BBVA Compass Marketing Resource Allocation Case Solution

1. List all the steps involved in the customer acquisition journey for display and search ad acquisition. 

Success in the acquisition of new customers is dependent on the tactics that a business employs during the acquisition of new consumers. The company engaged may get additional clients as a result of this, which might help the organization's overall performance. Searching is the first step in acquiring new clients for a business. An important part of this process is learning about the consumers and what they may need. Sellers benefit from this method since they may learn more about their clients and prevent some of the difficulties that they may not be able to identify with. Negotiating influencer sponsorships is necessary when it comes to display and search add acquisition. Brand awareness and the ability for consumers to learn about marketing projects may be achieved via this method. The purchase process continues with consideration. Because of this, the marketing team must examine how they display and search ads will affect their target audience. This analysis also helps the marketing team decide on the most crucial plan that may help the desired connection between the two parties succeed in the end. Data about the present and potential consumers is an important part of developing a successful customer acquisition strategy. An important part of the marketing team's job is to get feedback from prospective consumers so that they may make adjustments to their goods. As a result of this investigation, the bank's connection with its clients will be strengthened and its services will be of higher quality. When a company is trying to acquire new consumers, another smart technique is to set up an excellent referral program. In this low-cost phase, the firm needs to come up with a means to reward repeat customers of consumers who utilize a search ad by providing them with discounts on things they purchase.

2. What is the acquisition cost of a customer acquired through display ads? 

To phrase this another way, the cost of purchasing a certain asset is referred to as its "acquisition cost," and the word "acquisition cost" is the one that is used the majority of the time. The expenses that are connected with the acquisition vary depending on the kind of asset that is being purchased. This statement is used in a broad variety of different contexts, including but not limited to mergers and acquisitions, the purchase of fixed assets, and the acquisition of new clients, to name just a few examples. There are three different approaches that may be used when determining the total cost of purchasing fixed assets. These approaches can be utilized to determine how to compute the cost. This concept is shown through a variety of methodologies, some of which include the cost model, the revaluation technique, and the fair value method, amongst others. First, one must sum up all of the expenditures related with gaining new customers, then one must divide that amount by the total number of new clients obtained to arrive at a ballpark figure for the cost of customer acquisition. This will provide one with a rough estimate of the cost of acquiring new customers. When it comes to mergers and acquisitions, the cost of the acquisition is evaluated based on the real value that was brought to the deal, regardless of whether the transaction was a buy or a merger. This is true whether the transaction was a merger or an acquisition. According to the data that is shown in Table C, the BBVA made an investment of 637 thousand dollars and attracted the business of 7,209 new clients during the months of January and November. The following is a breakdown of the average cost to acquire a customer, which is directly attributable to the aforementioned data as well as the use of display advertisements:

637000 / 7209 = $88.36

3. What is the acquisition cost of a customer acquired through search ads? 

The initial purchase price of an asset is shown as the first item in its book value for property, plant, and equipment. This is done so that investors may see how much an asset was originally worth (PP&E). After this input has been completed, the following step is to determine the item's book value (also known as their original cost or historical cost). As a consequence of this, the term "acquisition cost of operational assets" refers to the total sum of money that is typically necessary to be spent in order to acquire an item and have it ready for use. This sum of money is often required to be paid in order to have the item ready for use. Among the many components that make up, these expenditures are things like taxes and insurance premiums, as well as the expenses required to hire an attorney.