Measuring your marketing campaigns and efforts is necessary for both optimizing processes and proving value. In order to visibly see what is effective and what isn’t, financial marketers must establish and measure key performance indicators (KPIs). This will then empower marketers to direct marketing dollars and efforts towards the most effective campaigns to achieve the goals of the financial institution and gain ongoing approval and buy-in from leadership. To prove effectiveness, marketers should consider measuring the following KPIs:
New Account Growth: Tracking new account openings and balances generated for the products promoted is a simplistic, yet effective way to measure the success of your marketing efforts. Typically marketing goals track back to your bank or credit union overall strategic goals of stimulating deposit or loan growth. Evaluating your new account growth is a good metric to assess this growth to share as an ongoing metric with senior leadership.
Conversion Rate: Conversion Rate, also know as Response Rate, measure the effectiveness of a specific campaign. Evaluating conversion rate looks at the number of campaign responders that took the action you intended for them to take (i.e. opened a checking account, transferred a balance) divided by the overall audience targeted by your campaign. This results in a percentage conversion rate per campaign.
Return on Investment (ROI): Return on Investment measures dollars spent on a campaign and against the revenue (or balances) generated from the campaign. This is the most common and best KPI to measure the effectiveness of all marketing campaigns as it also measures the quality of a campaign’s effect on the bottom line generated by marketing efforts.
These are just a few critical indicators for financial marketers to be able to prove the value of their campaigns. According to Blue Fountain Media, more than 50% of banks do not measure ROI at all for their marketing efforts. A recent Digital Banking Report states that 39% of financial marketers find measuring performance and proving results a major challenge. This challenge may be due to the various demands on bank and credit union marketers that have limited time and resources to evaluate KPIs. At the same time, the majority of your marketing budget should be allocated to drive results and revenue. Especially with the lasting budget impacts from COVID-19, the need to prove marketing effectiveness has increased to justify any marketing costs. Measuring all the impacts of marketing efforts are equally as important as the efforts themselves. Investing in the right tool can allow financial marketers to achieve real measurement and prove the value of marketing.
When looking to leverage a marketing technology solution to enable you to easily measure the value of your marketing campaigns, what criteria should be considered?
- Tied to the Core System: Are the results generated connected to your core and ancillary systems?
- Website Intelligence: Does this tool encompass activity tracking to further enhance campaigns and digital engagement?
- Easy Access: Will you have data at your fingertips?
- Conversion Rates: Will this tool allow you to quickly visualize campaign results and ROI?
Answering “yes” to questions in the key criteria areas above will allow your bank or credit union to capitalize on all-in-one marketing technology provider that will allow you to measure all of your marketing efforts within your multi-channel engagement communications and lifecycle marketing strategy, all tying back to your data.
Click below to discover more about what to criteria to consider in these areas when evaluating an all-in-one marketing technology solution:
Download a full MarTech provider evaluation checklist with all the key consideration for each of these areas
How can Core iQ allow you to easily measure your marketing campaigns? Contact us today to find out.