The key to a successful value proposition for Dakotaonline is to strive to involve their customer’s; once customers are involved in their own banking they have the
Case Assignment Questions
1. What is the value proposition for online banking? Explain. How should Great Dakota Bank communicate this value to its customers?
The value proposition for online banking is to ensure customers how valuable and useful online banking can be for them. Customers who engage in online banking are able to constantly keep track of their spending, pay bills online, transfer money between accounts, and know where their money is going out and coming from. Although not mentioned here, with today’s advanced technology, a user of online banking has the ability to virtually bring their bank with them wherever they go with the use of smartphone apps. By heavily advertising the advantages of online banking—the time, convenience, and ease of using the product—customers may start to see the usefulness. The article states that some customers were reluctant to use online banking due to the belief that Internet security was low. Although this may seem like an issue that the bank has no control of, there are still things that could be done to reduce the fear; advertise why Dakota Bank’s online banking is secure, provide tips of how the customers can make their accounts as secure as they can possibly be, and provide them with information about what the bank will do to help and fix the situation would the unlikely event of online banking theft occur. By offering specific benefits to customers who use the service, customers feel like the service offers value to them and therefore gain a sense of worth. The decision to promote online banking by offering people who signed up the first 6 months free service in addition to free checking, entering a large sweepstake, and receiving $50 in cash, encourage customers to sign up. After all, what do they have to lose? The key to a successful value proposition for Dakotaonline is to strive to involve their customer’s; once customers are involved in their own banking they have the