Wednesday, November 28, 2012

CMO Needs Stronger Alignment With CIO

Now more than ever, the Chief Marketing Officer needs to be a multi-tasker, with enhanced technological and customer analysis skills added to their traditional marketing, branding and advertising credentials. Reposted below is a recent Chief Marketing Technologist post from Scott Brinker that recaps a report from the Economist Intelligence Unit on this transformation of the role of the CMO.

The report, entitled Outside Looking In: The CMO Struggles to Get in Sync with the C-Suite is a global survey of 389 executives sponsored by SAS illustrating that marketing is in a period of great change, becoming more strategic, and that many organizations are not yet in agreement on what that means for the CMO's role and priorities.
One thing that I found particularly fascinating, however, were the results to the question: what skills are most important for CMOs to have? Respondents were asked to pick their top three:

Tuesday, November 13, 2012

Generating Loans With Behavior Triggers

While loan business overall is down, the ability to quickly respond to a customer's behavior when they are shopping for a loan can be the difference between expanding a current relationship or potentially losing a customer. 

By leveraging relatively easily accessible credit bureau insight, you can deliver highly relevant communications through multiple channels to generate a steady stream of qualified and ready-to-borrow households.

As the name implies, a loan behavioral trigger lead is created when a customer or prospect is applying for a new loan or is about to refinance an existing loan. Used extensively by the mortgage industry recently due to the large number of households seeking to refinance, triggers also point to households looking for an equity line of credit, new car or even a credit card. 

These loan shopper lists are available on a daily, weekly (1-7 days old) or monthly basis (1-30 days old) and are very time sensitive since the candidate is actively seeking a loan or line of credit. As can be expected, using daily triggers is the most expensive due to both the cost of the list and the cost of daily processing/production, but these lists also produce the best results.

The lists can be customized, allowing a financial institution to select candidates based on filters such as credit score, amount of revolving debt, seasoning, LTV, monthly payment amounts, number of recent inquiries on file or any other criteria desired. Phone numbers can also be appended to the lists for an additional charge. History shows that those households with multiple recent inquiries are better prospects since they are considered 'active shoppers'.

Monday, November 5, 2012

The Mass Affluent: An Elusive Bank Target

While targeted by every bank, mass affluent households are difficult for bank marketers to reach. They have a distinct lifestyle from the rest of the nation in terms of media consumption, technology use, financial attitudes and preferences for financial products and services.

Representing a sweet spot between the mass market and affluent segment, the mass affluent segment is not homogeneous, but a diverse array of micro segments that differ from each other. To reach this group, new products and services need to be developed, new messaging needs to be used and varied channels need to be leveraged.

Three recent studies help to shed light on the opportunities and challenges presented by this highly sought after segment.

According to Nielsen, the mass affluent segment consists of more than 13 million households and represents approximately 11 percent of all U.S. households. The segment is defined as having income producing assets between $250,000 and $1M (excluding real estate) and an average household income of $105,000 in 2011. This income is more than 50 percent higher than the national average household income of $62,912. In depth analysis also shows a high correlation between income and assets for targeting purposes.

Friday, November 2, 2012

5 Banking Megatrends Impacting Consumers

This post originally appeared on on November 1, 2012

How Americans bank is undergoing a lot of changes right now. Free checking as we know it is becoming an endangered species, people are doing a lot more of their banking online, and smartphones and prepaid debit cards are taking off. As we move towards 2013, with planning well underway at most banks, what are the megatrends that are impacting the way people bank?

Here is my take on the 5 key trends impacting consumers:

1. Banks' mobile and online banking features are more important than ever to your overall banking experience.  

Not only are banks pushing them as a way to serve customers much more cheaply than they can in branches, but customers are getting much more comfortable with the technology, especially when it comes to mobile banking. You're definitely moving beyond the early adopters with mobile and online banking.

That means that having a welcoming, easy-to-use, powerful suite of technology products will be important criteria for the way customers choose banks in the future. And, if a consumer is one who is banking online or on their smartphone, they will probably look over a bank's technology offerings before signing up.

Number of Top 100 Banks Offering Mobile Services
First Annapolis Group, 2012 Mobile Banking and Payments Study