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• Strategies for Reducing Bank Customer Acquisition Cost [2024]

  24 septembre 2024, par Daniel Crough — Banking and Financial Services

  Acquiring new customers is no small feat — regardless of the size of your team. The expenses of various marketing efforts tend to pile up fast, even more so when your business operates in a highly competitive industry like banking. At the same time, marketing budgets continue to decrease — dropping from an average of 9.1% of total company revenue in 2023 down to 7.7% in 2024 — prompting businesses in the financial services industry to figure out how they can do more with less.

  That brings us to bank customer acquisition cost (CAC) — a key business metric that can reveal quite a bit about your bank’s long-term profitability and potential for achieving sustainable growth. 

  This article will cover the ins and outs of bank customer acquisition costs and share actionable tips and strategies you can implement to reduce CAC.

  What is customer acquisition cost in banking ? 

  

  The global market volume of neobanks — fintech companies and digital banking platforms, often referred to as “challenger banks” — was estimated at $4.96 trillion in 2023. It’s expected to continue growing at a compound annual growth rate (CAGR) of 13.15% in the coming years, potentially reaching $10.44 trillion by 2028.

  That’s enough of an indicator that the financial services industry is now a highly competitive landscape where companies are often competing for the attention of a relatively limited audience. 

  Plus, several app-only banks based in Europe have made significant progress in attracting new customers to their financial products : 

  

  Unsurprisingly, this flurry of competition is putting upward pressure on customer acquisition and retention costs across the banking sector.

  Customer acquisition cost (CAC) — the sum of all costs and resources related to acquiring an additional customer — is one of the key business metrics to keep an eye on when trying to maximise your return on investment (ROI) and profitability, especially if your company operates in the banking industry.

  Here’s the basic formula you can use to calculate the cost of acquisition in banking : 

  Customer Acquisition Cost (CAC) = Total Amount Spent (TS) / Total New Customers Acquired (TNC)

  In essence, it requires you to divide the total cost of acquiring consumers — including sales and marketing expenses — by the total number of new customers your company has gained within a specific timeframe.

  There’s one thing you need to keep in mind : 

  The customer acquisition process involves more than just your marketing and sales departments. 

  While marketing and sales channels play a crucial role in this process, the list of expenses that may contribute to customer acquisition costs in banking goes well beyond that. 

  Here’s a quick breakdown of the customer acquisition cost formula to show you which costs make up the total amount spent : 

  • All advertising and marketing costs, including traditional (direct mail, billboards, TV and print advertising) and digital channels (email, Google ads, social media and influencer marketing)
  • Cost of outsourced marketing services, including any independent contractors involved in the process 
  • Salaries and commissions for the marketing team and sales representatives
  • Software subscriptions, including marketing software and web analytics tools 
  • Other overhead and operational costs 

  And until you’ve taken all these expenses into account, you won’t be able to accurately estimate how much it actually costs you to attract potential customers.

  Another thing to keep in mind is that there’s no universal definition of “good CAC.” 

  The average customer acquisition cost varies across different industries and business models. That said, you can generally expect a higher-than-average CAC in highly competitive sectors — namely, the financial, manufacturing and real estate industries. 

  Importance of tracking customer acquisition cost in banking 

  

  Customer acquisition costs are an important indicator of a banking business’s potential growth and profitability. Monitoring this fundamental business metric can provide data-driven insights about your current bank customer acquisition strategy — and offers a few notable benefits : 

  • Measuring the performance and effectiveness of different channels and campaigns and making data-driven decisions regarding future marketing efforts
  • Improving return on investment (ROI) by determining the most effective strategies for acquiring new customers 
  • Improving profitability by assessing the value per customer and improving profit margins 
  • Benchmarking against industry competitors to see where your business’s CAC stands compared to the banking industry average

  At the risk of stating the obvious, acquiring new customers isn’t always easy. That’s true for many highly competitive industries — especially the banking sector, which is currently witnessing the rapid rise of digital disruptors. 

  Case in point, the fintech market alone is currently valued at $312.98 billion and is expected to reach $556.70 billion by 2030, following a CAGR of 14%.

  

  However, strong competition is only one of the challenges banks face throughout the process of attracting potential customers. 

  Here are a few other things to keep in mind : 

  • Ethical business practices and strict compliance requirements when it comes to the privacy and security of customer data, including meeting data protection standards and ensuring regulatory compliance
  • Lack of personalisation throughout the customer journey, which today’s customers view as a lack of understanding of — and even interest in — their needs and preferences 
  • Limited mobile banking capabilities, which further points to a failure to innovate and adapt — one of the leading risks that financial services may face 

  7 strategies for reducing bank customer acquisition costs 

  

  When working on optimising your banking customer acquisition strategy, the key thing to keep in mind is that there are two sides to improving CAC : 

  On the one hand, you have efforts to decrease the costs associated with acquiring a new customer — and on the other, you have the importance of attracting high-value customers. 

  1. Eliminate friction points in the customer onboarding process

  One of the first things financial institutions should do is examine their existing digital onboarding process and look for friction points that might cause potential customers to drop off. After all, a streamlined onboarding process will minimise barriers to conversion, increasing the number of new customers acquired and improving overall customer satisfaction. 

  Keep in mind that, at the 30-day mark, finance mobile apps have an average user retention rate of 3% : 

  

  That says a lot about the importance of providing a frictionless onboarding experience as a retail bank or any other financial institution. 

  Granted, a single point of friction is rarely enough to cause customers to churn. It’s typically a combination of several factors — a lengthy sign-up process with complicated password requirements and time-consuming customer identification or poor customer service, for example — that occur during the key moments of the customer journey.

  In order to keep tabs on customer experiences across different touchpoints and spot potential barriers in their journey, you’ll need a reliable source of data. Matomo’s Funnels report can show you exactly where your website visitors are dropping off. 

  2. Get more personalised with your marketing efforts 

  Generic experiences are rarely the way to go — especially when you’re contending for the attention of prospective customers in such a competitive sector. 

  Besides, 62% of people who made an online purchase within the last six months have said that brands would lose their loyalty following a non-personalised experience. 

  What’s more shocking is that only a year earlier, that number stood at 45%.

  

  When it comes to improving marketing efficiency and sales strategies, 94% of marketers agree that personalisation is key : 

  

  It’s evident that personalised marketing supported by behavioural segmentation can significantly improve conversion rates — and, most importantly, reduce acquisition costs. 

  Of course, it’s virtually impossible to deliver targeted, personalised marketing messaging without creating audience segments and detailed buyer personas. Matomo’s Segmentation feature can help by allowing you to split website visitors into smaller groups and get much-needed insights for behavioural segmentation. 

  3. Build an omnichannel marketing strategy 

  Customer expectations, behaviours and preferences are constantly evolving, making it crucial for financial services to adapt their customer acquisition strategies accordingly. Meeting prospective customers on their preferred channels is a big part of that. 

  The issue is that modern banking customers tend to move across different channels. That’s one of the reasons why it’s becoming increasingly more difficult to deliver a unified experience throughout the entire customer journey and close the gap between digital and in-person customer interactions. 

  Omnichannel marketing gives you a way to keep up with customers’ ever-evolving expectations :

  Adopting this marketing strategy will allow you to meet customers where they are and deliver a seamless experience across a wide range of digital channels and touchpoints, leading to more exposure — and, ultimately, increasing the number of acquired customers.

  Matomo can support your omnichannel efforts by providing accurate, unsampled data needed for cross-channel analytics and marketing attribution. 

  4. Work on your social media presence 

  Social networks are among the most popular — and successful — digital marketing channels, with millions (even billions, depending on the platform) of active users. 

  In fact, 89% of marketers report using Facebook as their main platform for social media marketing, while another 80% use Instagram to reach their target audience and promote their business. 

  

  And according to The State of Social Media in Banking 2023 report, nine out of ten banks (89%) consider social media is important, while another 88% are active on their social media accounts. 

  That is to say, even traditionally conservative industries — like banking and finance — realise the crucial role of social media in promoting their services and engaging with customers on their preferred channels : 

  It’s an excellent way for businesses in the financial sector to gain exposure, drive traffic to their website and acquire new customers. 

  If you’re ready to improve social media visibility as part of your multichannel efforts, Matomo can help you track social media activity across 70 different platforms. 

  5. Shift the focus on customer loyalty and retention 

  Up until this point, the focus has mainly been on building new business relationships. However, one thing to keep in mind is that retaining existing customers is generally cheaper than investing in customer acquisition activities to attract new ones. 

  Of course, customer retention won’t directly impact your CAC. But what it can do is increase customer lifetime value, contributing to your company’s revenue and profits — which, in turn, can “balance out” your acquisition costs in the long run.

  That’s not to say that you should stop trying to bring in new clients ; far from it. 

  However, focusing on increasing customer loyalty — namely, delivering excellent customer service and building lasting business relationships — could motivate satisfied customers to become brand advocates. 

  As this survey of customer satisfaction for leading banks in the UK has shown, when clients are satisfied with a bank’s products and services, they’re more likely to recommend it. 

  

  Positive word-of-mouth recommendations can be a powerful way to drive customer acquisition. You can leverage that by launching a customer referral program and incentivising loyal customers to refer new ones to your business. 

  6. A/B test different elements to find ones that work 

  We’ve already underlined the importance of understanding your audience ; it’s the foundation for optimising the customer journey and delivering targeted marketing efforts that will attract more customers. 

  Another proven method that can be used to refine your customer acquisition strategy is A/B or split testing. 

  It involves testing different versions of specific elements of your marketing content — such as language, CTAs and visuals — to determine the most effective combinations that resonate with your target audience. 

  Besides your marketing campaigns, you can also split test different variants of your website or mobile app to see which version gets them to convert. 

  Matomo’s A/B Testing feature can be of huge help here : 

  

  7. Track other relevant customer acquisition metrics 

  To better assess your company’s profitability, you’ll have to go beyond CAC and factor in other critical metrics — namely, customer lifetime value (CLTV), churn rate and return on investment (ROI). 

  Here are the most important KPIs you should monitor in addition to CAC : 

  • Customer lifetime value (CLTV), which represents the revenue generated by a single customer throughout the duration of their relationship with your company and is another crucial indicator of customer profitability 
  • Churn rate — the rate at which your company loses clients within a given timeframe — can indicate how well you’re retaining customers 
  • Return on investment (ROI) — the revenue generated by new clients compared to the initial costs of acquiring them — can help you identify the most effective customer acquisition channels 

  These metrics work hand in hand. There needs to be a balance between the revenue the customer generates over their lifetime and the costs related to attracting them.

  Ideally, you should be aiming for lower CAC and customer churn and higher CLTV ; that’s usually a solid indicator of financial health and sustainable growth. 

  Lower bank customer acquisition costs with Matomo 

  Acquiring new customers will require a lot of time and resources, regardless of the industry you’re working in — but can be even more challenging in the financial sector, where you have to adapt to the ever-changing customer expectations and demands. 

  The strategies outlined above — combined with a thorough understanding of your customer’s behaviours and preferences — can help you lower the cost of bank customer acquisition.

  On that note, you can learn a lot about your customers through web analytics — and use those insights to support your customer acquisition process and ensure you’re delivering a seamless online banking experience. 

  If you need an alternative to Google Analytics that doesn’t rely on data sampling and ensures compliance with the strictest privacy regulations, all while being easy to use, choose Matomo — the go-to web analytics platform for more than 1 million websites around the globe. 

  CTA : Start your 21-day free trial today to see how Matomo’s all-in-one solution can help you understand and attract new customers — all while respecting their privacy. 

• lavc/riscv : depend on RVB and simplify accordingly

  27 juillet 2024, par Rémi Denis-Courmont

  lavc/riscv : depend on RVB and simplify accordingly
  There is no known (real) hardware with V and without the complete B
  
  extension. B was indeed required in the RISC-V application profile from
  
  2022, earlier than V. There should not be any relevant hardware in the
  
  future either.
  In practice, different R-V Vector optimisations in FFmpeg already depend on
  
  every constituent of the B extension anyhow, so it would not work well.
  

  • [DH] libavcodec/riscv/aacencdsp_init.c
  • [DH] libavcodec/riscv/aacpsdsp_init.c
  • [DH] libavcodec/riscv/alacdsp_init.c
  • [DH] libavcodec/riscv/audiodsp_init.c
  • [DH] libavcodec/riscv/exrdsp_init.c
  • [DH] libavcodec/riscv/flacdsp_init.c
  • [DH] libavcodec/riscv/fmtconvert_init.c
  • [DH] libavcodec/riscv/h264_chroma_init_riscv.c
  • [DH] libavcodec/riscv/h264dsp_init.c
  • [DH] libavcodec/riscv/huffyuvdsp_init.c
  • [DH] libavcodec/riscv/jpeg2000dsp_init.c
  • [DH] libavcodec/riscv/llauddsp_init.c
  • [DH] libavcodec/riscv/lpc_init.c
  • [DH] libavcodec/riscv/opusdsp_init.c
  • [DH] libavcodec/riscv/rv40dsp_init.c
  • [DH] libavcodec/riscv/sbrdsp_init.c
  • [DH] libavcodec/riscv/svqenc_init.c
  • [DH] libavcodec/riscv/takdsp_init.c
  • [DH] libavcodec/riscv/utvideodsp_init.c
  • [DH] libavcodec/riscv/vorbisdsp_init.c
  • [DH] libavcodec/riscv/vp7dsp_init.c
  • [DH] libavcodec/riscv/vp8dsp_init.c

• Multi-Site Management (Quick-Start Guide)

  18 juillet 2024, par Erin

  Do you run multiple websites ?

  Or, you’re expanding from one to two sites ?

  Multi-site management isn’t an easy task.

  While there are dozens of reasons why you may need to operate several sites, like brick and mortar stores opening new locations in different regions, you need to ensure you’re following the right strategies so you remain successful.

  So, how do you actually manage multiple websites at the same time without spreading yourself thin ?

  Using a single dashboard.

  In this guide, we’ll cover everything you need to know about managing multiple sites in a single location at once so you can lead a successful digital strategy.

  What is multi-site management ?

  Multi-site management is the process of organising and operating multiple websites from a single location. It helps with congruent branding and improved productivity.

  Enterprise businesses that use multiple, language-specific versions of their site to target their audience in specific countries or regions can also benefit from managing their multiple sites from a single location. 

  

  By analysing a few websites at once, marketers and analysts can oversee a few different business websites without having to switch between multiple platforms and technologies.

  Whatever the reason is for managing multiple sites, multi-site management helps marketers and analysts establish a consistent brand presence, improve workflow efficiencies and scale operations.

  7 Benefits of multi-site management

  Multi-site management allows you to navigate and control a few websites all in one centralised location.

  

  Here are a few of the main benefits of multi-site management :

  1. Save time by reusing code between websites

  Saving time is the main benefit of multi-site management. Rather than managing websites from multiple platforms, logins and infrastructures, you can manage everything from one place.

  Multi-site management allows you to easily reuse core code, infrastructure and other digital assets from other sites all within one dashboard.

  So, when you need to update all of your websites, you can do it all at once in a fraction of the time.

  2. Improve productivity by having everything in one place

  How many tools do you currently use for your job on a daily basis ?

  Five ? Ten ?

  Now, imagine adding on another handful of tools, logins and technology for every site you manage.

  It’s a lot, especially if you’re managing dozens of logins, usernames and passwords.

  With multi-site management, you don’t need to have multiple login credentials. Everything’s all in one place and within one system.

  You don’t need to switch between multiple tools and platforms to get things done.

  The same strategy applies to your web analytics. If you want to streamline your productivity, make sure you’re tracking all of the data from your different websites in one place. Matomo lets you track multiple sites, domains and subdomains in one centralised location with the ‘All Websites’ dashboard which is a roll-up report. This is ideal for enterprises managing and analysing numerous sites.

  Try Matomo for Free

  Get the web insights you need, without compromising data accuracy.

  Start for free

  No credit card required

  3. Maintain brand image with consistent design across sites

  If you have multiple websites, subsidiaries or sister companies, it can take a great deal of effort to maintain branding consistency.

  But, if you’re leveraging a multi-site content management system, you can update your branding and design between all sites at the same time.

  If you need to make a change with your design, you don’t need to update each individual site with your new initiative. Instead, you can update multiple sites at once, allowing your visual branding to stay congruent, giving you uniformity in messaging.

  The result is an optimised user experience, which helps you increase trust with your audience, improve engagement and keep them coming back for years to come.

  4. Increase security through centralised management

  The greater your digital presence is, the more you can reach a wider range of people.

  But, there’s one downside : you expose yourself to more risk.

  Keeping multiple websites secure isn’t as easy to do if you’re leveraging dozens of different platforms and logins. 

  Instead, when you have all of your websites in one location, it can help you easily track every document. You can also control site versions for easy updates to prevent malicious attacks.

  5. Optimise scalability and flexibility

  If you plan on scaling your companies and digital presence, you need to ensure you’re able to do so without having to tear down your entire infrastructure or spend a ton of money upfront.

  For enterprise companies, multi-site management allows you to easily launch new regional sites as your company expands.

  Plus, if you have new product or marketing campaigns, you can simply add on microsites as needed by simply adding it to your current website lineup.

  This allows you to stay flexible in your marketing and growth strategies without adding extra risk or financial burden.

  6. Improve targeting and personalisation in marketing

  If you want to reach your audience better, but you’re managing multiple websites, it can be hard to not spread yourself too thin.

  But, if you’re managing a few websites in one place, it’s easier to track your audience’s interests, behaviour, wants and needs.

  By using a web analytics tool like Matomo to track the performance of multiple websites, you can see what’s resonating with your audience so you’re able to improve your targeting and offer personalised campaigns.

  Try Matomo for Free

  Get the web insights you need, without compromising data accuracy.

  Start for free

  No credit card required

  7. Streamline collaboration between team members

  Making your team juggle multiple platforms, websites and tools is a surefire way to give them a headache.

  Multi-site management is one of the best ways to bring your entire team into one centralised location so you can foster seamless collaboration without leaving your team confused or frustrated.

  By placing your entire website management in one place, markters, designers, developers, writers and other team members can collaborate effectively so you can get more done in less time.

  With multi-site management, you bring your entire team into a single location to work on your websites so you can speed up your content creation process, speed up problem solving and streamline communication.

  6 Best practices of multi-site management

  When you have multiple websites, you can expand your brand presence. But, one main problem arises : it becomes overwhelming for anyone managing them.

  Since each website comes with its own platform, login credentials and assets, it becomes incredibly difficult for developers, marketers and others to maintain the sites. And, if your sites aren’t looked after properly, you could end up with technical issues and branding inconsistencies, causing you to lose conversions and negatively impact the user experience.

  Thankfully, multi-site management can help you streamline your efforts, improve productivity and scale your business.

  But, before you dive into your multi-site management process, you need to ensure you implement the right strategy.

  

  Here are a few best practices to follow to succeed with multi-site management :

  1. Use a multi-site CMS

  If you want to manage multiple websites, you need to make sure you’re leveraging a CMS that offers multi-site management capabilities.

  A multi-site CMS allows you to make simple content, design or management changes simultaneously without having to switch between different systems.

  Here are a few examples of CMS’ that offer multi-site management :

  • WordPress
  • Sanity
  • Drupal

  2. Integrate a headless CMS

  One of the most versatile types of content management systems is what’s known as a “headless CMS.”

  This is a CMS that lets you disconnect the front end from the back end of your website management.

  Here are a few examples of headless (and open source) CMS’ :

  • Strapi
  • Directus
  • Ghost

  A headless CMS can help you add versatility in the way you present content across multiple sites. It uses an API to give you more flexibility so you can push content to websites as well as apps, etc.

  Using a headless CMS can help you improve page load times, website performance and user experience by simplifying your tech stack.

  3. Implement cross-domain and mult-isite Matomo analytics tracking

  If you want to track the website analytics data of multiple sites, you need to implement cross-domain tracking.

  The best way to do this is by leveraging a web analytics solution like Matomo. It lets you track the performance of multiple subdomains or websites.

  With Matomo, you get easy data grouping and data roll-up reporting for streamlined tracking.

  

  This means you can track the individual performance of each site or group them together to see the shared performance.

  4. Enable multiuser management

  If you’re working with different team members who need access to your CMS, then you should consider enabling multiuser management.

  This allows several people to work within your multi-site CMS and also gives you the ability to grant or restrict access to certain abilities within the platform.

  This is handy if you have a few different stakeholders working in your CMS.

  By enabling different user permissions and access, you can improve the security of your website and protect sensitive company information.

  5. Leverage composable content

  Creating a few different websites is a great way to increase your brand reach. But, it can be time-consuming having to continuously create and update content within multiple sites.

  That’s where composable content comes in.

  It allows you to create similar content between sites using pre-made “blocks.” Content blocks act as templates so you can quickly add similar content pieces to each site without having to start over from scratch each time.

  This speeds up productivity for your designers, writers and editors and keeps brand image consistent across different sites.

  6. Use version control

  What happens if you update all of your websites with a redesign, but it flops ?

  Well, rather than having to tear it all down and redesign your site infrastructure, you can leverage version control to restore your website to a previous version.

  Version control is especially handy when you’re managing multiple sites at once and you have multiple team members working in your CMS.

  Version control is also helpful if you’re A/B testing different content. By saving previous versions of your websites, you can run tests to help you optimise your web performance. 

  For example, if you use Matomo’s A/B testing feature to experiment with different landing page designs for a lead magnet, but find that your previous version performed better, you can simply restore your websites to a previous version in seconds.

  Track web analytics for multiple websites with Matomo

  If you’re looking to expand your digital presence, then creating new websites is one of the best ways to grow your brand.

  Multi-site management can help you save time, improve productivity and maintain a consistent brand image across your empire.

  One challenge of multi-site management is tracking the performance of your websites.

  That’s where Matomo has you covered.

  Matomo is a privacy-friendly web analytics tool that collects, stores, and tracks data across multiple websites and subdomains, allowing you to improve your performance. 

  With over 1 million websites using Matomo, you can rely on it for accurate data without sampling, ensuring compliance with privacy regulations like GDPR and CCPA. 

  Matomo is especially beneficial for enterprises. It offers advanced roll-up reporting, enabling you to see the performance of multiple websites in one centralised dashboard. This feature, along with heatmaps, session recordings, and A/B testing, provides deeper insights into your website performance.

  Discover how Matomo can transform your web analytics with a demo. Request your demo now.

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