Correlation Between Media Spend and New Checking Accounts Opens and the ROI on Media Spend
Overview
RARaR has partnered with Central Bank Holding Company for the two years in providing dashboards reporting and data analysis. Central Bank operates in 13 markets throughout Missouri, Kansas, Illinois and Oklahoma.
Challenge
RADaR was tasked by the Central Bank client to show the correlation between media spend and new checking accounts opens/sales. And we were asked to also deliver a ROI on media spend. Bottom line, the client's Board of Directors ask him to justify the media budget i.e. “why are spending media at all in our markers, everyone knows who we are and we are the leader in most of our markets…”
Solution
- Received 2 years of transactional sales data (new checking account opens) from the client and all media send data
- The client also provided industry benchmarks for the cost per acquisition
- We visualized in the dashboard the media spend data and overlaid checking account opens
- The client also provided the lifetime value of a new checking account opens
- The RADaR analysis team conducted an in depth 2 years of analysis of new checking account acquisitions/opens
Results
- The dashboard illustrates a strong correlation between media spend and checking account opens/sales
- The ROI analysis showed that the cost-per-checking-account-open to be almost 20% less than the industry benchmark average
- The Lifetime ROI demonstrated there to be a over a 30 to I ratio; new customer acquisition lifetime value to media spend
