Digital Marketing Strategies for Financial Services

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Presentation by Jim Marous and Jay Dillemuth in the Backbase webinar on Digital Marketing Strategies for Financial Services. The rise in digital technologies is transforming how bank marketers can reach, engage and deliver value to their customers. With a proliferation of media channels, financial marketers must understand these new digital tools and be in a position to implement digital strategies that add value to the marketing mix and integrate with already established marketing and business practices. This webinar will discuss several digital marketing strategies that are being successfully used by financial organizations to reach digitally savvy audiences. Tools will be presented along with examples of ways to gain a competitive advantage online

Transcript

Digital Marketing Strategies for Financial Services February 2013

Digital Marketing Allocation

2

Digital Marketing Growth

3

Digital Marketing Emphasis

4

Secrets To Digital Marketing Success

5

Email and Direct Mail Arent Dead Make Message Simple Everything is Integrated Content is Currency

5 Digital Marketing Mistakes Banks Make

6

Erecting channel silos Underfunding the banks website Lack of KPIs and measurement Not sharing data within organization Not leveraging new digital tools

3 Key Digital Marketing Strategies

7

Multi-Channel Attribution and Attribution Modeling Retargeting 2.0 Responsive Design for Mobile Optimization

3 Key Digital Marketing Strategies

8

Multi-Channel Attribution and Attribution Modeling Retargeting 2.0 Responsive Design for Mobile Optimization

#1: Attribution Modeling

9

> Enables marketers to look at the history of ads/touches that contribute to a conversion over an extended period of time

> Credit is given to each ad or touch point within the sales funnel rather than crediting the last ad clicked or viewed

Our Target Converter Is Not Clicking Our target audience is not clicking on banners, yet they are converting The demographic that is clicking is very different from the demographic

which is converting

Clickers primarily 50, with In reality, each channel in the mix affects all others

> This depicts the most significant dynamics

Common Cross Channel Dynamics

13

> The correlation between search and display has been statistically demonstrated often

> The challenge to is identify the optimal allocation between the channels to achieve the lowest average cost-per-action

Actual campaign data from a financial services client showing search volume decreasing as display impressions decrease

Cross Channel Example Dynamic Display Impacts Search

Cross Channel Example Dynamic Display Impacts DM

14

MaxPoint Impression Delivery

MaxPoint Impression Delivery

Online Account Applications

Online Account Applications

Most Impressions Medium Impressions Fewest Impressions Digital Zips with 1+ Online Applications During Campaign

New Control has recently been successful combining display and DM to increase response and lower overall CTA

> 50% lift in response rate over DM alone Neighborhoods that received display ads in addition

to DM against neighborhoods that only received DM

> Overall, the display campaign had an estimated 2.83x ROI and incremental return on DM investment of 1.83x

15

SEM Data helps optimize

DM creative

> Message test using insights from SEM data lifted response rate 23% over control

Cross Channel Example Dynamic SEM Informs Direct Mail

Common Attribution Models

16

First & Last

First Touch Last Touch

Algorithmic Decay

The challenge is that these are theoretical attributions that dont account for

channel or creative differences

We recommend a reactive algorithmic approach that measures the relative impact of each ad exposure in market in order to assign a weighted credit to that particular exposure

17

How Attribution Works

Using a combination of in-market measurement and modeling, we can effectively and accurately attribute fractional credit for each conversion

OLM Display Impression #1

OLM Display Impression #2

SR Display Impression #1

Search Impression #1

CR x CTA x + + + =

OLM Display Impression #1

SR Display Impression #1

Search Impression #1

CR y CTA y + + =

OLM Display Impression #1

OLM Display Impression #2

Search Impression #1

CR z CTA z + + =

User Group A

User Group B

User Group C

By analyzing the differences between all of the in-market touchpoint paths that result in a conversion, we can deduce the relative impact of each individual impression and creative unit on conversion rate and CTA, and thereby assign the appropriate credit.

*Simple example for illustrative purposes only; ultimately there will be as many user groups as there are unique touchpoint paths

18

19

Mix 1 Scale: A

Cost-Per-Conversion: Y

Optimizing the DR Mix

> A portfolio management approach defrays risk and achieves maximum results > Scale and Cost-Per-Conversion are balanced > Optimizing the mix is achieved through testing, sufficient data, and analytics

Mix 2 Scale: B

Cost-Per-Conversion: Z

Attribution Modeling Technology Visual IQ Example

20

Analyzes sales by channel

over time

Then uses attribution modeling (not last action), to develop a recommended allocation of spend across channels that maximizes ROI

3 Key Digital Marketing Strategies

21

Multi-Channel Attribution and Attribution Modeling Retargeting 2.0 Responsive Design for Mobile Optimization

#2: Retargeting 2.0 CRM Retargeting

22

CRM Database

Online targeting of customers in an offline CRM database

23

#2: CRM Retargeting How It Works

Cardholders in the mail file are served display ads potentially including

downloadable coupons

IP addresses/cookies corresponding to

matched cardholders are identified

Mail file is passed to CRM Targeting

platform provider

Physical address 123.123.123.123

Physical address 12.4.560.275

Physical address 356.5.10.153

Physical address 192.168.1.132

CRM Database

#2: CRM Retargeting Benefits

24

> True 1-1 targeting of of customers > Offers can be identical to ones cardholder would receive through DM channel > Can be used as a stand-alone alternative delivery method to lower program costs, or as a

DM reinforcement to increase redemption and spend levels

> Integrates with leading digital media platforms for complete flexibility of media plan

> Spongecell ad units provide robust functionality without rich media ad serving costs

25

Search Retargeting enables us to retarget users with display advertising based on the content of their internet searches

This strategy enables us to capitalize on the targeting accuracy of search engine marketing (SEM) without the character limit restrictions of traditional search ad units

A prospect searches for Playstation Credit Card on Google Later, they are served an ad for the Playstation Card

USER A" USER A"

#2: Retargeting 2.0 Search Retargeting

3 Key Digital Marketing Strategies

26

Multi-Channel Attribution and Attribution Modeling Retargeting 2.0 Responsive Design for Mobile Optimization

#3: Responsive Design

27

> Single source of HTML code that is built to adapt or respond to the display environment, screen size, etc.

Website viewed on a desktop

Website viewed on a mobile device

More than 1 in 2 Americans already have a smartphone

28

iPhone Growing 5X Faster Than the Internet Did

29

iPad Growing 3X Faster Than iPhone did

30 Sources: KPCB and Apple, as of CQ1:12 (8 quarters post iPad launch).

Android Growing 5x Faster Than iPhone did

31 Sources: KPCB, Gartner, Morgan Stanley Research, as of Q4:11

#3: Responsive Design

32

> 57% of people open email on mobile devices > Only 3% will view the same email again later > To make sure customers see the email or landing page thats suited to their device,

responsive design adjusts depending on the width of the screen - Landing pages - Websites

When should Responsive Design be used? > Any page linked to from email has a good chance

of coming from mobile

> Any URL mentioned in out-of-home ad may also come from mobile

Benefits include: > Emails and landing pages work best for user

regardless of where they read it

Source: ClickZ and Litmus

Digital Marketing Strategy Bonus

33

Personalized Video

Video Consumption is Growing

34

Video Ad Buys Are Growing

35

APRIL MAY AUGUST OCTOBER

SMARTVIDEO: EFFECTIVE ENGAGMENT THROUGH THE CUSTOMER LIFECYCLE