As a bank marketer, you know that measuring the performance of marketing efforts is more complex than simply looking at the number of likes on your institution's Facebook posts. Measuring your performance takes real data. But, in an industry where hard data points are tough to come by, knowing what to measure, how to measure it and what it means can sometimes be a challenge.
Read on to learn how you can gauge your bank's or credit union's marketing performance.
While some things in the marketing and advertising realm are difficult to measure, others are not. That's why, as a bank marketer, it's important to always measure the metrics you can. Did you launch a campaign to increase your loan applications? Look at how many applications you received before and after the campaign and measure the difference—then take a look at the overall cost of the campaign and compare that to the increase in applications. This will help you find your average cost per application (CPA). You can then compare the CPA to the benefits of opening new accounts and see if your marketing efforts are performing in a way that makes them worth the financial investment on your end.
For other marketing elements, tracking the success of your spend is a bit trickier. With billboards, for example, it can be difficult to determine if an advertisement succeeds in bringing more customers or members through your doors. You can get an idea of the impact this kind of marketing spend has on your bottom line by tracking the metrics you hope to influence and comparing the success of those metrics over time with the money you spend to improve them. It's important to note that you don't have to spend money to tinker with your marketing budgets. If your institution is already strapped for cash, try cutting on a few things in your budget and see how it impacts the key performance indicators (KPIs) you track. If you manage to trim your budget but keep the same results, you can count that as a win as well.
As with everything, great marketing strategy doesn't come in a day. It is built by carefully monitoring your metrics over time and adjusting your decisions based on the correlations you see. Careful measurement of your KPIs and close comparison to your marketing spend will uncover relationships that will ultimately lead to a well-adjusted marketing budget. But your efforts don't do any good if they aren't sustained, so keep your ear to the ground and stay flexible.
Tracking marketing return on investment is one of the most difficult and frustrating parts about being a bank or credit union marketer, and, with so many other things to keep track of on a day-to-day basis, it's no wonder that careful collection and analysis of your key data points can sometimes fall through the cracks. If you need monitoring and adjusting of your marketing strategies, drop us a line to see how we can help.