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WHITE PAPERSeven Steps forIdentifying theRight MarketingMetricsFI Marketers Need Proven Metrics to Justify Budgets & Value

WHITE PAPER Seven Steps for Identifying the Right Marketing MetricsFINANCIAL BRANDMARKETING SURVEYGone are the days when marketing gauged its worth by the volume of ads,marketing materials and promotional content it pumped into the salesstream. These days, if you want a reasonable marketing budget, you’ll have15%WE HAVE A GOOD IDEAHOW MUCH WE GETFOR OUR MARKETINGINVESTMENTSto prove you deserve it.CFOs and CEOs expect quantifiable evidence that your efforts support theKPIs of the institution, and that they yield a respectable ROI. If marketerscannot make this case, the marketing function will forever be considered anoverhead expense, rather than a powerful cylinder in the revenue engine.The problem is, most marketers don’t believe they have the informationthey need to build a business case that conveys their value and justifiestheir budget.In a 2013 study by The Financial Brand, only 15 percent of bank and credit10%union marketers said they have a good idea how much value they get fortheir marketing investment. A mere six percent considered themselves verysophisticated with their marketing measurements. The bulk of marketersstruggled or relied on guesswork.WE HAVE EXHAUSTIVEMARKETINGMETRICS AND TRACKEVERYTHING WE CANThe Financial Brand Marketing Survey. 2013 Deluxe Enterprise Operations, LLC. All rights reserved.2

WHITE PAPER Seven Steps for Identifying the Right Marketing MetricsThe Good NewsMarketing Measurement has come a long way and is now easierthan ever.“ I want to beable to make abusiness case formy budget so Iam the one toset the number.Right now mymarketing budgetis dictated by theCEO and CFO.”– Bank CMOBecause of advances in technology, data-management, analytics, andmarketing providers who build measurement into every campaign, it is nolonger a burden to track marketing effectiveness against the institution’sKPIs. Nor is it difficult to establish ROI.“ We have to showthe CFO thatthere is scientificevidence and solidstrategy behindour marketingdecisions. That’show we earn moreC-suite credibility.”– Deluxe MarketingServices Strategist Deluxe Enterprise Operations, LLC. All rights reserved.Want to do a better job measuring metrics at your financial institution?Here’s a best-practices approach to getting started.0.1%THE FINANCIAL BRANDRECOMMENDS AMARKETING INVESTMENTTHAT IS APPROXIMATELYEQUIVALENT TO 0.1 PERCENTOF A RETAIL FINANCIALINSTITUTION’S ASSETS.5THE MOST MANAGEABLENUMBER OF METRICS,ACCORDING TO BUSINESSEXPERTS.3

WHITE PAPER Seven Steps for Identifying the Right Marketing MetricsTHE 5 STAGES OFMARKETINGACCOUNTABILITYStep One: Embrace AccountabilityJustifying marketing’s value and budget is, at its core, an exercise inaccepting personal accountability. For most marketers, acceptingaccountability for their performance means that they will:1 DENIAL“MARKETING IS AN ART, NOT ASCIENCE. IT CAN’T BE MEASURED. THERESULTS WILL COME; TRUST ME!” Establish performance metrics that directly support business KPIs2 FEAR Use relevant performance data to strive for continuous improvement“WHAT IF MY MARKETING ACTIVITIESDON’T IMPACT THE BOTTOM LINE?WILL I LOSE MY JOB?”3 CONFUSION“I KNOW I SHOULD MEASURE MARKETINGRESULTS, BUT I JUST DON’T KNOW HOW.” Measure marketing strategies and tactics quantitatively Ensure the company’s money is spent on the right strategies and tacticsThe Definitive Guide to Marketing Metrics and Analytics by Marketo, astrategic marketing firm, suggests that denial, fear, and confusion get in theway of accepting accountability.4 SELF-PROMOTION“HEY, COME LOOK AT ALL THESE CHARTSAND GRAPHS!”5 ACCOUNTABILITY“REVENUE STARTS WITH MARKETING.” Deluxe Enterprise Operations, LLC. All rights reserved.4

WHITE PAPER Seven Steps for Identifying the Right Marketing MetricsTOP FIVEMARKETING METRICSCOMMONLY USED BY FINANCIAL MARKETERS1. Deposit/loan volume2. Customer/member growth3. Depth of relationship,share of wallet4. Market share5. RetentionStep Two: Know What to MeasureThere are two categories of metrics that you will be expected to measure: R evenue metrics – These are measures that show how your marketingefforts contribute to acquiring new accounts, selling more products andservices, and anchoring or retaining existing accounts. M arketing program metrics – These are measures that demonstrate theeffectiveness of your specific campaigns and tactics so you know what isworking, and what is not.Average balanceper productAverage totalmargin% perproduct.Number of(active) productsper customerNumber ofcustomers perfront line FTE.Cost perfront line FTE. 2,5683.15%3.61,578 31,200SourceAccountsOpenedAcquisitionCost% ofAcquisitionsDaysto CloseSEM26 32513.9%7Web Ad9 4204.0%12Direct Mail96 12651.6%14Radio15 3508.0%13YouTube7 2103.7%21Pandora22 9811.8%24TV11 7425.9%16The Financial Brand Marketing Survey. 2013 Deluxe Enterprise Operations, LLC. All rights reserved.5

WHITE PAPER Seven Steps for Identifying the Right Marketing MetricsStep Three: Gain Leadership Agreementon Revenue MetricsIt’s crucial that the CFO and CEO see that marketing is strategicallyfocused on the revenue goals of the institution. Once you understand yourinstitution’s revenue priorities and targets, you should discuss and agreeupon metrics that will measure your contribution to these growth goals. Forfinancial institutions, these are the most tried-and-true revenue metrics.Number of LeadsNumber of ConversionsConversion TimeNurturing I nquiries or new leads – Conversions – This is when V elocity – Here’s where N ot ready to buy – TheseThe start of theconsumers move to anotheryou measure the time itare people who aren’tqualification process.phase in the customertakes for qualified leads toready to buy right now,Marketing reviewslifecycle and thus fall into abecome account holders, orbut who would be a goodconsumer data to seenew campaign category.for account holders to moveprospect later.whether the consumer is ato an onboarding, cross-sell,legitimate prospect.or loyalty phase. Typically,who, for whatever reason,the higher the velocity,fell out of your salesthe higher the ROI of yourpipeline and need to becampaign.included as a prospect Q ualified leads – These areconsumers who alreadyfit with your targetingagain.strategy and possibly yourpropensity-to-buy model. Deluxe Enterprise Operations, LLC. All rights reserved. R e-engagement – People6

WHITE PAPER Seven Steps for Identifying the Right Marketing MetricsStep Four: Set Your NumbersWhen you know what metrics you will measure, the next step is to set goalsfor each metric. This process typically involves benchmarking. To set theright goals, it’s best to know how you are currently performing, as well ashow you have performed in the past. If you do not have access to this typeof history, your goals may have to be educated guesses based on bestpractices the first time around.— Marketing Metrics & Analytics, The Definitive GuideMarketo.com Deluxe Enterprise Operations, LLC. All rights reserved.7

WHITE PAPER Seven Steps for Identifying the Right Marketing MetricsDELUXE BEST PRACTICEMARKETING IS A LONG-TERM INVESTMENT, SO TRACKYOUR MARKETING REVENUE METRICS AS YOU WOULDTRACK STOCK PERFORMANCE – AS A TREND LINE.Step Five: Map Your Revenue MetricsMany marketing plans are represented in a spreadsheet or pages of text.An emerging best practice is to include a flow chart or diagram of howthe strategies and tactics in the marketing plan map their way back to theNew Accountsinstitution’s revenue goals. 2013 2014 2014 Projected600Your visual aid can also help manage expectations regarding timing andexpected results. In many ways, marketing is a long-term investment. Some500campaigns will not pay dividends right away. Explain how frequently youwill measure each metric, and how you will show ongoing progress toward400goals.300200100Q1Q2Q3Q4 Deluxe Enterprise Operations, LLC. All rights reserved.8

WHITE PAPER Seven Steps for Identifying the Right Marketing MetricsDATA NEEDED TOSUCCEEDStep Six: Prepare the MarketingOrganization to SucceedTo be able to achieve the revenue metrics established for your team, youCUSTOMERDEMOGRAPHIC ANDBEHAVIORAL DATAwill need to tune up your marketing engine for optimal performance. Forexample, Deluxe Marketing Services recommends that you review youraccess to high quality:CAMPAIGN EXECUTION, INCLUDINGCONTENT, DESIGN ANDDISTRIBUTION Customer demographic and behavioral dataANALYTICSAND PREDICTIVEMODELING Analytics and predictive modeling Measurement and tracking technologies Performance reporting Campaign execution, including content, design and distributionMost financial institutions outsource one or more of these capabilities. As aPERFORMANCEREPORTINGMEASUREMENT ANDTRACKING TECHNOLOGIESbest practice, outsource to a company that specialize in financial institutionmarketing. These companies have a deep understanding of the relationshipsconsumers have with their banks and credit unions. Deluxe Enterprise Operations, LLC. All rights reserved.9

WHITE PAPER Seven Steps for Identifying the Right Marketing MetricsStep Seven: Establish Marketing ProgramMetricsYes, you need another set of metrics. However, these behind-the-scenesmeasurements will help your marketing organization understand what isworking – and what is not. These metrics are tools to guide your decisionmaking about future campaigns and approaches.While there are dozens of possible metrics from which to choose, thefollowing categories tend to surface to the top, primarily because they arehelpful in calculating campaign ROI.Leads – Technology and automation can help you track metrics such as thenumber of prospects a campaign has generated, which campaign channelsare most effective, and whether a lead was recruited or came in on its own.Benchmarks – Comparing your work to industry averages provides insightinto how well your programs and campaigns are performing. In general, youare trying to achieve “lift over last,” which means that your campaigns areshowing continuous improvement.In tracking lift, most institutions try to track response rates in terms of: Offers accepted/coupons redeemed Calls to designated phone number Email opens & click-throughs Visits to web pages (URLs, PURLs, campaign landing pages) Time spent on web pages Deluxe Enterprise Operations, LLC. All rights reserved.10