bbva compass marketing resource allocation case study solution

BBVA Compass: Marketing Resource Allocation Case Solution & Answer

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BBVA Compass: Marketing Resource Allocation Case Solution

Based on the previous effects and results cause by the offline and online advertising, it would be feasible to propose that the company should allocate more resources in offline advertising and cut down on resource allocation in online advertising as it would cut down costs and expenses for the company and increase their growth trends towards their organizational objectives. Question #3

Why did BBVA sign a multiyear sponsorship deals with NBA and ESPN? Do you agree with this decision?

Answer to Question #3

As mentioned in the case, the company took a significant step of changing the name of the bank to BBVA Compass. The changed name of the company was not recognizable to the past extent, for increasing the brand awareness of the company, the decision was taken for signing a sponsoring agreement of a multiyear NBA and ESPN. This decision was of sheer credibility and authenticity as these signing would definitely and directly affect the level of brand awareness for the company.

Changing the name of the company directly affected the brand awareness of the company in a negative manner, and with these steps of signing sponsoring agreements with such known and popular entities the company would be able to create the desired level of brand awareness amongst the customer segment of the company. BBVA advertisements being advertised or aired between the prime time slots all over the US would significantly affect the brand awareness levels for the bank. Marketing activities of such nature are credible and are fruitful for the organization in the long run. Question #4

What are the various steps in the online acquisition process and how can the bank improve this process?

Answer to Question #4

Steps involved in the online acquisition process of the company are listed as follows; 1. Customer search online for checking account. 2. Paid search or Display ads. 3. Customer applications. 4. Submission of completed applications. 5. Opening of new checking accounts. The company can increase the level of value delivered to the customers with enhancing the process of online acquisition. The company can make amendments to their online acquisition process for satisfying the customer on an increase level which will benefit their organization goals andobjectives. The company can look forward towards making the online acquisition process more interactive and elaborative for the customers. The organization should focus more towards specifying the required information from the customer for enabling them in providing the desired information in the online application form and what are the requirements that need to be fulfilled and met by the customer in order to get the applications approved by the bank. In addition, they can also focus on reminding the customers regarding the required funds that they need to allocate in the accounts for increasing the level of received funds and business for the bank. The reminders should be based on a time frame and done on a mentioned and stated time frame.

Question #5

What is the effective acquisition cost and lifetime value of customers acquired through the online channel?

Answer to Question #5

It is expected that the marketing team of the company is responsible for attracting greater number of customers through different promotional activities. For this purpose the company allocated a significant amount of budget in order to increase the number of checking account customers. It is expected that the principles of both online and offline marketing techniques for this purpose and effective cost of acquisition through both strategies applied by the marketing team is $81 per customer. While the acquisition cost through only online marketing strategy is $100 as it is expected that if 100 online users click on the online add then only 2-3 account become functional, therefore retention ratio of new checking account customer is about 55% only while the retention ratio of new checking account customers through off line marketing is about 65%. In addition to this approval rate of application through online marketing is also low as compared to the display marketing therefore effective acquisition cost per customer through online marketing is high……………….

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