IAN KLEIN Vice President, Digital Strategy Strategic Margins - - PowerPoint PPT Presentation

IAN KLEIN

Vice President, Digital Strategy

CONVERTING CUSTOMERS: HOW TO KEEP YOUR PIPELINE FROM LEAKING

Strategic Margins Conference

Maximizing Income Opportunities for Banks & Credit Unions through Digital Marketing

• Introduction to inSegment
• The State of Digital Marketing
• Digital Marketing Tactics for Profitability
• Your Website is Your Most Important Branch
• Online Account Opening (OAO) Challenges
• Making Human Connections for ROI

Agenda

Introduction to inSegment

inSegment: Who We Are

Since 2006, 7-year-old full-service Digital Marketing firm Headcount – 52

Newton, MA (HQ) – 25 Russia – 15 Ukraine – 12

Clients include regional and global leaders in financial services, higher education, insurance, legal, and software Digital Marketing campaigns in 9 languages across 17 nations

25

12 15

inSegment Wheelhouse

The State Of Digital Marketing

The Shift Away from Traditional Media

(Source: Source: Nielsen Media Research, Pew Research Center, Audit Bureau of Circulations)

(Source: “State Of The Internet: 2012”: Henry Blodget, Business Insider, Oct. 2012)

Digital Advertising is $30 Billion Industry

(Source: “State Of The Internet: 2012”: Henry Blodget, Business Insider, Oct. 2012)

TV’s Leadership Position is at Risk

(Pew Research Center: 2012)

CPM’s Vary Dramatically Cross-Channel

CPM = Cost Per Thousand Impressions

Mobile to be Lead Internet Access Point

(Source: Microsoft Tag)

66% of smartphone owners access the Internet every day from their device

(ThinkWithGoogle.com May 2012)

The majority (55.5%) of mobile users have a smartphone.

(eMarketer April 9,2012 )

Mobile Demographics are Diverse

Smart Phone

Smartphone ownership in the 45 -54 age range increased 16%, from 2011 to 2012 (28% to 44%)

(Pew Research Center March 2012)

(Source: “State Of The Internet: 2012”: Henry Blodget, Business Insider, Oct. 2012)

Social Networks are the New “Portal”

Social Demo is Older than You Think

• As of February 2012, 66% of online adults

(18+) use social networking

• Popular in all age groups
• 18 – 29 86%
• 30 – 49 72%
• 50 – 64 50%
• 65+ 34%

Source: Pew Research Center Feb. 2012

Over 1/3 of Users Access FB on Mobile

(Source: July 2012 – Bevelwise)

• Men: More likely to access social

networking on Internet-enabled TV & Gaming Console

• Women: More likely to access social

networking on mobile phones and eReader

(Source: “State Of The Internet: 2012”: Henry Blodget, Business Insider, Oct. 2012)

Pay TV Subscriptions are Diving

(Source: “State Of The Internet: 2012”: Henry Blodget, Business Insider, Oct. 2012)

Online Video Alternatives are being Adopted

Online Video Demo is Older Than You Think

(Nielsen: 2012)

“Video over the Internet has become an established part

• f viewing habits for most consumers, in most countries

and across all age groups. Once seen as the preserve of the younger, forward looking and technologically savvy, we’re now seeing the platform mature as a mass media channel.”

(Accenture Video-Over-Internet Consumer Survey 2012) YouTube: May 2012

Internet Radio Listening is Exploding

Internet Radio is Listened to ~10 Hours/Week

Pandora Internet Radio is #2 in Boston

Rank Media Cume Persons Cume Ratings

1 WXKS-FM 864,684 20.7 2 PANDORA 697,710 16.7 3 WJMN-FM 578,867 13.8 4 WBZ-AM 540,505 12.9 5 WBUR-FM 508,643 12.2 6 WEEI-FM/WEEI-AM 447,661 10.7 7 WKLB-FM 390,695 9.3 8 WMJX-FM 383,440 9.2 9 IHEARTRADIO 297,252 7.1 10 WBZ-FM 293,600 7.0

• With significant market penetration in Boston, Pandora provides advertisers with

access to millions of consumers every month

– 672K weekly unduplicated listeners – 7hrs:01mins average time spent listening per usage week – 47/53 Male/Female – 32 average age

Digital Marketing Tactics for Profitability

Elements of Digital Marketing

Website and “Satellite” Microsites SEO (including Online P.R. & Reputation Management) Paid Search – Pay Per Click (PPC) PPC Display (a.k.a. Banner Ads) & Recapture Marketing E-Mail Marketing & Lead Nurturing Mobile Marketing Social Media Content Development & Distribution (Ex. Whitepapers & Infographics) Online Video Internet Radio

Website Vs. Microsite

A company’s website is like a brochure, describing all products and services offered It encourages users to explore and browse the company, its history, products, etc.

Website Vs. Microsite (BankHumanAgain.com)

A microsite hones-in on a single product, focusing the user’s attention and path Microsites enjoy greater Conversion Rates and ROI

Website Vs. Microsite (HarvardCard.com for HUECU)

A microsite hones-in on a single product, focusing the user’s attention and path Microsites enjoy greater Conversion Rates and ROI

SEO (Organic Search) and Paid Search

Up to 10 Paid and 10 Organic Search Positions on Page 1 of SERP’s Paid Search Ads run on top and to the right of Organic Search Results Strive to have both Paid and Organic positions (2X) to increase overall traffic and push competitors off of Page 1

Paid Search Ads Organic Search

SEO & Digital Reputation Management

How you are viewed online is how your brand is viewed – Page 1 of Google is like front page news Although Paid Search ads allow you to “control the message”, Organic Search drives greater Consumer trust and higher brand perception

Pay Per Click (PPC) Display (Banners)

Banner ad is contextually-targeting content of news article Purchased opportunistically (via ad exchanges) and with PPC pricing

60+% of visitors abandon your site without taking a desired action (Coremetrics/IBM, 2012) Without Recapture, these users are either lost forever or are cost-prohibitive to recover An end-to-end Recapture strategy delivers “warm leads” at a fraction of the cost of initial visit Align “point of abandonment” with “customized ad creative” and appropriate “landing page” Leverage Recapture to cross-sell products (ex. serve Mortgage ads to Checking customers)

Recapture Marketing Protects & Grows

Mobile Media & Mobile Microsites

The Mobile universe offers similar Paid Search and PPC Display ad opportunities as on Desktop Design ads that display clearly on smaller screens Make sure your landing environment displays appropriately on the devices you target and Calls To Action (CTA) are Mobile-friendly (i.e. form and video functionality)

Social Media

Facebook ads target geo, user demographics, and self-identified interests LinkedIn ads target user-identified skills, titles, companies, and industry

• rganizations to which they belong

Target your audience granularly to invest media spend only on those users most likely to convert Facebook and LinkedIn ads are both PPC priced The requested call-to-action must be sensitive to a social environment

Online Video: Targeted Branding

Associate your TV spots with local sport teams, national events, “how to” content, news, etc. Measure every video view, completion rate, site visits and actions on site to quantify the ROI

Internet Radio: Listen & Take Action

Combine visual branding and interactivity to what has traditionally been audio-only Ads live in single-spot “pods”, encouraging users to wait just :15-:30 until the music resumes Measure every audio and banner ad impression, site visits, and actions on your site to justify ROI

Your Website is Your Most Important Branch

Main Website, Satellite Targeting

Conversion Architecture Usability Objective Standards “Continue the Conversation”

Conversion Architecture

Design focuses on 7 Conversion Points to maximize ROI

Objective Standards: F-Pattern Browsing

Design websites in an F-shaped pattern. Eye- tracking studies clearly show that users consistently view sites in an F-shaped pattern.

This is “F-shaped browsing.

Microsite Best Practices

• Emphasize desired “actions”
• Optimize for conversion
• Show consumers your value
• Target segmented audiences
• Continue the conversation

“Continue the Conversation”

“Continue the Conversation”

Microsite Optimization: Ongoing A/B

Online Account Opening (OAO) Challenges

OAO Will Continue to Grow

Source: Online Banking Report “Improving Online Account Opening” June 2012

But Branches Remain Key

• Channel Convergence is an “And” Proposition - Online is additive
• Branches remain a key interaction point for customers, no matter how

popular Online/Mobile channels become

The OAO Process is Too Cumbersome

• Metrics Marketing Group compared the account opening process

amongst 13 top financial institutions:

• According to Forrester Research, 58% of visitors who experience usability

problems on a website never return.

• In addition, the average website can double its conversion rate by

designing for increased usability. (Source: IBM)

Only ~20% Successfully Complete OAO

Source: Google Analytics on 400,000+ Andera applications from 26 institutions in 2012.

• Of every 10 applications started on Andera’s account opening platform in 2012,

approximately 5 applicants abandoned before submitting their application, 2 failed the institution’s risk management strategy, and 1 abandoned after approval.

And Revenue is Lost…But There is Hope

• Javelin Strategy & Research’s latest research report — “2012 Online Account

Opening: Faulty Process Hobbles FI’s in the Battle for Customer Acquisition, Profitability and Retention” — reveals that:

• Financial institutions (FI’s) lost at least $873 million dollar,

conservatively, in potential revenue, as 5.8 million customers attempted - and failed - to open accounts online.

Recapture Marketing helps mitigate this lost revenue resulting from OAO abandonment

32% Required Human Assistance

Source: Online Account Opening Consumer Analysis and Vendor Comparison: How to Optimize Efficiency, Enrollmentand Risk - May 2012

Other Reasons for Abandonment

• Why do OAO attempts fail?
• Poor integration – Core/OAO, OAO/funding vehicle, OAO/Internet banking...
• No eSignature technology available from FI
• OAO only available for existing customers/members
• Desired account type not supported by the FI for online opening
• Credit card funding is not widespread
• Advanced Solution from inSegment:
• inSegment has developed a method of recovering people who abandon OAO

platforms, even if they drop before entering their contact info into the app

Source: Online Account Opening Consumer Analysis and Vendor Comparison: How to Optimize Efficiency, Enrollment and Risk - May 2012

Custom OAO Platform: ING Direct

Ability to return and resume previous, unfinished session

Assigning unique customer numbers allows for quality assurance when the customer calls for support. Also allows convenience if the user chooses to resume OAO process at a later date.

Custom OAO Platform: ING Direct

Live Chat box appears after 30 seconds. One can simply choose to begin chatting, or continue the process

• n their own

Custom OAO Platform: BOA

OAO Key Takeaways

• Meet the customer where and how they want to be met
• Create a consistently positive customer experience across channels
• Realign sales and customer service to cater to unique channel needs
• Align sales incentives with channel and customer experience
• Break down the “silos” of different media channel operation
• Extend your presence to where you don’t have brand presence today
• While we cannot all afford custom OAO platforms, we can push 3rd party

OAO providers to evolve and offer features used by the largest FI’s

Making Human Connections for ROI

Begin by Introducing Yourself

Bank of America "Connect" Video

Make it Simple to Connect with You

Eastern Bank "Here You're First" Video

Dan Freeman, SVP Sales freeman@insegment.com Ian Klein, VP Digital Mktg klein@insegment.com