5 Marketing Analytics Practices That Make a Difference in High-Growth Financial Institutions
The marketing analytics practices of banks and credit unions help define success in attracting new customers or members and retaining current ones. Financial institutions (FIs) that meet high-performance standards in growth do so because of their ability to leverage big data and resources efficiently and effectively.
An Aite Group study of 135 marketing executives from banks and credit unions showed that some groups achieved a status of “High-Growth FIs.” The study looked at the financial institution’s growth in 2012 compared to 2011 based on the number of checking-account relationships and consumer loans issued. These high-growth FIs accounted for about 20 percent, with an average growth of 8.3 percent in both areas. What these organizations did differently shows just how valuable big data can be within the marketing component of a financial institution.
Investment in marketing analytics
High-growth FIs invested in marketing analytics as a key component of their marketing plans. According to the same study, these businesses were expected to put as much as 8 percent of their marketing budget toward analytics in 2013, and that number is likely to grow going forward.
Better business processes
A second area in which these businesses were successful was their marketing business processes. Whereas the moderate- and low-growth organizations had marketing models that were mostly or completely out of date, high-growth FIs tended to have completely up-to-date data. Additionally, the processes these organizations use to identify and implement marketing analytics models are simply better.
More variety in marketing models
About 40 percent of these organizations developed and deployed 11 or more types of marketing models focused on credit, investment products and deposits. Customer segmentation, response and credit products are the marketing models used most often.
More extensive data sources
The number and amount of data sources these organizations use is also impressive. Many moderate- and low-growth institutions use consumer demographics and credit data as analytical models. High-growth FIs, however, incorporate social media data, consumer purchase data and numerous other sources.
Better brand management
Finally, these organizations utilize better brand management, meshing brand building with analytical data. New employees are trained to provide the right brand to customers. Even the brand’s definition is based in analytics.
Establishing success with Equifax
Marketing analytics is a critical component for successful growth in the industry. Equifax’s suite of differentiated data offer advanced consumer insights that financial services firms can combine with their own customer data to enrich marketing analytics and drive business growth. With the ability to successfully gather, analyze and utilize big data, businesses can meet each of these five goals easily.
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