Financial Services Companies More Concerned With Developing New Online And Wireless Products Than Meeting Customer Needs, Says Jupiter Media Metrix

Consumers Rate Customer Service and Security as Most Important

Criteria When Selecting a Financial Services Provider



Apr 10, 2001, 01:00 ET from Jupiter Media Metrix

    NEW YORK, April 10 /PRNewswire/ -- Jupiter Media Metrix (Nasdaq:   JMXI),
 the global leader in market intelligence, today reports that financial
 services companies are focusing more on expanding online and wireless products
 than improving their existing Web sites for customers.  According to a new
 Jupiter financial services report, four times as many CEOs said they are more
 interested in increasing their mobile and online offerings, than did the
 number that said making their sites more user-friendly is a priority.  Jupiter
 analysts warn that financial services businesses will lose major market share
 if they fail to offer integrated, customized and simplified online offerings
 that better suit customer needs.
     "Major financial institutions are in a race to outdo one another by
 developing new online and wireless products to gain market leadership, but are
 leaving usability and customer satisfaction in the backseat," said James Van
 Dyke, Jupiter analyst.  "For financial institutions, the key to winning in
 this economy is to simplify and integrate basic services, such as banking and
 lending, insurance, investment and payments."
     Key findings and forward-looking analysis from the latest Jupiter
 financial services report, titled "Integrated Finance: Composing a Symphony
 Out of the Discord," include:
 
     *     A Jupiter Executive Survey reveals that a majority of financial
           services execs (57 percent) believe that expanding online
           capabilities (such as wireless services) is a top priority, compared
           to 25 percent that indicate increasing trust and security is a main
           concern.  Jupiter analysts found that there is a clear disconnect
           between the products that online institutions are building and the
           services that their customers are seeking.  Financial institutions
           that address this disconnect will see more than their fair share of
           online asset growth.
     *     According to a Jupiter consumer survey, customer service
           (52 percent) and federally insured accounts (59 percent) are the
           most important qualities consumers look for when choosing a
           financial services provider.  Only seven percent of consumers cite
           availability of promotions as important criteria for selecting a
           financial provider.  While many financial institutions focus on
           features, consumers' demands largely fall in two basic categories:
           trust and convenience.  Jupiter analysts caution that new features
           produce only complexity, which is fundamentally at odds with the
           desired goal of customer convenience.
     *     Jupiter analysts assert that financial businesses addressing the
           consumer's inability to manage the volume and complexity of
           available offerings are best positioned to emerge as market leaders.
           While no single financial institution has mastered this challenge,
           Wells Fargo and Charles Schwab have made significant strides to
           integrate multiple products across a variety of customer interaction
           channels.
 
     "As leading financial companies remain obsessed with first mover
 advantage, their failure to integrate services, content and advice is
 preventing customers from realizing their time-tested goals of trust and
 convenience," Van Dyke said.  "Those institutions that fail to effectively
 merchandise a widening array of multichannel offerings will be left with a
 shrinking base of customers."
 
     Advice for Financial Institutions
     Jupiter analysts offer the following advice for financial institutions
 that want to maximize their online offerings by meeting customers' needs:
 
     *     Invest heavily in personalization and customization capabilities.
           According to Jupiter analysts, financial companies must present each
           customer with unique offerings based not only on explicitly
           requested services, but also on additional content and services from
           gathered usage data.
     *     Position online products based on customer needs, not as the latest
           technology.  Financial institutions must accommodate the customer's
           experience by integrating basic needs such as banking and lending,
           insurance, investment, and payments, into one simple interface.
     *     Invest in integration of disparate systems and capabilities in order
           to minimize the growing complexity found in today's online financial
           services Web sites.  Companies can drive higher customer activation
           and asset retention by elevating the quality of customer experience
           over the quantity of new products and features.
 
     Jupiter Financial Services Report Methodology
     Jupiter uses a wide set of data-gathering tools to conduct research,
 including systematic polling of leading industry executives, extensive
 consumer surveys, Media Metrix audience measurement data, AdRelevance online
 advertising metrics and a rigorous approach to building market forecasting
 models.  Jupiter forecasts, such as in this study, are based on a number of
 methodologies, including close examination of analogous markets (either
 previous growth of new technologies or relevant off-line market case studies),
 consumer self-stated intentions culled from proprietary Jupiter surveying,
 complex market segmentation analysis, and analysis of historical trends.
 Additionally, all forecast assumptions are rigorously debated in a process
 designed to capture the collective judgment of analysts with relevant
 experience and perspectives on each given market.  For a fuller explanation of
 the methodology, please visit http://www.jmm.com.
 
     About Jupiter Media Metrix
     Jupiter Media Metrix, formed by the merger of Jupiter Communications and
 Media Metrix, is a global leader in market intelligence for the new economy.
 The Company delivers innovative and comprehensive Internet measurement,
 analysis, intelligence and events to provide businesses with unmatched global
 resources for understanding and profiting from the Internet.  Jupiter Media
 Metrix brings together world-class, innovative and market-leading products,
 services, research methodologies and people.  Jupiter Media Metrix brands
 include Media Metrix, AdRelevance, Jupiter Research and Jupiter Events.  The
 Company is headquartered in New York City and operates worldwide, across the
 Americas, Asia Pacific, Europe (as Jupiter MMXI Europe), and the Middle East.
 Visit us at http://www.jmm.com for more information.
 
     This press release contains statements of a forward-looking nature
 relating to future events or future financial results of Jupiter Media Metrix.
 Investors are cautioned that such statements are only predictions and that
 actual events or results may differ materially.  In evaluating such
 statements, investors should specifically consider various factors, which
 could cause actual events or results to differ materially from those indicated
 from such forward-looking statements, including the matters set forth in
 Jupiter Media Metrix reports and documents filed from time to time with the
 Securities and Exchange Commission.
 
      FOR MORE INFORMATION:
      Mary Claire Delaney 917.534.6194
      mdelaney@jmm.com
 
      Ryan Oettinger 917.534.6226
      roettinger@jmm.com
 
 

SOURCE Jupiter Media Metrix
    NEW YORK, April 10 /PRNewswire/ -- Jupiter Media Metrix (Nasdaq:   JMXI),
 the global leader in market intelligence, today reports that financial
 services companies are focusing more on expanding online and wireless products
 than improving their existing Web sites for customers.  According to a new
 Jupiter financial services report, four times as many CEOs said they are more
 interested in increasing their mobile and online offerings, than did the
 number that said making their sites more user-friendly is a priority.  Jupiter
 analysts warn that financial services businesses will lose major market share
 if they fail to offer integrated, customized and simplified online offerings
 that better suit customer needs.
     "Major financial institutions are in a race to outdo one another by
 developing new online and wireless products to gain market leadership, but are
 leaving usability and customer satisfaction in the backseat," said James Van
 Dyke, Jupiter analyst.  "For financial institutions, the key to winning in
 this economy is to simplify and integrate basic services, such as banking and
 lending, insurance, investment and payments."
     Key findings and forward-looking analysis from the latest Jupiter
 financial services report, titled "Integrated Finance: Composing a Symphony
 Out of the Discord," include:
 
     *     A Jupiter Executive Survey reveals that a majority of financial
           services execs (57 percent) believe that expanding online
           capabilities (such as wireless services) is a top priority, compared
           to 25 percent that indicate increasing trust and security is a main
           concern.  Jupiter analysts found that there is a clear disconnect
           between the products that online institutions are building and the
           services that their customers are seeking.  Financial institutions
           that address this disconnect will see more than their fair share of
           online asset growth.
     *     According to a Jupiter consumer survey, customer service
           (52 percent) and federally insured accounts (59 percent) are the
           most important qualities consumers look for when choosing a
           financial services provider.  Only seven percent of consumers cite
           availability of promotions as important criteria for selecting a
           financial provider.  While many financial institutions focus on
           features, consumers' demands largely fall in two basic categories:
           trust and convenience.  Jupiter analysts caution that new features
           produce only complexity, which is fundamentally at odds with the
           desired goal of customer convenience.
     *     Jupiter analysts assert that financial businesses addressing the
           consumer's inability to manage the volume and complexity of
           available offerings are best positioned to emerge as market leaders.
           While no single financial institution has mastered this challenge,
           Wells Fargo and Charles Schwab have made significant strides to
           integrate multiple products across a variety of customer interaction
           channels.
 
     "As leading financial companies remain obsessed with first mover
 advantage, their failure to integrate services, content and advice is
 preventing customers from realizing their time-tested goals of trust and
 convenience," Van Dyke said.  "Those institutions that fail to effectively
 merchandise a widening array of multichannel offerings will be left with a
 shrinking base of customers."
 
     Advice for Financial Institutions
     Jupiter analysts offer the following advice for financial institutions
 that want to maximize their online offerings by meeting customers' needs:
 
     *     Invest heavily in personalization and customization capabilities.
           According to Jupiter analysts, financial companies must present each
           customer with unique offerings based not only on explicitly
           requested services, but also on additional content and services from
           gathered usage data.
     *     Position online products based on customer needs, not as the latest
           technology.  Financial institutions must accommodate the customer's
           experience by integrating basic needs such as banking and lending,
           insurance, investment, and payments, into one simple interface.
     *     Invest in integration of disparate systems and capabilities in order
           to minimize the growing complexity found in today's online financial
           services Web sites.  Companies can drive higher customer activation
           and asset retention by elevating the quality of customer experience
           over the quantity of new products and features.
 
     Jupiter Financial Services Report Methodology
     Jupiter uses a wide set of data-gathering tools to conduct research,
 including systematic polling of leading industry executives, extensive
 consumer surveys, Media Metrix audience measurement data, AdRelevance online
 advertising metrics and a rigorous approach to building market forecasting
 models.  Jupiter forecasts, such as in this study, are based on a number of
 methodologies, including close examination of analogous markets (either
 previous growth of new technologies or relevant off-line market case studies),
 consumer self-stated intentions culled from proprietary Jupiter surveying,
 complex market segmentation analysis, and analysis of historical trends.
 Additionally, all forecast assumptions are rigorously debated in a process
 designed to capture the collective judgment of analysts with relevant
 experience and perspectives on each given market.  For a fuller explanation of
 the methodology, please visit http://www.jmm.com.
 
     About Jupiter Media Metrix
     Jupiter Media Metrix, formed by the merger of Jupiter Communications and
 Media Metrix, is a global leader in market intelligence for the new economy.
 The Company delivers innovative and comprehensive Internet measurement,
 analysis, intelligence and events to provide businesses with unmatched global
 resources for understanding and profiting from the Internet.  Jupiter Media
 Metrix brings together world-class, innovative and market-leading products,
 services, research methodologies and people.  Jupiter Media Metrix brands
 include Media Metrix, AdRelevance, Jupiter Research and Jupiter Events.  The
 Company is headquartered in New York City and operates worldwide, across the
 Americas, Asia Pacific, Europe (as Jupiter MMXI Europe), and the Middle East.
 Visit us at http://www.jmm.com for more information.
 
     This press release contains statements of a forward-looking nature
 relating to future events or future financial results of Jupiter Media Metrix.
 Investors are cautioned that such statements are only predictions and that
 actual events or results may differ materially.  In evaluating such
 statements, investors should specifically consider various factors, which
 could cause actual events or results to differ materially from those indicated
 from such forward-looking statements, including the matters set forth in
 Jupiter Media Metrix reports and documents filed from time to time with the
 Securities and Exchange Commission.
 
      FOR MORE INFORMATION:
      Mary Claire Delaney 917.534.6194
      mdelaney@jmm.com
 
      Ryan Oettinger 917.534.6226
      roettinger@jmm.com
 
 SOURCE  Jupiter Media Metrix