Creating marketing strategies and communications for smaller groups of your customers/members is demanding and time consuming. Actually, having multiple programs going on at once can be frenetic for the marketing department and confusing for front-line staff. Yet, there isn’t a better way to be more relevant to interest the most likely buyers of your products and services.
For example, because we specialize in financial services, the first questions on any new promotions for our clients are:
- What is the goal for attracting new business for the promotion? Is it number of accounts opened, balances, and/or cross-selling additional products/services?
- Who is most likely to have a need for that next loan or service, by age, geographic locations, and blend of current products/services?
- What will attract attention to cut through the clutter, i.e. does a special rate, gift or other offer, gain more traction?
- How easy can we make it to respond through online applications, by phone or in person?
- Based on the demographics, do we have email addresses for the target to connect through inboxes and then mail to those who do not? Are there prospect lists to be purchased based on the target profile to add to the mailing or email broadcast?
Once the elements are decided, the key is to do a marketing cost recovery calculation to see how much of what you are offering is needed to recover the marketing expense. This ensures that the senior management team agrees with the target, the offer and the ability to attract well beyond the marketing cost recovery level to make the promotion a success.
An example of a Marketing Cost Recovery calculation for a new Onboarding Program for New Members/New Households for a client. The program cost of $14,500 would require 19.1 loans at a $12,700 average (such as a car loan) at a weighted average rate of 5.99% APR for one year of interest to recover the marketing costs. Above this figure, it’s more added to the bottom line for the client.
For the right strategies, and to put marketing plans and frameworks in place to get the most out of your marketing budget turn to LemmonTree! Email us or call toll-free at 1.888.536.6243.