SCOTTSDALE, Ariz.—Banks and credit unions continue to face challenges proving the value of their marketing investments, according to new research from Cornerstone Advisors.
The report, The Marketing ROI Gap in Banking: How Financial Institutions Spend, Measure, and (Struggle to) Prove Marketing’s Value, was commissioned by Fintel Connect and is based on a survey of 126 senior executives at U.S. banks and credit unions, Cornerstone Advisors said.
Led by Ron Shevlin, chief research officer, and Abbie Jones, a director at the firm, the study found that while financial institutions remain under pressure to demonstrate marketing return on investment, many lack the systems and attribution tools needed to clearly link marketing performance to business outcomes.
“Banks and credit unions spend an average of 0.10% of assets on marketing each year, but marketing departments historically struggle to demonstrate how their efforts translate into growth,” Shevlin said, according to Cornerstone Advisors. “Attribution, measurement, and outcome-based results are difficult to prove, but our research illustrates that the biggest challenge facing marketing leaders today is their reputation inside the organization.”
Key Findings
Among the key findings cited by Cornerstone Advisors:
- Affiliate marketing remains underused. About one-third of institutions report using affiliate or partner marketing, while 1 in 5 identify it as their most under-leveraged channel, despite ranking second in customer lead quality.
- Spending and perceived ROI are misaligned. Paid search accounts for the largest share of marketing budgets, but email marketing is most often cited as delivering the strongest return, highlighting a disconnect between spending priorities and perceived performance.
- Structural issues hinder measurement. More than half of institutions set marketing budgets by adjusting the prior year’s budget, and nearly 60% say their core or CRM systems limit their ability to measure marketing ROI.
Nicky Senyard, CEO of Fintel Connect, said in the report that some financial institutions are finding success despite broader industry pressures.
“Traditional financial institutions are continually being squeezed, and there are good examples of institutions bucking the trend,” Senyard said, according to Cornerstone Advisors. “This report shows there are winning channels. For example, affiliate programs were shown to drive scalable, compliant, high-quality customer growth.”
Cornerstone Advisors said the report is intended to provide senior leaders with a benchmark view of how peers approach marketing investment, measurement and performance, as institutions seek to better connect marketing activity with growth.
The Bottom Line
“The bottom line is this: Marketing leaders need to claim a strategic role in growth and accept a higher level of accountability for outcomes,” Shevlin said. “The opportunity exists, but only when marketing becomes part of the decision-making process around products, segments, and distribution.”
The report can be found here.
