RADaR Solution: Financial Services

Correlation Between Media Spend and New Checking Accounts Opens and the ROI on Media Spend

Overview

RADaR 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 Central Bank to show the correlation between media spend and new checking account opens/sales. We were also asked to deliver an ROI on media spend. Bottom line, the client's Board of Directors asked him to justify the media budget, i.e. “why are spending media at all in our markets, 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 spend 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 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 the cost-per-checking-account-open to be almost 20% less than the industry benchmark average
  • The Lifetime ROI demonstrated there to be over a 30 to I ratio; new customer acquisition lifetime value to media spend
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