A smart Idea from INGdirect - Referrals !

All right, let's move with our business scope to the fantastic world of banks.
One might think that, with all the money they have, they would not need smart little ideas to boost profit... You are dead wrong, dear reader.



We got this Idea Suggestion from GiuseC, a great blogger friend of mine (thanx GiuseC). He just opened an account at INGDirect and received an email telling him very directly that:
1) You introduce us one of your friends that does not have an account with us yet
2) You will get a better interest rate on your savings for 4 months.
3) Here is the unique Id code that he/she has to specify when opening the account: XXXXX

Let's look into the dynamics and economics of the situation:

• Cost: nothing. It's an email... not even the postage stamp
• Risk: nothing. If it does not work, no investment has been made, so no money will be lost.
  
• Upside: the ING people know very well the "lifetime net worth" of a new client. They run their numbers and they know how much a new client will bring to them in his/her lifetime: paying 4 months of extra interest on GiuseC account will be small money for what they get
• Upside 2: even if GiuseC does not bring a friend in, he will still feel good about the offer. The goodwill that GiuseC has toward ING will increase, and with it the probability that he will not switch to a competitor

Wow, so much gained with a little, cute and cheap email: this surely qualifies as Smart Idea!

Till next time,

K in Taiwan