The Growth Formula

Today at a Glance:

• Invest in marketing, harvest in earnings
• Brand Health 2.0
• Edge Innovation: Money Dysmorphia

The Q2 2024 earnings reports from JPMorgan Chase, Citigroup, Wells Fargo, and Goldman Sachs all reveal a central theme:?growth. The consistent upward trajectory across these institutions highlights their ability to innovate, adapt, and capitalize on opportunities. As they continue to navigate the complex financial landscape, the commitment to growth remains a unifying factor, underscoring the importance of customer-centric strategies, technological advancements, and sustainable practices.

• For JPMorgan Chase, the major growth lever was the successful integration of digital channels, enhancing customer experience and driving higher engagement.

• Citigroup’s expansion in international markets fueled its growth, opening new avenues for revenue.

• Wells Fargo’s investment in technology significantly improved its customer acquisition and retention rates, showcasing the impact of a robust digital infrastructure.

• Meanwhile, Goldman Sachs leveraged its strategic partnership with Apple Card to boost its credit card segment, demonstrating the power of collaboration in driving growth.

Each of these levers underscores a tailored approach to growth, reflecting these financial powerhouses' unique strengths and strategic priorities.

Bank of America and PNC earnings just dropped so I will cover those next week. I have added the marketing spend from both to today's newsletter. The trend of Up Only appears fairly consistent. I am curious to see if Amex, Capital One, Discover, or US Bank buck this trend.

2024 is on track to beat 2023 marketing spend and be more in line with 2022. Credit Card marketing spend dominates the mix, with Banking as the distant second. Lending is currently at its lowest levels and the expectation is that with a rate cut in September, this could start to see a pick-up.

Capital One leads the charge with its flagship Quicksilver marketing efforts. Auto Loans is another key area of focus besides credit cards, followed by Performance Checking & Savings marketing. Platinum, Venture X, and Venture, are still within the Top 5 products being marketed.

Chase on the other hand leads with Banking followed by Freedom Unlimited and JP Morgan Wealth. Sapphire Reserve, Sapphire Preferred, and Disney round out the Top products marketed in Q2 2024.

Citi led with Personal Loans marketing followed by Banking followed by Diamond Preferred.

Direct Mail leads the marketing efforts for Credit Cards for all Top Issuers

Brand Health 2.0

A recent project caught my attention and impressed me tremendously since the insights and actionable recommendations have had a major impact on our client to make informed decisions. I am not at liberty to share the takeaways but if you are thinking of something along these lines or are curious, please reach out and we can discuss.

Kaitlin explains this project best, so in her words:

With a two-pronged approach, Mintel captured insights from both the consumer and competitors’ omnichannel marketing campaigns. This comprehensive strategy provided our client with the full context needed to understand the intricate relationship between brand efforts and consumer responses.?

Mintel designed an "always on" 15-minute online consumer survey, which included coding for up to two open-ended questions. The survey was drafted in English and fielded in both English and Spanish, covering topics such as brand evaluation, customer satisfaction, need states, and additional demographics.

Upon completing the primary research, Mintel conducted further omnichannel marketing research. This included analyzing quantitative omnichannel spend data and qualitative messaging to contextualize how marketing efforts and initiatives, both during and leading up to the time of fielding, may have influenced consumer attitudes and behaviors. The analysis encompassed omnichannel spend, media mix, programming strategy, promotional strategy, creative strategy, advertising formats, and audience targeting.

The resulting comprehensive reports provided data, insights, and actionable recommendations from both the consumer research and omnichannel marketing analysis. This ensured a holistic understanding of brand health and competition, empowering our client to make informed strategic decisions.

Edge Innovation

Thanks to a fantastic suggestion from one of you I may make this an ongoing section of the newsletter. Please keep sharing your ideas and comments. I truly appreciate it.

Money Dysmorphia :?A recent study from Intuit Credit Karma reveals that "money dysmorphia," a distorted view of one's finances, disproportionately affects Gen Z and Millennials who are obsessed with being rich but may feel behind compared to others.

What we think:?By identifying and labeling the "money dysmorphia" phenomenon, Credit Karma not only acknowledges the issue but also provides a sense of reassurance to those grappling with it. For anxious and uneasy consumers, understanding that such feelings are shared and legitimate can be a significant relief. To address this condition, Credit Karma offers various financial planning and health tools designed to help consumers set and achieve their personal financial goals.

While the title "money dysmorphia" carries a playful undertone, it is rooted in the very real anxieties and distorted perceptions young consumers often have about their financial standings. This recognition can empower them to take constructive steps toward financial stability and success.

As ever - Anuj