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Financial Services Company Enjoys 18% Reduction in Cost Per Acquisition

Situation:

This leading financial services firm launched one of the industry’s first prepaid debit cards. The card provides instant access to a set of basic financial services for millions of Americans who had not previously established traditional banking relationships.

Challenge:

Prior to engaging with Visual IQ to use its IQ Intelligence Suite™ of marketing attribution management software products, marketers at this company were experiencing challenges drawing accurate correlations between investments in its major stimulation channels such as direct response television (DRTV) and display advertising, and conversions recorded via its major response channels, including; organic and paid search, affiliate search and its inbound call center. As a result, they were forced to make their strategic planning and optimization decisions on performance data that did not fully take into account any cross channel, cross campaign and cross tactics impact — and were often forced to give credit for conversions to the “last click” prior to the conversion taking place, despite knowing that this was a flawed measurement methodology.

Goals:

The brand established goals at the outset of their use of Visual IQ’s products that included the need to establish an accurate baseline cost for acquiring a new cardholder in order to replace their historical CPA metric with Visual IQ’s TrueCPA metric. Once a baseline figure for their TrueMetrics were established, marketers at the brand hoped to quickly decrease their TrueCPA from its baseline figure and as a result make more informed optimization decisions across channels, campaigns and tactics.

Solution:

As a result of using Visual IQ’s IQ Envoy attribution management product to consolidate performance data from multiple channels and apply an attribution model to it, the client organization was able to:

  • Quantify the relative impact of each of their three different television buys/channels/audience segments on overall conversions recorded via a number of response channels
  • Identify those affiliate partners that were truly generating positive ROI and those that were not
  • Discover that online display advertising was undervalued as a contributor to overall conversions by a sizable order of magnitude

As a result of these findings from IQ Envoy, and the media spend recommendations that were delivered by the marketer’s use of IQ Sage, the company was able to adjust their media spend among channels — and drop certain non-producing affiliates from their partner program — in order to start producing new customers at a lower cost per acquisition and higher net present value.

Results:

During the first quarter after which attribution-driven optimization actions were taken by the client, TrueCPA decreased 18%. Even greater improvements in this and other metrics are expected as the client’s use of Visual IQ’s products matures.

“We are thrilled with the insights we realized and the recommendations that have been delivered by Visual IQ’s products. Their TrueMetrics have become the “source of truth” for marketing performance measurement within our organization and we have utilized them to optimize our marketing efforts across channels to great effect. Use of their products is part of our everyday routine that has taken our marketing efficiency to the next level.”

CMO, Leading Financial Services Firm