Topic: E-Marketing

Roi On Marketing Campaign

Posted by Anonymous on 100 Points
I am doing a campaign to drive customers to online banking and I need to understand or figure out how much of a benefit it is for the bank to have their customers online versus going directly to a teller. My belief is that every customer is worth X dollars once converted online but I can't find any hard numbers to back it. Any suggestions or thoughts?
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  • Posted by Inbox_Interactive on Accepted
    I understand that you're looking for a number to help make a case for this, but it seems pretty obvious that any time you can keep someone from walking into a branch or making a phone call to a customer service rep, that's money in the bank's pocket.

    Just look at the ATM explosion...

    However, if you're looking for a defensible number here, I think you're going to have to do more than take a number from someone else's experience; you'll have to do some modeling and come up with one on your own.

    Seems to me you need to get some idea as to how many customers you can convert to online services and then find out how the extent to which you can cut staffing at the branches and the phone support areas. If the cuts are big enough, then you might even be able to give up some office space, too. Then you need to see how much all of this will save the company at which time you'll be able to say, "If we get 10,000 people to join online banking, that will mean we can reduce teller headcount by 50 and phone support headcount by 25 and close one office, saving the company $3 million per year." (All the numbers are just illustrative...)

    Then you go from there.

    If you get customers to move to online services but you can't cut expenses somewhere or grow your revenue without adding costs that you otherwise would have, then you probably can't show the "value" of converting customers to online banking.

    Truth be told, I think there should be someone at the bank who is not a marketing person who should be able to come up with this information. someone like a chief financial officer. This seems to be outside the scope of what a "marketing" person would do, although I think it's great that you're interested.

    Ideally, the CFO would come to you and say, "Can we get 10,000 customers converted to online banking in 12 months for less than $1 million? Because if we can, then we're going to do it." At which time you'd develop a strategy (or realize that it can't be done) where you could meet those goals.

    My $0.02...

    Good luck!

  • Posted by Inbox_Interactive on Accepted

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