For the last few years I have watched Mint's success with awe and admiration. In the face of growing privacy concerns. Mint asks users to give up their log in information to there bank accounts. Yes! Account user names, passwords, answers to silly questions, etc. were all freely given to the company by the over 4 million Mint users. The company then goes a step further, analyzing the user data providing personalized suggestions for how each user can utilize a new financial product to save or earn money. "You can save $225 a year by switching to this credit card." "You can get $300 by moving your money to that savings account." The company has been essentially revenue positive from day one due to the targeted ads and consumers love them for the ease with which they can manage their finances. Most recently, Mint rolled out Mint Data allowing users to compare their spending habits with those across the country.
So why has Mint succeeded aggregating and monetizing consumer data while others have failed?I believe the secret is transparency. Mint makes no secret that your data will be made anonymized and then used to generate revenue and provide utility to other users. In addition they have gone to great lengths to gain legitimacy through certifications and online community. In the end great functionality and word of mouth has facilitated trust between Mint and their user base.
Looking forward it will be interesting to see if companies in industries like healthcare and government services use Mint as a model for launching their own services.
Thanks, Kevin. I enjoyed this post. Having also been keeping an eye on Mint, I'd like to add that the user interface is a huge reason for its success. While the aggregation of data is the powerful source of value, it means nothing a without clean and intuitive representation. The interface has been the subject of many awards since inception in 2006, and it is being studied as a best practice by many in the fields of web design and user experience. - http://www.mint.com/awards/
ReplyDeleteI've seen many times in a corporate ennvironment where the best and most insightful data only gets as far as the presentation takes it. In order to be communicated, understood, and acted upon at the executive level, that data needs the type of clean and intuitive presentation provided by Mint.