Posted by Mallory Green on September 26th, 2014
The measurable nature of digital channels offers a number of benefits to organizations looking to plan, assess and refine their marketing strategy. From identifying trends in customer behaviors to examining the ROI of marketing spend, metrics hold the key to answering the important questions facing your business.
While each metric has some kind of significance in your evaluation process, your team must decide what factors contribute to the growth of your company and identify what key performance indicators (KPIs) help you measure those factors. To determine your KPIs, your team must answer the question, “What are we trying to achieve with our marketing strategy?” These need to be legitimate, measurable goals that are important to your business. From there, you can decide which metrics help you measure those goals and mark those as your KPIs.
These goals can be both short term, like consumption of a specific blog post, white paper, case study etc., and long term like building brand awareness. Once you’ve identified your goals, decide what analytics or KPIs will help you determine if benchmarks are being attained.
Once your KPIs are labeled, you can start creating marketing initiatives to help achieve success. What are you doing to encourage customer engagement? Once you have strategies in place, make sure to test and fine-tune your ideas. Incorporate small A/B or multivariate testing strategies to ensure your efforts are providing acceptable results for your team and establish a cause and effect chart to track what combination of variables performed the best or the worst. By tracking these insights, you and your team can determine the best way to optimize the results you have gathered.
Because of the abundance of available data, it can be difficult to decide what metrics can help you achieve success. The key is to identify what matters to your business and determine what KPIs can help you reach your goals.
Posted by Mara Friedman on September 25th, 2014
I’ve written previously about the pitfalls of a financial institution focusing too heavily on ROI and how relying solely on response rate to measure the success of a campaign can lead marketers down a similarly limited path. It’s crucial to consider both response rate AND total response when measuring the success of a campaign. Neither one on its own is the holy grail, and both must be balanced to meet an FI’s goals.
As a marketer, generating a high response rate is fairly simple, because it’s relatively easily to focus on the highest propensity prospects and incent them to respond to an offer. Unfortunately, this strategy tends to sacrifice quantity since the prospect pool is minimized, not to mention that the cost per candidate tends to be high (pay-per-performance marketing models tend to suffer from this phenomenon). A campaign with a high response rate isn’t valuable if it doesn’t also generate the total volume that’s needed and do so at a reasonable cost.
Recently, I had a client cancel what appeared to be a very “successful” program, because they realized too late that response rate doesn’t tell the entire story. They were consistently receiving more than an impressive 6% response rate to their loan offers, yet the overall volume from their small target audience just wasn’t generating the total value necessary to fund the program. Campaign ROI suffered and loan goals weren’t being met despite a strong response rate.
It’s a simple process to apply estimated response rates to a target quantity to get a sense up front whether an initiative is likely to meet goals. While I generally cringe at extrapolating response across clients since I can’t take into account all the key variables involved and thus estimates don’t guarantee success, they can often readily identify when the desired results are unlikely to be achieved.
If the target quantity is sufficient enough to generate the total response needed, the objective then turns to maximizing response rate. One of the most efficient and cost effective strategies to boost response is to supplement a campaign with additional communication channels. Digital and phone contacts can both be added to mail to improve response. Outbound calling has the advantage of being the most persuasive, but it’s usually highly resource intensive, while digital options (email, online) can often be added without appreciably increasing overall campaign cost.
Posted by Kavita Jaswal on September 19th, 2014
Financial institutions recognize the importance of staying connected to account holders, but for many this remains difficult due to low email penetration rates. Digital advancements have allowed FIs to provide information to account holders through a variety of channels, such as their website, mobile app(s) and social media profiles, but email remains a key method of communication for account updates, promotional messaging, important announcements and the distribution of educational resources. If your institution is not currently taking steps to collect account holder email addresses, you could be missing an important opportunity.
According to a recent study(1), 84% of account holders want some kind of communication with their bank that they are not receiving today. In addition to being one of the most cost-effective ways to reach account holders, email communications offer multiple benefits. Not only can regular communications keep FIs top-of-mind, targeted email communication also provide an opportunity for cross-selling additional products and services. Also, by using email to solicit customer feedback through online surveys, FIs can obtain additional insight into account holders’ wants and needs and use that information to improve the account holder experience, reduce attrition and build loyalty.
Email allows FIs to proactively and efficiently reach thousands of account holders should an issue arise. In the November 2013 Target breach, several banks and credit unions involved were able to contact their account holders and continuously keep them informed about the breach in detail. FIs were able to provide account holders with the appropriate steps to ensure their information was protected and secure. This ability to communicate quickly and broadly has also proven invaluable in the aftermath of major events, such as hurricanes, where emails delivered directly to mobile devices help to broadcast which branches are operating, affected ATM machines, etc.
Also, email can be used as a means to offer account holders industry knowledge and financial news. Through regular newsletters or automated notifications, FIs can keep their account holders up-to-date on current financial trends, areas of interest, account activity and relevant financial topics that might be of interest..
By taking steps to prioritize the collection of email addresses during the account opening process, your financial institution can bring its communication strategy in line with the expectations of today’s always-connected, “digital” account holders
Posted by Dave McCue on September 16th, 2014
While many of us have heard and used the term onboarding many times, it’s still somewhat loosely defined and often means very different things. It’s telling that a keyword search for “onboarding” using dictionary.com or merriam-webster.com comes up empty.
At a very basic level, onboarding refers to the process of bringing new customers “into the fold” — providing details around any next steps they need to take, important information about the organization they are doing business with, additional/complementary services they might be interested in, etc. Onboarding can be thought of as a welcome packet, but often one that is delivered in sections over time rather than a single piece.
Financial institutions often miss the mark (or part of the mark) in onboarding programs by becoming overly focused on a single objective, such as the cross-sell component. Neglecting the other key elements of effective onboarding can have a trickle-down effect that negatively impacts the cross-sell objective these institutions are driving toward. Let’s look at a few examples of how this can happen.
Whether it’s based on a buyer propensity model or simply a clear relationship between complementary products, suggesting additional services to account holders as part of an onboarding program is viewed as a critical component by many financial institutions, and rightly so. However, the focus on getting the right products/services in front of the right account holders is often based on basic profile data and information supplied during the account opening process, which doesn’t take into account the mindset of the individual post-account opening. Attempting to cross-sell account holders who were anything less than satisfied with the experience of working with your institution is not only unfortunate timing, but it creates the wrong perception during what should be a period of relationship building.
Making It All About You (Not Them)
An account holder makes the choice (yes, it’s a choice) to engage with a communication sent by your financial institution, and what do they see? Chances are, it’s something presented as being valuable to them (e.g., Don’t Miss Our Lowest Interest Rates Ever!) but in reality, it holds more value to their financial institution if action is taken. What type of information is being provided to truly help the account holder?
Providing financial education resources is a great way to give account holders information that they can put to use in their everyday lives, and it’s the type of content that demonstrates value in the communications sent from a financial institution. Establish that value and remain consistent to create an audience of engaged recipients who will be much more likely to pay attention to your promotional messages.
Forgetting to Onboard
Are you saying “thank you” just for the sake of saying it? If treated as nothing but a formality, an onboarding program is a missed opportunity. Even a simple welcome letter holds enormous potential — to have an account holder’s attention for even a few seconds, and not do anything about it, is a shame. Ask account holders about their experience while its fresh in their minds, and reach out if any issues are reported to make it known that you’re listening. Provide useful information, such as support hotlines or other resources where they can turn for assistance. Give them information they can use, and give them time to get acclimated. Cross-sell messaging is a natural next step after the initial onboarding process has taken place, but both phases are very important. Effective products can solidify relationships, just as solid relationships can open up opportunities for additional products to be sold.
Harland Clarke Digital believes strongly in the role of onboarding for new account holders. Our SpringBoard program combines content marketing, email communication, survey distribution and ongoing data analysis to help financial institutions make the most of the opportunity to connect with, learn from and extend the relationship with new account holders. Learn more about SpringBoard.
Posted by David McMurray on September 12th, 2014
Survey construction can take weeks, sometimes months, and the process can be prolonged even more when you have to sift through a seemingly endless amount of revisions. Regardless if the survey is a standard customer or employee opinion survey, or one designed to address social and governmental issues, the pitfalls and problems of having a large group work together to write and format it are typically the same.
Large groups often spend so much time wordsmithing and discussing the endless options to number, renumber, sub-number and reorder items that it ends up having a negative impact on the final product. With each person bringing a different skill set and knowledge base to the table, from project managers to Ph.Ds, the result of so much collective input often comes in the form of overly wordy and heady questions and even longer surveys. For example, it is very common to hear comments like “If we’re asking THAT, then we need to ask THIS too!” It can reach a point where 50 questions looks like 160 questions, which is obviously a problem because responders don’t have the time or patience to complete such a lengthy survey.
To avoid the “too many cooks in the kitchen,” scenario, my suggestion is that you appoint one of the strongest members of the committee to be the leader. That leader needs to keep the group focused on the survey objective, be willing to take a stand on issues that impact survey content and set limitations on the time-frame.
The designated leader can be the final say so in all matters that are up for discussion whether it’s deciding if a question should use a 5-point scale or asking other members to go back and critically think about the structure of a particular question. The ultimate goal is to gather the most usable data and if the question is at all confusing, this type of knowledge will be difficult to obtain.
Assigning a leadership role is the best option to keep all committee members on the same page as well as keep the formatting process moving forward at a rapid pace. Establishing this role early on will help keep conflict at a minimum and help refocus the group to the task at hand. Most importantly, proper leadership will encourage everyone to work together to create the best survey format and questions to obtain the most useful and usable data.