Bluebird Report

by

Sarah Letham

Final Project for the completion of

HF 780 –Field Methods

Professor MeenaKothandaraman

Executive Summary

Research was conducted to investigate who Bluebird users are, what they understand about Bluebird,

whether the Bluebird value proposition is compelling, and how Bluebird can extend its role toward

unbanked and underbanked customers.

From the data four Personas were formed: Bill Burned by Banks, Privacy Paula, Aspirational Alice, and

Functional Frank.

Bill Burned by Banks’ attitude, expectations, and experience have been shaped by his previous negative

experience with banks. He could be happy with Bluebird but he feels he has been mistreated before,

and trust needs to be built before he can accept Bluebird.

Privacy Paula is very concerned about where and how her personal information is shared. She will

forego a service she is otherwise interested in if that service requires her to give up too much personal

information.

Aspirational Alice longs for bigger and better things, and associates American Express with prestige. In

the short term, she wants a card like Bluebird to help her form good financial habits, and in the long

term she wants a prestigious high-limit credit card.

Functional Frank just wants a useful card that is accepted anywhere, a card that isn’t too flashy so it

doesn’t draw attention or suspicion from merchants. He doesn’t want to think about the card, he just

wants to use it without hassle.

Common difficulties discussed in the research included initially locating the Bluebird card, as well as

misconceptions about what the Bluebird card is and what it offers. None of the six participants

obtained the Bluebird card simply by finding it themselves in a Walmart; four were shown the Bluebird

by a Walmart employee, and two ordered the card online. At least one was directed to Bluebird by a

cashier at the point of sale, and had to get out of line to get the card off of the shelf. Users had heard

about Bluebird mainly through word of mouth.

Common misconceptions included the idea that Bluebird is a Walmart-use-only card, that Bluebird is

an American Express credit card, and that Bluebird does not offer online protection. One user initially

believed a prepaid Visa card was the Bluebird card.

The placement of Bluebird in Walmart stores should be changed so that users can easily find the

Bluebird. The Bluebird box and site should also clearly explain what Bluebird is in order to prevent

misconceptions.

Goals

Four primary client goals were provided:

1. Who is getting Bluebird and why?

2. Do consumers understand the Bluebird Value Proposition?

3. Is the Bluebird Value Proposition compelling – and why?

4. How well did we communicate the Bluebird offering/ Value Proposition?

The client added the following generalized goals:

We would like to gain insights in the following three categories:

1. Who are the consumers?

2. What do the consumers/purchasers understand about Bluebird?

3. What do non-users/purchasers understand about Bluebird?

In the Q&A session with our client representative, three more client questions were raised:

1. What do people think they're picking up and taking home? (Lots of boxes go home that never

result in a signup – what's going on there?)

2. Do people pick up the box and take it home without knowing what it is? Why?

3. How can the client extend their role toward unbanked and underbanked customers?

I decided to focus on four main areas. It should be noted that data gathered would cross borders

between questions; for example, in examining what people understand about Bluebird, participants

would also comment about whether they found Bluebird’s value proposition compelling and why.

1. Who is getting Bluebird and why?

2. What do consumers/purchasers understand about Bluebird?

3. Is the Bluebird Value Proposition compelling – and why?

4. How can the client extend their role toward unbanked and underbanked customers?

Initial user definition

Originally users were defined before the study as “the unbanked and the underbanked.” This was the

definition provided and supported by Walmart. The assumption was that Bluebird users would be

primarily low income, and from Walmart we heard that they typically had problems with bank fees,

especially hidden fees, and that the American Express brand was aspirational and prestigious. Our

original user definition page, written at the beginning of the study, is directly below. Our revisited user

definition profiles are found in the Analysis section further in the report.

Based on the goals outlined by Walmart – finding out who are consumers, what do users understand

about Bluebird, what do non-users understand about Bluebird – I believe Personas would be the best

way to define and present the user population (and possibly non-user population). Personas help to

define usage patterns and a deeper understanding of users' motivations.

User profiles may be the most appropriate way to define the Bluebird User population if variations in

behavior patterns and motivations fall along demographic lines (such as income, SES, or age group),

but I hypothesize that correlation will be minimal between variations in demographics and variations in

behavior/motivations. Furthermore, user profiles would not have the depth and breadth of Personas

in description of behavior patterns and motivations, which are key to answering stakeholder questions.

Therefore, for this project personas are the best user definition method to properly answer

stakeholder questions with the necessary depth and detail to provide meaningful results. However, at

this time we do not have the data necessary to create well-founded personas, so we will simply

examine what we know and expect about our users at this time:

Typically banking alternatives such as check-cashing are aimed at lower-income/lower SES consumers.

Bluebird is offered through Wal-Mart, which is more accessible to lower-income/lower SES consumers

because of their low prices and widespread market penetration.

Based on the Bluebird page it seems that Bluebird is aiming for a target of people who do not use

banks because of hurdles such as account minimums and overdraft fees, but who want to use the

services that a bank provides.

This target may be too narrow – How big is the group of potential users? Are there many people who

want bank services but do not find it feasible through a bank?

• According to the FDIC, the unbanked population of America is roughly 8.2% of adult population,

or roughly 10 million adults

• The Bluebird also targets people who use banks, but who want different features in their debit

card – let's look at those users too and what they want because it's a much larger potential

pool of people:

http://thecitywire.com/node/25648#.UQNuPmd18jZ

"Other prepaid cards, including Wal-Mart’s own branded product, have targeted the

unbanked, which according to the FDIC is roughly 8.2% of the adult population or 10

million adults.

Ben Jackson, senior analyst with Mercator Advisory Group, says Bluebird goes after

another demographic -- the underbanked. The FDIC estimates the underbanked at

20.1% of the population or 24 million adults."

Regardless of target size, we want to examine Bluebird users and potential users and find out what

their usage patterns, motivations, and needs are.

Methods

Six 20-30 minute interviews were conducted over a two-day period to gather the data. Four of the six

were current Bluebird users, one was still waiting for their card to come in the mail, and one did not

use Bluebird but bought it for her daughter (who regularly uses it).

Protocol

Participants arrive at the facility, sign in, then sign a recording consent form. They are then led into the

interviewing room, where the interviewer greets them and invites them to take a seat for the

interview.The interviewer explains that they will be asking some questions about general banking

history before moving on to questions about the Bluebird card.

Opening questions – general bank account

1. "Do you have a bank account?"

a. If no (no bank account): "Have you ever had an account?"*

i. If no (no bank account ever): "Why did you chose not to have an account?" /

"Why is that?" "What were the problems?"*

ii. If yes (bank account before, not now): "Why did you close the account?" /

"What led to your decision?" "What were the benefits?" "What were the

difficulties?" "What services did you use most?" "What services would you

have wanted? "*

b. If yes (have a bank account): "What are the benefits?" "What are the difficulties?"

"What services do you use most?" "What other services would you want?"

*I never ended up asking these questions – all participants had bank accounts

2. Which bank do you use?

a. How long have you been with them?

b. Have you ever used any other banks? (If so, for how long?)

3. "Do you have a debit card?"

a. If no (no debit card): "Have you ever had a debit card?"

i. If no (no debit card ever): "Why is that?"

ii. If yes (debit card before, not now): "What led to you not having it any more?"

/ "What led to your decision?" "What were the benefits?" "What were the

difficulties?"

b. If yes (has a debit card): "What are the benefits?" "What are the difficulties?" "How

well does it satisfy your needs?" "What is lacking?"

Bluebird user

1. "Tell me about how you acquired the Bluebird card"

2. "How has your experience with Bluebird compared to your initial expectations?" (Or broken up

– What were your expectations of Bluebird? How has your experience compared to those

expectations?)

3. "What influenced your decision to sign up?"

4. "Tell me what you know about Bluebird." > (When they mention features, probe to see if they

do or don't use those features)

5. "What do you like about Bluebird? / What do you like about using it?"

6. "What do you dislike about Bluebird? / What are your difficulties using it?"

7. (If they mentioned having a debit card – "How does the Bluebird experience compare with your

other debit card experiences?" Similarities? Differences?)

8. "If you could do anything to improve Bluebird, what would it be?"

Bluebird non-adopter

1. "Tell me about how you acquired the card." (Prompt or ask – what were they surprised by?)

2. "What were your initial expectations about Bluebird?" "How has the reality differed from

those expectations?"

3. "What has influenced your decision to not adopt?"

4. "Tell me what you know about Bluebird."

5. "What else have you heard about Bluebird?"

6. "Is there something Bluebird could change that might make you interested in adopting?"

At the end, the interviewer thanks the participant for their time, then leads the participant to to the

waiting area. The participant is given their remuneration and signs out, then departs.

Analysis/findings

Who is getting Bluebird and why?

We interviewed six participants and from data gathered in interviews formulated the following four

personas:

1. Bill Burned by Banks – “It’s all a business, they don’t care about the little guy.”

a. Defining Characteristics

i. Feels he has been mistreated by banks

ii. Dissatisfied with banks but still use services out of feeling of necessity

b. Motivations

i. Feel taken care of by their financial service provider

ii. Have a place to put his funds

c. Barriers

i. Feels that financial institutions don’t care about non-rich people

ii. Suspicious of financial institutions due to negative past experiences

d. Opportunities

i. Bluebird is not a bank, can provide the same services without the downsides

ii. Provide services and customer service that will help him feel valued and taken

care of

iii. Be transparent and trustworthy to alleviate suspicion

2. Aspirational Alice – “Maybe one day I can even have the Black card, but I’m not there yet.”

a. Defining Characteristics

i. Appreciates the American Express brand, associates it with prestige

ii. Uses debit for financial control, but aspires to greater wealth and good credit

b. Motivations

i. Establish financial stability

ii. Prestige

iii. Wishes to teach her children financial responsibility

c. Barriers

i. Prepaid cards look cheap and detract from status and prestige

ii. However not yet financially secure enough to afford a more prestigious card

d. Opportunities

i. Offer rewards for financial responsibility, possibly allow customers to set goals

and reward users for achieving those goals

ii. One possible reward for long-term financial responsibility could be a line of

credit, such as an Amex Green card

iii. Promote Bluebird as a financial teaching tool for children and teens

3. Privacy Paula – “Why do they need my social security number?”

a. Defining Characteristics

i. Reticent to share personal information, especially online

ii. Doesn’t want to provide any more information than absolutely necessary for

the functioning of a service

b. Motivations

i. Keep her account and personal information safe

ii. Reduce anxiety

c. Barriers

i. Worried about identity theft, possibly already a victim in the past

ii. Wary of online services and putting information online

iii. Not computer savvy

d. Opportunities

i. Offer an offline registration alternative (such as signing up with customer

service on the phone)

ii. Do not ask for any more personal details (such as social security number) than

absolutely necessary

iii. Bluebird account not linked to main account, so even if their Bluebird card

information is stolen their main account is safe

4. Functional Frank – “It looks just like a regular credit card.”

a. Defining Characteristics

i. Wants his technology invisible and functional

ii. Wants a card that looks plain and classy like a regular debit or credit card

iii. He wants a card that is accepted anywhere

b. Motivations

i. Use card to make purchases without hassle

ii. Use debit to control spending

c. Barriers

i. American Express isn’t taken everywhere

ii. Has been blacklisted by banks before due to overdraft

iii. Doesn’t want a flashy prepaid card, which he thinks looks suspicious to

vendors

d. Opportunities

i. Increase the amount of places American Express is taken

ii. Offer steady and reliable services

What do consumers/purchasers understand bout Bluebird?

• Numerous misconceptions about Bluebird were revealed during interviews

o Two of six users were under the impression that Bluebird is a card only for use at

Walmart

▪ One of these two later realized that the card was general use after receiving

and using the card; the other still believes Bluebird is a Walmart-use card

o One participant picked up a prepaid Visa card thinking it was the Bluebird card

o One participant thought it was a credit card until her friend (another user) explained

that it was prepaid debit

▪ This participant does, however, appreciate that when colleagues see her use

the card, it looks like she is using an American Express credit card, which

implies a level of prestige

o Three of six participants expressed a desire for buyer protection, particularly online

buyer protection, clearly unaware that Bluebird comes with American Express buyer

protection

o One participant was unsure whether the Bluebird card could be used at a supermarket

Is the Bluebird Value Proposition compelling – and why?

• All users discussed fees during the interview

o This supports the core Bluebird facet that fees should be few, low, and transparent

o All users also discussed overdraft and overdraft fees

o Four of sixparticipants cited bank fees as too high

▪ Complaints were not about the fees being hidden; users were aware of their

bank’s fee structure even if they were not happy with it

o All users said that Bluebird’s fee structure is reasonable

▪ One of six users does not believe that Bluebird will be able to maintain the fee

structure, and that they will eventually raise fees, add hidden fees, or both

• Users typically used a small range of services

o Beyond balance reloading, debit use, and direct deposit, no other Bluebird services

were mentioned by any of the six participants as being used

o This finding, coupled with the above findings about misconceptions, indicates that

many of the additional services offered by Bluebird are either superfluous or unknown

How can Bluebird extend its role toward underbanked and unbanked customers?

• Advertise the product more widely, and educate the public about what Bluebird is

o In 4 of 6 cases participants were pointed toward Bluebird through word of mouth

o That means Bluebird is relying on users to educate other users

▪ While word of mouth is valuable, a company wants a hand in shaping its own

brand

▪ Advertisement that educates about Bluebird may dispel the misconceptions users

and potential users have about Bluebird

• Difficulties

o Issues locating Bluebird in Walmart

▪ 4 of 6 participants were helped by a Walmart employee to find the Bluebird card

in the Walmart store. The other 2 participants ordered their cards online.

• One of the four participants went in looking for a Bluebird, but went to

the Prepaid card area and could not find it

• She almost bought a Visa prepaid card instead, until she spoke to the

Cashier about Bluebird and was directed to the aisle of Bluebird boxes

• This user explained that the Bluebird cards were tucked away in a section

very far away from the prepaid cards, and she never would have found it

on her own

o Online registration

▪ For one participant it was a barrier to her use, especially since she was asked for

her Social Security number and she did not feel comfortable giving it out

▪ She called Customer Service to register over the phone and was dismayed to find

out that she could not do so

• Trust issues – trust and mistrust

o Mistrust of banks and big financial institutions

o Mistrust of card use due to identity theft

▪ Especially online

o Mistrust of people gathering your personal information

• The value of control

o 3 mentioned self-control through Debit use, 2 mentioned control of money when used by

others (in one case his employees, in another case her child)

• Benefits

o Use as a financial teaching tool

o "It’s a great Emergency card"

o Immediate access to funds

o Looks nice, doesn’t look like a prepaid card (which is associated with cheapness and low

class), looks like a regular debit or credit card

• Comparisons with competitors

o Paypal received unanimous compliments from users

▪ Requires minimal personal information

• One user described Paypal’s request for personal information as "just your

e-mail"

▪ Does not flood user with spam

▪ Provides a feeling of security purchasing online

▪ Limits on immediate availability of cash are reasonable and stable so the user can

plan accordingly

o Bank debit cards had advantages and drawbacks

▪ Liability because they are linked to main bank account

• Potential of incurring overdraft

• Identity theft danger

▪ Tend to be issued by Visa or Mastercard, which are more widely accepted than

American Express

o Prepaid cards were not rated as highly as Bluebird

▪ Prepaid cards were seen as cheap and flashy – one user described a gaudy

rainbow design – while Bluebird looks "like a regular debit card"

• Prepaid debit cards are looked on with disdain and/or suspicion by some

vendors, but Bluebird’s simple design doesn’t raise any red flags

▪ Bluebird has only one $5 fee while other prepaid cards have a fee each time they

are releoaded (users estimated this fee at between 2 and 5 dollars)

• Brands

o American Express

▪ Three of six users associated Bluebird with the American Express brand

▪ Of those users, one had a strongly positive association, as that user associates

American Express with prestige and good credit

▪ The other two users had mildly negative views – one due to distrust of corporate

financial institutions, the other due to American Express being accepted at fewer

places than Visa

▪ Two users of six had positive associations with American Express related to Travel

experiences

▪ Associated with luxury and prestige

o Walmart

▪ Two of six users associated Bluebird with the Walmart brand

▪ For both of those users, Walmart was associated primarily with low prices

▪ Associated with functional benefits

Future Research

Future research should address certain points not sufficiently covered in this study. Probe more into

Overdraft experiences, which affected all users and may be an opportunity for Bluebird to service

customers further. Possible questions: “Have you ever gone into overdraft with Bluebird?”“What was

that experience like?”“How does that experience compare with bank overdrafts?”

Further probing into the Paypal consumer experience and brand image may shed light on desires and

expectations that consumers have of banking alternatives.

Research should also examine consumer reactions to suggested changes in displayed information,

locations inWalmart, and consumer services.

References

For Financial demographics:Bluebird card gets mixed reviews by Kim Souza

http://thecitywire.com/node/25648#.USq4O1f3tiO

For finding consulting fee from salary: Consulting fee rates | Consultant fees by Andréa Coutu

http://consultantjournal.com/blog/setting-consulting-fee-rates

User Research salary:Payscale.com metrics

www.payscale.com/research/US/Job=User_Experience_Researcher/Salary

Front page image from: https://bluebird.com/

Inspiration for the info graphic:http://www.informationisbeautiful.net/play/snake-oil-supplements/