Banking on Digital Growth
Banking on Digital Growth

Episode · 1 year ago

16) #InsideDigitalGrowth: No More Vanity Metrics. Here’s How to Track Conversion

ABOUT THIS EPISODE

Do you know when and where your leads are converting?

If you don’t, it’s like you’re flying blind. 

And when you fly blind, sooner or later, you’re going to crash.

But, don’t worry, there’s a way to light the path ahead.

On today’s Digital Growth Series, I field a question from Brad, Vice President for a Financial Brand in California.

How do we track ROI from the moment a person first sees an ad to when the loan closes?

You can find this interview, and many more, by subscribing to Banking on Digital Growth on Apple Podcasts, on Spotify, or here.

Brad ask: How can we track our alivefrom the moment a person sees an ad or some type of other communication thatwe're promoting to the time alone closes. Most loesces. Don't make thisprocess very easy to follow. That's a great question Brad and onethat'll answer for you onto days episode of banking on Digital Growth, you're listening to banking, on digitalgrowth, with James Robert Lay a podcast that empowers financial brand marketingsales and leadership teams to maximize their digital growth potential bygenerating ten times more loans and deposits. Today's episode is part ofthe inside digital growth series, where James Robert Cheers answers to some ofthe biggest digital marketing. An sales questions he gets from the digitalgrowth community have a question you want to get answers to on a futureepisode visit, www dot, go ask jr dcom to submit your question today. Now,let's go inside digital growth greetings in hello. I am James RobertLay, and welcome to the sixteenth episode of the banking on digitalgrowth podcast. Today, H E episode is part of the inside digital growthseries and I'll be answering a question from bread. WHO's, the vice presidentof digital marketing, for a financial brand out in California, Brad ask: Howcan we track our Wi from the moment? A person sees an ad or some other type ofcommunication that we're promoting to the time the loan closes. Most elosesdon't make this process very easy to follow the consumer journey. Well, thanks for the question bred, itis a good one. In fact, this question is one. We often help financial brandmarketing teams focus on answering first, when diagnosing an assessingtheir unique situation, because whenever we do help them answer thisquestion, marketing teams quickly increased the perceived value theycreate internally at their financial brand and, as a result, they begin totransform marketing from being traditionallyviewed as a costcenter or, as I v E spoken about in the past- worse kids,that just play with paintand crayons. So what I'm going to do for you todayis take some time to walk through one of the primary processes that werecommend when diagnosing and advising financial brands that want to maximizetheir digital growth potential. In fact, this process has already generatedhundreds of millions of dollars in deposits and loans and leads fourfinancial brands that have deployed this thinking. So stick with me we'regoing to get a little technical, but not too much take good notes and, most importantly, don't be afraidto bookmark this episode so that you can reference it again in the futureand listen to it or even share it internally with someone else on yourmarketing team, even on your cells team, because there's an opportunity formarketing, it sells alignment here, specifically around operations andmaybe even your it team from the technicalities of this. So to begin answering your questionbred, I want to first address the painpoint. You noted that most onlineaccount opening and Los Platforms currently make this process of trackingchannel attribution as part of the digital consumer journey very difficult,if not almost impossible. This is, in fact, one of the biggest complaints Ihear from marketing teams when advising them- and I I truly do feel the painhere, because when we don't know where...

...people are coming from when we don'tknow where the leads are converting for loans and new accounts, it's like we are flying blind and when we fly blind sooner or later, we are going to crashand someone's going to get hurt. Furthermore, these blind spots make itfeel like an almost impossible task to determine what digital marking channelsare working while at the same time, really gaining a sense of clearit inunderstanding of what digital marketing channels are not working and because ofthis marketing teams end up having to fall back on reporting vanity metricfrad campaigns for email campaigns, for social campaigns like reach, clickslikes and a lot of times. These vanity metrics make marketing teams feel good, but the problem is these vanity metricsonly tell half the story now to be clear: There's nothing wrong with thesetop of the funnel metrics. In fact, they are very important and I docompare them to the instrument. Readings on an airplane as vanitymetrics reach, clicks, likes et Cetera, do provide some type of leadingindicator as well as contexts that can help us to determine whether or not ourmarketing activities or either gaining altitude or losing altitude. But as Inowtet before these metrics reache clicks, likes et Cetera, only tell halfthe story and they don't provide the deeper insight that others within ourfinancial brand are looking for a truth, be told Bank and Credit Union CE OS,don't really care how many clicks your ad got. Clos are not interested inreach and I've seen a lot of CFO eyes glaze over when marketing teams pullfrom the acronym alphabet soup and they start sharing things like CPM CPC ctr. I also think it's important to take amoment to just briefly address the dark truth that many financial brandmarketing teams are not aware of because they lack the mission criticalconversion capability, and that is the fact that the vast majority offinancial brand marketing teams that we have worked with over the years todiagnose the situation or in many times for lack of a better word, are gettingscrewed by their digital marketing agencies. And I'm going to hold these digitalmarketing agencies accountable and responsible, because they should takeresponsibility for the success and performance of the digital ads theyplace. But for one reason or another, they don't take the responsibility andend up taking advantage of financial brands, some who are paying millions ofdollars an adplacement because they're not able to attribute the digital ads.They place all the way down to conversion. There have been multiple cases in ourfindings and our recommendations from our diagnostic studies, where we havehad to call out digital ad agencies and digital media firms who have beentaking advantage of the financial brands. We advise because the banking credit, an marketing teams,just simply lack a the conversion and attribution capabilities that wouldprotect them from these ad agencies that would protect them from Adfraud,which at fraud is a topic that I I...

...would like to come back and cover on afuture pode cast, because adfried is something that we're seeing more andmore and more of but digital ad agencies don't want to address it,because this adfraud is a direct threat to obviously their cort business modelwithout naming names. There is a well known digital media brand that we havefound on at least five different cases where this digital media brand wasdriving traffic to a financial brand's website that was outside of thisparticular financial institutions desired, go targeting location so, forexample, let's say the financial brand we were advising was located in Houston,Texas. In the specific diagnostic study, wefound that sixty to eighty percent of the traffic was coming outside of theShouston market, with a vast majority of that traffic being fraudulint whenwe started analyzing the IP activity of the traffic that this digital mediabrand was driving. So what do we do? We alerted theclieneof these findings and the client reached out to this digital media brandfeeling very frustrated. They wanted answers. They were like what's going on.Why is this happening? Here's the data and the data just doesn't lie and every single time this well knowndigital media brand had a rep that came back to the client and the REP alwaysclaimed. This was the first time that they had ever seen something of thismagnitude of Adfraud, and now this would make sense on the first time thethe excuse would work on the first time, but not the second, not the third, notthe fourth, not the fifth. So I just wanted to start off byaddressing some of the challenges and the frustrations that we see in herefrom banking, credit and marketing teams who are continuing to combat the issuesrooted in a lack of capability to consistently track conversion andattribution activities for deposits and loans down to a specific channel, andit's this lack of clarityits. This lack of understanding, which is whatreinforces the false fact that marketing is viewed as a cost and anexpense at the vast majority of banking crediunensnow. With all of this said, Ihave some good news, because, if you're listening and you're struggling rightnow with channel attribution, the good news is that you do not have to keepflying blind. You can gain improve performanceinsights into conversions for leads for loans for deposits, for new accounts,and I'm seeing more and more marketing teams work to solve these strategicmission critical problems. Some have already taken a proactivestep to set up activity in goal tracking within Google analytics, andthat is a step in the right direction. This gives insight into channelattribution and down to specific areas of performance like clicks on a Calloaction to apply, and while this is a step down the rightpath, because they are getting clarity in attribution into tracking calledaction, cliqus back to specific digital marketing, AD campaigns or channelslike email and social media, the problem is the fact that onlineaccount opening and loan applications have an abandoned application rate. Onaverage of around eighty five to ninety two percent, so what does it mean?...

It means if you're, currently trackingdigital marketing performance for digital ad campaigns for social mediacampaigns for emo marketing campaigns down to cliqks on a CTA button on aLandi page. You could, but now, with a hundred percent confidence, considerprojecting conversions by taking around eight to fifteenpercent of cliqks on the call to Action Ow. This isn't science, but consideringeighty five to ninety two percent, a banemet rate, we can take a anestimated eight to fifteen percent conversion rate on those CTAS for thosethat go through a D complete the entire loan application process. Technology has transformed our worldand digital has changed the way consumers shot for and buy financialservices forever. Now consumers make purchase decisions long before theywalk into a branch if they walk into a branch at all, but your financial brandstill wants to grow loans and deposits. We get it. Digital growth can feelconfusing, frustrating and overwhelming for any financial brand marketing andsales leader, but it doesn't have to because James Robert wrote the bookthat guides you every step of the way along your digital growth journey visit,www, dot, digital growth, dotcom to get a preview of his best selling bookbanking on digital growth, or order a copy right now for you, and your teamfrom Amazon inside you'll find a strategic marketing manifesto that waswritten to transform financial brands and it is packed full of practicalandprovent insights. You can start using today to confidently generate tentimes more loans and deposits. Now back to the show, let's say we get a thousand cliques ona CTA to apply looking at the math. We could assume hypothetically, eight hundred and fiftyof those cliques abandon the application process and a hundred andfifty of them pull through all the way to conversion. But even then that doesn't give usinsight into out of the hundred and fifty that complete the application.How many are actually funded and a lot of this might be hopefulthinking and here's e thing- there's an even better path, forwd that I'd liketo unpack for you, because this is going to add a tremendous amount ofadditional insight. But I have to warn you it's. It's also going to add somecomplexity, because it, this recommendation involves a couple ofdifferent systems and processes and also working across a multipledepartment. So this is where I want you to stick with me and why I recommendbook marking this episode and sharing this internally, because I on't want to walk you througha step by step process to tracking and measuring conversions and channelattribution for your marketing team and to do this, I'm going to set the stage and framed us up to wherewe're going to make a couple of assumptions from the general findingsthat we discover in our diagnotics number one we're going to assume thatyou're running a digital ad campaign. Now in this exercise, I'm not sointerested in determining where you're running thisad campaign, it could be PPC, it could be display, it could rebe remarketing.All I care about is that you're running some type of a digital ad campaign, anthe number two. This ad campaign is driving traffic to a specific landingpage and not the general product page of your website. That is anoptimization opportunity if you are running traffic. DIGITAL AD traffic toa product page on your website, there's...

...an even better approach to drivetraffic not to the product page, but to a campaign specific landing page. Thenthat brings me to to the point number three for this example that the landingpage primary called action is for a product, that's being promoted, linkingoff to a third party application, whether that before a depositapplication or a lone application, and in the fourth assumption that we'regoing to make here, is that we're running google analytics and up to thispoint historically, you have been able to track links on this call to action.So you do have some historical data that we can make some assumptionsaround. So, with this framing with thisnarrative, there are two possible paths that you can consider to apply tooptimize this very common digital marketing campaign implementationstrategy. The first path is going to be a little bit harder,even if not impossible, because this is going to require you to work with yourthird party online account opening or loanout provider to integrate what iscalled cross domain tracking. This is where things are going to get a littlebit technical here, cross domain tracking solves one of thebiggest digital marketing challenges, because whenever we take someone from our financialbrands website to a third party website for a loan or for a deposited accountfor the application, we lose all analytical tracking capability. But I want to be very clear cross. Themain tracking is a fairly advanced subject matter that takes time to firstand foremost, teach second to apply and, third to optimize a and mostimportantly, once again, I'm going to stress this cross domain tracking requires thesupport of your third party online account, opening or lone applicationprovider, which I have seen many times. They are simply not willing to playnicely on for one reason or another, so that challenge right there in it ofitself really leads me to another strategicrecommendation, a second path and that's where you can start looking fora new online account opening or loan application partner willing to workwith. You never forget it. Is You your financial brand thatwrites the checks and if you've got a quote, unquote partner and at thispoint, ther're really nothing more than a vendor. That's not willing to playNice start researching other platforms,because there are so many more that are popping up now because of the commonpain points that we're seeing time and time and time again when it comes tothe most important part of the digital consumer buying journey, which is theapplication. Once again, that conversation is foranother day, because what I want to do is come back on track and continue theexample where we're going to assume at this point that we have run into thiscommon road block and your third party application provider does not want toplay Nice. Does this mean that you're stuck? Doesthis mean that you're resigned to continue to fly blind when it comes toyour conversion and channel attribution performance? Absolutely not! This is the third path. This is thethird way, a path that we discovered...

...five years ago, because we knew thecritical strategic importance of empowering financial brand marketingteams to gain clarity into conversion and channel attribution insights. Wecall this third path, the digital growth preapplication process. It'sthis process is really first of its kind in the bankingindustry and something that we have continued to recommend over and overand over again for the financial brands that we work with and, as a result, thedigital growth preeapplication process has already already generated hundredsof millions of dollars in loans and deposits for financial brands that we nadvise now, there's a quick cavat before unpacking the digital growthpreapplication process. This process does require a marketing automationplatform and that's a good thing, because a marketing automation platformopens up an entirely bigger world of opportunity that we can come back anddiscuss on future episodes. So I do want to to make that caviat before wego further. What a'm about to talk through does require a marketingautomation platform, and so, with that in mind, you're, probably going to fallinto one or two camps at this point, when it comes to marking automation number one, you already have amarketing automation platform in the good news, for you is what I'm about torecommend. Like the majority of the recommendations I make, when advisingfinancial brands is that this recommendation is plot form agnostic,and that means you can apply this thinking regardless. If you run cells,force, Pardot, total expert, Marquetto hub spot act on sharp spring, I'm notso interested in the MARKETN, thin automation technology that you haveit's the fact that you already have it. You can apply this thinking on theflipside, you don't have marking automation andyou might feel a little bit behind as marketing automation is one of the fourgears. We recommend four financial brands who are building a digitalgrowth engine, and if this is you, the recommendation, I'm about to share,can help to fund your marketing automation, investment and really beginto transform your marketing team beyond the cosenter into a growth engine. I think it's also important to takecomfort, knowing that there's still about eighty percent offinancial brands who have not adopted some type of marketing automationplatform, as of yet so, let's get into it and continue for I, together in brief review. Coming back to thecommon digital marking campaign example that you're driving traffic from adigital ad to a specific landing page. It's on this landing page that you canremove the CTA that links off to the third party application, because whenyou remove the CTA you're going to replace that CTA with a form that youdevelop in your marketing automation platform and on this form, you willcollect some basic contact information, name: Email phone- that's it nothingmore, nothing less, because when someone complete this formon the landing page, you'll, then Lenk them off to the third party application.Wer they'll continue on with the process for the loan or for the newaccount. Once this person completes the thirdparty application. This is very important to also deploy you'll, thenlink them back to the completion page...

...or a completion page on your website,and this is really where you can begin to optimize the entire journey, because no longeris, is it going to be a generic message? You can have a specific completion pagefor every single one of your products, defining what happens next. Furthermore, it's this completion page.That is what closes the loop and will provide you insight into the completedapplication. Conversions that you'll be able to go into your market automation,platform, to pull up people or to pull a list of people that hit theconversion page, and then you can scrub that list against those that startedthe digital growth preapplication process. So you can take this thinkingeven further, because now you can scrub both the conversion and attributiondata against those loans that are funded and those that started the digitalgrowth preapplication process as a bonus you're, getting some additional data ininsight into people's digital activities that you can further deployto take action on in the future, for example those that abandoned theprocess and and never hit that conversion. Page back on your website,there's a whole Sleu of activity that you can do to follow up with and pullthem through and in some instances, we've seen. Implementing abandoned applicationprocesses increases the conversion rate for those that abandoned by aboutfifteen to twenty percent, which has huge implimications on the bottom linewithout having to spend any more marketing dollars at the top of thefunnel. So as we rap up Tho day, there are fourkey things to remember. As we come back to Brad's question about how to trackry from the moment, a person sees an ad or some other type of communicationdigitally to the time the loan closes because most loses make it difficult tofollow the consumer journey at this level number one. If you werestruggling with quantifying conversion and channel attribution, I want you toknow that you are not alone and I feel your pain number two. I want you to consider thecost of continuing to fly blind and the told that this takes on you on your marketing team, on your lendingteam and on your financial brand, specifically in relation to add fraud. Number three. I want you to haveconfidence, knowing that there are really three different paths: Ford thatyou can apply to close the loop with crosssight tracking, with looking for anew los or with applying the digital growth preapplication process, whichhas already generated hundreds of millions of dollars and loans anddeposits, and even leads over the past five years for the banks andcreditmends that we have advised and guided, and the number four share this episodewith someone. You know at your financial brand that might also findthese insights helpful because, as I started, today's conversation deployingthisthinking deploying these recommendations takes not just the marketing team butthe marketing team and the lending team or the marketing team, an the depositteam. I T leadership all working hand in hand together. Finally, as we wrap up, do you have a question? Do you have aquestion like Brad that you want to get answers to, because I want to hear fromyou. I want to help you and I'd like for Ye to take a minute to ask aquestion that you'd like to get...

...answered on a future podcast over atwww dot, go ask jr dotcom, hop over there, www DT go ask jr com, ask yourquestion and ill look forward to helping you on a future episode ofinside digital growth. As always remember, there are no bad questionsand the only bad question is the question that goes unasked until nexttime be well, do good and wash your hands. Thank you for listening toanother episode of banking on digital growth with James Robert Lay like whatyou hear tell a friend about the podcast and leave us a review on applepodcast, Google, podcast or spotify, and subscribe, while you're there toget even more practical, improven insights. Is it www don digital growthdcom to grab a preview of James Robert's, best selling book banking ondigital growth, or order a copy right now for you and your team from Amazoninside you'll find a strategic marketing and sales blueprint framedaround twelve key areas of focus that empower you to confidently generate tentimes more loans and deposits until next time be well and do good.

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