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Client Case Study
©2010 Small World Labs. All Right Reserved. | www.smallworldlabs.com | (512) 474-6400 | [email protected] Page 1 of 2
Scottrade Online Community Increases Revenue per Customer by 437%
“We were focused from day one on making sure we had a unique offering that focused on our customers’ needs. Taking the time to work one on one with customers and respond to every question helped us build the most active community in our industry.” – Nina Card, Director of Knowledge Management, Scottrade
About Scottrade Scottrade (www.scottrade.com) is a leading online
brokerage firm offering a full line of investment
products, online trading platforms and market
research tools to help investors take control of
their financial future. Scottrade focuses on
achieving a significantly positive customer
experience to as a way to differentiate it from
other firms in its industry.
Business Challenge Scottrade was looking for a way to better engage
customers in an increasingly commoditized market
where low trading fees no longer were enough to
attract and retain customers. They were looking for
a solution that provided both insight into customer
needs and an experience to keep customers
engaged with the Scottrade products. Scottrade’s
knowledge management team sought to
determine if a Scottrade customer community
could further improve customers’ experiences by
improving customer education and product
knowledge as well as providing an environment in
which customers could share best practices. As an
organization, Scottrade prides itself on delivering a
positive customer experience coupled with great
customer service. After a careful platform
selection process, Scottrade ultimately selected
Small World Labs to initiate its online community
project.
Highlights
Community Approach The initial community team started small and was
focused on building a strong community
foundation while working with the Small World
Labs Community Building team. The community
was soft launched to provide an environment in
which new community engagement concepts could
be learned, tested and implemented in a
manageable fashion by Scottrade.
Nina Card, Scottrade Director of Knowledge
Management, was tasked with making sure the
community provided both value to Scottrade
customers and a solid return on investment for the
company.
“We were focused from day one on making sure
we had a unique offering that met our customers’
needs. Taking the time to work one on one with
• More revenue per community member4.4x
• Increase in customer referral rate78%
• More product engagement per community member3x
Client Case Study
©2010 Small World Labs. All Right Reserved. | www.smallworldlabs.com | (512) 474-6400 | [email protected] Page 2 of 2
customers and respond to every question helped
us build the most active community in our
industry,” said Nina.
The community was launched and promoted at
offline events, such as user summits, branch
seminars, and trade shows to help introduce it to
customers in a familiar environment. Since then,
the community has become more integrated into
the rest of the company’s departments and
processes.
“We had big ideas, but started small and
developed a plan to get there,” said Nina. “And
Small World Labs has been an exceptional partner
in helping us achieve our company’s and our
customers’ goals.”
ROI Analysis To measure the impact of the community on the
bottom line, Scottrade engaged an independent 3rd
party to measure the activity of non-community-
member vs. community-member customers.
Controlling for time period and “like” customer
attributes, Scottrade measured the behaviors of
customers over a seven month period, analyzing
pre- and post-community registration periods. The
results were astounding. Customers that joined
the Scottrade community significantly changed
their behavior after they joined the network.
Customers spent more, referred more new
customers, and engaged with Scottrade’s products
at a higher frequency.
Key Findings Increased Revenue - Community members
generated 4.4x more revenue per
customer than did non-community
customers.
Increased Referral Rate - Community
members became 78% more likely to refer
someone that ultimately became a
Scottrade customer.
Increased Engagement - Community
members logged into the Scottrade online
trading platform 3 times more often than
non-community customers.
About Small World Labs Small World Labs is an experienced provider of
enterprise social networking solutions that enable
organizations to better understand, engage, and
serve their constituents. Small World Labs
provides both technology and community building
expertise in helping its clients create successful
online social and professional networks.
To learn more about how Small World Labs can
help your business or organization contact us at:
912 South Capital of Texas Highway, Suite 330 Austin, TX 78746 USA
(512) 474-6400 | [email protected]
www.smallworldlabs.com
