Bbva Essay examples
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 …show more content…
It can be concluded that the net annual income from online customers is slightly higher than that from branch customers. So, through only 5% of BBVA’s overall sales come from the Internet, it still allocate more than 5% of their budget to online channel because of the growth opportunity. 3. Display versus search engine advertising.
For the online marketing, it contains display and search engine advertising. As the analysis below, figure1 demonstrates that the click-through rate (CTR) of search engine is significantly higher than display advertising. This also leads to a better probability of booking. Moreover, depending on the $810 of the online customer profit margin, it can calculate the LTV of display and search engine are $794 and $814 respectively. Therefore, it shows that the search engine advertising is more profitable than display advertising. Thus, it can raise the budget on search engine to increase the total revenue and the return of investment (ROI). Like figure 2 shows.