Best Practices in Online Signup - X.com Bags a Million Accounts |
X.com’s home page is all business. The upper left- hand box contains
an eye-catching offer. For the first three months, it promised a $20 new
account bonus. Recently, it hyped a 5% rate on checking.
The Company: X.com (Palo Alto, CA), a startup building a legacy-free banking operation on the Web, has nearly perfected the online signup process1. It’s no wonder. They’ve had far more practice than most banks, having bagged more than one million accounts during its four months in existence (includes results from PayPal). However, snail mail fulfillment of the paper and plastic account components is still a bit of a letdown. How it Works
Following is an evaluation of each component of the signup process. The letter grades assigned (A to F) are completely subjective and based on our personal experience.
Speed/Ease of Use
Grade: A+
It couldn’t be much faster. Visitors are promised a 2-minute application. In our test, we found that number to be accurate. It took us 1 minute and 53 seconds to create an account and have the disclosures returned to us on the Web site. It took another 2 minutes to read the single page of instructions, choose to have the full disclosures emailed to us, hit submit, and wait for the server to approve our account, presumably with a credit check.
Disclosure Presentation
Grade: A
X.com handles the pesky government-mandated account disclosures AFTER first capturing enough information to register users. That way, if the user bails out before setting up a checking account, the company still has a name and email address.
After completing the 2-minute application, users are presented with a single page of text that outlines product disclosures. Users can click on links to view the full disclosures or take the easy way out: checking a box to have them emailed to look at later.
1Online Banking Report editor Jim Bruene had a minor consulting role in X.com’s initial product planning in mid-1999.
Use of Online Medium
Grade: A
X.com has a 100% online signup process. Users simply type their name at the bottom of the online form, indicating their agreement to the rules and regulations. The only snail mail requirements are for optional ACH setup and certificates of deposit.
Expectations vs. Reality
Grade: A
The company delivers on what it promises —
a quick and easy signup.
Technical Glitches
Grade: B
Everything went perfect until we tried to fund the account. We selected the e-check option, but the server kept timing out. Next, we attempted to charge the initial deposit to our credit card. We entered several card numbers, but each time we received an “unable to authorize” message. Although, the message was returned so fast, we doubt that the system really tried to authorize the charge.
So we gave up, waited 15 minutes and tried again. This time, both the echeck and credit card funding features worked flawlessly. It was a Monday morning, so X.com’s servers could have been overloaded. If that were the case, the company should simply tell us as much, instead of returning messages implying user error.
First Impression
Grade: A
Other than the hiccup in funding our account (above), the user’s first impression of X.com is superb. Account features are clearly labeled, information is neatly summarized on a single page, and it’s easy to use. Another big plus, users can immediately log into their account after submitting the signup form to verify that all is well.
Initial Account Funding Process
Grade: A-
X.com isn’t the first to offer credit card and ACH account funding, but they’ve done it better than most. Five funding options are available (credit card, echeck (ACH), wire, mail, direct deposit) with echeck and credit card highlighted. There isn’t a minimum opening deposit requirement (zero is OK). With Wall Street rewarding traffic and registered user base metrics, there is no reason to turn away even zero balance accounts.
X.com is the first we’ve seen to allow subsequent deposits to be charged to a credit card, up to $1,000 every six months. This allows X.com’s payment function to act as a gateway to the credit card system. They need to work on increasing this limit by allowing users to take cash advances on their card.
New Account Welcome
Grade: A+
X.com’s welcome process was superb during the first few hours, but should be beefed up with additional communications during the critical first days and weeks. A more sustained dialogue would make new users more comfortable with the company, increasing the likelihood of account consolidation and referrals has a recommended communication plan).
X.com’s New Account Email Barrage
|
|
Message |
Type |
Why Sent |
When Received |
| 1 | welcome to X.com | auto-response | sent to all | immediate |
| 2 | full account disclosures | auto-response | per my selection on the signup form | immediate |
| 3 | notice that they had received a garbled fax | custom | from customer service in response to my first attempt to fax information to setup an ACH from my existing bank | 3 hours |
| 4 | ACH setup confirmation | template | in response to my fax initiating an ACH relationship | 90 minutes |
| 5 | funds transfer confirmation | auto-response | confirming my funds transfer from checking to money market fund | immediate |
| 6 | S&P 500 confirmation | auto-response | confirming my funds transfer from checking to money market fund | immediate |
| 7 | CD purchase confirmation | auto-response | confirming funds transfer from checking to CD | immediate |
| 8 | payment confirmation | auto-response | confirming my P2P payment had been made | immediate |
Source: company, 3/00
Initial Service Support
Grade: A
Although we had just a single interaction with customer service/operations, it was a pleasant one. For security reasons, new accounts wishing to initiate ACH transactions must mail or fax a voided check to X.com. Wishing to speed things up, we chose the fax option. Our initial fax jammed during transmission. To our surprise, we received an email within a few hours alerting us to the garbled transmission. We re-faxed check at 4:15 p.m. PST and had our account set up and ready to go by 5:45 p.m. when we received email #4 (lower right). X.com is building a 500-person customer service center in Omaha, NE, to maintain these high service levels.
Fulfillment
Grade: C-
During the signup process, X.com did an excellent job describing what happened next after submitting an online application. It even described what each package would look like. The welcome letter and PIN mail arrived promptly five business days after applying. The paper checks arrived on day seven. Finally, 11 business days after applying we received the crucial piece of plastic, the “titanium” Visa ATM/debit card. Those turnaround times would be acceptable if the company kept us informed via email. However, we’ve heard nothing from the company since the first day (other than transaction autoresponses).
Areas for ImprovementX.com has done a remarkable job for a company that one year ago was just four guys with laptops and cell phones working out of a subletted Palo Alto conference room. But there is always room for improvement. For new customers, the main weakness is the lack of proactive communications after the first 24 hours (see Fulfillment above). We also found a few, mostly minor, annoyances during our first two weeks as a customer:
- P2P payments were not available from 10 p.m. to 2 a.m. (PST)
- usernames are set to equal the user’s email address and are stored in a cookie and automatically inserted during logon; this is a good feature, but it should be optional
- login history (at least the previous one) should be displayed for users to monitor fraudulent access
- users should also have the option of receiving an email each time their account is accessed
- the main screen after login says that account balances are “effective Mar. 17,” referring to the funds availability policy effective data, but it’s disconcerting because it looks like an outdated balance effective date
- more security assurances and options are needed, especially since the company is so new
- the welcome email (as of March 27) still carried the outdated footnote that the “$20 new account offer will be discontinued on Feb. 18, 2000”
- the account overview page needs a total of all balances
- the 30-character limit on P2P email notes should be expanded
- an expedited ATM card issuance option should be made available for a fee
Email #4
Confirmation of ACH Setup
Subject: X.com: Voided Check Received
Date: Mon, 27 Mar 2000 17:47:21 -0800
From: support@x.com
Dear James Bruene,
This email is to confirm that X.com has received and processed your voided check. You can now use X.com’s secure method of transferring funds online by electronic check. Of course, there is NO FEE for using this service.
To deposit or withdraw funds, please log in to X.com and click on the deposit or withdrawal links in the upper left section of the Overview page. There is no limit on the amount of funds you may deposit or withdraw, however, our account verification department may call you to confirm if you are moving a large amount. Please note that funds may take four to six business days to deposit in X.com and one or more business days to withdraw, depending upon your other financial institution.
Thanks for using X.com.
Account Verification Department
Email #1
Welcome Autoresponse
Subject: Welcome to X.com
Date: Mon, 27 Mar 2000 10:32:59 -0800
From: help@x.com
Dear James:
Thank you for choosing X.com! We are pleased to have you as a new customer and look forward to providing you with high-quality, low-cost financial products and services for many years to come.
More information about your account will arrive through the mail over the next few weeks. Keep an eye out for:
1. An X.com welcome letter accompanied by your signature card. You must return your signature card in the envelope provided so we can fully activate your account.
2. A generic looking envelope containing your Personal Identification Number or PIN for your X.com ATM/VISA CHECK Card [note: this PIN is different from your X.com online password]. PLEASE KEEP THIS IN A SAFE PLACE -
THIS PASSWORD WILL BE NEEDED TO ACTIVATE YOUR CHECK CARD.
3. Your actual X.com ATM/VISA CHECK Card.
4. Your free starter kit of 50 checks.
Again, thank you for your business. Please feel free to contact us at help@x.com with your comments.
Warm regards,
Elon Musk
Chairman and Founder
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Our $20 sign-up promotion will be discontinued as of
Friday, February 18th, at 12:00am PST.
Email #2
Account Disclosures (truncated)
Subject: X.com full account agreement and disclosure
Date: Mon, 27 Mar 2000 10:32:59 -0800
From: help@x.com
X.COM WEBSITE AGREEMENT as of March 22, 2000
This X.com Website Agreement ("Website Agreement") with X.com Corporation ("X.com") applies to your use of the X.com Website.
In this Website Agreement, "you" or "your" means each person that uses the X.com Website to obtain a Financial Service; "Financial Service" means a deposit account, overdraft credit account, funds transfer service, mutual fund product, or any
<continues for 13,000 words>
Email #3
Garbled Fax Notification
Subject: ACH TRANSFERS - Illegible fax received
Date: Mon, 27 Mar 2000 15:50:58 -0800
From: accnt_verification account_verification@x.com
Dear Mr. Bruene,
Thank you for faxing over documentation to sign up for our ACH transfers. However, the fax we received was illegible. Please send the fax one more time so we can get this account activated for you. I apologize for any inconvenience this may have caused you. Thank you and have a nice day.
Sincerely,
Jennifer Durham
Account Verifications
FAX (650)833-5470
Email #5
Money Market Fund Purchase/Transfer
Subject: U.S.A. Money Market Fund Purchase Confirmation
Date: Mon, 27 Mar 2000 17:38:04 -0800
From: help@X.com
Dear James,
Thank you for investing in the U.S.A. Money Market Fund. Your purchase was executed on 03/27/2000 at a price of $1 per share. To view the details of this transaction, please sign on at http://www.X.com .
If you have any questions, please email X.com customer service at help@x.com .
Kind regards,
X.com Funds
Email #6
Fund Purchase/Transfer Confirmation
Subject: Premier S&P 500 Fund Purchase Confirmation
Date: Mon, 27 Mar 2000 17:38:04 -0800
From: help@X.com
Dear James,
Thank you for investing in the Premier S&P 500 Fund. Your purchase was executed on 03/27/2000 at a price of $11.95 per share. To view the details of this transaction, please sign on at http://www.X.com .
If you have any questions, please email X.com customer service at help@x.com .
Kind regards,
X.com Funds
Email #7
CD Purchase Confirmation
Subject: CD Purchase Request Completed
Date: Tue, 28 Mar 2000 11:04:50 -0800
From: customerservice@x.com
Congratulations! Your request to purchase a certificate of deposit (CD) with X.com has been processed successfully.
Thank you for choosing X.com, the best way to manage money on the Internet. http://www.x.com
Comments or questions? Contact us at customerservice@x.com
Email #8
P2P Payment Confirmation
Subject: You just sent $1.00 to kate@cs.com through X.com.
Date: Mon, 27 Mar 2000 11:20:56 -0800
From: support@x.com
You just sent $1.00 to kate@netbanker.com through X.com.
If this is incorrect, you may click the link below to cancel your payment. NOTE: This link will reverse your payment if and only if the recipient has not yet obtained the payment.
https://secure.x.com/pc.asp?PID=rceprc8l7x7c&User=Sender
Click here to view your account details
https://secure.x.com/account_summary.asp
If you have questions about this email, please contact an X.com representative at help@x.com or call 1-888-447-8999. Thanks for using X.com!
Sincerely, X.com Customer Service
Users agree to the terms and conditions by typing their name in the
box on the online signature card.
Note: disclosures are presented in a single page
<https://signup.x.com/new_account.asp>.
X.com’s welcome screen does an excellent job communicating the next steps including the sequence of snail mail packages and the opportunity to fund your account immediately; it also allows users to do something right away (view account summary).
X.com Welcome Screen
Welcome to X.com!
Thank you for becoming a customer!
You now have an online FDIC-insured checking account provided by First Western National Bank (FWNB), the ability to send money instantly to anyone’s email address and access to low-cost mutual funds with no minimum investment. You also may have qualified for overdraft protection which can be used to cover overdrafts when using your X.com titanium Visa Check Card or writing checks.
What next? Watch the mail!
You will receive information about your account through the mail over the next few weeks, including:
Signature Card: please sign it and return it as soon as you can to prevent your account from becoming restricted.
X.com titanium Visa Check Card: use this card to get cash at ATMs displaying the Visa logo or Plus symbol, and use it to make purchases wherever Visa is accepted. This card draws money directly from your checking account and is not a credit card.
PIN Mailer: this generic-looking envelope from contains the Personal
Identification Number (PIN) for your X.com Visa Check Card. Your PIN is different from your X.com website password.
Checkwriting Starter Kit: a free starter kit of 50 checks and 10 deposit slips is on its way! You can write unlimited checks with no fees or penalties.
Now you can save, invest and send money instantly through X.com!
FDIC-insured, high-interest bank account with NO minimums make it easy to save.
Low-cost index mutual funds with NO minimums make it easy to invest.
Free money transfers make it a snap to send money instantly to virtually anyone with an email address.
Fast, free and safe auction payments make sending and receiving payments for online auctions and classified ads easier than ever.
You can fund your account now.
Skip funding my account, and just go to my account summary.
X.com uses a simplified login procedure with the username set to the email address and saved in a cookie. While convenient, we don’t think this offers adequate security for monetary transactions.
Account summary. Uncluttered and business-like with integration to mutual funds.
Account funding with five options.
Credit card funding option: Up to $1,000 can be moved from a credit card every six months. The transaction is a purchase, not a cash advance.
Glitch: I repeatedly received this error message when trying to charge my initial deposit to a credit card.
To initiate an ACH relationship, users must mail or fax in a voided check and drivers license (fax option only).
v2.gif)
