A marketing or sales promotion plan is the activity during a pre-defined period (normally weekly, monthly, or yearly) to gain new customers, deepen the existing customer relationship (through cross-sales), and re-engage dissatisfied or disengaged customer (to avoid losing them).
Because different segments of customers react differently, and to maximise positive responses, Marketing must structure promotional plans around the bank’s segments of customers and prospects, with each having a distinct communication tone of voice, channel preference, price sensitivity and product purchase hierarchy. By following this approach, banks will increase their sales conversion rate.
When banks communicate any brand, product, or service, they have two approaches: they can seek new customers, or they can aim at existing customers.
When the bank aims at acquiring new customers, it is called ‘above the line’ marketing. It is important to know the bank’s target market in order to reach them by this method.
Above the line campaigns have two primary goals: the first is to launch a new concept, that can be a brand, a solution, a promotional price. When the bank launches something new, it must ensure that it has the maximum coverage of its target market and an adequate frequency, being how often the target market sees it. The second goal is maintaining the brand, product, or service awareness already gained, normally following a launch campaign.
Coverage (also called Reach) means the number of prospects within the target market to be reached and is expressed as a percentage. For example, the target market are adult couples with children who are concerned about the future, and are seeking ways to save a certain amount of money. The bank’s Marketing department will seek suitable media placement to air the message where there is a good concentration of the defined targets. Ideally, they should cover 100 percent of the target market, but that rarely happens, and the bank should always try to get very close to the total target.
The other important concept is ‘frequency’, meaning how many times the bank’s target market of prospects experienced the message, the solution, and the call to act.
Campaigns launching new products or services must have high coverage and frequency. This requires something above 75 percent of coverage and a frequency above seven, meaning that 75 percent of the bank’s target market will see the message an average of seven times.
Another important aspect is the time required to achieve the above target. Marketers should aim for it taking only three weeks, otherwise the prospect won’t remember it or act on it. This is not rocket science, but marketers must aim at reaching the desired coverage and frequency in this short period. Normally campaigns are multimedia, and a prospect may see it first on social media, then hear it on the radio, then see it as an outdoor billboard and then finally act when watching on cable TV. In this example, all the previous interactions help build the prospect’s curiosity towards your brand or proposition.