I want to firmly understand the cost-effectiveness of each advertising measure, including TV commercials.

Expand advertising measures to attract a wider range of customers

Q. Please tell me your responsibilities.

The mission of the Sales Department is to maximize the number of new credit card sign-ups. Sign-up for a credit card can be done through two channels: at the store and online, and the mission of the Online Membership Promotion Department is to acquire new members online. Currently, most new sign-ups are done at the store, but we would like to strengthen new sign-ups via the internet as well.

Q. What are the characteristics of this market?

There are two characteristics of the credit card industry. The first is that many customers own multiple credit cards and use different cards depending on where they shop. As the number of different payment methods increases, each company is taking measures to encourage customers to use their credit card as their main card.

The second reason is that member attributes differ for each credit card company. Customers choose the credit card that offers the best deals depending on where they shop, so differences in attributes are deeply rooted. For example, in our case, we tend to have customers who visit AEON Group stores sign up on the spot, so the proportion of women with families is high. On the other hand, the proportion of men and young people who are getting a credit card for the first time is still low, so we are developing advertising measures with the aim of attracting an even wider customer base than now.

The cost-effectiveness of each advertising measure could not be visualized, making it difficult to allocate the optimal budget.

Q. What challenges have you faced in marketing so far?

The challenge was that the cost-effectiveness of each advertising measure was not clearly visible. With online advertising, it is clear how much is spent per registration. On the other hand, with offline advertising such as TV commercials, it is difficult to clarify the return on the cost spent, which made it difficult to allocate the budget appropriately.

Q. Why did you decide to use MAGELLAN?

This is because the cost-effectiveness of offline advertising such as TV commercials can be visualized. We were always discussing how to use our annual advertising budget efficiently. In addition, we were looking for how to use TV commercials while aiming to maximize results within a fixed budget.

In addition, while our department is implementing advertising measures to acquire new members, another department is implementing advertising measures aimed at existing members to promote usage. Although these advertising measures have different objectives, we have a hypothesis that they may affect each other. With MAGELLAN, we wanted to dig deeper into this synergistic effect and optimize the budget allocation to maximize the final results.

Conduct detailed analysis and optimization for each campaign

Q. Please tell us your impressions about the analysis results of MAGELLAN.

The results were as expected. For example, we felt that airing TV commercials would increase the effectiveness of online ads such as search results, which would lead to more people joining, and the numbers showed that TV commercials were in fact increasing the number of new members. On the other hand, we also found that there were periods when efficiency decreased due to the increased costs of airing TV commercials. By optimizing budget allocation, we hope to increase the number of new members while also improving cost-effectiveness.

Q. How do you plan to use MAGELLAN in the future?

This time, we analyzed data on a yearly basis, so we were able to see the overall trend. Next, we think it will be necessary to analyze in detail on a campaign-by-campaign basis. Also, since demand for credit cards tends to increase in the spring, we think that the effectiveness will vary not only depending on the campaign content, but also on seasonal factors. Rather than applying only the results of this analysis to all future advertising measures, we would like to analyze on a more detailed basis and accumulate the results of the analysis in order to further optimize them.

I would also like to see what trends are occurring in the credit card industry. I would like to see if there are differences in effective advertising strategies between industry trends and our own company. I think it would be interesting to know the optimal approach for the next time and beyond based on the results of both analyses.

Identifying where to invest first and maximizing efficiency

Q. Lastly, please tell us about your goal in marketing.

I want to continue improving the efficiency of acquiring new members. The COVID-2020 pandemic, which has spread since XNUMX, has made me keenly aware of how key it is to maximize efficiency. I want to determine where we should invest first and aim to maximize efficiency.

In addition, while our strengths lie in brick-and-mortar areas such as stores, we tend to be weak in digital areas such as the Internet. There is still a lot of room for growth in this area, so we would like to increase the number of new members via the Internet and pursue how we can make our customers happy by using our services.