Capital One Customer Satisfaction Survey
Dr. Christy McLendon
Organizational Research and Decision Making
May 7, 2008
Group #8
Mike Spoo, Jeff Gaffney, Brooks Duplessis, and Joe Palermo
Capital One Financial Corporation
History:
The foundation for Capital One Financial Corporation began in 1988 when Richard D. Fairbank and Nigel W. Morris wanted to construct a more integrated and scientific approach to marketing bank cards. Once Signet Bank gave Fairbank and Morris the authorization to develop the marketing plan, they soon would revolutionize not only Signet's credit card business, but the credit card and banking industries.
Signet's credit card operation quickly became its most profitable enterprise. Recognizing the need to concentrate on its core businesses, the regional banking operation decided to spin off its credit card portfolio. In 1991, the new unit created was called Oakstone Financial Corporation. Renamed Capital One Financial Corporation, the newly formed company ranked as one of the top ten credit card issuers in the country, with more than five million credit card customers.
As envisioned by founders Fairbank and Morris, Capital One moved into new markets. America One Communications Inc., a wireless business subsidiary, was the country's only direct marketer of cellular phone service. With the purchase of Summit Acceptance Corp. in 1998, Capital One entered the automobile finance business. The Dallas-based subprime lending company held $260 million in managed loans.
Capital One began a concerted effort to boost brand recognition in 2000. According to the company, brand awareness was just 61 percent in June 1999. Many customers did not even know Capital One was an entity separate from Visa and Mastercard. In an all-out effort to be seen as a national brand, "What's in your wallet?" advertisements began showing up on the airwaves.
Capital One dropped out of the wireless phone service business in 2000 but expanded its financial service...