The Client: A renowned banker
Area of Engagement: Marketing mix optimization
Amid the tentative financial recovery, the retail banking space is facing pressures to develop digital and data capabilities to simplify their business process. Retail banking focuses on conducting businesses directly with the customers to improve services such as transactional accounts, debit cards, credit cards, personal loans, and mortgages. With the growing needs and expectations of the customers, the retail banking sector at large is focusing on delivering efficiency, quality, and speed to deliver exceptional customer experience. Moreover, the sector will witness a stipulated growth owing to the rising discretionary incomes, robust GDP growth, and a larger population of banking customers. Although the retail banking space is witnessing a promising growth, several factors may influence the growth of the industry.
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- Technological changes: Today, innovations are growing at a rapid pace, and prominent banking organizations are developing new products and services to serve the customers better. The considerable growth in IT spending is compelling businesses to invest heavily in research and development to improve business processes and enhance their ROI.
- Changing customer expectations: As retail banking is shifting toward a customer-driven environment, improving customer loyalty becomes a primary concern for the businesses. With the changing customer perceptions, businesses need to understand different types of customers and how they make choices and accordingly allocate their resources.
To address these challenges and measure the impact of marketing on business performance, leading businesses are leveraging marketing mix optimization solutions. Marketing mix optimization helps businesses to measure the effect of advertising, packaging, and distribution challenges on the sales revenue. Marketing mix optimization also helps businesses allocate their marketing elements to determine the net effect on the company’s profit.
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The Business Challenge
Retail banking remains an essential part of the financial services accounting for 45% of the total banking revenues.
The client, a renowned retail banker, wanted to gain an understanding of the historical relationship between marketing spending and business performance. With the help of a marketing mix optimization solution, the client wanted to understand the sales drivers and their ROI for their offerings across media platforms. The retail banker wanted to measure the performance of their marketing mix and understand how external influences such as competitive actions, seasonality, and economic conditions impact the sales performance. The primary concern of the client was to revisit their marketing plans to meet the business goals of improved revenue, sales, and profit.
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The Solution Benefit and the Business Impact
The marketing mix optimization solution offered by Quantzig assisted the retail banking client accurately forecast, monitor, and periodically assess the impact of marketing campaigns on their business performance. The solution also focused on quantifying the marketing decisions of the past and predicting the future sales of marketing variables. By determining the impact of various media channels, the client was able to reallocate their resources to form an optimal marketing mix.
Marketing Mix Optimization Predictive Insights
Quantzig’s marketing mix optimization helped the retail banking client evaluate the impact of different components of marketing plans such as advertising and promotion on the overall business performance. The engagement also helped the client understand the trends in the specific industry and pricing differences across sales regions. Moreover, the client was able to develop robust marketing models to continuously improve top-line revenue and ROI.