Bank Marketing: The Metrics You Should Be Tracking
They say you can’t control something until you measure it. It’s true.
So as a bank marketer, you should focus on metrics that can help you understand and measure the effectiveness of your marketing efforts. Some specific metrics that you may want to consider include:
HERE ARE THE METRICS YOU SHOULD TRACK
As a bank marketer, you should focus on metrics that can help you understand and measure the effectiveness of your marketing efforts. Some specific metrics that you may want to consider include:
Conversion rate: This is the percentage of people who take a desired action (such as opening an account or applying for a loan) after interacting with your marketing.
Cost per acquisition (CPA): This is the amount you spend on marketing for each new customer that you acquire.
Customer lifetime value (CLV): This is the total amount of money that a customer is expected to spend with your bank over the course of their relationship with you.
Return on investment (ROI): This is the profit or loss that you make on your marketing efforts, calculated by dividing the revenue generated by the cost of the marketing campaign.
Brand awareness: This is a measure of how well-known and recognized your bank is among your target audience. You can use surveys to ask people about their awareness of your brand. You can also track the number of followers and engagement on your social media accounts to get a sense of your brand’s reach and visibility. Fiaally, you can track the number of people who search for your brand or related terms on search engines like Google.
Customer satisfaction: This is a measure of how happy and satisfied your customers are with your bank’s products and services. Again, surveys are king here, but you can get an overall sense of how you’re doing by reviewing online reviews and comments.
Ideally, your customer satisfaction surveys will help you arrive at a very valuable bit of data– Your Net Promoter Score.
KNOWING AND USING YOUR NET PROMOTER SCORE
The Net Promoter Score (NPS) is a measure of customer satisfaction that asks customers how likely they are to recommend your products or services to others on a scale of 0 to 10. Customers are typically asked to respond to the question: “On a scale of 0 to 10, how likely are you to recommend our company to a friend or colleague?” Based on their responses, customers are classified as follows:
- Promoters (9-10): Customers who are highly satisfied and likely to recommend your company to others.
- Passives (7-8): Customers who are satisfied but not particularly loyal or enthusiastic about your company.
- Detractors (0-6): Customers who are dissatisfied and unlikely to recommend your company to others.
To calculate your NPS, you take the percentage of customers who are promoters and subtract the percentage who are detractors. For example, if 50% of your customers are promoters and 10% are detractors, your NPS would be 40.
NPS is often used as a way to gauge the overall satisfaction of a company’s customers and to identify areas for improvement. It is also used as a predictor of a company’s future growth, as satisfied customers are more likely to continue doing business with the company and to recommend it to others.
Best of all, it allows you to leverage the top promoters to become evangelists for your FI!
By tracking these and other relevant metrics, you can gain a better understanding of how your marketing efforts are impacting your business and where you can improve.