WEST CHESTER, Penn. — Banner ads are delivering up to 2000% return on investment (ROI) at two credit union websites, keeping rates and relationships at the top of members' minds.
Benchmark FCU here is achieving 2,019% ROI from the approximately 1,700 new accounts acquired through banners that promote loans and CDs in the most recent one-year period, said Rebecca McPhillips, marketing manager at the $209-million CU.
Silver State Schools CU in Las Vegas is seeing similar success: the advertisements are demonstrating more than 1,000% ROI, based on the cost of subscribing to the messaging product against the two-year projected profit for acquired accounts, according to Roger Loftis, VP-sales and marketing at the $900-million CU. Both CUs use DeepTarget OLB, a hosted banner-messaging product provided by DeepTarget, an e-marketing software company in Huntsville, Ala. DeepTarget charges a subscription fee of $.08 per online banking member per month and a set-up fee equal to one month's subscription.
"During this rough economic period, financial institutions have had to pay extra attention to marketing budgets and initiatives," Loftis said. But since DeepTarget OLB is "affordable and pays for itself," Silver State Schools has not had to "clamp down on it."
DeepTarget keeps "important financial information," such as ever-changing rates, in front of the member during the economic crisis, said McPhillips. "At this time, members are more rate-sensitive than loyal. And we have not only focused on marketing our products but also our commitment to members' financial well-being."
"It's important to reassure your members that you are still there for them, especially during such times," added Preetha Pulusani, DeepTarget CEO. "It's important that outreach and marketing activities not be compromised too much. DeepTarget offers an affordable solution that makes a measureable difference."
A "clear advantage" of DeepTarget is measurability, Loftis continued. Quarterly reports show ROI, profit, accounts opened and new balances.
Profitability is estimated on a "conservative" basis, including only taking into account the first 18 months in a two-year projected profitability period, explained Loftis.
At Silver State Schools, projected profit for acquired accounts in the second quarter 2009 was more than $93,000 - the CU's highest DeepTarget ROI to date, he said.
Benchmark FCU's 2,019% ROI is based on a projected profit of nearly $96,000, said McPhillips. One year of DeepTarget costs the CU about $5,000. To make the most of the ads, Benchmark continually updates the banners to give them a "fresh look" and to include current rates, said McPhillips. Where possible, "you should also personalize the targeted banners by using the member's name," a feature automated by the software, said McPhillips.
A banner — and the site to which a member is directed after clicking the banner — should display a "strong call to action," said Loftis. "A pertinent question followed by a direct invitation to act is often effective."
Don't promote a product to a member who already has it, he added. Silver State Schools CU avoids remarketing by asking DeepTarget to update its rules-based definitions based on each product offer.
Neither CU has attempted a click-to-close campaign, wherein members click on the banner and are directed to a site where they can accept a preapproved offer. Benchmark is considering such a campaign for a Holiday Loan promotion, however, said McPhillips.
"It would be an easier way for the member to accept an offer," she said. Members could click to instantly accept the offer instead of completing, signing and mailing a form or contacting the CU - which is what they have to do with the current banner programs.
