Let’s be honest: marketing folks and math don’t always mix. But whether you love reviewing spreadsheets or not…you must consider the numbers. So, let’s register for Bank and Credit Union Marketing Math 101 and take a look at some key concepts.
The Budget
You can’t market well without the right budget. Are you spending too much? Too little? In marketing assessments, we use a helpful formula to calculate the proper budget size for different organizations. It starts with:
Asset Size x .001 = Base Marketing Budget
Then, you add or subtract from that base according to charter types, geography, assets per consumer and more. Click here if you want a free download going over the formula.
Time is Money
The expression is true – time really is money. Your time needs to go toward the highest impact items with everything else being secondary.
If you spent two hours writing a blog post when you could’ve planned a whole campaign in that time…you may have flushed some money down the drain. The campaign will generate more revenue than the blog post. Become a 10x thinker and focus on the 20% of your work that adds the most value.
Tumbleweed Losses
Marketing personnel transitions are dangerous times for organizations. Let’s say your marketing director leaves. Who’s going to take over the marketing? If the answer is “nobody,” you’re in trouble. No bank or credit union marketing equals less new business.
These are called “tumbleweed losses” because your communication becomes like a barren landscape with just a few tumbleweeds rolling across it. Design a continuation plan for someone to run marketing during a personnel transition. Don’t put hiring on the back burner. And hire outside help during a long candidate search so you don’t sacrifice dollars.
Cost Per Acquisition
You should know (on average) the cost per acquiring a new consumer (CPA). The average CPA is $498. That sounds quite pricey, but it really depends on the market you serve and the individuals you attract. A $700 bonus could attract someone who eventually becomes a $7 million consumer.
Reeling in some big fish might justify slightly higher CPAs. But if that’s not happening, you may need to reassess this spend or spend smarter. And remember: it’s cheaper to get new business from current account holders than it is to get entirely new folks.
Costs of Acquiring Help
Financial organizations have a lot of one or two-person marketing teams. And sometimes, the workload becomes too much for them to bear. Consider the pros and cons of hiring help.
A full-time employee costs salary plus benefits, and they are limited in skillset. But he or she is also under your roof, a part of your culture and closest to your brand. Outsourcing your bank and credit union marketing to a partner is generally cheaper and grants you a wider swath of expertise. But they aren’t as close to your day-to-day culture and community (although you can teach these things).
Do you need any outside help? On The Mark Strategies offers multiple partnership levels to steward your investment while delivering high-quality assistance. Book a free consultation now to get started.
