Well, that didn't last long. Bank of America attempted to make another buck off of the 99 percent by charging a $5 per month fee for debit card users beginning in the New Year.
Resulting from a law that slashed the fees banks could charge customers for card use, Bank of America's new fee would have helped them make up for lost revenue.
Just two weeks ago, Bank of America CEO Brian T. Moynihan stated that he was incensed by the public criticism of the bank and its fee decision. In a block and tackle attempt, Moynihan reminded local leaders of the bank's contributions to their economies. He wanted people to be aware of this before yelling at the bank for making money off the little people. How's that for a moral stance?
Needless to say, after receiving irate feedback from customers for a month and a 306,000-signature petition, Bank of America scrapped its plan to charge the fee on Tuesday, November 1.
Why the change of heart? The second-largest U.S. bank decided to scrap its plan after rival banks reversed their stance (competition reigns king), and oh yes, in response to the outpour of negative customer feedback. Although other banks planned for similar fees, Bank of America seemed to take the brunt of the public outcry.
Since the fee reversal, is it too late for Bank of America to undo the damage that it created and regain customer trust? As marketers we must learn from Bank of America's errors and focus on:
- The value of listening – Be smart. Your customers', shareholders' and employees' voices are vital to your company's health. Keeping a pulse on their thoughts and concerns will put you one step ahead of a crisis with the potential to avoid it altogether.
- Credibility – Prior to making an announcement of this magnitude, thorough research must be conducted and the results looked at under a microscope. If Bank of America had invested in research, they could have avoided negative publicity and resulting customer loss.
- Timing and action – Due to the fact that Bank of America took more than one month to reverse its fee proposal, it is now between a rock and a hard place. The constant stream of negative publicity made an obvious impact on the brand – both in a drop of stock and reduction in customers.
The moral of the Bank of America story is that in order to be successful, you MUST put your customers first. Public opinion matters. If it will hurt the bottom line, then a major corporation will change course. It's a great example of why people shouldn't be apathetic.
Did you jump ship from Bank of America and move to a local bank or credit union? Now that the fee has been put to bed (for now), do you plan on switching back?