Definitions Flashcards
anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or a need. All banking services including checking and savings accounts, CDs, safety deposit boxes, online banking, cash management services, and loans .
Product
The addition of a new product to an existing product line or of new product lines to an existing product mix.
product expansion
A group of products that have similar characteristics or serve related functions. In banking, the savings … includes passbook, statement, and money market savings accounts.
product line
The successive stages of a product sales and profits. The four stages, which vary in length from product to product, include INTRODUCTION which provide slow sales growth and loss and profits, GROWTH which indicates rapid growth in sales and profitability, MATURITY which is a slowed sales growth rate and reduced profits, and DECLINE
product lifecycle
The assignment of an individual or department to be responsible for introducing, marketing, and ensuring profitable sales of a product or product line.
product management organization
Do you need combination of for promotional activities: advertising, sales promotion, public relations, personal selling, that results in a profitable demand for products
promotion mix
Activities that communicate the availability of products or services to the target market to increase customer awareness and demand
promotion
A coordinated program of policies, conduct, and communication designed to foster goodwill and gain esteem from an organization’s Publics, which focuses on nonrevenue generating activity
public relations
The principle way to collect primary information
• Used to track year-over-year trends in satisfaction and loyalty.
• New account surveys allows marketers to see feedback from individuals/businesses that have initiated new relationships with the bank.
• Post-transaction surveys: random selection of customers, immediately following an interaction. Normally a phone call or online survey or on a mobile device for a financial institution.
Surveys
In collecting data there are three main elements
- Selecting a survey method
- Designing a questionnaire
- Fielding the study
Surveys
Usually composed of 10-12 customers. Used to identify topics and content that require additional discovery using other customer survey methods.
Focus Groups
Strengths, Weaknesses, Opportunities and Threats.
SWOT
- Conduct a self assessment. Evaluating internal secondary data and amassing feedback from customers and non customers through primary research
- Marketing Strategies (Product, Price, Promotion, and Place) - Analysis of the macro-environmental factors. Include employment trends, retail trade activity, and construction activity. Study demographic environment, social and cultural factors, political and legal environment.
- Analysis of the micro-environmental factors. Includes information on the bank’s customers. Can be obtained from surveys. Analysis of potential customers.
Answers the question, “ Where are we now?”
Situation Analysis
To gauge how much your target audience knows your brand.
Brand Awareness Study
One of the better indicators of a bank’s competitive strength is its market share- one bank’s or branch’s portion of all the banking business done in a market area.
This website includes a section of data called Summary of Deposits. This is the best source for competitive bank data.
Having the largest market share is not always ideal. Goal is to increase share of profitable markets.
Deposit Share FDIC
Helps you understand where you stand in the market compared to competition. It is used to measure all measures of brand awareness and how you stand next to competition.
Share of Voice
- Should be at the epicenter of all your marketing and business decision making
- Aims at capturing relevant information on the customer-perceived value of your organization
- Can be captured in various ways
- Used to improve customer satisfaction, product delivery, loyalty, and increase revenue for your organization
Voice of the Customer (VOC)
Customer Service & Experience Surveys, Customer Interviews, Mystery Shops, Focus Groups, Advisory Boards, Online Survey/Reviews, Geo-targeting branch visit surveys, in-app feedback, Social Media, Live chat, net promoter score
Examples of Voice of the Customer (VOC)
Can be done internally for surveying employees and their customer services skills and product knowledge and externally to monitor competition.
Mystery Shops
decisions about product or branch network adjustment, future development, or brand positioning and messaging.
Strategic planning
the need for brand awareness will vary. Existing market share, visibility, and longevity to each unique market. Most relevant to those in a newer marketplace. All brands benefit from continued awareness or top of the funnel market activity.
Awareness Building
Once awareness is attained, the next phase is to generate desire and preference for your brand, products and services. This kind of marketing is mid funnel marketing.
Demand Generation
Bottom of the funnel marketing. Focused on moving a perspective buyer. More time or context sensitive.
Targeted Promotion
Focuses more on careful planning and placement to encourage an unplanned purchase. Less relevant for a mortgage type product. Useful for products with online applications like credit cards.
Impulse Conversion
Demographic data for strategic planning may only have a couple of years. for location data is much shorter, perhaps only hours, should be targeted for short and impulse promotions.
data shelf life
Advanced analytics software solutions that aggregate and organize a bank’s various data points to provide a more holistic view of its customer base. Enhanced analytics that include: -House holding of customers -Demographic and psychographic insights -Customer share of wallet -Product usage -Customer profitability
CRM/MCIF
Secondary Market mortgage, insurance or wealth service, credit card provider, treasury management service provider, marketing and media data (Google, ad networks)
Third Party Data
Uses the banks core suite, and other analytical tools to create a detailed and targeted picture of a customer or a small group of customers. Involves applying analytical information about individuals to the marketing process so that each customer can be seen and marketed to. Enables the bank to see the needs, wants, preferences and buying patterns of customers. For a more customer focused organization.
CRM: Customer Relationship Management
Provides an alternative that allows marketers to integrate data from multiple sources throughout the bank and combine with demographic, psychographic profiles and profitability information. Tracks vital information on customers, products and services, competitors, demographics and more. A universal tool for banks of all sizes and complexities.
MCIF: Marketing Customer Information File
is an analytical tool that gathers transaction details and data on usage of bank products and services. You can identify key trends and opportunities for new products and services etc, patterns and trends that are developing and can analyze thousands of fields of data.
Data Warehouse
an important source of revenue and ensures a high degree of loyalty from customers. Furthermore, if the completion is advertising a new or different service, most interested customers will inquire whether their bank offers the same service before going to the competition.
Cross-sell next best product
examines customer expectations for service, products, sales activities, and relationship communications. Examples include: friendly greetings, accurate transactions, employee availability, and employees that express appreciation for the customer’s relationship. Loyalty is an extension of satisfaction.
desired experience
Every interaction you’ve had with a memorable or not is part of the this. If a customer is thinking about switching banks, they will first start by visiting your website. Website is an element of the this. They then visit the ‘Contact Us’ link to request more information.
Customer Journey
5 principles are: Geographic, demographic, psychographic, volume, and benefit segmentation.
Types of Segmentation
Divides the market according to geographic units. Example: Marketing debit cards, mobile banking, and low-cost checking in a marketplace with a college and a large concentration of the population between the age of 18-30.
Geographic Segmentation
categorizes the market in terms of population characteristics. Such as age, sex, income, occupation, and position in the life cycle. Example: bank establishes a professionals banking group specifically for attorneys accountants, and doctors has targeted an occupational segment. A bank that develops an equity credit line aimed at homeowners with incomes in excess of $75,000 is targeting another specific this.
Demographic Segmentation
classifying the market in behavioral terms according to lifecycle, lifestyle, or personality profile. Example: “young professional on the fast track” as a prime market segment for debit and credit card sales.
Psychographic Segmentation
the marketer’s attempt to distinguish heavy, medium, and light users of a product.
Volume Segmentation
the process of categorizing the market in terms of the main product-related benefits that different groups seek. Example: club-oriented checking accounts where customers receive access to travel opportunities and social events when they possess the related account.
Benefit Segmentation
your recent customer broadened by a combination of billboard, pre-roll video social ad, and SEM bought the initial product that you were offering, but within a given time frame also expanded their purchase with additional products or services.
“Halo”
What products are offered? What new services have been offered?
Product
What are the fees or service charges? What interest rates are paid/charged? What growth or decline has occurred in their portfolios that differ from yours?
Pricing
What advertising and promotional techniques are competitors using? What markets are they targeting? What do their current strategies appear to be? Are they effective? How much are they spending to deliver their message?
Promotion
What kind of facilities does the competition have? How do yours compare? How do your locations compare with theirs in terms of convenience and access? How do your branch services compare? How do you compare for hours of service? Are new locations being planned? Are locations scheduled to close? What delivery channels are available?
Place
Involves organizing information that is gleaned from published material or obtained when bank or other personnel actually “shop” the competition, posing as prospective customers
Mystery Shops
the measurement of the economic performances of your marketing program. The specific values of your this may vary by campaign and by product type. Channels leveraged, promotional details, and agreement with your bank’s CFO or finance department.
ROI
You recently completed a marketing program for a loan product with a total of $20,500 in expenses. By the end of your campaign, you attracted 900,000 in loan balances with a weighted average rate (WAR) of 4.50% and a cost of funds of .5%You also saw an incremental lift in interchange and fee income of $4,200.
ROI = 96%
(Incremental financial value gained as a result of marketing investment/cost of marketing investment)/marketing investment
ROI
To determine projected sales this review year over year sales statistics during the same time frame. Then using an MCIF or data from finance, determine the average balance of the products that are part of the campaign
Pre-campaign ROI = (x-y)/y
Product lift
allows for refined and targeted marketing, which can increase leads, revenue, website traffic, and brand awareness. can contribute to improved SEO. provides audience insight into who your “fans” are. Meaning who is interacting with your content. And includes things like age, sex, and location. You can even utilize for paid search where you can develop incredibly targeted communications based on your defined target audience.
Social Media Analytics
Likes, shares, followers, engagement rate, click-through-rate, reach.
Social Media KPI’s
Directly influenced by a website’s performance relating to the quality and relevancy of content and keywords, the website’s popularity, and the overall quality of the site. Utilizing this you can garner insights into how your online audience is interacting with your website and can effectively optimize content and the user experience. Ultimately attributing to the increased organic traffic leads and revenue for your organization.
Website and Search Engine Optimization (SEO)
- runs on a PPC model which generally has higher CTR
- typically has lower CPM
Search Engine Marketing (SEM) and Digital Display
success metric – increase in brand awareness.
Measured by – conducting top-of-mind awareness survey, seeing an increase in website traffic, receiving increase in social media followers, and receiving online impressions through search & online display
KPI for Branding
Success Metric- increase in accounts, loans, and/or an increase in qualified leads for products through digital channels
Measured by – tracking clicks, conversions
KPI for Growing Customer Relationships
Success metric- impressions, reads, downloads, and shares of applicable content
Measured by- reads and shares
KPI for positioning the bank as a resource for financial literacy
you only pay once a user clicks on the ad. can be a more expensive strategy to deploy but it generally has a higher click through rate than other channels. As you are marketing to your audience in real time in their moment of need which is a key advantage.
Pay-Per-Click (PPC)
are static or animated digital billboards or banner ads that can be targeted to your particular online users based on demographics, geographic, or psychographic profile. are a strong channel for brand awareness and is increasing website traffic. Typically with a lower cost per thousand (CPM) you can get a substantial amount of ad impressions
Display Ads
When writing content for your bank’s website, make sure you create quality content that highlights your products & services, customer support, company information, and financial literacy resources. Web pages should contain keyword-rich text and focus on condensed subject matter.
SEO
the process of gaining traffic and visibility from search engines through paid efforts. PPC (pay-per-click). Allows you to reach people as they search for keywords or phrases. Google Adwords is a good place to start.
SEM
you can foster information on audience insights. Which includes detailed information on demographics, device usage, interest and location.
Google Analytics
helps you understand how people are getting to your site and from which channels
Acquisition Analytics
provides insights on what page or pages your online users are visiting and for how long and what events are taking place on your site. For example, an event can be considered completing a form, downloading content, or opening an account.
Behavioral analytics
Comparing to prior periods, you can evaluate how content changes have performed on your site, indicating how engaged your target audience or customer is with your content. Understanding this KPI can allow you to evaluate page content, backlinks, UX, and CTA’s for improved customer experience, lead generation, and conversions.
Using various analytics available to you and analyzing these trends, you can then develop actionable insights and make better-informed decisions.
Page views
It should be valued, governed, and managed as we would handle any other valuable asset
Data
- Know what matters most
- Be a data advocate
- Leveraging data for decision making
- Understand the C-Level data
- Add value through data
- Be a student of your data
ways to communicate the value of data
understand your critical data elements. Be clear about the data points that are most critical to your success and take the initiative and the time to thoroughly review each. Creating and communicating common definitions and consistency to use across the organization.
Know what matters most
participate in data hygiene initiatives. Even when the source is outside of marketing, marketing’s ability to produce strong results is significantly impacted by the quality of all data.
Be a data advocate
Lead with data. Be prepared with data-driven logic, and plans to improve the focus on the data. The value in the data and the confidence in your recommendations.
Leveraging data for decision making
Know what levers that matter most to decision making and understanding and communicate these factors in relation to all marketing recommendations.
Understand the C-Level data
understanding and sharing data that the sales team finds useful in decision making and helping them to prioritize time and effort through the customer and through customer profitability data. This will amplify the value of the data and role of marketing
Add value through data
Tapping into your many database sources to provide proactive answers to businesses questions, like how to best cross-sell, what product to offer in the current environment, or how to reduce attrition based on customer transactional patterns
Be a student of your data
Marketing decisions that affect rate such as offering a premium rate to attract deposits or even creation of a new higher rate product must be made only through good financial data and collaboration, typically through the
Asset and Liability Committee (ALCO)
When the marketing plans and the marketing budget are presented for approval, they must determine:
- marketing initiatives that will be needed to achieve the bank’s objectives and goals for the upcoming year
- Marketing dollars that re justified to achieve the bank’s objectives and goals
Senior Management
Loan growth and attracting new loan customers may be an area of weakness or just reflect an average marketplace for generating loans. If you know that your bank is in constant need of loans, you can tailor your approach to the market, your promotion, and other activities to help ease the problem or assist in loan growth.
Loan to deposit ratio
Deposits brought into the bank through marketing efforts must be put to use on the asset side of the balance sheet. New loans must be funded from the liability side.
Rate setting
The marketing staff must obtain rate information from the manager of bank investments and then must demonstrate that the difference between the cost of funds and the use of those funds is sufficient to generate a reasonable margin of profit for the bank.
Example of Rate setting
- comparative operating statistics
- comparative market shares
- comparison of marketing strategies (products, pricing, advertising, and promotional activities, service delivery, community involvement, and selling efforts)
- promotional activities, service delivery, community involvement, and selling efforts)
- comparison of product offerings (identification of product gaps or overlaps)
4 categories of information that should constitute the analysis of the bank’s competitive environment:
Marketers should compare the bank’s condition and income statements with those of its principal commercial banking competitors. Provides insight for product decisions, track the impact of market conditions on competitor success. Performance information on every FDIC insured institution may be obtained from call reports and income statements filed with the FDIC.
Uniform Bank Performance Report (UBPR)
enacted by Congress in 1977. The intention of the law and its subsequent regulations has been to encourage banks to meet the credit needs of the communities in which we operate, including low and moderate income (LMI) areas, consistent with the safe and sound operation of such institutions (and not simply generate deposits). The this record of a bank is considered in applications for future mergers and acquisitions or new deposit facilities. Likewise, this must be a consideration when any deposit-taking activity might be impacted such as a branch or ATM closure.
The Community Reinvestment Act (CRA)
must also be a consideration in general marketing activities as it is critical that targeting does not inadvertently filter out certain geographic areas based purely on location. This includes several tests that banks must pass to demonstrate compliance, varying a bit by asset size. One way to qualify for this credit is through the capture of qualifying volunteer hours including time spent on financial literacy programs, fundraising activities, and board memberships. Tracking qualifying donations or community investments, loan programs or volunteer hours can be a bit complex, but the capture of these credits is critical to your bank’s growth opportunities.
The Community Reinvestment Act (CRA)
- sharing of information about the institution’s lending services
- information regarding the community’s credit needs
- informing community members how to get or use credit
- Assisting in providing credit services or information to the community or an investment, deposit, membership share, or grant that has as its primary purpose community development
CRA qualified charitable donations must include:
