Educating Michael

To win over household names like McDonald's, GM, and Citibank, Bronner knew it wouldn't be enough to appeal to corporate conscience. He would need to articulate a powerful business rationale to get them involved. Bronner's marketing instincts gave rise to a crucial insight: He would tap the language and the logic of competitive advantage to draw the support of A-list companies, a big-business corollary to appealing to the something-for-nothing, deal-seeking behavior of consumers.

"The bottom line is that marketing investments are becoming less and less effective," says Bronner. "It's harder to build loyalty. TV is becoming more expensive and more cluttered. And companies can't spend any more on marketing; they're all spending less -- especially big consumer-products players."

As he knocked on the doors of C. Michael Armstrong, chairman and CEO of AT&T Harry Pearce, former vice chairman of GM; and Sandy Weill, chairman and CEO of Citicorp -- doors that swung open thanks to his well-connected advisory board -- Bronner carried four PowerPoint slides and a simple message: Upromise would give industry leaders an exclusive way to get closer to the lives of their customers.

"If I'm saving for my child's college education by doing business with AT&T or Citibank, and I have my family all enrolled and saving in Upromise, who will break out of that loop?" Bronner asks. "I have to think hard when WorldCom calls up and offers me $25, because suddenly, that money I spend every month on long distance is not going toward my grandkid's college-savings account. I may be conditioned to take the deal, but I can see now the long-term benefit of that relationship with a company."

Bronner knew how desperate companies were to build those kinds of deep relationships with their customers. The loyalty programs he had helped to design tried to dent the surface of customers' lives. And yet, Bronner realized, for all the billions of dollars spent to engender loyalty, it didn't run deep. Receiving a ticket for frequent-flier miles or getting cash back on credit-card purchases remains an exercise in narrow self-interest.

What Bronner offered companies instead was a chance to have customers view them as partners in an important life goal. It was masterful positioning, in part because there are few alternatives. "This could be the most powerful way ever for companies to be relevant to their customers' lives," he says, "and to align their interests with those of their customers' families. It could change the nature of my relationship with AT&T, for instance, at an emotional level, so the company becomes part of my life."

To be sure, not everyone will welcome having GM or McDonald's pull up a chair at the dining-room table. Bronner has secured the involvement of about 100 companies that sell products and services so diverse and so intertwined with the buying habits of modern Americans that it would require a concerted effort to go through a day without transacting business with at least one of the participating companies. For some, Upromise will raise the specter of an intrusion into family life by sharp-edged corporations that already dominate the public landscape.

But for millions of others, Bronner believes, getting companies you already do business with to chip in for college will be a no-brainer. "There's a huge amount of guilt among families who haven't been saving," he says. "We can insert ourselves and say, 'Okay, we understand why you feel guilty. We don't want to make you feel bad. Spend wisely, spend with companies that help you save, and open up a college-savings account. We'll make it easy for you.' "

Paul C. Judge (pjudge@fastcompany.com) is a Fast Company senior editor. Contact Michael Bronner by email (mbronner@upromise.com).