Business Strategy - E-Commerce, Marketing Mix, and more

JPMorgan Chase is innovative in the area of E- Commerce. They offer online and mobile banking. Online banking allows customers to access their account by a user name and password at www.chase.com. After entering their login information, they can manage their checking or savings account, loans, lines of credit, credit cards, and any other account they have with JPMorgan Chase. One can check their account balances, due dates, schedule payments and/or transfers, and many other services. Mobile banking allows customers many of the same features as online banking but just on their cell phone through a downloadable application. JPMorgan Chase as also created an application for Apple’s iPhone which enables a customer to take deposit a check into their bank account without actually having to go to a branch or ATM machine. All you have to do is take a picture of your check and the funds are then deposited into your account. This feature will hopefully be available on other smartphones. In the meantime, one have account notifications sent to their phone in the form of a text message advising when a deposit is made, you account reaches a certain balance, and so much more. JPMorgan Chase is taking advantage of the technology offered in today’s world.

JPMorgan Chase uses two E- Commerce Business models, Business to Consumer (B2C) and Business to Business (B2B). Business to Consumer E- Commerce occurs when a business provides products and services for customers who are individuals rather than entities. This is done through various online features such as the ability to make transfers, deposits, and view accounts via JPMorgan Chase’s website and through cell phone applications. Business to Business E- Commerce is seen through JPMorgan Chase’s various business clients. Though the products and services of JPMorgan Chase are not flashy and visible by customers, they make running and operating the business much more convenient for the business owners. JPMorgan Chase is also very willing to work with their business clients regarding fees to help keep costs down and earn customer loyalty. Business clients make a lot more money for JPMorgan Chase than their consumer clients because they do business on a larger scale. The same features that are offered to the consumers are also offered to business clients. Aside from the basic features, they also provide various features such as merchant services which allow business clients to accept payments in the form of credit card transactions.

JPMorgan Chase uses various promotional marketing tools to reach its customers. These tools are primarily seen on line. JPMorgan Chase uses online ads to get its name out to customers. For example, they place ads on the side of Facebook pages. Facebook has over 500 million active members, many of which log on to the site daily. The sheer volume alone guarantees millions of people will at the very least see their logo almost every day. The company has also teamed up with Facebook to create page sponsored by JPMorgan Chase that allows people to get involved. It is called “Chase Community Giving” and allows users to vote on which charity or organization the company will make a donation to. It also provides links back to the company’s main website. Not to mention JPMorgan Chase does heavy advertising to their active customers. When logging into your online account, you are bombarded with ads about other products and services offered by JPMorgan Chase. They also advertise on billboards and invest in ad spaces on buses and taxis.

In the business portion of JPMorgan Chase, the main form of marketing is the actual relationship ratio. By having a deepened relationship with each business client, the company is able to ensure a lasting partnership and expand their business by word of mouth. They have several referral programs and offer rewards to their customers for any referral which results in a new relationship with JPMorgan Chase. The company tries to provide the business client with as many products and services as possible on top of just deposit accounts. These products include loans, lines of credit, and credit cards just to name a few. Another way the relationship is deepened is through the “Chase at Work” program. This is when the company agrees to have JP Morgan Chase employees come to their office(s) and lets them sit down with the company’s employees to open deposit accounts and give them information on the other products and services that are offered. This personalized service gives the business client confidence in knowing they are backed by JPMorgan Chase every step of the way.

JPMorgan Chase offers various payment options for its customers. Online banking is a very easy and convenient option for customers to make payments. It also allows them to see their available credit, credit limit, outstanding balance, transaction/payment history, minimum amount due, and the due date. All the customer has to do is sign on to their online banking, scroll to the account they would like to make a payment on and select the “make a payment” option. This brings the customer to a screen that allows them to select the checking/savings account that they’d like to use to make the payment and it auto fills the rest. This option can also be used on mobile phone applications. Aside from using online banking to pay JPMorgan Chase bills, the customer is also able to set up payments online for any bill that they have to pay. This process is similar to paying a JPMorgan Chase bill, except the customer must fill in the account number, address, etc of the account they’d like to make a payment on.

Another payment option offered to JPMorgan Chase customers is pay by phone. Customers can contact the number on their billing statement or on the back of their credit card to make payments. They can decide if they’d like to use an automated program or if they’d like to speak directly to a customer service agent to make the payment. This is a terrific service for clients who are not computer literate and are unable to get to a branch in order to make a payment. JPMorgan Chase also allows their customers to visit a branch location to make a payment Branch employees, primarily tellers, are able to process the payment through their “Teller Express” system. Customers can obtain in depth information on their accounts to ensure that proper fees and amounts are paid. They also do not have to worry about having their statement because employees are able to pull up account numbers and fill out “counter payment coupons”, which are generic payment forms that can be used in place of a customer’s personalized slip, for the customers.

Aside from various payment methods offered to JP Morgan Chase customers to pay bills, loans, and lines of credit held with the company, it also offers business and personal clients various ways to make purchases and payments for everyday things, involving business outside of the company. These methods come in the forms of checks, debit cards, and credit cards. All these are available to both business and personal clients. Checks can be used to pay for in store purchases or pay bills through regular or snail mail. Checks, from JPMorgan Chase or any other financial institution, can also be used to make payments on JPMorgan Chase credit cards, loans, or lines of credit. They are considered negotiable items and are easy to obtain. Each check has a MICR line, which includes your bank’s routing number, your account number, and a check number. This allows customers to feel safe when using checks as a form of payment, because JP Morgan Chase ensures that duplicate checks cannot be accepted and stop payments can be placed on specific check numbers in case a check is lost or stolen.
Debit cards, which are implementations of the smart card concept, are very similar to checks but do not require customers to write out negotiable items. They have the appearance of a credit card, but are linked to the customers’ checking account. Whenever a purchase is made the purchase amount is deducted directly from their account. You can either use your debit card as a debit card, where you enter your pin number, or you can use it as a credit card. If you use your debit card as a credit card, you just sign for the purchase, just like you would when using a regular credit card at no additional cost to you. By using the credit option, JPMorgan Chase gives its’ customers points which can be used to earn rewards once the customer earns a certain amount, typically the minimum is 2,000 points.

The last payment option available to JP Morgan Chase customers is credit cards. The company offers various credit cards with numerous reward options. This gives customers a lot of choices to earn things back on everyday purchases. Each customer is allotted a credit limit which they must stay within to avoid fees and they are required to make payments each month. This is convenient if a customer would like to make a large purchase but is unable to afford it all at once. JP Morgan Chase is constantly trying to come up with ways to make the lives of its clients easier, and the many payment methods is simply one way they are able to do that.

Aside from offering numerous ways for customers to make payments, JPMorgan Chase has just created a new way to pay off credit cards. This new feature is called “Blueprint.” It offers various options such as setting up certain categories that you wish to pay off in full to avoid paying interest and paying off larger purchases by splitting them up and setting a goal payoff date or monthly payment. Other things that customers are able to do with “Blueprint” are tracking your spending habits and where you are with the goals you set for paying off large purchases. Lastly, “Blueprint” allows you to set up your own payment plan which enables a customer to decide how long they want to pay off their balance with a payment amount they know they can manage. This new feature is something not offered by other institutions which is likely to draw new clients to, as well as, keep current clients at JPMorgan Chase.

In addition to the various payment methods offered to their business and consumer clients, JPMorgan Chase has also teamed with several businesses to offer easy and manageable billing and payments options. Businesses are now able to receive payments and invoices electronically, which allows for easier tracking and management. Businesses no longer have to deal with sifting through large stacks of paper invoices and worry about paying something late and face a late payment fee. They are able to keep tighter track of expenses and analyze spending easier to cut costs. It also allows the company to go green and make less of an impact on the environment because there is less paper which means less trees being wasted.