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

Published in: Business

Digital Marketing Strategies for Financial Services

  1. 1. Digital Marketing Strategiesfor Financial ServicesFebruary 2013
  2. 2. Digital Marketing Allocation2  
  3. 3. Digital Marketing Growth3  
  4. 4. Digital Marketing Emphasis4  
  5. 5. Secrets To Digital Marketing Success •  Email and Direct Mail Aren’t Dead •  Make Message Simple •  Everything is Integrated •  Content is Currency5  
  6. 6. 5 Digital Marketing Mistakes Banks Make •  Erecting channel silos •  Underfunding the banks website •  Lack of KPIs and measurement •  Not sharing data within organization •  Not leveraging new digital tools6  
  7. 7. 3 Key Digital Marketing Strategies •  Multi-Channel Attribution and Attribution Modeling •  Retargeting 2.0 •  Responsive Design for Mobile Optimization7  
  8. 8. 3 Key Digital Marketing Strategies •  Multi-Channel Attribution and Attribution Modeling •  Retargeting 2.0 •  Responsive Design for Mobile Optimization8  
  9. 9. #1: Attribution Modeling >  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 viewed9  
  10. 10. 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 <18 and >50, with <$30K HHI Yet Converters are primarily 18-49, HHI $60K+ Source: Quantcast (based on combination of Tech, Insurance, & Apparel categories)10  
  11. 11. Evaluating Display Beyond the Last Ad Served •  Online media has traditionally been measured based on a “last ad” model, where 100% of the credit is attributed to the last ad clicked or viewed •  However studies have shown that the “last ad” model may ignore up to 94% of media touchpoints in converter histories.* •  Attribution modeling considers the relative contribution of those prior touches •  End Result…ability to drive scale by validating impact of higher funnel media Display Display Display / Rich BT Internal RT SEM   Conversion Media Last Ad Prior Touches *Song, Young-Bean. Senior Director Atlas Institute. “Engagement Mapping: A new measurement standard is emerging for advertisers.’11  
  12. 12. Common Cross Channel Dynamics Lifts response of: Social & Direct Mobile Mail Common Cross Lifts response of: Channel Dynamics Drives Helps >  In reality, each channel in the Affiliate volume to: optimize content for: mix affects all others Lifts response of: >  This depicts the most significant dynamics Drives volume to: SEO/SEM Display Drives volume to: Drives volume to: Landing Retargeting Page12  
  13. 13. Cross Channel Example Dynamic Display Impacts Search Actual campaign data from a financial services client showing search volume decreasing as display impressions decrease >  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-action13  
  14. 14. Cross Channel Example Dynamic Display Impacts DM New Control has recently been successful combining display and DM to increase response and lower overall CTA MaxPoint Online Account MaxPoint Online Account Impression Delivery Applications Impression Delivery Applications >  50% lift in response rate over DM alone Most Impressions –  Neighborhoods that received display ads in addition Medium Impressions to DM against neighborhoods that only received DM Fewest Impressions >  Overall, the display campaign had an estimated 2.83x Digital Zips with 1+ Online ROI and incremental return on DM investment of 1.83x Applications During Campaign14  
  15. 15. Cross Channel Example Dynamic SEM Informs Direct Mail SEM Data helps optimize… …DM creative >  Message test using insights from SEM data lifted response rate 23% over control15  
  16. 16. Common Attribution Models The challenge is that these are theoretical First Touch attributions that don’t accountLast Touch for channel or creative differences First & Last Algorithmic Decay16  
  17. 17. 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 exposure17  
  18. 18. 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 OLM Display Search SR Display CR x User Group A Impression #1 + Impression #2 + Impression #1 + Impression #1 = CTA x OLM Display Search SR Display CR y User Group B Impression #1 + Impression #1 + Impression #1 = CTA y OLM Display OLM Display Search CR z User Group C Impression #1 + Impression #2 + Impression #1 = CTA z *Simple example for illustrative purposes only; ultimately there will be as many user groups as there are unique touchpoint paths 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.18  
  19. 19. 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  1   Mix  2   Scale:  A   Scale:  B   Cost-­‐Per-­‐Conversion:  Y   Cost-­‐Per-­‐Conversion:  Z  19  
  20. 20. Attribution Modeling Technology Visual IQ Example Analyzes sales by channel over time Then uses attribution modeling (not last action), to develop a recommended allocation of spend across channels that maximizes ROI20  
  21. 21. 3 Key Digital Marketing Strategies •  Multi-Channel Attribution and Attribution Modeling •  Retargeting 2.0 •  Responsive Design for Mobile Optimization21  
  22. 22. #2: Retargeting 2.0 – CRM Retargeting CRM   Database   Online targeting of customers in an offline CRM database22  
  23. 23. #2: CRM Retargeting – How It Works Physical  address   Physical  address    12.4.560.275   Physical  address    356.5.10.153   Physical  address   CRM DatabaseMail file is passed to IP addresses/cookies Cardholders in the mail file are CRM Targeting corresponding to served display ads – platform provider matched cardholders potentially including are identified downloadable coupons 23
  24. 24. #2: CRM Retargeting Benefits >  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 costs24  
  25. 25. #2: Retargeting 2.0 – Search Retargeting •  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 USER A" USER A" A prospect searches for “Playstation Credit Card” on Google Later, they are served an ad for the Playstation Card25  
  26. 26. 3 Key Digital Marketing Strategies •  Multi-Channel Attribution and Attribution Modeling •  Retargeting 2.0 •  Responsive Design for Mobile Optimization26  
  27. 27. #3: Responsive Design >  Single source of HTML code that is built to adapt or respond to the display environment, screen size, etc. Website viewed on a mobile device Website viewed on a desktop27  
  28. 28. More than 1 in 2 Americans already have a smartphone …28  
  29. 29. … iPhone Growing 5X Faster Than the Internet Did29  
  30. 30. … iPad Growing 3X Faster Than iPhone did30   Sources: KPCB and Apple, as of CQ1:12 (8 quarters post iPad launch).
  31. 31. … Android Growing 5x Faster Than iPhone did31   Sources: KPCB, Gartner, Morgan Stanley Research, as of Q4:11
  32. 32. #3: Responsive Design >  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 that’s 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 Litmus32  
  33. 33. Digital Marketing Strategy Bonus •  Personalized Video33  
  34. 34. Video Consumption is Growing34  
  35. 35. Video Ad Buys Are Growing35