Buying Home Complex Detailed Process Consumer Gather Consider Many Details Data Points Ord Q32197600

Buying a home is a complex and detailed process. A consumer hasto gather and consider so many details and data points in order tomake an informed decision, and it is hard to know if you’re gettingthe best deal and if it’s in your best long-term interests. Thevarious options and suppliers involved in the process only tend tomagnify the complexity and time needed. Even for a buyer who hasbeen through the process previously, it is time consuming. For abeginner, it can be terrifying. Some people may believe that thedepth and complexity of a home purchase and financing may not lenditself to a web-based solution. Think so? That’s not what WellsFargo believes. Even with economic challenges, the market forfirst- time homebuyers is strong. A survey completed by Wells Fargoin 2011 found that the most significant opportunities in thehousing industry were for the millennial generation (born betweenthe early 1980s and early 2000s). Even considering the large BabyBoomer generation (born between 1946 and 1964), the millennialsconsist of more than 77 million people. This new generation iseager and able to find information, especially online. Thisfoundation of information builds confidence and knowledge. Althoughthere were many different options to collect information about homeownership, Wells Fargo also believed the market lacked a“comprehensive, one-stop, selfdirected resource” for home buyers.It was clear that a market existed for the new initiative, but howshould it be fulfilled? Would you build a home without a plan?Drawings? No. Websites, like any other software development, needto be planned, designed, and implemented with careful thought andresearch. For a variety of reasons, sometimes website developmentis not well planned. Wells Fargo instituted a methodical approach.From the beginning of this initiative, they defined the goals ofthe project and remained focused on the mission of the project.Their guiding metaphor for design was a “roadmap” to assistconsumers in the process of gathering information and makingchoices toward their goal of obtaining a mortgage. Many consumershave a “full plate” of complicated economic and financialchallenges. The key to success was to assemble a website to getessential information to consumers and add value to their onlineexperience. Like the sales cycle, the home lending process has asimilar cycle from researching, application, approval, andservicing. Again, the roadmap was important to the design process.In addition, Wells Fargo also compiled data on how consumers gainedaccess to their current website as well as what they did (tools,functions) once they arrived. This information provided the bankwith insight on consumer preferences associated with an onlineexperience. Their goal was to “serve customers the way they wantedto be served.” This goal would be defined in three strategies: (1)focus on consumers’ financial needs, (2) deliver and provideeducational value, and (3) humanize the online channel. Althoughthe goal is important, specific tactics would be needed to clearlyframe the building of the website. For example, while the websitewould “perform” based on a consumer’s preferences, they couldalways decide to connect with a mortgage consultant at Wells Fargoto supplement the online experience. The online experience iscrucial to deliver information and education in a timeframe andenvironment that the consumer chooses. Management InformationSystems 7/e Instructor’s Manual Chapter 8 However, when the processrequires a personal touch, they can elect to have a consultantintervene, again, based on their choice. Wells Fargo believed thatcareful thought to design conquers the complexity of the entireprocess. This mentality centers on the principles of simplicity andnot overcomplicating initiatives. To embed these principles in thewebsite, the design stage included several characteristics,including: (1) delivering information tailored to the customer’sindividual needs, (2) providing comprehensive, but consumableinformation, (3) protecting the consumer’s anonymity during theprocess, (4) allowing consumers to speak with a representative whenneeded, (5) offering transparency to information and the process,and (6) providing easy access to information. These sixcharacteristics help to clearly frame the process of building thewebsite. As Wells Fargo drilled deeper into the project, they beganto define the essential elements of the proposed website. Theseelements included a learning center, glossary of terms, tools/tips,online application forms, checklists to guide the consumer throughthe process, and home ownership guides. These features weredeveloped to satisfy the objectives of the website project as wellas clearly define how those objectives would be accomplished in thenew product. The self-service nature of the website provides aflexible environment for consumers with various levels of financingknowledge, at purchasing stages, and with different preferences tobe informed about Wells Fargo financing products and home buying ingeneral. Business relationships, even in an area as complicated ashome financing, can be developed through a self-service, onlineenvironment. Building those relationships through a free websiteproduct can build affinity and ultimately increase the customerbase of a bank’s mortgage portfolio.

Thinking About the Case

1. Some websites are not very useful, functional, or wellorganized. Why do you believe that websites are approacheddifferently than other software development initiatives? What didWells Fargo do differently?

2. Consider the feature that the consumer could remain anonymousfor as long as they wished. Why would it be beneficial to have theprospective home financing customer anonymous? Why would WellsFargo encourage (or require) the consumer to contact arepresentative? Would this interaction increase the likelihood ofclosing the sale?

3. Wells Fargo said that “We also were mindful that each consumercomes to the transaction with a different level of understandingand with different styles of learning.” What challenges does thatcreate for the bank and its website design? Is the marketing ofhome financing different than mar- keting other serviceproducts?