Bbva Essay

726 Words3 Pages
1. What is the role of offline and online advertising in acquiring checking account customers for the bank?

Building brand awareness, gaining trust, and improving consideration among potential bank customers for opening new checking accounts is the role of offline and online advertising in acquiring checking account customers. Another role that offline and online advertising plays in acquiring checking account customers for the bank is by being a gateway for other lines of businesses within the banks entity. As a way to maximize the global awareness of the BBVA brand, they adopted the trade name BBVA Compass in 2009. Awareness for the new name dropped below 50%, to 48% in 2009 and the goal in 2010 was to raise brand awareness
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There should be more allocation given to offline media. It is our belief that offline media should emphasize how the bank is improving and must highlight messages about the ease of online banking services, convenient branch locations, as well better checking and customer services. We do believe though that the online presence, in not only banking, but in most things involving commerce, is growing and that it is not a bad idea to think of ideas for budget increases concerning online banking in the near future. But in strictly viewing the numbers given to us in the case that may not be a great idea at the present time.

3. What is the effective acquisition cost and lifetime value of customers acquired through the online channel?

The average annual retention rate of our customers acquired online is about 55% compared to a 65% retention rate for those acquired through branches. Online customers have lower balances and end up paying higher fees. The net annual income from online customers is therefore slightly higher than that of branch customers. The acquisition cost and lifetime value are used to find the total amount of value that is derived from a customer over the customer’s complete lifetime with the business. Cost acquisition is also known as the CAC. We will measure that lifetime simply as the total revenue earned to date, and in this case our
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