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BBVA Compass

Marketing Resource Allocation

ANURAG GUPTA AYUSH AGARWAL HRIDAY BIKASH DAS 2012PGP015 2012PGP022 2012PGP038

KAUSHAL KUMAR GHAI

SAVITHA B.

2012PGP045
2012PGP050

BBVA COMPASS - HISTORY

Parent company BBVA Second largest bank in Spain in 2010

Entered US market in 2004

Lot of M&As done 700 branches,$49 billion in deposits 15th largest commercial US bank

Whom did BBVA target?

Goal:

To become one of the top ten banks in US Small enough to offer customized solutions while big enough to offer breakthrough innovations Sunbelt area (significant population growth)- 25 to 54 year old + annual household income >$75000

Positioning:

Target customers:

Marketing Goals

Build awareness and trust in the bank Bring in new customers and increase the total number of accounts in the bank Improve customer satisfaction to improve customer retention and cross-sell to them Marketing budget : Under $50 million for 2011

Offline vs. Online Marketing

Offline

Online

Brand building: Adopting trade name BBVA Compass aided awareness Sponsorships: Multiyear sponsorship with NBA + title sponsor of Papajohns.com Bowl + Associate sponsor of Texas bowl

Paid search: Buy generic words on search engines

Display: Buy advertising space on websites that prospects were likely to visit

New checking accounts- 5% from online, 95% from offline Retention rate: Online @ 55%, offline (through branches) @ 65% Annual income is slight higher from online customers Account balance: Lower of online customers Effectiveness measured more accurately in online than in offline Applications for new checking accounts: 80% online are approved & 95-100% offline are approved

Where did they falter?

Banks typically spend 25-30% of their budget on measured media (TV, print & internet) and remaining on unmeasured media (direct marketing and promotions) BBVA spent approximately 75% on TV & online alone

Say, if 100 online visitors clicked on the online ads (paid or display), then only 2 or 3 accounts became functional, i.e. they are actually approved and funded within the required time frame
After adopting a new name, BBVA Compass, the aided awareness of their brand dropped rather than improving

Where can BBVA work on?

Focus must be on:

Convenient branch locations Easy online banking services

More personalized service

Free checking services Friendly service

Increased spend on direct marketing and promotion For display advertising, choose better site selection More focus should be on increasing brand awareness and trust building by making a personal connect with customers- new customer acquisition will follow Improve online process

It should be elaborate to explain to customers what information is required Give reminders to fund the account within the given time frame

Measure the effectiveness of sponsorships to NBA etc. and based on it increase or decrease the funding

THANK YOU