Bbva Compass Case Study

1359 Words6 Pages
A Case Study of BBVA Compass BBVA Compass is the fifteenth-largest bank in America. In December 2010, they considered about how to allocate the bank’s marketing budget in order to improve the brand awareness and market share. Based on the data and time line provided in the case material, this essay will use expected Customer Lifetime Value (LTV) to measure customer attractiveness versus customer profitability in their marketing decision making. 1. The role of online and offline advertising. From its marketing purpose, the major role of offline and online advertising was to build brand awareness and improve consideration among potential bank customers. In 2009, the brand awareness and consideration dropped significantly because of they changed their brand name to BBVA Compass. Another role is to bringing in new customers and increasing the total number of accounts at the bank. In this aspect, online advertising has a distinct advantage than offline advertising that is information tracking. This can help BBVA have a good sense of return on investment and thus allocate marketing budget in different channel effectively. Additionally, BBVA also want to utilize online and offline marketing to support its product lines such as checking, savings, mortgage, commercial banking and improve satisfaction and retention of the current customers and cross-sell to them. Because, from a survey, the top-three criteria for customer to choose a bank includes free checking service, convenient branch locations and easy online banking services. 2. The budget allocation between online and offline. In the banking industry, the average lifetime value of a new checking account over its five-year expected life is about $800. Thus, it can calculate the annual margin of online and offline by utilizing the formula: LTV=t=15annual margin * retention ratet-1(1+interest

More about Bbva Compass Case Study

Open Document