3.Why did BBVA sign multiyear sponsorship deals with NBA and ESPN? Do you agree with this decision? To increase brand awareness. Yes, brand building is a long term process and needs continuous input.
4.What are the various steps in the online acquisition process and how can the bank improve this process?
Buy key words—ad shows up with the key word- banner with promotional offer(ipod, 5% cash back, or $100 to $150 in cash, under certain conditions)-link to official website–Open account
Buy ad space in prospect’s website— banner with promotional offer(ipod, 5% cash back, or $100 to $150 in cash, under certain conditions)-link to official website–Open account
How they can do:
Increase the people who see and click.
Put more budget on
Simply step/information required for online application.
5.What is the effective acquisition cost and lifetime value of customers acquired through the online channel? BBVA acquired its customers through its branches, website, telephone and direct mail. About 80% of the new checking accounts had been set up through BBVA’s branches, 15% through telephone and direct mail and 5% came from the on-line channel. BBVA’s goal was to keep the customer acquisition cost below $200 per new account. The bank considered acquisition cost between $100 and $150 to be good and below $100 to be great.
The online channel had the least acquisition costs of all – on average, the effective cost of these promotions was about $100 for each new online checking customer. In the banking industry, the average lifetime value of a new checking account, with expected life of five years, is approximately $800. However, the net annual income generated by online customers is slightly higher than returns from clients using the local branch (online customers have lower balances and therefore pay higher fees).
6.What is the role of display and search advertising in acquiring new checking account customers? Is the 2010 advertising budget allocation between display and search appropriate?
Paid search advertising entailed purchasing keywords on Google, Yahoo!, and Bing, the three major search engines. The largest portion of BBVA’s paid search budget was allocated for Google, as it had the biggest share of search queries. Words purchased included generic keywords, such as “consumer checking,” “checking account,” and “free checking account” as well as branded keywords, including “BBVA Compass” and “BBVA brand.” Buys for these keywords were analyzed and tracked through the bid management tool, which evaluated competitive prices, search volume and share of voice for each keyword. Media Contacts also sent weekly performance reports with analysis and recommendations for campaign optimization.
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