wells fargo campaign
DESCRIPTION
My group and I designed created an intergraded campaign for Wells Fargo. Our task was to developed a successful campaign that would drive more foot traffic in the Wells Fargo’s banks. My contributions for this campaign were the positioning strategy, target market, and objectives, as well as, other various task for the campaign.TRANSCRIPT
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Table of Contents
Competitive and Positioning Analysis---------------------------------------------1
Opportunity Analysis-------------------------------------------------------------------6
Customer Analysis-----------------------------------------------------------------------7
Market Segmentation Strategy-------------------------------------------------------8
Campaign Objectives--------------------------------------------------------------------9
Strategy------------------------------------------------------------------------------------10
Implementation-------------------------------------------------------------------------15
Public Relations-------------------------------------------------------------------------19
Budget (Simple Version)--------------------------------------------------------------20
Allocation of Spending---------------------------------------------------------21
Creative Samples------------------------------------------------------------------------22
References--------------------------------------------------------------------------------28
Appendix A: Competitive Analysis-------------------------------------------------36
Appendix B: Expanded Budget------------------------------------------------------48
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Executive Summary
Extensive research has proven that the college-aged market is being missed. This is a unique and easily-accessible market which will prove very profitable since its population is on the verge of making the most important financial decisions of their lives. During this delicate age, college students and recent graduates form important loyalties with financial institutions that, if handled correctly, lead to mutually beneficial, lifelong partnerships.
Though easily accessible, this target (Generation Y) is unique in several ways and doesn’t usually respond well to traditional advertising. For this reason, Wells Fargo should implement a scratch ticket promotion. This promotion will specifically cater to the target market’s tastes. Furthermore, it will be low-cost but very effective. The bread and butter of the entire promotion is the scratch ticket, but it will be supported by guerilla marketing on Facebook and Twitter, as well as banners, posters, ads on the Wells Fargo website, a press release, and partnerships with local restaurants.
To save money and increase effectiveness, “Street Teams” will distribute scratch tickets on college campuses and hang posters. This personal touch will be more impactful and actually less expensive than mailers. For recent graduates, the tickets will be mailed. Finally, existing customers within the target market will receive their tickets with their monthly bill/statement. Wells Fargo will partner with local restaurants to have them help distribute the tickets. This will give Wells Fargo additional credibility as a bank with personal touch and will give the restaurants advertising. Finally, the remaining marketing will draw customers to the branches, where they can pick up a scratch ticket.
The real genius of the scratch ticket program is that it must be scratched by a teller, which will bring many new customers into the branches. Furthermore, the prizes that can be won all relate to Wells Fargo products: reward points, ATM Fee Waivers, and Overdraft Forgiveness. The first encourages use of a rewards-capable account (or the opening of one if the winner doesn’t already have one) and the second two reduce resistance to banking in general and make Wells Fargo appear more affordable or more generous. Also, to redeem the second two, the winner must bring the card into a branch, giving Wells Fargo an additional selling opportunity. Finally, if any participant opens 2 new accounts, they will be entered into the Grand Prize drawing, which has much better prizes, including a Toyota Prius (a “green car” will appeal most to Gen. Y)
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Using these strategies, Wells Fargo will spend $250,000 but will gain 24,760 responses and an estimated 3068% ROI. (Equal to $7,673,180)
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Competitive and Positioning Analysis
Wells Fargo
Imageo Wells Fargo is a powerful bank that exudes security and permanence. Wells
Fargo has over $540 billion in assets, over 80 businesses, over 6,600 retail branches, over 160,000 employees, and over 23 million customers. It is ranked sixth in market value and fifth in assets. The market value of Wells Fargo’s stock is $119 billion. Wells Fargo is number one nationally in number of mortgage stores (2,400 stores) and also total number of stores (5,915 stores). Wells Fargo is the United States' 25th largest employer. It has maintained consistent, conservative positioning by using the stagecoach and horses as its logo and not attempting to conform to cutting-edge media trends. This has given Wells Fargo a classic, yet unique image. Wells Fargo is also notable because the bank has long prided itself on conservative lending standards, portraying an image of stability. Wells Fargo holds the powerhouse position in the market by offering the most financial services and the farthest-reaching network of branches. Wells Fargo gives the customer something they can always count on. It always looks the same: strong, unwavering, and professional.
Bank of the West
Image
o Bank of the West is a small bank that looks to serve low and moderate income communities. Through personal service, teamwork, fair pricing, and building economically healthy communities, Bank of the West considers itself a high performance organization.
o Consumers of Bank of the West view it as a smaller and more local community banking system with a more personalized store atmosphere.
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1st Bank
Image
o 1st Bank started as a small local bank and has fought hard to maintain that image. Still only present in three states, 1st Bank is the smallest on the list of Wells Fargo’s top 5 competitors along the Front Range. However, it is now Colorado’s second-largest depository and is Colorado’s largest locally owned bank. 1st Bank focuses on providing “a high level of service for our customers and in the community.” It has been positioned against Wells Fargo as the anti-big bank, basically insisting that it knows the customer much better than Wells Fargo ever could.
Chase
Image
o Execute superbly
Demand and maintain strong financial discipline, building for good times and bad
Create and maintain a “fortress balance sheet”
Design and maintain the best systems and operations
Eliminate waste and bureaucracy
Maintain a strong system of internal governance and control
Measure performance through a complete and balanced scorecard
o Aspire to be the best
Develop a world-class franchise in every business it operates
Be field- and client-driven, consistently delivering the best products and services in a cost-effective way
Innovate, test and learn
Create powerful brands that carry a commitment of quality and integrity
o Build a great team and a winning culture
Operate with the highest standards of integrity
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Train and retain great managers
Be open and honest with self, colleagues, shareholders and communities
Get incentives right
Foster an environment of respect and inclusiveness
Give back to communities
U.S. Bank
Image
o U.S. Bank is trying to be a local, “big brother” type bank. By heavily investing in local projects while focusing on high ethical standards and business excellence, U.S. Bank has secured its place in the market as the bank that is big enough to offer virtually everything a customer needs but small enough to invest in and care about local interests. U.S. Bank also focuses on staying up-to-date with technology, but doesn’t want customers to think it is sacrificing security or service quality by doing so.
Scoring Legend: 5: Among the best 4: Better than most 3: About average 2. The rest
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Overall Satisfaction
Con-ve-
nience
Account Ini-tiation/
Product Of-ferings
Fees Account Statements
Transac-tions
012345
Competition Ratings: Mountain Region J.D. Power
Bank of the WestChaseU.S. BankWells Fargo
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For more competitive analysis, please see Appendix A.
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Opportunity Analysis
Customers
The market of college students is largely being abandoned. Partly due to the recession, many banks are ceasing to offer loans or aid to college students. According to the St. Petersburg Times, Citibank has begun to deny students from smaller institutions and US Bank is refusing to offer private student loans. College is a critical time in a person’s life because they will soon be making the most significant financial decisions of their lives, forging important loyalties. Wells Fargo needs to be that bank. Similarly, recent graduates are currently making those critical decisions and forming life-long ties to financial institutions. What better time to market to them? Finally, it is common knowledge that current customers are the least expensive to connect with on a marketing level. Plus, they will have a much lower resistance to new solutions.
Current Marketing
Because of Wells Fargo’s current image of security and stability, their place in the market is more akin to the values of the settled and elderly. However, Wells Fargo’s recent “someday” campaign has helped alter this perception slightly. The problem with the “someday” campaign
is that it is just that. The most memorable part of that campaign is that Wells Fargo helps the consumer reach someday, but how much can that mean to the “Now Generation?” College students and recent graduates need to see the immediate benefits of banking with Wells Fargo, or even of just visiting the bank. The ski pass promotion is a good example of this, but is very expensive.
Currently, most Wells Fargo marketing is typical bank marketing: brochures, up-selling through the website, TV commercials, sponsorship, etc. There’s nothing wrong with those necessarily, but they blend in. Wells Fargo needs to utilize new methods to gain the attention of the MTV Generation. One possible method is social networking. According to Wall Street and Technology, a recent study found that only 30% of the major financial brands had a social media presence, but 80% of them were being discussed by customers in unofficial groups on the sites.
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Customer Analysis
Generation Y
Composed of two sub-segmentso “Twentysomethings”o Teens
High Potential for Growth Most Highly-educated Easily Bored Tech-Savvy
o 80 percent use e-mail, cell phones, or text messaging Convenience Brand-Sensitive High School Grads, Students and College Grads, Young Couples Beginning Families Individualistic and independent Traditional Marketing isn’t very effective at communicating messages to Gen Y
o Effective ways to reach Gen Y include Event Sponsorships Electronic media Finding ways to engage with the market Correct language, music and images are essential Honesty, humor, uniqueness and information are important
TV and Media that were designed for them have become a normo “American Idol”, “Big Brother”, “CSI”, MTV o Maxim
Generation Y is a growing part of the banking world every day. New technologies are targeted toward them and existing products are being adapted to their needs. Wells Fargo is positioned to offer students and older members of generation Y the products they need to satisfy their banking needs. Student Checking is a great option for many of generation Y and is possibly one of Wells Fargo’s best checking accounts offered. By attracting students with either student loans or checking accounts, it creates an opportunity to cross-sell various other products. The tech-savvy population of Gen Y also demands convenience from its bank, sometimes more than the bank is willing to give. However, Wells Fargo does offer a variety of online products such as online banking, online bill pay, and mobile banking. In addition, as Gen Y’ers move away from home, renter’s insurance is another product that Wells Fargo can conveniently offer them.
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Market Segmentation Strategy
Three groups were chosen to target:
1) Current college students
2) Recent college graduates
3) Existing customers (within the two areas above)
Current College Students
Easily, cheaply accessible Very social, WOM-conducive environment Close to making many of the most important financial decisions of their lives More easily “converted” than someone who has more significant financial commitments Missed by many competitors If successful, they will likely be a customer for life
Recent College Graduates
Higher average income than those without college degrees Currently making many of the most important (and binding) financial decisions of
their lives More easily “converted” than someone who has more significant financial
commitments If successful, they will likely be a customer for life Of all groups, these are most likely to be “in the market” for Wells Fargo services
Existing Customers
Most qualified Don’t have to change banks, only get more solutions Lowest cost to connect Lowest resistance Hopefully have already established relationships with their local Wells Fargo bankers
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Campaign Objectives
Main Objective
To increase foot traffic in Wells Fargo by distributing scratch cards to Wells Fargo new and existing customers and performing supportive advertising and promotions while maintaining Wells Fargo’s positive image and rewarding all customers.
Overall Objectives for New Customers
To gain 24,760 new customers from 3.4 million scratch cards distributed during the six-week promotional period. (2% response rate)
Since all “scratchable” prizes involve having an account at Wells Fargo, all participants will be encouraged to open an account. Furthermore, since participation in the grand prize drawing requires opening two new accounts, customers have a very significant added incentive to open new accounts.
Objective for Existing Customers
Out of 115,904 cards, 2,318 customers will redeem their scratch cards. (2% response rate)
Objective for Everyone Else
Since people outside the targeted area will not be contacted directly (by being mailed or handed a scratch ticket), and since the promotion is less appropriate for their tastes, a lower response rate is expected. An estimated .5% response rate will be used for forecasting. Out of an estimated 2.9 million contacts, 14,488 will redeem scratch tickets.
Budget Objective
Spend $250,000 on this promotion and receive a 3068% ROI. (Equal to $7,673,180)
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Strategy
All advertising and promotions will be centered on a scratch ticket promotion to be run all along the Front Range. A grown-up version of McDonald’s Monopoly Game, the scratch ticket promotion will still feel like a game while generating excitement and buzz in the community. This promotion will be open to everyone, but marketing will focus on the target markets listed previously of college students, recent grads, and existing customers. The scratch tickets will always reveal a “win,” but the prizes will vary.
Prizes
From Scratch Cards:
Reward Points (awarded immediately, entices guest to open account or activate rewards if they can’t use rewards currently)
o Rewarded $100 worth of points towards any rewards-capable accounto Rewarded $300 worth of points towards any rewards-capable account
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o Rewarded $500 worth of points towards any rewards-capable account
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Overdraft Protection Cardo Card covers 1 overdraft fee
Must go into bank to redeem (allows for repeat customer traffic) ATM Cover Charge Card
o Reimburses holder for any ATM fees incurred in a single transaction Must go into bank to redeem (allows for repeat customer traffic)
From Grand Prize Drawing (Guest enters when they open 2 new accounts by filling out their scratch ticket with contact info; tickets that were mailed already have info on label):
New Toyota Prius (1 for entire Front Range) 42” TV (30 available) Las Vegas Trip
Explanation of Prizes
The reward points were chosen as a prize for two reasons. The first and most obvious is that people like rewards programs and this prize will stimulate further spending or the opening of a rewards-capable account. The second is that the ticket will say “$500 value” (which is how
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much the consumer must spend to accumulate them) for 500 reward points, but they would actually only cost Wells Fargo $5.
The ATM fee and the overdraft forgiveness are simply designed to reduce resistance to opening new accounts. These are commonly considered some of the most bothersome bank fees, so letting consumers win waivers will make them more likely to open new accounts. The only catch is that the ticket must be scratched by a teller in a Wells Fargo bank. If it is not, any prizes won cannot be claimed. This way, foot traffic into the store will also be drastically increased. Also the grand prize drawing strongly encourages customers to open new accounts.
All of the prizes in the grand prize category appeal specifically to the target market. The Prius is “green” and trendy, the TV centers around technology and entertainment, and the Las Vegas trip is an entertainment-centered trip which strongly appeals to younger audiences who enjoy partying and the “night life.”
Consumer Attitudes
The main goal of the scratch ticket campaign is for consumers’ attitudes to form in the sequence of Cognitive—Affective— Conative. By having the cognitive component of attitude as the first form to take place, customers recognize the Wells Fargo brand as a general bank. This could either spark need recognition, or just make the consumer aware of the brand. Second, an affective, or emotional, attitude will be formed from the promotion. Seeing the unique and exciting scratch ticket that offers financial incentives will make the consumer more apt to choose a Wells Fargo bank and will certainly draw them to the store. Also, the grand prizes of flat screen TVs, a Las Vegas Trip, and a Prius will create an emotional attitude of possibly winning an item that is seen as socially desirable to friends, or even of the personal benefit of actually owning a luxury item like these. Lastly, the conative element of the consumer’s attitude is to turn the first two feelings into a type of behavior or action. When the consumer sees that a Wells Fargo bank teller must scratch their ticket, referencing back to the cognitive and affective attitudes they just experienced, the goal is that the consumer will find enough positive reasoning to act upon those attitudes and visit a Wells Fargo to participate in the promotion.
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Product Positioning
Wells Fargo has already created a strong and unique brand image for itself. However, this traditional image makes marketing to the target market of college students and recent college graduates a bit more challenging. This is why the scratch ticket was chosen; it is a fun and mysterious way to appeal to these customers. Because competitors are offering other financial incentives such as money for opening up a bank account, additional incentives were chosen to help Wells Fargo become more appealing. With free overdraft fee coupons, credit card points, and ATM fee credits, plus flat screen TVs, a Las Vegas trip, and a car, the possible benefits of choosing a Wells Fargo bank will far outweigh those of a competitor’s bank, creating a superior product position.
Means-End Theory
This campaign was designed based on the means-end theory. It is important for consumers to find a means in the scratch cards that will lead them to a desired end state. The means which will lead to the end is the desire for the prizes that are being offered and the requirement that the teller must scratch the ticket. Even if the biggest prize they win is one free overdraft forgiveness, many consumers can relate to a time when they have been frustrated about an overdraft fee and how inconvenient they can be. Such prizes reduce purchase resistance. However, the larger prizes such as the chances to win a TV or even the car are even more influential means which would cause the consumers to act upon their desires. These are also leverage points because the benefits of the product can be linked to personal values, such as saving money in these hard economic times or winning a TV that has been a wanted luxury item for years. Also, the car chosen (Toyota Prius) is an environmentally friendly model because “going green” is a value which is on the rise today, especially among the target market.
Media Strategy
The media strategy consists of direct mail, statement inserts, banners around Wells Fargo, direct handouts on campuses, Facebook, MySpace, Twitter, and advertisements for the promotion on the Wells Fargo website. These were chosen because they are low cost and highly effective for the target market. Due to the design of the scratch cards and the fact they will be shipped first class, they will stand out from junk mail. When placing a scratch card with important documents, such as bank statements, current customers have an increased chance of paying attention to them. By hiring people to visit college campuses and hand out scratch cards, Wells Fargo will be able to reach a large portion of the target market which is most likely to automatically throw away advertisements in mail. Because Wells Fargo’s online banking system is one of its strongest services, it is essential to advertise the campaign on the website. This will get customers who are very dependent on the online services to want to come into the bank, get a scratch card, and participate in the promotion.
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Internet
Create Facebook, MySpace pages about the scratch card
Twitter-create buzz surrounding the scratch card
Other Marketing
Design banner and poster promoting the scratch cards. Display these posters around campuses along the Front Range such as CSU, UNC ect. Wells Fargo will display the banners outside their banks (preferably over the entryway or facing a major street)
Paid Street Teamers – Distribute scratch cards on college campuses and in “hotspots” that are heavily populated with the target market
Restaurant Partnerships – Wells Fargo will partner with local restaurants who will offer the scratch cards with the purchase of certain meals. The restaurants get publicity on the Wells Fargo posters and buzz marketing and Wells Fargo gets to show its “local side” as well as reach additional customers.
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Implementation
After researching and analyzing the target market, it has been determined that there are several effective ways to communicate the program to customers. Below is an overview of the media plan. Some of the media options will be geared towards existing customers, some to new customers and others to both new and existing customers.
Mailo Justification and Summary
Direct mail is going to be one of the primary ways of getting the scratch tickets into customers’ hands. It is fairly cost-effective and allows for a far reach. A 2% response is expected, which is slightly higher than a normal response rate due to the more involved and compelling nature of the scratch tickets. Other methods and channels of promotion will be used to supplement the mailed scratch tickets.
Billing statementso Will account for 36.8% of mailingso Mail out the scratch tickets with the customers’ billings
statements. This will attract existing customers into stores, getting them used to the idea of coming inside, rather than just using the ATM.
Direct Mailo Will account for remaining 63.2% of mailingso Scratch cards will be sent potential customers
Internet o Justification and Summary
Since Gen Y is tech savvy, it would be prudent to utilize an outlet that they easily relate to and commonly use. This will also show the consumer that Wells Fargo is moving with the trends rather than being stuck in the “Stage Coach Days.”
Twitter o Easy way for Wells Fargo to hit the masses
Young professional/student oriented Financial tips (educational factor) Link of instructions and info about the program New promotions outside current event
Facebooko Way to provide more visual informationo Mass invite people to join Wells Fargo for promotions
Student-oriented Picture of what the “card” looks like for customer to
verify Link of instructions and info about the program New promotions outside current event
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Wells Fargo Websiteo Small Press Releaseo Advertise on gateway screen
Campus Handoutso Justification and Summary
This will help to reach students in person (higher involvement) apart from the Internet and cut down on direct mail costs
Paid “Street Teamers” stand in “hotspots” on campuses, handing out the scratch tickets
Posterso Justification and Summary
Posters will be especially vital for colleges/universities with no real “hotspot.”
They will serve as a more lasting form of marketing for the entire promotional period, rather than the “Street Teamers” who will only be there for 2 days.
Serve as reference material for students who wonder what it is Banner
o Justification and Summary Simple banner will attract customers who may not have received the direct
mail scratch ticket. Reminder for customers who forgot to go into the store for their ticket Outside Wells Fargo buildings, on the busiest side of the building “Choose to win. Choose Wells Fargo”
In-store ticketso Justification and Summary
Anyone can walk in and get a ticket. Since the tickets encourage opening new accounts, they will drive sales for all users.
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Leaving it open and telling everyone they can get one in Wells Fargo will make everyone feel appreciated and “in the know.”
Restaurant promotions o Justification and Summary
Wells Fargo will partner with local restaurants and utilize them to help distribute scratch tickets.
Have restaurant choose a few select menu items which will come with a Wells Fargo scratch ticket
Restaurant will be promoted on Wells Fargo posters and Wells Fargo will be promoted in the restaurants, while gaining credibility as a local bank.
Both parties will benefit from the buzz generated.
Media Schedule
Marketing activities will be very heavy at the beginning of the campaign, mainly due to direct mail, which is a primary staple of the promotion. This strong start will build buzz and anticipation as customers who have not yet received a scratch ticket wait for theirs. Some existing customers will wait the longest because these are monthly bills/statements. Of course, the tickets will be sent with the earliest statement in the promotional period, but those who receive their tickets in the fourth week of the promotion will have waited quite a bit more than new customers.
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Tracking Traffic
As customers bring their tickets in to be scratched, bankers must enter the code number (which references what media attracted them into the store), the scratch ticket number, along with the customer’s primary account number. Prizes must be redeemed on the spot. This will track the success of the promotion via certain channels and among certain groups and will prove helpful for future promotions.
Tracking Code Examples
Media Outlet Code #
Campus Handouts HA- 112233
In-Store Tickets IN – 112244
Direct Mail MA - 112266
Bill/Statement Inserts BI - 112277
Restaurant RE - 112200
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Public Relations
This campaign will use an external public relations strategy. Throughout the campaign, Wells Fargo will promote an image that says “Wells Fargo is always there, especially during critical turning points in your life.”
PR Tools
Ensuring all employees are informed:
Training for all bankers who will work with customers in this promotion A company newsletter (can be sent via e-mail) A PR release (within the company) Post information in the break room
These forms of media will be used to convey all the important information/purpose of the campaign. These communications will also reinforce Wells Fargo’s positive image within the company and make employees feel valued.
Stakeholders
Employees Stockholders Front Range Community Customers
Proactive Prevention Strategies
By requiring that the card be scratched by the teller at Wells Fargo, there is a certainty of angry guests. When they scratch off the card at home and realize that they have a prize worth redeeming, guests are going to want to go into the bank and try to redeem the card. In order to avoid negative PR, Wells Fargo will implement the following strategies:
Make it very clear that the card is invalid if it is scratched outside the bank, state it repetitively
o On the ticket itself, front and back (see examples)
o In the Official Rules
Train bankers to deal with this situation, i.e. “I’m sorry, the rules say you cannot redeem a ticket that you have scratched yourself. However, you’re welcome to pick out another unscratched ticket and tell me which square you’d like to scratch!”
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Budget (Simple Version)
Tickets for Recent Grads $85,707.28
Tickets for College Students $34,828.12
Tickets for Existing Customers $24,585.53
Tickets for Everyone Else, Restaurants $6,519.58
Reward Points (Tiered) $24,760.18
ATM Fee Waivers $18,322.53
Overdraft Forgiveness $8,253.39
Toyota Prius $18,000.00
42" TVs $16,499.70
Las Vegas Trip $372.00
Promotional Posters $1,600.00
Storefront Banners $5,100.00
Admin. Costs and Extra $5,451.67
Total $250,000.00
Total Visits Generated 24,760
Cost Per Generated Visit $10.10
ROI Total $7,673,180.43
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Tickets for Recent Grads
Tickets for College Students
Tickets for Existing Cus-tomers
Tickets for Everyone Else, Restaurants
Reward Points (Tiered)
ATM Fee Waivers
Overdraft Forgiveness
Toyota Prius
42" TVs
Las Vegas Trip
Promotional Posters
Storefront Banners
Admin. Costs and Extra
Allocation of Spending
For expanded budget, please see Appendix B
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Creative SamplesTicket Front
Ticket Back
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Poster
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ATM Fee Waiver
Front Back
Overdraft Forgiveness
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Front Back
30
Banner
Wells Fargo Online
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http://www.mybanktracker.com/banks/view/KeyBank
http://www.mybanktracker.com/bank-reviews/view/Wells-Fargo
https://www.bankofthewest.com/BOW/main.jsp?ChId=135d90988ca4ef00VgnVCM10000087c35c92
http://www.bankofchoiceonline.com/ home/ personal/ checking
http://www.lendingtree.com/lender-reviews/citibank-143045/
http://www.lendingtree.com /lender-reviews/chase-930829/
http://www.my3cents.com/showReview.cgi?id=42877
http://www.filife.com/companies/tcf
http://www.filife.com/companies/tcf/page/2
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http://www.filife.com/companies/tcf/page/3
http://www.rateitall.com/i-774790-tcf-bank.aspx
http://www.jdpower.com/corporate/news/releases/pressrelease.aspx?ID=2009087
http://www.filife.com/companies/us-bank
http://www.rateitall.com/i-10204-wells-fargo.aspx
https://www.efirstbank.com/
http://www.1stnationalbank.com/004/html/en/personal/personal.html
https://www.advantagebankonline.com/home/home
https://www.bankofamerica.com/index.jsp
https://www.bankofchoiceonline.com/home/home
http://www.bankofcolorado.com/
https://www.bankofthewest.com/BOW/home_sl.html
https://www.bbvacompass.com/special/200908/ipod/?utm_source=ysm&utm_medium=cpc&utm_term=bbva%20in%20the%20south
http://www.cachebankandtrust.com/
https://www.chase.com/
https://www.coloradocommunitybank.com/
http://www.farmersbank-weld.com/
http://seekingalpha.com/article/121245-rating-the-top-12-u-s-banks-from-hidden-gems-to-zombies
https://www.wellsfargo.com/about/corporate/your_state/co.jhtml
https://www.key.com/index.html
http://ncbr.datajoe.com/app/ecom/pub_viewhtml.php?listid=19&year=2009&htmlkey=maPduYSUt87ZU
http://ncbr.datajoe.com/app/ecom/pub_viewhtml.php?listid=18&year=2008&htmlkey=maGq0uNYn1mZk
http://denver.bizjournals.com/denver/stories/2005/10/31/story8.html
http://denver.bizjournals.com/denver/stories/2008/10/06/daily23.html?t=printable
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http://www.allbusiness.com/banking-finance/banking-lending-credit-services-cash/11859773-1.html
http://www.newwestbank.biz/
http://tcfbank.com/
http://www.usbank.com/
https://valleybankandtrust.com/
http://www.bankingdetail.com/banks/branches/weld-county-co-colorado.asp
http://www.hoovers.com//free/co/burn.xhtml?ID=58450&cm_ven=PAID&cm_cat=GGL&cm_pla=CCM&cm_ite=wells_fargo_competitors
http://finance.yahoo.com/q?s=WFC
http://tcfbank.com/PersonalBanking/pb_checking_home.jsp
http://tcfbank.com/PersonalBanking/pb_checking_25_free_cash_TAF.jsp
https://www.bankofamerica.com/index.jsp
https://valleybankandtrust.com/personal-banking-products/personal-checking-accounts
http://www.advantagebankonline.com/home/personal/checking
http://www.newwestbank.biz/accounts/personalAccountsChecking.html
https://www.key.com/html/free-checking-account.html
https://www.chase.com/ccp/index.jsp?pg_name=ccpmapp/individuals/checking/page/chase-checking-page
http://www.coloradocommunitybank.com/site/banking_checking.html
https://www.bankofthewest.com/BOW/home_sl.html
https://www.bankofthewest.com/BOW/main.jsp?ChId=f1a4714c7122ff00VgnVCM10000087c35c92
http://www.bankofcolorado.com/content.aspx?cat=Personal%20Banking&accntId=79&c=Banking&s=Checking%20Products&id=8
http://www.bankofchoiceonline.com/home/personal/checking#free
https://www.efirstbank.com/
https://www.efirstbank.com/personal/checking/freechecking.html
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https://www.bbvacompass.com/special/200908/ipod/?utm_source=ysm&utm_medium=cpc&utm_term=bbva%20in%20the%20south
http://academybankco.com/
http://www.advantagebanks.com/index.html
https://www.bankofchoiceonline.com/home/home
http://www.bankofcolorado.com/index.aspx?orID=1&id=8#
https://www.bankofthewest.com/BOW/main.jsp?ChId=53b630a39de10010VgnVCM1000007fc35c92
https://www.efirstbank.com/about.html
http://www.usbank.com/cgi_w/cfm/about/index.cfm
http://www.epinions.com
http://www.mybanktracker.com
http://www.hoovers.com//free/co/burn.xhtml?ID=58450&cm_ven=PAID&cm_cat=GGL&cm_pla=CCM&cm_ite=wells_fargo_competitors
https://www.wellsfargo.com/about/corporate/your_state/co.jhtml
http://www.allbusiness.com/banking-finance/banking-lending-credit-services-cash/11859773-1.html
https://www.wellsfargo.com
https://www.bankofamerica.com
https://www.citigroup.com
http://www.usbancorp.com
http://www.chase.com
http://www1.epinions.com/review/finc-Financial_Services-Online-Banks-Wells_Fargo/content_342277066372
http://www.epinions.com/review/finc-Financial_Services-Online-Banks-Wells_Fargo/content_406427635332
https://www.efirstbank.com/http://www.epinions.com/review/finc-Financial_Services-Online-Banks-Wells_Fargo/finc-review-1DAC-490C71B-389CED7A-prod2
39
http://www1.epinions.com/review/finc-Financial_Services-Online-Banks-Wells_Fargo/content_38451515012
http://www.epinions.com/review/finc-Financial_Services-Online-Banks-Wells_Fargo/content_483832729220
http://www.epinions.com/reviews/finc-Financial_Services-Online-Banks-Wells_Fargo
http://coloradosprings.citysearch.com/review/1926906
http://www.yelp.com/biz/first-bank-denver-2
http://www.yelp.com/biz/1st-bank-wheat-ridge
http://web.userinstinct.com/8726018-firstbank-longmont.htm
https://www.bankofthewest.com/BOW/main.jsp?ChId=c0b1a76de912ef00VgnVCM10000087c35c92
http://www.efirstbank.com
http://www.bbb.org/us/
http://www0.epinions.com/reviews/finc-Financial_Services-Online-Banks-Bank_of_the_West
http://www.jdpower.com/finance/ratings/retail-banking-ratings/mountain
Katie. (2009, September 22). Bank of the West Interview. (Stephanie, Interviewer)
40
http://www.marketresearch.com/map/prod/1540164.html
http://www.eweek.com/c/a/Web-Services-Web-20-and-SOA/How-to-Build-Online-Banking-for-Generation-Y/
Banks shut out needy students. St. Petersburg Times
Corporate Executive Board. Share of wallet as a performance metric.
http://www.chicagotribune.com/business/yourmoney/sns-yourmoney-1115cruz,0,928329.column
http://www.wallstreetandtech.com
http://www.artsci.ccsu.edu/Planning/Demographics.html
Bank of America cuts back on loans ends private finance program for students. The Boston Globe.
Banks ignoring imporance of Facebook word-of-mouth. Brand Republic News Releases.
Profile of the American college student: Student demographics spring 2008 results. Virginia Tech.
http://admissions.colostate.edu/
Not much has changed for first-home owners -snapshot of society. The Australian.
41
APPENDIX A: COMPETITIVE ANALYSIS
42
Wells Fargo Bank of the West Chase U.S Bank 1st Bank
Personal Banking x x x xOnline Banking x x x x xChecking x x x x xSavings x x x x xCDs x x x x xCredit Cards x x x x xDebit Cards x x x x xGift Card x x x xStudent Banks x xLoans x x x x xHome Mortgage x x x x xHome Equity x x x x xStudent Loan x x x xPersonal Loan x x x x xAuto Loan x x x x xInvesting and Insurance x x x xThe Private Bank x x xMutual Funds x x xBrokerage x At some Locations
Retirement x x x x xInsurance x x x x x
Small Business x x x x xChecking x x x x xSavings x x x x xCDs x x x xCredit Cards x x x x xLoans x x x x xLines of Credit x x x xBusiness Rewards x x x x xPayroll x x x x xMerchant Card Processing x x x x xInsurance x x xRetirement & Investment x x x xVerification of Deposit x x
Expand Employee x x
Businsess Online Banking x x x x xBusiness Bill Pay x x x x xDirect Pay x x x x xForeign Exchange Online x x x x xOnline Invoicing x x x xCommercial x x xAnti-Fraud Strategies x x x xEquipment Purchase or Lease x x x x xMerchant Solutions x x x xRisk Protection x x x xTreasury Mangagement x x x xInternational x x xReal Estate x x x x xInvestment x x x x xEmployee Benefits x x x x xShareowner Services x x
Products
43
Wells Fargo Bank of the West Chase U.S Bank 1st Bank
ATM Fee 5.00$ 1.50$ 2.00$ 3.00$ 2.00$ Overdraft Fee 10.00$ 36.00$ 15.00$ 30.00$ 5.00$ Insufficent Fund Fee 25.00$ 26.00$ 25.00$ 19.00$ 31.00$ 1-800 Calling Fee 2.00$ -$ -$ -$ -$ Opening Deposit for Checking 100.00$ 100.00$ 25.00$ 50.00$ 1.00$ Opening Deposit for Savings 25.00$ 100.00$ 300.00$ 25.00$ 100.00$
Non-Wells Fargo ATMs Transaction (U.S.) $2.50* *$30.00 ($8.00 per day after initial fee)Balance Inquiry fee: $1.50 each *$19.00 One time feeInternational Transaction fee: $5 each
Price
Wells Fargo Bank of the West Chase U.S Bank 1st Bank
Distribution and LocationsLocations 23 states 19 states 60 Counties 24 states 3 statesBranches 6,000 700 5,000 2,850 130ATMs 6,900 753 14,000 5,173 unknown
Distribution
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Wells Fargo
Products Offered
o Personal Online Banking, Bill Pay, Checking, Savings, Credit Cards, and Debit Cards Loans: Home Mortgage, Home Equity, Student Loans, Personal Loans,
and Auto Loans Investing & Insurance: The Private Bank, Mutual Funds, Brokerage,
Retiremento Small Business
Checking, Savings & CDs, Credit Cards, Loans & Lines of Credit, Business Rewards, Payroll, Merchant Card Processing, Retirement & Investments, International Business Service
Online: Business Online Banking, Business Bill Pay, Direct Pay, Foreign Exchange, and Online Invoicing
o Commercial Business Needs: Anti-Fraud Strategies, Equipment Purchase or Leases,
Merchant Solutions, and Risk Protection Products & Services: Treasury Management, Financing, International,
Real Estate, Investment, Employee Benefits, Insurance, Shareowner Services
Channelso Small branches inside supermarket stores, traditional branches, ATMs, Phone
Banks, internet, and mail Advertising and Promotion
o Promotions Earn rewards with Wells Fargo Credit Card and Check Card
Earn 1 point for $1 on credit card purchases and 1 point for $4 on check card purchases
Reward options include travel, cash rebates, gift cards and merchandise
Points never expire Online Consumer Reviews
o From the BetterBusinessBureau.com, out of 2115 complaints, 1856 were resolved and 265 were administratively closed. Top issues included:
Bill or Collection issues (38%) Refund or Exchange issues (17%) Customer Service issues (16%) Service (16%)
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Bank of the West
Products Offered
o Personal
Checking, Savings Accounts and CDs, Credit Cards, IRAs, Online Banking, Consumer Loans and Lines of Credit, Private Banking, Pacific Rim Banking, Auto Leases, Telephone Banking, Financial Calculators, Wealth Management and Trust, Insurance, Investment Services, Home equity loans, Military Loans, Auto Loans, Home Loans, Recreational Vehicle loans, Retirement planning, Education Savings Solutions, and Auto, Home, and Life Insurance.
o Small Business
Checking, Savings and CDs, SBA lending, International Trade, Business Services, Loans and Lines of Credit, Business Online Banking, Business Insurance, Wealth Management and Trust, Cash Management, Equipment Financing, Debit and Credit Cards
o Commercial
Lending, Cash Management, Capital Markets, International Trade, Equipment Financing
Advertising and Promotion
o Get $100 to spend at local businesses when you open a checking account and pay bills online (Bank of the West).
o Open a small business checking account and use debit card for 5 transactions and you will get $100 into your account
Online Consumer Reviews (Better Business Bureau, 2009)
o The Better Business Bureau.com reports that out of a total 63 consumer complaints, 54 were resolved, 8 were administratively closed, and 1 had no response. The top complains included:
Billing or collection issues (43%)
Customer service issues (22%)
Service issues (17%)
o Overall rating of “B”
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1st Bank
Products Offered
o Personal
Accounts
Checking
Savings
CD/Time Accounts
Health Savings Account
IRA
Loans
Mortgage
Home Equity
Cash Reserve
Auto Loans
Credit Cards
Construction Loans
Loans to Purchase Real Estate in Retirement Account
o Business
Accounts
Checking
o Check Card
Savings
Credit Card
Services
1031 Exchanges
Cash Concentration
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Desktop Teller
Internet Services
Lockbox Service
Merchant Services
Loans
Construction
Line of Credit
Mortgages
Letters of Credit
Single Payment Loans
Advertising and Promotion: Overall, in their advertising, 1 st Bank seems to seek originality, fun, humor, and a distinctly “un-bank” style. The bright orange of 1 st
Bank’s logo and its casual language make it feel approachable and light-hearted.
o Online Banking with Bunnies commercial
1st Bank ran a very successful commercial highlighting how pleasant their online banking experience was. This commercial focused on personality, humor, and seemed aimed at people approximately ages 18-40
o Twins in coffee shop commercial
1st Bank ran a similar commercial with a very similar feel which highlights 1st Bank’s concern with protecting customers’ identities. This ad seemed targeted at a slightly different group though, trendy young professionals.
Online Consumer Reviews
o As 1st Bank is somewhat smaller than the others, it does not have nearly as much presence on the BBB website or in JD Power reports. To gain insight on consumer perspective, several online review sites were utilized:
According to 2 reviews on citysearch.com, 1 st Bank received a rating of 5 out of 5 stars. (CitySearch)
According to 3 reviews on yelp.com, 1st Bank Denver received 4.5 out of 5 stars. (Yelp)
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According to 2 reviews on yelp.com, 1st Bank Wheat Ridge is rated 2 out of 5 stars. (Yelp)
According to 5 reviews on userinstinct.com, 1 st Bank received 6 out of 6 stars. (UserInstict)
By calculating a weighted average of these scores, we can estimate an overall satisfaction rate of 97.69%
Chase
Products Offered
o Personal Banking
Checking, credit cards, savings, CDs, debit cards, gift cards,
o Business
Business banking, commercial banking, business credit cards
o Personal Lending
Home equity loans, mortgage, auto loans, student loans
Advertising and Promotion
o Advertising (data collected from YouTube commercial ads.)
Ads showing how fast it is to operate an ATM
Expressing the advantage of free reward point when using your debit card
Promote their fraud alert option with their credit cards
Ads appear to promote the family, being able to buy what you want (rewards), seem to also lean to younger demographics.
o Promotions (data collected from http://www.facebook.com/group.php?gid=5164598730)
$100 for opening a Chase checking account
$125 referral coupon
$10 bonus for online bill pay
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Reward points for debit cards
Travel points
Online Consumer Reviews
o The Better Business Bureau reports that within the last 36 months that there were 783 recorded complaints with Chase Bank.
All 783 were resolved
o Overall, the Better Business Bureau gave Chase Bank a B grade.
US Bank
Products Offered
o Personal Banking
Wealth Management
Investments & Personal Trust, Private Banking, Financial Planning & Insurance, and Find an Advisor
Credit Cards and Prepaid Cards
Credit Cards, Your Credit Card Account Online, Visa Gift Cards, and Visa Buxx
Loans
Equity, Auto, Boat, & RV Loans, Personal Line of Credit, and Student Loans
Mortgages
Mortgage Programs, Mortgage Calculators, Homebuyer, and Find a Loan Officer
Online Banking
Internet Banking, Internet Bill Pay, Mobile Banking, and Online Investing
Checking and Saving
Checking Account Options, Savings Accounts & CDs, and Check Cards with Rewards
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o Small Business
Business Services
Cash Management, Payment Solutions, International Banking, and Business Insurance
Employee Services
Payroll Services, Direct Deposit, Workplace Banking, Health, and Savings Account
Credit, Loans & Leasing
SBA Loans, Real Estate Loans, Credit Cards, and Equipment Leasing
Checking & Savings
Many Checking Account Options, Savings & Investing, Check Cards With Rewards, and Online Account Access
o Commercial and Government
Corporate Payment Systems
Commercial Cards, PowerTrack, Voyager Fleet Systems, and Government Services
Trust & Investing
Asset Management, Corporate Trust Services , and Institutional Trust & Custody
Financing, Capital & Leasing
Traditional Lending, Specialty Lending, Structured Capital, Equipment Finance, and Commercial Real Estate
Industry Expertise
Government & Nonprofits Banking, Financial Institutions, and Mutual Funds & Partnership Services
Employee Services
Corporate Relocation, Direct Deposit, Workplace Banking, and Health Savings Accounts (HSA)
Deposit & Payment Solutions
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Checking Accounts, Treasury Management, International Banking, Payment Solutions, and ReliaCard® Visa®
Advertising and Promotion
o Advertising
U.S Bank made more than $22.6 billion in loans and investments during 2007 to help support the creation of affordable housing, economic revitalization, and organizations providing critically-needed services to low- and moderate-income individuals and areas
U.S. Bank is also proud to co-sponsor an annual Community Service Initiative in partnership with The Financial Services Roundtable.
U.S Bank employees work together to support such causes as Special Olympics, Junior Achievement, and Habitat for Humanity.
$20.7 million in cash grants were given to qualified nonprofit organizations in 2008
U.S. Bank supports more than 150 sponsor relationships across our banking region annually and is one of the top 100 sponsoring companies in America
Support a wide variety of pro, minor league and collegiate sports, innovative arts and cultural venues and programs, as well as festivals and civic events
o Promotions
Earn reward when you use your credit card
Cash Rewards
Travel Rewards
Merchandise Rewards
Retail Rewards
Establish credit
Earn rewards when you use your check card
Cash Reward
Travel Reward
Merchandise Rewards
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Online Consumer Reviews
o 1.71 from Rate it All
o From Lending Tree
Overall 4.3 out of 5
Fees and Cost 3.7 out of 5
Responsiveness 4 out of 5
Wells Fargo has a significant competitive advantage over the community banks along the Front Range in product line breadth and depth. The community banks are either unable or unwilling to participate in offering student checking accounts and student loans. However, Chase and Key Bank offer similar products. Although Wells Fargo does offer online banking options, Chase is the first among those listed to begin working with iPhone applications.
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Wells Fargo
Yes Yes Yes College Combo
Yes Goal Savings Accounts
Yes Yes Yes N/A
Bank of Choice
Yes N/A N/A N/A Choice Checking
Yes Yes N/A Yes N/A
Chase Yes Yes N/A College Checking
Chase Checking
Yes Yes Yes Yes Yes
KeyBank Yes Yes N/A Student Checking
Express Free Checking
Key Saver Yes Yes Yes N/A
FirstBank Yes N/A N/A N/A FREE Checking
Regular Savings
Yes Yes Yes N/A
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J.D.POWER BANK STUDY
2009 Retail Banking StudyJ.D. Power.com
Overall Satisfaction: This score is based on how customers rate their overall experience with their current primary financial institution.
Convenience: This score is based on how customers rate the hours of branch operation, number of branches, and ease of access for their current primary financial institution.
Account Initiation/Product Offerings: This score is based on how customers rate the ease of opening an account, variety of banking services available, innovation of new services offered, ease of making changes to accounts, effectiveness of communication of products and services available, and competitiveness of interest rates (including checking, savings, money market, CDs, etc.) for their current primary financial institution.
Fees: This score is based on how customers rate fees assessed including account maintenance, overdraft, check order, and cashier’s check/money order fees for their current primary financial institution.
Account Statements: This score is based on how customers rate the ease of understanding, clarity, and information provided in account statements from their current primary financial institution.
Transactions: This score is based on how customers rate the various transaction methods used (as applicable) including in-person, ATM, online, automated phone, and phone transactions with a live representative for their current primary financial institution.
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APPENDIX B: EXPANDED BUDGET
Tickets for Recent Grads Est. 5 years in college Est. 70% enrollment in target age 28 cents each 1st class postage 15 cents each production $200 design (spread out)Total $85,707.28
Tickets for College Students 15 cents each production Est. 40 people needed to distribute 3 peak distribution hours daily $10 per hour pay Est. 4 days needed to complete $200 design (spread out)Total $34,828.12
Tickets for Existing Customers 15 cents each production $7000 fixed cost statement inserts $200 design (spread out)Total $24,585.53
Tickets for Everyone Else, Restaurants Triple number in target group Est. .5% response rate x3 to account for restaurants and uncertainty 15 cents each productionTotal $6,519.58
Reward Points (Tiered) 33% Chance Divide est. tickets by 3 for target $5 each for 500 points 33% chance $3 each for 300 points 33% chance $1 each for 100 points 33% chanceTotal $24,760.18
ATM Fee Waivers 33% Chance Average $2.22 ATM fee
55
Total $18,322.53
Overdraft Forgiveness 33% Chance Est. $1 processing eachTotal $8,253.39
1 Grand Prize Toyota Prius $18,000.00
42" Panasonic TVs 30 TV Prizes Drawn $549.99 eachTotal $16,499.70
Las Vegas Trip Airfare Hotel StayTotal $372.00
Promotional Posters 80 cents each production 50 est. colleges/universities Est. 15 posters per institution $1000 professional designTotal $1,600.00
Storefront Banners $200 each production At 25 Wells Fargo stores $100 designTotal $5,100.00
Subtotal $244,548.33Remaining for Admin. Costs and Extra $5,451.67Total $250,000.00
Total Visits Generated 24,760Cost per Generated Visit $10.10Profit per Customer (According to Corporate Executive Board) $320.00 ROI per Customer $309.90
ROI Total$7,673,180.4
3
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