Vehicle Loan Digital Marketing Q 4 Proposal by

Vehicle Loan Digital Marketing Q 4 Proposal by Adam R. Brown Aug. 17 th, 2017

SFFCU Business Model ❖ Since 1954, San Francisco Federal Credit Union has been a member-owned financial institution. As a not-forprofit, we’re able to offer higher dividends on deposit accounts, lower interest rates on loans, and fewer fees than the big banks.

SFFCU Business Model ❖ ❖ Serves San Francisco and San Mateo Counties No outside investors to pay back as a financial cooperative ❖ Member deposits leverage equity for loans ❖ Interest income from loans builds revenue ❖ Excess capital used to assist community non-profits

Revenue Streams ❖ Mortgages and Home Equity Loans ❖ Taxi Medallion Loans ❖ Vehicle Loans ❖ Credit Cards ❖ (Service fees to offset cost recovery purposes only)

Unique Value Proposition ❖ ❖ On average, Millennials and Gen. X are not able to afford buying homes in the Bay Area, but need to buy cars to get around. Millennials are the first generation growing up in a digital information era. Print and television ads are becoming lost on this audience as they focus on internet channels. Targeting this audience will help SFFCU create value of our trackable digital marketing channels and bring in more revenue from this source (Vehicle Loans).

Target Audience - Purchasing (National Average) source: cutimes. com

Target Audience - Customer Persona / Empathy Map Meet Driving Dara, 31 year old SF Resident • • Doesn’t like the current economic impact of big banks and recent bank scandals • Thinks that big banks are the only way to get financing for the car she needs • Sees rates offered from banks through dealer and manufacturer ads on TV and online • Averages 46 daily visits on Facebook Hears that credit unions are easier than banks, but doesn’t understand what they are • Proudly works for a community non-profit advocating social change • Drives a lot for work and visiting friends and family on weekends Recently purchased a car from a dealer that gave her 12. 49% APY through Wells Fargo. Her rate was high due to a low FICO score. The payments are too large for her budget. She doesn’t like supporting Wells Fargo, but she needed the car right away after her last one was totaled. After seeing San Francisco Federal Credit Union’s Facebook ad, she’ll find the option to apply for a refinance at a lower rate. Example: Her approval is for 6. 49% APY, saving her 6% over the life of the loan and $52 a month on her payment. Plus she’ll feel good about supporting the local economy.

Elevator Pitch ❖ For 21 - 49 year olds in SF and San Mateo counties that need car loans, San Francisco Federal Credit Union can help them save with lower rates than the banks. Plus, keeping loans in a community-based economy proves that We Are San Francisco (tagline).

Current State of Digital Marketing ❖ Final stages of a company rebranding display campaign with an emotional tone celebrating diversity and San Francisco values. Tagline: We Are San Francisco

Current State of Digital Marketing ❖ Consulting firm partners are helping us move from Awareness to Consideration of our website via 4 tactics: • 1) Rich Media Display Ads and Banners (w/ Pixels) with high impressions and extremely low CTR (0. 0004%) on Yahoo, AOL, and Reddit (Note: A/B Testing proved gay dads as best performing ad. ) - missing our target audience on these channels • 2) Branding videos on these channels with 0. 002% CTR • 3) Google SEM (Mobile 1 st) - With a 16. 73% CTR at $0. 405 CPC, this is our highest value tactic currently. (Keywords list is very generic. It could be optimized with more long tail keywords). • 4) Partnership with KRON 4: Website banners and TV news segments (34 x to 800, 000 households) - also missing our target audience ❖ 1, 242 callbacks were made from a “Request Information” button w/ Pixel from these channels. *stats based on 2017 Q 2

Current State of Digital Marketing ❖ ❖ A small annual Facebook budget of $3, 500 is being used for paid promotions throughout the year. These ads are for Awareness and Consideration purposes only. Most content is organic and unseen except for a branding video with high impressions (9. 8 k). It is not yet being optimized for Acquisition. Email marketing has proven successful with monthly newsletters, triggered campaigns, and promotional information. 25, 500 subscribers (acquired from account holders) have an Average Unique Open Rate of 25% with an Average CTR of 5%.

Current State of Digital Marketing ❖ A quarterly email campaign is sent to a targeted group of subscribers based on income and positive credit ratings. Unique Clicks are sent to a PURL for conversion. This is a high-value, ongoing campaign for generating revenue. Some of the copy could be simplified and more attractive:

Marketing Objective ❖ ❖ KPI: Completed Vehicle Loan Applications Benchmark: Q 2’s total of 261 applications valued at $83. 13 each Goal: Increase completed online vehicle loan applications by 2% for Q 4 based on Q 2 stats (267 completed applications needed by 12/31/2017) ROI: Calculation based on Q 4 campaign spend vs. value (Loan application soon to be optimized for mobile)

Marketing Objective Tracked in Google Analytics

Tactic 1 - SEM PPC Current Ad Updated Ad with feature, keywords, and CTA Targeted to 21 to 49 year olds in San Francisco and San Mateo Counties ❖ Ad links to Vehicle Loan landing page with option to Request Information or Apply for Loan.

Tactic 1 - SEM Keywords Current Keywords Q 2 auto financing Added Keywords Q 4 new car financing auto loan financing used car financing auto loan rates san francisco car loans auto loans low interest rate car loan auto refinance low interest rate car loan san francisco auto refinancing credit union car loan rates bay area auto lender low car loan rates san francisco car finance car refinance car loan interest rate best car loan rates credit union auto loan sf credit union auto loans low auto loan rates new car loan rates new auto loans used car loan rates pre-approved auto loans car loan pre-approval pre-owned auto loans new car loan pre-approval refinancing loans used car loan pre-approval

Tactic 1 - SEM Competitors ❖ Most major competitors in the area / industry do not currently have PPC campaigns. ❖ SF Fire CU, SF Police CU, & Redwood CU have no campaigns ❖ Patelco -Keyword: automobile loans) ❖ Golden 1 - Keyword: auto credit ❖ Provident CU - Keywords: financing car, car finance loan, bankruptcy car loan (Research via Spyfu & i. Spionage)

Tactic 1 - SEM KPI ❖ “Completed Loan Applications” KPI from this channel can be measured by keyword performance in Google Analytics. 16 were completed for Q 2.

Tactic 1 - SEM Optimization ❖ ❖ ❖ Q 4 campaign can be optimized with more long tail keywords based on the success of Q 2 keywords. Example: “Auto+Loans” lead to 11 Completed Loan Applications for Q 2. Long tail keywords could be “SF Auto Loans” and “SF Credit Union Auto Loans. ” Requesting $2500 total budget (additional $800 + $1700 current spend) to test new keywords

Tactic 2 - Facebook Paid Ad ❖ ❖ ❖ Targeted to 21 to 49 year olds during Q 4 in San Francisco and San Mateo Counties who may be Credit Union members, New vehicle shoppers (Max in market - likely to purchase in 90 days), Used vehicle shoppers (In market), or Purchased a vehicle in the last 24 months Lifetime budget of $875 requested (1/4 of annual social budget) Ad channels will be mobile newsfeed, desktop newsfeed, instant articles, and Instagram. UTM Code will link to Vehicle Loan landing page with option to Request Information or Apply for Loan. Facebook Pixel will be used for retargeting.

Tactic 2 - Facebook Paid Ad Creative

Tactic 2 - Facebook Paid Ad KPI ❖ ❖ ❖ Facebook / Instagram KPI will be measured by Completed Vehicle Loan Applications from both channels in Google Analytics during Q 4 Benchmark currently set at zero Effectiveness of campaign will determine testing for future campaigns (hopefully with more engaging creative)

Tactic 2 - Facebook Paid Ad KPI

Tactic 2 - Facebook Paid Ad UTM Tracking

Tactic 3 - Email Campaign ❖ ❖ ❖ Emails will be sent to all subscribers during Q 4. We do not have a targeted demographic list in Subscriber. Mail. Ad will be shown in 6 emails: 3 CTA specific monthly emails 3 monthly newsletters with a native ad UTM code will be used in CTA from all emails linking to Vehicle Loan landing page with option to Request Information or Apply for Loan.

Tactic 3 - Email KPI ❖ ❖ ❖ Completed Vehicle Loan Applications in Google Analytics during Q 4 from UTM parameter Benchmark currently set at zero Effectiveness of campaign will determine testing for future campaigns (hopefully with more engaging creative)

Tactic 3 - Email KPI No Current Email UTM Campaigns (Based on Newsletters)

Tactic 3 - Email Optimization ❖ Q 2 metrics in Google Analytics are from standard (generic) email campaigns and monthly newsletters with native ads. ❖ Unique clicks to our Vehicle Loan page will increase with more prominent Subject Lines and CTA in the email. ❖ A/B testing will be done on Subject Line in CTA emails based on open rate. ❖ Current email campaigns for Vehicle Loans are very general without a prominent CTA.

Tactic 3 - Current Promo Email Creative

Tactic 3 - Updated CTA Email Creative

Measurement & Optimization ❖ ❖ Benchmark KPI of 261 Completed Applications from Q 2 All 3 tactic level KPIs add Completed Applications to the primary Marketing Objective (SEM + Facebook/Instagram + Email divided by 261) Primary focus on ramping up the Facebook/IG campaign if conversion rate is successful for Q 4. Willing to pull back on SEM/PPC budget to cover Facebook/IG spend as we are currently ahead of our peers (competitors). ROI to be determined by spend from all 3 tactics vs. combined Completed Applications Value* (currently $83. 13) *Value = Q 2 funded $ from online channels - $933 k / 43 loans / 261 applications

Budgeting ❖ Total requested Q 4 budget: $3, 375. 00 ❖ Margin: $1, 675 on top of current $1, 700 PPC budget ❖ ❖ Projected 2% production increase from $933 k = $951, 660 ($18, 660 increase) $18, 660 - $1, 675 = $16, 985 (>1, 114% increase)

Unused Tactics ❖ ❖ ❖ A/B Testing for Facebook creative due to current campaign. Future campaigns should have more emotional/engaging creative. A/B Testing for Facebook geo-locations to see how the San Mateo County audience performs in comparison to San Francisco. This should be looked at once Facebook advertising has been more established. A/B Testing for the website (it’s being updated).

Don’t forget… We saved Dara some money!