CASE STUDY BBVA COMPASS MARKETING RESOURCE ALLOCATION

Group-6 Chetan B R(A011) | Payel Chakraborty(A012) | Karthik P

CASE FACTS
Part of BBVA Group Spain, a financial service provider with $755 Billion in assets and operations across 30 countries
BBVA Compass established itself as the 15th largest bank in US through mergers & acquisitions Has a predominant business in the sunbelt region, 700 branches & $49 Billion in deposits Three primary lines of business : - Retail Banking - Corporate & Commercial Banking - Wealth Management

MARKETING RESOURCE ALLOCATION

Goal
Parameters

Build brand awareness and trust in the brand Bring in new customers & increase the total no. of new accounts Improve customer satisfaction & retention and cross-sell to them
Offline Marketing 95% 80% from Branches, 15% telephone & direct mail 65% Slightly higher Lower

$49 Billion
Marketing Budget 5%

Online Marketing

New Checking Accounts

Average Annual Retention Rate Annual Income Account Balances

55% Lower Higher

Measuring effectiveness
Applications for new checking accounts Actual fund deposit

Difficult to estimate accurately

95-100% approved Mostly people deposit fund

Accurate, ROI can be measured effectively

80% approved 66.67% of approved accounts

MARKETING BUDGET
Offline Marketing

Budget

14%

4% 1%

7%

Brand Building After adopting trade name BBVA Compass, awareness dropped to 49% Aim to raise global brand awareness to 53% Sponsorships Multiyear sponsorships with NBA Title sponsor of Papajohns.com Bowl Associate sponsor of Texas Bowl, New Mexico Bowl

Newspaper Magazine 21% Outdoor Online TV Radio

Online Marketing
Paid Search Buying Keywords both generic & specific, on major search engines like Google, Yahoo, Bing Decision parameters for budgeting - clicks, click through rates, cost per click, cost per application Display Advertising Buying Advertising space on websites where prospective customers are likely to visit Generate fewer clicks than paid search but creates brand awareness due to larger no. of impressions

53%

ISSUES
Declining budget
Challenge to effectively allocate budget to both measured as well as unmeasured media Banks typically spend 25-30% of their budget on measured media (TV, print, internet) and rest on unmeasured media, whereas BBVA Compass spends approx. 75% Reviewing both display & paid search budgets to identify the most cost effective channels

RECOMMENDATIONS
Categorise ad networks based on their performance & reach and remove investment in duplicate
AOL, Traffic Marketplace, Tribal Fusion, Casale, Revenue Science, Interclick, Yahoo contributed to the major chunk of the reach, hence other smaller sites can be eliminated Measure effectiveness of sponsorships in sports and review marketing budget for sponsorships In order to build brand awareness, emphasis should be on effective marketing communication highlighting on the key benefits and value it offers to its customers