This article originally appeared in the Nov. 2012 issue of CUSTOMER
If there is one constant these days it is that your competitors tomorrow are going to come from the most unlikely of places. Apple came from nowhere to unseat RIM and Nokia (News - Alert) in mobile phones, Amazon is becoming a major force in tablets, Google’s Chrome and Android products have made it a major force in software and operating systems.
But the examples above are technology-based, so they shouldn’t be too surprising, as we have come to expect tech companies to be quick to enter new markets. What could portend a future trend, however, is Bank of America’s move into the deals business. The feds have passed laws to limit how banks can generate revenue from consumers through fees so they are scrambling to make money in new ways.Earlier this year the company announced it was going to launch BankAmeriDeals, which would allow customers to get additional cash back on a monthly basis depending on where they shopped. The interesting thing is the bank doesn’t make money from these transactions – they do on the increased credit card processing of course. The idea here is to boost credit card usage by taking share from other banks and cards like American Express (News - Alert).
Some of the companies involved in the program currently are ADT, Burger King, FedEx Office, HSN, and Redbox.
American Express, for its part, already has merchants it works with on a customer cash-back basis, so BoFA isn’t necessarily breaking new ground.
What may be new, however, is the television ad campaign the bank is running. In this economic environment, everyone is looking to save, and if the company can position itself as a solid choice for customers seeking deals, it may become a magnet for vendors looking for more customers.
I reached out to David Godsman, the bank's online and mobile solutions executive and didn’t immediately hear back on how large the ad campaign is but if I do I will update this on TMCnet.
Edited by Brooke Neuman