Increasing ROI, Effectiveness, and Efficiency in the BFSI Industry Through Marketing Mix Modeling
Quantzig’s recent study on marketing mix modeling optimization for a leading bank analyzes the impact of media spend on the ROI and revenues.
Marketing trends in the BFSI sector
The implementation of strategic and strong marketing models in the BFSI sector ensures an optimum connection between the financial institution and its consumers. The organizations in the BFSI sector are initiating extraordinary and impressing ways to lure the customers and retain their customer base. The marketing funds in these organizations are based on a percentage of last year’s revenues and results of optimal marketing budgets. Marketing mix modeling helps quantify the contribution of marketing activities to sales with a view of calculating effectiveness, ROI, and efficiency of these investments. Correct channels and appropriate media spend often result in maximized consumer retention and higher revenues. Quantzig’s marketing mix optimization study offers an in-depth understanding of the primary methods that are used to approximate advertising ROI and initiate actions, such as budget allocations. Moreover, the team of experts helps calculate the future media investments and comprehend marketing ROI based on the historical marketing data and performance.
Marketing is gaining importance in the BFSI sector and helps many service providers to remain competitive in this market. The growing consumer awareness and stringent regulations are raising the requirement for right advertisement channels to attract a larger consumer base. Marketing acts as a tool for BFSI companies to introduce new services and launch products that meet the requirements of the customers. Digitalization and social media play a key role in promoting a brand image for companies in this market segment.
Service customization and personalization
The primary focus of organizations in the BFSI sector is to improve the consumer experience and increase their satisfaction levels. Banks and financial institutions are adopting advanced data analytics such as Big Data and predictive analytics to offer personalized services and communications to existing and potential consumers. Personalization of services will help higher conversion rates, amplify consumer reach, increase brand loyalty, and maximize ROIs. Developing marketing mix modeling that design strategies to promote customization and personalization will fuel the growth in the industry.
Using social media marketing
Recent market studies state that social media marketing is gaining popularity in most industries since 65% of adults use these services regularly. By investing in social marketing, financial institutions will engage in higher consumer interactions and data analytics will help them understand consumer needs and preferences. Using social media channels like Facebook, Twitter, Snapchat, and Instagram these organizations will receive greater exposure and result in creating higher brand loyalty among consumers.
Outcomes and solutions offered
Quantzig’s team of experts designed a marketing mix model for a leading bank’s marketing and sales division that offered an effective marketing strategy that helped them achieve their revenue targets. Some of the solutions offered are as follows:
- Assessed and revised budget allocations based on revenue and ROI forecasted for each marketing channel
- Provided a breakdown of ROI and incremental sales generated at a granular level – home loans, debit or credit cards, shopping discounts, and cash back
- Developed response curves to determine the point of diminishing returns for each media type and the optimal investment amount
- Created a real-time solution for investment resolutions, providing executive management a powerful decision support system
The complete case study on marketing mix optimization for the BFSI industry is now available.
Recent case studies that might interest you:
- Marketing Mix Modeling Helps a Leading Bank Gain a Holistic Overview of Their Marketing Spend
- Market Mix Models Improves Companies’ Profitability in the Food & Beverage Industry
- Marketing Mix Optimization Improves Marketing ROI for a Leading Retail Chain
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