With evolving technologies and platforms, financial marketers need a clear and comprehensive set of metrics to determine the effectiveness of their online channel.
Instead of drowning in data and not being able to connect the dots in a meaningful way, here are four metrics that rise to the top and provide the clearest picture as to the selling power of a bank or credit union website.
By Melanie Friedrichs, Analyst for Andera, Inc.
In the Wild Wild West atmosphere of the early internet era, companies raced to slap websites online without thinking too hard about what purpose their website should ultimately serve. Consumer retail companies found their ROI in online shopping, and their websites gradually evolved to draw visitors in and drive them to checkout. In contrast, financial institutions focused on expanding eServices, until their websites became little more than portals to online banking.
In the last few years, we’ve seen institutions start to wise up to a second, essential function of the online channel. As Joe Swatek from ACTON Marketing said, “Your website has an important SALES function.” Technology has made it possible for financial institutions to acquire new customers and members and grow relationships completely digitally, and like consumer retail websites aim to sell consumer products, financial institution websites should aim to open new deposit accounts and originate loans. When thinking about the account opening and lending through the online channel, there are four essential metrics that financial institutions should consider:
1) Conversion Rate
The single most important metric for a financial institution website is its conversion rate, or the percentage of qualified unique visitors that begin applications for deposit or loan products.
Before the introduction of online account opening and lending, financial institutions focused primarily on making online banking login as easy as possible, and on providing key corporate information. The rest of the website really didn’t matter that much, so webmasters cluttered pages with news items and product advertisements from different departments. Over time, most financial institution websites began to resemble ill-managed community bulletin boards.