Dynamic Marketing Communiqué

VISA – Everywhere You Want to Be. How can GLOBAL technological innovation affect your business? [Monday Marketing Marvels]

March 2, 2020

What destination is on your travel bucket list?

The south of France?

The Australian Outback?

The Tuscan vineyards of Italy?

The Greek islands of the Mediterranean?

The Aztec ruins in Mexico?

Or underneath the skyscrapers of Hong Kong?

No matter where your wanderlust takes you, Visa is there to support you.

With over 200 countries accepting Visa credit, debit, and prepaid cards, the company truly lives up to their purpose statement of helping you be “Everywhere You Want To Be.”

As a founding pioneer of electronic payments, Visa has pursued continued evolvement and success in having products and services available to consumers on any device at any time.

“…a clear, meaningful purpose and compelling ethical principles evoked from all participants should be the essence of every relationship, and every institution.” – Dee Hock, Founder and Former CEO of Visa

Dee Hock wanted to ensure that Visa continued to emerge as an industry leader.

Visa worked alongside technology developers in order to meet the needs of their customers. This was achieved through Visa’s ability to connect banks, consumers, institutions, and governments all over the globe.

Customers are allowed to make transactions with a Visa card rather than cash or checks. This improved brand loyalty, as they can trust Visa to keep their finances secure, and take it anywhere.

Visa was able to gain more loyalty and trust from their clients with the use of innovation and technology. An example is the creation of their app, Visa Direct. Today, Visa customers can manage their profits using a phone or laptop.

With Visa Direct, customers rely on:

  1. Speed: Customer funds are available in a recipient’s account within 30 minutes of transaction approval—all day, every day
  2. Convenience: All funds are sent directly to all eligible debit cards, making it easy to pay and be paid in a matter of minutes
  3. Security: All transactions are processed by VisaNet, protected by their multi-layered security. Customers have the option to implement additional protections
  4. Ubiquity: The reach of Visa Direct’s secure platform allows customers to send payments to over 200 countries

Access any time, anywhere.

By innovating and embracing new technology, Visa was able to grow its customer numbers and maintain customer loyalty.

Reaching over 2 billion customers in 2001, Visa has grown its earnings throughout the years.

Visa’s Earning Power: Valens Research vs. As-reported numbers

Visa makes for a great case study that we come back to regularly. One great reason?

The firm has proven itself to be a phenomenal earning power generator.

The blue bars in the chart below represent Visa’s earning power (Uniform Return On Assets). This number has been well above 40% for the past ten years.

The global average of this number over the last 60 years is just 6%.

The orange bars are the company’s as-reported financial information. If you relied on these numbers, you’d just see the 14% orange bar for the 2019 as-reported ROA (return on assets, measure of earning power).

That’s what you’ll see in Yahoo Finance, Google Finance, and most other databases.

So, how well has Visa been growing its business in the past years?

The research doesn’t lie—nor do the results. Earning power (the blue bars) has been trending up and continues to show results much higher than what traditional databases show.

The company’s stock price also performed better than the rest of the stock market over the decade, which we can see in the blue line in the chart above. Their returns have been well above the market.

The numbers show that they are doing well and making a profit.

From Visa to its customers: “…keep chasing your dreams. We’ll help you reach them faster.”

They were able to live up to their promise.

With its impressive growth rate and growing success, Visa is another company that is worth discussing.

The way they shaped their business today has made an impact on people’s lives and the society as a whole.

Their strategy to expand their company to a global platform also grew and attracted more customers and clients.

Visa has become an international superpower and will continue to dominate and grow.

About The Dynamic Marketing Communiqué’s
“Monday Marketing Marvels”

Too often, industry experts and the marketing press sing the praises of some company’s marketing strategy.

…Only for the audience to later find out that their product was a flop, or worse, that the company went bankrupt.

The true ROI in marketing can’t be separated from the business as a whole.

What good is a marketing case study if one can’t prove that the company’s efforts actually paid off?

At the end of the day, either the entire business is successful or it isn’t. And the role of marketing is always paramount to that success.

Every Monday, we publish a case study that highlights the world’s greatest marketing strategies.

However, the difference between our case studies and the numerous ones out there, is that we will always make certain that the firm really did generate and demonstrate earning power worthy of study in the first place (compliments of Valens Research’s finance group).

By looking at the true earnings of a company, we can now rely on those successful businesses to get tips and insights on what they did right.

We’ll also study the greatest marketing fails and analyze what they did wrong, or what they needed to improve on. We all make our mistakes, but better we learn from others’ mistakes—and earlier, rather than later.

Hope you found this week’s marketing marvel interesting and helpful.

Stay tuned for next week’s Monday Marketing Marvels!


Kyle Yu & Joel Litman
Head of Marketing & President and CEO
Valens Dynamic Marketing Capabilities
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