bbva compass
DESCRIPTION
BBVATRANSCRIPT
CASE STUDYBBVA COMPASS MARKETING RESOURCE ALLOCATION
Group-6Chetan 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
• $49 BillionMarketi
ng Budget
• 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
Goal
Parameters Offline Marketing Online Marketing
New Checking Accounts 95%80% from Branches, 15% telephone & direct mail
5%
Average Annual Retention Rate 65% 55%
Annual Income Slightly higher Lower
Account Balances Lower Higher
Measuring effectiveness Difficult to estimate accurately Accurate, ROI can be measured effectively
Applications for new checking accounts
95-100% approved 80% approved
Actual fund deposit Mostly people deposit fund 66.67% of approved accounts
MARKETING BUDGET
4%1%7%
21%
53%
14%
Budget
NewspaperMagazineOutdoorOnlineTVRadio
Offline Marketing
• 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
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
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