What to cut, what to keep as FI marketing budgets get squeezed

Bank and credit union marketers are facing pressure to cut back on marketing spend as the economy moves into a difficult period thanks to COVID. Now is the time to look at what's expendable, and where you should hold the line or even increase spend given declines in traditional marketing approaches.

By now, most financial institution marketers have thrown their 2020 plans out the window. The challenge is what to do in 2021. Chief Marketing Officers are deciding what expenses to cut, but at the same time, they realize that the growth generated by traditional client acquisition and relationship-building methods — especially from branch walk-ins and banker prospecting — have declined.

Marketing has a larger role than ever to play in helping institutions manage customer relationships and create new ones, but circumstances facing CMOs and marketing directors as they plan for the year ahead are complex and unique, to say the least.

Capital Performance Group spoke with numerous bank and credit union marketers who have pivoted their plans and budgets to the new reality. This article provides insight into what is working, what CMOs are eliminating, and what they are investing in for growth, looking toward the year ahead.

Take the Time to Evaluate Your Plan with a Fresh Eye

Most marketers know that much of what their team is asked to do fails to translate directly to the bottom line. The pandemic has given CMOs the impetus to take a fresh look at all marketing activities and share their perspectives on what generates results for line-of-business executives.

 

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