The problems in this case are, BBVA Compass wants to achieve the following marketing goals with limited resource allocations: * Building awareness and trust in the brand. * Improve satisfaction and retention customers and cross sale to them. * Bring in new customers and increase total number of accounts through online and offline marketing. 1) The role of offline advertising is to build brand awareness and improve consideration among potential customers for opening new checking accounts.
The name change of the bank to BBVA Compass dropped the brand awareness to 48% and offline advertising is trying to get it up to 53% by 2010 through sponsoring NBA, WNBA and ESPN.
* The role of online advertising is to acquire new customers by creating online brand awareness and opening new checking accounts. * In my opinion the 2010 budget allocation is not appropriate because Exhibit 2 showed that customers value free checking services and convenient bank locations more than online support. % of BBVA previous customers came from online service and 95% from offline (80% from branches, 15% from telephone and direct mail).
So, I think more allocation should be given to offline media and improving customer services. 2) I totally agree with this decision. Because after the name change of the bank to BBVA Compass, the brand awareness dropped to 48% and offline advertising is trying to get it up to 53% by 2010. Signing a multiyear sponsorship with NBA and ESPN will increase brand awareness of BBVA though broadcasting advertisement in primetime slots all over US. ) When potential customers search for a checking account on Google or other search engines the ad of BBVA compass will be there and which can take customers directly to the bank’s official page. This could be done by either paid search process or by display ad process. In the bank’s official page visitors can complete an application for a new online checking account. About 10% of the online visitors who click on the ad start an application.
However, less than 50% actually complete it. Even after that the bank rejects 20% of these applications on the basis of credit score. (Not sure if we need this or are we just going to show the steps??? The steps of online acquisition are: (1) Customers search online for checking account > (2) Paid search or Display ad takes them to bank website > (3) Customers start an application > (4) Completed applications were submit to be approved by the bank > (5) Customers opened new checking account and BBVA acquired a new client. The following steps can be taken to improve the process: * Improve online application process – making it more interactive and elaborate to customers. * Specify what information customers need to provide for the online application and what credit score is needed to be approved by the bank. Provide constant reminder to customers for funding the account within the time frame. 4) What is the effective acquisition cost and lifetime value of customers acquired through the online channel? The effective acquisition cost for online acquisition of per customer is $ 81. 5) Display and paid search advertisement played the vital role of online customer acquisition. Paid Search ad: BBVA buys keywords in three main search engines: Google, Yahoo and Bing. When customers type in generic words like checking account, free checking account, banking etc. t gives them an option to go to BBVA website for creating application to open a new checking account. BBVA track the ad success by calculating click through rates, cost per click and cost per application. Display ad:Display advertisement entailed buying ad space on websites that the bank’s prospective customers were likely to visit. If a customer clicks on an ad it will take him directly to the bank’s official page.
In the bank’s official page visitors can complete an application for a new online checking account. BBVA works with different advertising networks to reach across multiple publishers and domains. The networks use algorithms and ustomer priority data to identify sites where BBVA ads are displayed. Display ad generally creates fewer clicks but higher number of impressions. To understand the customer journey BBVA uses customers’ cookie data to chart typical paths from exposure to final conversion. If I were to solve the marketing problems of BBVA compass bank through limited resource allocation, I would do the following: * Provide more emphasis on – convenient bank location, easy online service, personalized banking service and provide one-on-one banking advice. * More budget allocation for direct marketing and promotion, rather than just TV and print media. Making personal contact with customers – for providing brand awareness and recognition. * Improve online application process – making it more interactive and elaborate to customers. * Specify what information customers need to provide for the online application and what credit score is needed to be approved by the bank. * Provide constant reminder to customers for funding the account within the time frame. * Better selection of sites for display add – avoid duplication. * Measure the effectiveness of sponsorship to Sports organizations – increase or decrease budget allocation accordingly.
Cite this Bbva Compass Case Study
Bbva Compass Case Study. (2017, Jan 11). Retrieved from https://graduateway.com/bbva-compass-case-study/