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
5. Secrets To Digital Marketing Success
• Email and Direct Mail Aren’t Dead
• Make Message Simple
• Everything is Integrated
• Content is Currency
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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 tools
6
7. 3 Key Digital Marketing Strategies
• Multi-Channel Attribution and Attribution Modeling
• Retargeting 2.0
• Responsive Design for Mobile Optimization
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8. 3 Key Digital Marketing Strategies
• Multi-Channel Attribution and Attribution Modeling
• Retargeting 2.0
• Responsive Design for Mobile Optimization
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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 viewed
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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)
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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.’
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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
Page
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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-action
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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 Campaign
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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 control
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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 Decay
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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 exposure
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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.
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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
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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 ROI
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21. 3 Key Digital Marketing Strategies
• Multi-Channel Attribution and Attribution Modeling
• Retargeting 2.0
• Responsive Design for Mobile Optimization
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22. #2: Retargeting 2.0 – CRM Retargeting
CRM
Database
Online targeting of customers in an offline CRM database
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23. #2: CRM Retargeting – How It Works
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
Mail 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
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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 costs
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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 Card
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26. 3 Key Digital Marketing Strategies
• Multi-Channel Attribution and Attribution Modeling
• Retargeting 2.0
• Responsive Design for Mobile Optimization
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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 desktop
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28. More than 1 in 2 Americans already have
a smartphone …
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30. … iPad Growing 3X Faster Than iPhone did
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Sources: KPCB and Apple, as of CQ1:12 (8 quarters post iPad launch).
31. … Android Growing 5x Faster Than iPhone did
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Sources: KPCB, Gartner, Morgan Stanley Research, as of Q4:11
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 Litmus
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