We've been talking about digital marketing productivity for a while, I'm kind of a productivity fanatic. So I decided to look at one campaign type to see what kind of loan productivity improvement we're actually seeing. Here's what I found across 9 different auto loan campaigns spanning a couple of years...
Here are my assumptions for auto loan campaigns:
- Banner ad click-through rate = 0.1%
- Landing page conversion rate = 5%
- Banner leads convert at the same rate as interview leads or 6.8%, on average
So, assuming the same number of impressions, here's how actual interview marketing results stack-up to banner ad performance:
The productivity advantage is about 86X, which is material in terms of bank results. Apart from securing the loan asset -- each additional product the bank adds to the customer's portfolio reduces the odds of attrition by about 40%. So, why would anyone ever use a banner ad if a much higher productivity solution is available?
Well -- interviews aren't appropriate in every case. For example, if a customer has navigated to an auto loan landing page with an "apply now" button -- it's probably not necessary to conduct an interview at that point, let the customer click on the "apply now" button and process the application. Moreover, if a customer has already explicitely stated that s/he is in-market for an auto loan -- it makes more sense to use a banner to remind the customer of the instutions auto loan rates both on and off the bank's digital property.
In short, interviews are very effective in driving discovery and sales -- particularly up the funnel but, you will still need to use a cross-channel ad server to do the everyday marketing work. If you'd like to learn more about how to improve engagement, sales, and retention -- contact us, we'd be happy to show you how.