The digital age has transformed marketing return on investment (ROI) for financial institutions. In the past, spikes in productivity were often difficult to track and left financial analysts boggling for hours over mystery numbers and sales. Today, companies can now attain specific insight on customers and successful campaigns. Big data and customer profile information flow through retail banks and financial institutions daily. As a result, these organizations have access to customer analytics that many businesses don’t.
The most savvy banks and financial institutions have caught on to the latest methodology for measuring marketing ROI. Gauging campaign or quarterly success all comes down to measuring the ROI of your marketing efforts. Align your campaign strategies with your gains and decipher which marketing techniques achieved a successful ROI for your company by utilizing the three steps below.
Simplify ROI measuring methods:
For every campaign or sales strategy, your mission is to:
Establish a well defined campaign
Calculate the financial cost of the campaign
Record the financial gain from the campaign
The three steps above will keep you on target while you are interpreting metrics. Clearly defining your campaigns will allow you to evaluate which strategies were successful, which need to be further optimized for success and which need to be canceled all together.
Identify and Measure ROI goals:
Identify a clear, innovative and relevant marketing strategy in order to set up a truthful gauge of marketing ROI for financial institutions. For instance, your financial institution could plan to promote a mortgage loan eBook, open 100 new checking accounts, or get customers to download an online banking app. Marketing ROI objectives may include increasing the number of visitors to your site, converting a set percentage of visitors into customers, getting customers to advertise or share your product and brand, or acquiring more customers from a specific buyer demographic. Defining these goals allows you to establish the desired outcome of a campaign.
Study and measure the projected outcome of your strategy. Campaign costs should be calculated before you put them into action. The Customer Acquisition Cost (CAC) formula is one easy way to calculate ROI and discover how much money your campaign spent to gain a new customer.
Campaign Sales Costs + Campaign Marketing Cost ÷ # of Customers Gained = CAC
Whichever marketing strategy you plan to implement, it is important that your financial institution generates quality content and relevant campaigns in order to build trusted bonds with your audiences. If the campaign makes no connection with the target audience, your marketing return on investment will be low. Your campaign should educate audiences about your products and how they will fulfill their demands. Campaigns that educate audiences as well as meet their needs will produce a higher marketing ROI for financial institutions. Keep in mind that while connecting with customers on a personal level, privacy is paramount. You also want to make sure that your strategy is consistent with your brand’s mission and company culture.
Track and monitor engagement, sales and web analytics:
Tracking and monitoring engagement, sales and web analytics allows you to convert your data into valuable insights. If you are engaging viewers online or promoting a campaign, utilize your Facebook, Twitter, and LinkedIn page insights to see which posts sparked the most engagement and or mentions. Many social media networks offer insights on age and gender demographics as well. These valuable insights can be used to interpret customer behavior and trends.
Customer Relationship Management (CRM) databases such as Google Analytics and Salesforce enable you to track your audiences on your social networks, blogs and websites. You can track bounce rates, hits, viewer activity and evaluate how people are interacting with your products and services. Efficient CRM databases track increases in sales and how they relate to specific campaigns.
Other traditional methods of tracking and monitoring sales include directly asking customers how they found you, using promotion codes on your marketing materials and tracking calls.
These techniques will facilitate the accurate measuring of marketing ROI for financial institutions. Controlled procedures allow organizations to comprehend their customers, target audiences while effectively measuring and improving ROI.