Recently I was talking to one of the early employees of S1 Corp., a banking software company in Atlanta. S1 Corp started as the first online-only bank and pivoted into online banking software in the mid-to-late 1990s. Before being acquired by ACI Worldwide in February of 2012, S1 Corp. had a market capitalization of $577 million (NASDAQ: SONE). One of the many interesting things the early employee of S1 Corp. told me was how the first customers of the new online bank used the service.
Here’s what new customers would do with their first online bank:
- Send a $100 check to S1 Corp. to open an account (the minimum to start)
- Month 1: The customer uses online bill pay to send $1 to themselves to see if the service works
- Month 2: The customer uses online bill pay to pay for a non-critical monthly bill (e.g. lawn service)
- Month 3: The customer uses online bill pay to pay for a standard monthly utility bill (e.g. electric)
- Month 4: The customer uses online bill pay to pay all their bills
This provides a useful example for entrepreneurs to think through and track how new users engage with a product. Product usage should be analyzed on a regular basis, especially new users of the product.
What else? What are some other thoughts on the example new customer usage pattern?