A prominent financial-services company was doing well in some parts of the country. Not so well in others. The same went for its market perception. These disparities were having a negative effect on revenue. The company wanted to increase volume in key retail markets by providing local media support. It brought in T1 Media to make that happen.
Strategic Media Research
After conducting a proprietary geographic revenue analysis, T1 Media identified that all markets were not of equal value. The media costs in relation to potential sales-volume growth needed to be re-considered. Identifying the brand’s potential volume based on the demographics surrounding the locations and business market conditions had to be factored into the analysis. Markets were segmented into revenue clusters based on long-term and short-term ROI. A dominant U.S. market was perceived as being vital to their business based upon having three storefront locations. Surprisingly, this market was identified as being a revenue loss leader.
Strategic Media Recommendation
Every market area was classified into a geographic quadrant with corresponding ROI identified, so that retail locations and media support could be aligned to drive revenue. No exceptions were made to the recommendation. To warrant advertising support, every market had to be able to generate a positive ROI over time. This was a corporate initiative from the CEO level down.
The market that was identified as a volume loss leader with three storefronts was re-configured into one smaller location with no media support provided thereafter. In core volume potential markets, an intensive multi-media, market-share campaign was launched to increase the number of transactions.
|Low Volume||Category “gold mine” – Maximize support to drive incremental sales.||High volume markets – Spend to protect/defend to avoid competitive inroads.||Strong Volume|
|Volume maximized – National support only, loss leader markets.||Highly saturated – National support only to maintain volume.|
After two years of consistent advertising using broadcast, print, outdoor and online, volume doubled. The brand’s development index grew by almost 200 percent in one year. Two years later, the brand’s development grew by more than 500 percent.