CUNA News Podcast – Marquis Sponsored: Integrating Data to Deepen Member Relationships

Check out the latest CUNA News Podcast sponsored by Marquis as Dr. Tony Rizzo, Chief Marketing and Creative Officer, and Ryan Housefield, Senior Vice President of Sales, describe how credit unions that use data on the front lines can provide the engagement tools employees need to drive sales and decision-making while improving the bottom line.

Click here to listen to the podcast.

CULytics Free Solutions Demo Day

Join us for the CULytics Solutions Demo Day for an inside look at our marketing solutions. See why hundreds of credit unions trust Marquis to help them achieve success and deliver results. 

CULytics helps financial institution leaders during the research and discovery phase of a buying cycle. During this critical stage of information gathering, buyers narrow the field of solution providers to a short-list they plan to engage with.

Solutions Demo Day aims to make it easier for buyers of marketing automation software to connect with the best providers.

In this three-hour format, solution providers will demo their platforms and answer questions. Buyers can tune in for the whole demo session, or strategically drop in on sessions to learn about specific solutions. This is a high-impact, low-risk environment to learn about how these solutions may help them business navigate the current environment.

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Prospecting—Intelligent Farming Strategies

Finding new customers/members is essential to growth for any financial institution. Consider this; there are about 36 million consumers who might be convinced to switch financial institutions. The opportunity is out there. According to an online Harris Poll, 38% of consumers considered opening an account at their neighborhood bank or credit union, but only 5% said they might actually do it. Convincing them to switch to your institution is the challenge.

Prospects are out there and they are interested in switching to local banks and credit unions. To reach and motivate them, your offers must be timely and relevant in addition to websites being easy to find and navigate.

To SEO or SEM …

The first step for most consumers is usually an online search. There are 3.5 billion Google searches a day! And that grows about 10% every year. Search Engine Optimization (SEO) and Search Engine Marketing (SEM) have been around a while now. When implemented properly, there should be an increase in the quality and quantity of web traffic. SEO attracts organic traffic to your site and takes more time to build. But it is unique to your brand and message. And it’s free. SEM isn’t. For an established fee, SEM helps gain visibility and funnel traffic to your site. In its ideal form, your institution appears at or near the top of the search results page.

This is not an either/or proposition. They both increase traffic and brand credibility; they both need to be part of your marketing budget. SEO may take more time to ramp up, however, it’s more sustainable and not easy for competitors to imitate. On the other hand, SEM delivers faster results, scales easily and targets specific segments. Used together, they optimize your search strategy to drive more viable leads.

When developing your search engine strategy:

  • Determine keywords based on strengths
  • Create compelling, keyword-rich content
  • Tell your unique story
  • Think like a customer/member

Location-based Marketing

Mobile has disrupted everything by transforming customer experience and expectations. The one term tied to mobile is “on the go.” People are no longer attached to one place. Location-based marketing takes advantage of that mobility by delivering offers based on physical proximity.

Geo-fencing

Geo-fencing creates a virtual perimeter around a business solely to target advertising. When a compatible device enters the perimeter, it receives an alert and/or email. For example, if a potential lead is playing on their phone within a defined perimeter, the lead might receive targeted advertisements for other businesses within the geo-fencing zones.

  • Establishes virtual fences to give marketers incredible control over placement.
  • Utilizes a virtual barrier around a phone’s IP address.
  • Displays ads on a device within the pre-established area
  • Targets those entering and leaving the perimeter, regardless of whether the location is your own or that of another

Geo-targeting

Geo-targeting is more focused than geo-fencing. It delivers messages based on location, past purchases and data points like demographics and P$ycle. The more data you have, the more you know about your customer/member and the better you can deliver relevant messaging. Data sources and segmentation are essential for a successful geo-targeting campaign. Using an industry benchmark of 0.40%, financial institutions’ click-through rate (CTR) performances for geo-targeted mobile displays improved to 0.64%.

  • Find the right venues where your prospects are most likely to be
  • Exclude locations where your prospects are not likely to be
  • Use location-based keywords
  • Analyze data sources
  • Use segmentation

Beacons

Bluetooth beacons are discreet, wireless transmitters retailers place around their stores. When beacons detect a shopper’s Bluetooth enabled app, it sends a signal and the app is activated and the shopper receives relevant communications. For instance, in the retail world, someone browsing boys clothing could be alerted to a great sale on hoodies or sneakers. Financial institutions can set up branch beacons to enhance customer/member experience and deliver relevant offerings. Standard push notifications garner a 7.8% open rate; beacon notifications average a 22.5% open rate. This low-cost solution is an effective way to deliver relevant messaging to a targeted audience.

  • Improves in-branch conversion rates
  • Alerts customers/members to relevant targeted offers
  • Tracks and guides in-store movement

Responding to prospects.

You’ve optimized SEO and SEM strategy. You’ve expanded and enhanced location-based marketing. The leads are coming in. Wouldn’t it be great to engage in real-time while they are still actively engaged? We’ve all experienced it. Search for ACME Shoelaces, and shoelace ads and banners start appearing. Marquis enables similar prospect communication through WebTrax, a part of our DocuMatix on Demand digital product suite. But, instead of showing banners and ads, it sends emails and letters. It enables an automated, secure, non-invasive method to monitor traffic and make offers. Once a lead visits your site, WebTrax notes which pages are viewed, then automatically sends communications based on the pages visited. One Marquis client attributes over 50 accounts and $1 million in balances directly to WebTrax, with a 5.6% response rate over a 90-day tracking period.

When leads visit your site and opt in, they receive relevant, personalized offers they can relate to. It shows your bank or credit union is interested in them as unique individuals and understands their needs. This is key in attracting 58% of consumers who prefer community financial institutions, hopefully motivating them to make the switch and open an account.

Four Segmentation Models for Increased Sales, Deeper Relationships and Stronger Retention

Personalization is a marketing imperative. But it is virtually impossible without segmentation, or the grouping of members/customers with shared characteristics. Successful segmentation allows an institution’s understanding of members/customers to shine through marketing. It lets members/customers feel special and appreciated and is one of the primary retention drivers. Did you know 56% of consumers feel an increased loyalty to brands who understand and act on their personal preferences, priorities and differences?

Defining Segmentation Models

It can be confusing finding segmentation models that apply to financial institutions. Unlike the retail world, a returned product does not present an opportunity to delight the consumer. A closed checking or savings account could indicate that household will not be interested in future products and services. Financial institutions require more focused segmentation models.

When defining segmentation models, financial institutions need to consider opportunity and risk factors, the ability to cross-sell and the likelihood of account closure or balance diminishment. When you take into consideration the vast amount of data available to financial institutions, segmentation can deliver a deep understanding of your members/customers. The following segmentation models enable financial institutions to create winning campaigns founded on personalization. The right message is delivered to the right household at the right time.

Segmentation Model 1: Value Scoring

Value Scoring is an analytical approach that leverages information such as profitability, balances, tenure and product mix to help identify members/customers that drive value. Value Scoring allows you to rank households based on the value they bring to your institution, then compares and contrasts households based on profit, balances, tenure and number of unique products.

This is extremely helpful since losing one major household requires adding eight new average households to make up for the loss. By determining your most valuable members/customers, you can use the Value Score to guide your marketing strategies and nurture those top relationships.

Segmentation Model 2: Lifestage

To determine Lifestage, this model leverages demographic ingredients to provide further visibility into the member/customer based on their financial lifestage. After all, a college student has different needs than new parents. This model gives you the data you need to create campaigns targeted at members within various lifestages and their propensities for having a baby, taking a vacation or paying for a wedding. It enables greater insight on buying activities and behavior. This, in turn, helps craft solid member/customer profiles to inform and influence marketing campaigns.

Segmentation Model 3: Look-alike

Look-alike segmentation learns from those who engage, and finds those who fit a similar profile as the performers. Once you have your customer/member profile, you can evaluate it to find those who fit a similar pattern. For instance, Mary is a 40-year-old mid-income, married female with two children. One is 16. She recently took out an auto loan and each year she establishes a vacation savings fund. Kay is also a 40-year-old mid-income, married female with two children. But she doesn’t have an auto or personal loan. As Mary’s look-alike, offering her an auto or personal loan makes more sense than a credit card offer.

Profiling consumers based on a household’s relationship, lifestage and demographic data allows you to define target audiences based on those attributes and group them together. Then, your team can create offers that the group has a propensity for and potentially bump them into a higher value group.

Segmentation Model 4: Next Product

This is where art meets science, leveraging many of the aspects of the other segmentation models and is best used for point-of-sale channels. Purchasing patterns exist. What’s a hamburger without fries? Pizza without antacid? Analyze your data to determine who buys a specific product, then determine which products they are likely to buy next. For instance, an auto loan can be easily tied to opening a checking or savings account to expedite monthly loan payments.

Go forth and segment.

Once the data is gathered, it’s time to put it in action. For over 30 years, Marquis has helped financial institutions across the country create winning marketing campaigns with measurable ROIs. We focus on adapting proven marketing strategies to the specialized needs of banks and credit unions and have developed a three-step process for leveraging marketing segmentation.

Assemble: Leverage available data sources to identify which variables best select your target audience.

Analyze: Group data sources into segments to simplify your tactical options.

Act: Leverage automation and repeatable processes to act on the segments identified, creating more granular options based on member/customer personalization, including channel preference, product preference, tailored offers and much more.

Putting it all together.

Financial institutions have access to large quantities of data, and that data needs to be segmented, analyzed and used to create intuitive and relevant marketing messages. When segmented properly, it will elevate overall marketing results, allowing you to retain and upsell your members/customers while maintaining their loyalty.

You’ve got the data. You’ve got the strategy. Let Marquis help you put it into action!

*ABA endorses ExecuTrax and OnTrax data analytics solutions for marketing and business intelligence.