Boston, MA, June 23, 2008 – A new report from Aite Group, LLC looks at banks' online marketing efforts and investment levels. The report highlights the importance of jump-starting or reinvigorating marketing efforts for the online channel, particularly for smaller financial institutions.
Based on a survey of 23 of the top 80 U.S. financial institutions conducted by Aite Group in Q1 2008, the report reveals that the largest banks understand the importance of developing and investing in an online marketing competency better than smaller banks. Top 25 banks place a higher priority on selling financial products online, allocate more of their ad dollars to the online channel, and implement a wider range of online marketing tactics compared to other banks. As a result, Top 25 banks are far more likely to have seen increases in account balances, retention and number of products owned among their online banking and online bill pay customers. Online conversion rates for deposit products are heading down over a spectrum of banks, however, because financial institutions are failing to close sales online due to ineffective online marketing capabilities.
"Considering trends in consumer behavior, Aite Group believes many institutions are digging a hole for themselves by underinvesting in online marketing," says Ron Shevlin, senior analyst with Aite Group and co-author of this report. "This may jeopardize their overall marketing effectiveness."
This 23-page Impact Report contains 19 figures. Clients of Aite Group's Retail Banking service can download the report.