credit union seg development
DESCRIPTION
Grow your membership through SEG development. Learn best practices, use Commercial products as a new door into SEGs, onboard and speak the CEO\'s language with ROI.Want more? Call Eric Gagliano at 937-426-9848.TRANSCRIPT
SEG Development
Last Year
Creating a BD Plan Positioning & Goals Market & Competitive Overview/Trends Anticipated Growth Areas
Acquisition Basic Sales Techniques Research Tools
Penetration SEG Agreement Basic On-Boarding Welcome Kits Basic Tactics
Budgeting
Today’s Topics
Resources
Best Practices from CU Professionals What do banks do Brain Storming
SEG Acquisition
Sean McDonald �Director, Business Development & Marketing �Liberty Savings Federal Credit Union Jersey City, NJ
2008
SEG Acquisition Process/Tips
Challenges
1. Getting past the gatekeeper for an appointment with decision maker
2. Explain why the CU matters
3. Reaching Penetration Goals & Member Acquisition
“We’re finding that it seems to be becoming harder for banks to get into companies. Business owners
are weary of dealing with them.”
Sean McDonald �Director, Business Development & Marketing �Liberty Savings Federal Credit Union Jersey City, NJ
“We shouldn’t have to work as hard as we have.”
“Wachovia has a Wachovia@Work program, but in New Jersey, community banks do not offer the
types of programs to compete with us.”
Before the SEG Signs
Research company’s clients (website, Google, press releases, etc). If company has common relationships: Ask common SEGs for testimonial directly to decision maker Ask common partners for personal introduction
Research if decision maker/owner is in organizations or professional groups
Use and leverage all professional contacts Return referrals to those who give them
Network!
“Cold calling stinks … no one likes it!”
There Is No Magic Bullet
“BD Professionals need to find ways to effectively build relationships. Get them to know YOU. I try to
help a SEG get new business before I even talk about the Credit Union.”
Sean McDonald �Director, Business Development & Marketing �Liberty Savings Federal Credit Union Jersey City, NJ
“After they get to know me, it’s easier to approach them about the CU.”
“BD Professionals need to find ways to effectively build relationships. Get them to know YOU. I try to
help a SEG get new business before I even talk about the Credit Union.”
After the SEG Signs Arrange on-site to speak to all staff (staff meeting, training
session, financial literacy seminar) “Maintain Excellent Credit” “Managing Money in Difficult Times”
Ask for permission to include “Stuffer” in the next payroll to introduce CU
If SEG has intranet, ask for CU to be included as a company benefit for employee and their families
Target agreement to let CU in periodically throughout year Provide Welcome Kit/application/info to be included in
“new-hire” packets Get one or more ambassadors to serve as liaison
Ambassador must be trained and enthusiastic about CU
“On-sites are fine but they need to be advertised AND endorsed by the decision maker. Sitting in a
cafeteria or break room for hours on end is a waste of time unless people know that you’re there and
what you’re all about BEFOREHAND.”
Sean McDonald �Director, Business Development & Marketing �Liberty Savings Federal Credit Union Jersey City, NJ
Lessons Learned When dealing with a SEG owner/decision maker, you need to
realize that they, themselves, may have no need for a CU. “Sell” it by focusing on how offering CU membership will ultimately benefit their company (more productive employees, owner will look like a hero)
Try not to agree to on-sites where they say, “You can sit in our break room for a few hours and see what happens.” Your time is valuable and what you offer is important for members. Your visit should be treated with respect. Advertise visit and, if possible distribute information before hand.
Your ambassador is key … They need to be a referral source. There’s nothing wrong with having more than 1 ambassador.
“Heck, have 1 for each department! The point is, you need to have a credit union CHAMPION in every SEG.”
Lessons Learned
You’ll lose contact with your SEGS overtime if new employees are not communicated to. Getting in front of new hires, either in person or through promotional material is important.
Getting SEGs signed is the easy part. Getting employees to join is hard.
Results
“We’ve always had better success making an ‘in-person’ pitch rather than a direct mail piece or cold call. Using the Networking methodology, we
have signed on almost 150 new SEGs.”
SEG Penetration
Nancy Hutchinson�SVP Marketing/Business Development�Minnesota Power Employees Credit Union�Duluth, MN
2009
SEG Recruitment & Retention
SEG Recruitment & Retention Plan
1. Build relationship with company
2. Recruit employee members
3. Reach out to the wider community
3-Step Process
Company Relationship Implement a written CU/SEG agreement
Credit Union Exclusivity Accountability (“If we do …, you must…”)
This agreement is made this 20th day of January, by and between ________ and Minnesota Power Employees Credit Union and shall commence for the period of 36 months, renewing in consecutive terms thereafter. If __________ or MPECU wish to terminate this lease they must notify the other party no less than 60 days prior to renewal.
MPECU will operate an automated NCR5670 (ATM) on the business establishment of _________, as it is now located at, _____________, Bldg #2, Duluth, MN 55811.
This agreement shall be for the term commencing January 25, 2006, and continuing thereafter for a period until terminated by mutual agreement of the parties, or by either party, pursuant to other provisions of this contract.
MPECU shall use the Premises for the sole purpose of constructing, maintaining, and operating (including servicing) an ATM. MPECU shall install the ATM and related communications equipment. Any damage or repair cost to the ATM and related equipment will be the responsibility of MPECU unless caused by negligence of ___________.
___________ shall provide space for the ATM and related equipment. ________ shall be responsible for any modification to the Premises to permit installation of the ATM. Subsequent relocation of the ATM and related equipment on the Premises requested by __________ shall be solely at Cirrus Design’s expense. ___________ shall provide MPECU with thirty (30) days notice of such ATM relocation. __________, at ___________ expense, shall provide for electricity, phone line, and any other utility serving the MPECU ATM. __________ shall maintain the Premises in good order and repair and keep the same free from rubbish and dirt. ___________ agrees to display standard MPECU ATM signage as prescribed by MPECU at the ATM location.
MPECU will comply with all applicable laws, ordinances, statutes, and regulations of the United States and the State of Minnesota, related to or affecting use of the Premises and the ATM
If ___________ fails to perform any obligation within thirty (30) days after written notice from MPECU, __________ shall be deemed in default hereunder. In the event of default by ___________, MPECU may terminate this agreement upon giving fifteen (15) days written notice to ___________. For purposes of such notice, or notice of any other kind related to this agreement, the parties agree service of such notice shall be deemed effective by sending prepaid certified mail and addressed as indicated below or to such other place as may be designed in writing from time to time.
Company Relationship Position the CU as an employer profit and benefit enhancer
401K contributions Flex Spending
Focus on key employer decision maker Keep a “Little Black Book” (Birthdays, Anniversaries, Family info., etc.)
“We don’t just focus on one person. People come and go and you don’t want
anyone in the organization to think that you treat anyone else special. I’ll often
know 4-5 people in a SEG very well.”
Company Relationship Explain the greater business services opportunity
SEG Related Seminars “Retail Credit Card Fraud Identification”
Relationship Pricing
Company Relationship Demonstrate that employees want financial education Build effective employer support for the CU
Partnerships Sponsorships Picnics
Target, specialize and focus on selected SEGs • # of Employees • Do they pay on time? • General company background
“Don’t be afraid to turn down a SEG.”
Recruit Members
Incent member enrolment, not contracts produced MPECU targets 4-6 products per new member
Dedicate significant resources to the SEG program Management Branch Managers
Build employee awareness to achieve success Meet and Greets Flyers/Stuffers
Offer a “can’t miss” product to build membership Lifestyle Marketing
Use credit union ambassadors effectively
Lifestage Marketing
Community Outreach
Pursue a special SEG strategy if yours is a community credit union “Join organizations”: Chamber, Rotary, etc. Sponsor activities, or be on boards that build
community and awareness
“A SEG must be carefully managed and promoted. Credit unions cannot take for granted that once
recruited, a SEG employer will support the needs of the credit union, and that employees will automatically
join and use its services.”
Nancy Hutchinson�SVP Marketing/Business Development�Minnesota Power Employees Credit Union
“You have to get involved at every level!”
Results
After 12 years of this process, MPECU has enjoyed:
Membership has grown by 41%
Assets size has more than doubled
On Boarding
Why is On Boarding Important?
According to Frederick Reichheld, author of “The Loyalty Effect” A 5% increase in retention can lead to a 100% increase
in profitability.
In the banking industry, banks spend, on average, $500 to acquire a new customer and less than $52 to retain. Which would you rather see the bank invest?
“Quality in a service or product �
is not what you put into it. It is �
what the client or customer gets �
out of it.”�
- Peter Drucker
Why is On Boarding Important?
Most cross-sell opportunities come in the first few months after checking accounts are opened.
In fact 73% of all cross sales occur in the first three months of a banking relationship.
Gallup Management Journal, November 2005
“You’ll never have a product or �
price advantage again. They �
can be easily duplicated, but a �
strong customer service culture �
can’t be copied.”�
- Jerry Fritz�
Sooooo … we can’t do this…
What NOT to do…
Customer Lifecycle
Target – Prospective customer stage, targeting with specific products/services
Acquire – New customers open an account and are introduced to your financial institution
Service – Continuous On Boarding and day-to-day servicing (transaction and value-added)
Develop – Present offers to expand and grow relationship
What’s At Stake?
“Only 26% of the average bank's customers will consider it for their next purchase, and few will look to a bank for their investment needs. To improve their cross-sell odds, banks must target online banking and bill pay customers.”
Forrester Research 2006
On Boarding is Critical
90 Day Window
Trust the Process
Manage Expectations
Communicate
Time is of the Essence
Internal Promotion Example
“Do what you do so well that �
they will want to see it again … �
and bring their friends.”�
- Walt Disney�
BAI- 90 Day Window of Opportunity Report
Communication Methods
Schedule Example (90 Days): - 1-2 Day - One Week - Two Week - Three Week - 60 Day - 90 Day
Schedule Example (1 Year):
1 Day: Personal “Thank You” note
1 Week: Welcome letter/survey
1 Month: Proactive personal call
Make certain they received materials
Gauge experience
2 Months: Personal call – Ask strategic, customer-focused questions
6 Months: Branch manager calls to ask about experience
1 Year: Handwritten Anniversary Card
Communication Methods
“Treat every customer as �if they sign your paycheck … �
because they do.”�
- Unknown �
Communication Methods
Email Phone Call Letter Direct
Considerations: Determine who will send each communication
(President, Branch Manager, CSR, etc.) Retail or Business Product
Success Tips
Touch customers early and often – include Brand Service quality at all touch points – direct mail,
online, frontline telephone and branch team. Demonstrate understanding – customer relationship,
customer value, and financial expert. Include actionable steps
Segment Audience – Targeted Communications Provide Consistent Training Ensure Accountability Have a special plan to onboard SEG Ambassadors
Keep the Momentum
Don’t stop communications after 90 days!
• Touch customers throughout the life of their relationship • Keep calling/mailing limited to no more than once per quarter
• Target customers according to their current relationship • Homeownership status • Age • Income • Product Usage • Other demographics/Lifestyle characteristics
• Include actionable offers in an effort to retain, reward and deepen relationships.
One More Case Study
Andy Reed�Business Development Manager�American Airlines Federal Credit Union Forth Worth, TX
Situation
TIP Charter Aviation Related Organizations
Airline Government Related Aviation Employees on airport property (Support & Service)
Specifically excludes: Retail, Restaurants and Car Rental
Geographically Disbursed (43 branches across country) Cashless CU Security Regulations/Badging makes it difficult cold call or
visit TIPs
The Key: 4 Function Structure
1. Car Buying Advocacy Program
CUDL
Work with CUDL Dealer Advocate Focus on Seminars
Smart, Savvy & Sophisticated A Women’s Guide to Car Buying (Also offer Teen Buying)
Presented by Barbara Terry (NASCAR)
1. Car Buying Advocacy Program
First Seminar Results: 85 Participants 40 Referrals for Approvals 25 Loans
2. Volunteer Army
Coordinator Program American Airlines & other TIP Employees
170 people strong Represent the credit union
“They’re were we’re not” Focus on key gate keepers in TIP companies. Typically:
Modest means Under served/Under banked Younger (off-sets older AA member-base)
Their Job Refer Feed information to members
2. Volunteer Army
Focus – Primary Products Savings Checking Overdraft Debit
Rewards Program Visa Points
Double Points in first 60 days Incentive Trip (every other year)
2. Volunteer Army
Training Twice/year offer to fly them to TX for 2 ½ day training
(Ambassadors asked to attend once every 2 years) CU philosophy Initiation into CU culture Products & Services Basics
Annual Budget for Entire Program $19,000 $7,400 for trip every 2 years
2. Volunteer Army
Results 75-80% of Ambassadors Refer
Ambassadors have higher products per member than CU staff
2009 Goal Actual as of Aug.
Consumer Loans $689,000 $1,728,977
Mortgage Loans $837,000 $3,202,957
Training Results (April 2009) Of 38 Attendees (60 days post-training): 360 new products 55% refresher attendees (51% of new product sales)
3. Sales Side (2 People)
Objective: Track TIP Leads & Establish Relationship Top-down approach
(Focus on CEOs/Owners)
“Can you provide contact at local level?”
Bottom-up from local information
Means: Cold Call Email Visit
3. Sales Side
Ways around security/badging Escort by AA Employee or
Coordinator Set-up appointments in
advance
TOOL
3. Sales Side
Goals: 1,800 total contacts per year (4-5 contacts to land TIP) 15-30 NEW initial (cold call) contacts per month 4 Nationwide PREFERRED PROVIDER agreements
4. Service Side (2 People)
Objective: Onsite Service Onsite CU days
Formal Presentations Informal “Table” Visits
Break room Benefit Fair Company Picnic
Revisits Ranking system (3, 6, 12 month) Partners recommendations/desires
Credit Union Wide
All employees at all levels meet with BD during orientation Branch Goals
RESULTS: 10% TIP Growth in 2008 29% TIP Growth in 2009
When We Return
Commercial Products
ROI/Measurement
Commercial Products
Commercial Products
• Extend BD relationship as a resource • Compete against banks • A new foot in the door • CUSOs
Small Business Dynamics: The Economy-Driving Engine
There are an estimated 25 million small businesses in the U.S. and they are growing at a rate of 14% per year
Small businesses would constitute the world’s 3rd largest economy
Delivers approximately $50 billion in annual revenues
Small businesses tend to be 2 – 3 times more profitable than the average retail customer
1 in 13 US retail banking customers is an “under-banked business (no business checking or savings)
CUs Banks
Total Assets $15.4 Billion $40.2 Billion
Market Share/Deposits 11.80% 88.20%
Total Business Loans $169 Million $13 Billion
Market Share/Biz Lend 1.27% 98.73%
Biz Loan as % Assets 1.09% 32.62%
3 yr Change $92 Million (-$7 Billion)
CUs Banks
Total Assets $6.7 Billion $1.6 Billion
Market Share/Deposits 19.62% 80.38%
Total Business Loans $2 Million $559 Million
Market Share/Biz Lend 0.36% 99.64%
Biz Loan as % Assets 0.03% 35.54%
3 yr Change ($-1 Million) $196 Million
Maryland
119.1% -33.1%
DC
-37.9% 54.0%
What’s going on locally?
Business Lending Statistics
Source: CUNA Economics & Statistics Dept. All financial data is December 2008.
111 credit unions have outstanding MBLs (23%) 3 credit unions have outstanding MBLs (5%)
Small Business Dynamics: Who They Are
50% of small business owners prefer to use the same service providers that they use for their personal needs
32% of these businesses are women-owned, and 9% are minority-owned
Nearly 90% of small businesses use commercial banks as their primary financial provider
People • Talented, experienced local bankers and relationship specialists backed by a team of product partner specialists
• Access to sales and service specialists in ways that work for you…in person, on the phone, over the web
Service • Guaranteed first-rate customer care from banking team, branch, telephone or Internet
• We regularly ask for our customers’ feedback and measure the results
• Convenient, anytime access; it’s easy to do business with us
Ideas • Understanding your business is our #1 priority. We ask…and we listen
• Proactive, thoughtful ideas to help you grow your business, retain your employees and accumulate wealth
What You’re Up Against
Wachovia Bank Value Proposition
Arrange for Senior Managers to speak to Small Business groups
Form partnerships with local colleges to educate small business owners on lending programs, etc.
Establish a “Centers of Influence” program with CPAs and Attorneys
Target select trade shows
Arrange for CEO presentations to small groups of prospects
Create special events to recognize top women, minority business owners and other niche segments
Low-Cost Acquisition Tactics
Send white papers/articles to prospects focused on changes/issues in their industry
Manage media relationships to gain exposure
Join the regional Economic Development Committee
More Low-Cost Acquisition Tactics
Host Value-added seminars for small businesses (i.e., “How to better market their businesses”)
Leverage sponsorships to benefit customers
Ask your good customers for referrals
Invite spouses of small business customers to event marketing
Hold networking breakfasts for customers
Utilize in-house Credit Union talent to “educate” customers
Learn from your peers. Find out what’s successful and try it in your market.
Retention Tactics
Another Value-Add Idea Premier America Credit Union California & Texas 67,554 Members
Before every customer call, have your sales force consider the following questions. If they don’t ask the questions, someone else will and probably already is.
Is it easy to do business with me/us?
How do they perceive my/our customer service?
Am I taking care of their business and personal needs?
Am I suggesting better or more innovative ways to meet their present and future needs?
If concern areas are outside my scope of responsibility, am I alerting the appropriate people so problems can be addressed and corrected?
Am I achieving a value proposition?
Am I/we employing all of the Credit Union’s resources for the benefit of the member?
Now That You Asked…
Options to Build Business Lending:
Develop a Business Lending Dept.
Outsource to a third party
Form CUSO
Business Lending CUSO
“Given the opportunity in the market, we believed a number of credit unions could benefit from offering business services but may not be able to make the necessary investment to build capabilities on their own. Capital limits also played a role, as well as the ability to participate and diversify a commercial loan portfolio among a group of credit unions.”
- Doug Fecher�CEO Wright-Patt Credit Union�
Dayton, Ohio
Business Lending CUSO
“Given the opportunity in the market, we believed a number of credit unions could benefit from offering business services but may not be able to make the necessary investment to build capabilities on their own. Capital limits also played a role, as well as the ability to participate and diversify a commercial loan portfolio among a group of credit unions.”
- Doug Fecher�CEO Wright-Patt Credit Union�
Dayton, Ohio
7 credit union owners
Focused on underwriting, processing and servicing the loans
Each credit unions assigns a primary contact within the CU for small business loans
Once a loan is approved, the CUs each fund a certain percentage of the loan – to diversify the risk of each
The CUSO provides servicing, receiving payments and distributing monthly portfolio reports along with loan payments to each CU
CU’s participate up to their 12.25% limit
For more info, go to www.cbscuso.com
Cooperative Business Services, LLC (Ohio)
Advantages of CUSO Affiliation
“If we do not fund a loan, we will educate the borrower on the reasons why and identify the steps they can take to become a stronger credit. If we approve a loan, we will try to provide several lending solutions to the borrower. This level of service distinguishes us and credit unions in the small business market.”
- Keith Reed�President/COO
Cooperative Business Services�Dayton, Ohio
Business Lending CUSO
Results:
CUSO was profitable in about 1 year
More than $10 Million in outstanding balance within 6 months
Servicing 40 Credit Unions ($20 million to $1.4 Billion)
PORTFOLIO THROUGH JULY 2009
309 Loans $191,155,295 Avg. Transaction Size: $618,625 Avg. Rate of Return: 6.1943% ‘09 Conversion Rate (Appt. to Close): 87.62%
Business Lending CUSO
A Resource For You
• Participate with other states’ CUs • 6-7 MD/DC Cus • Lead CU takes min. 10% • Other CUs do not need to fit your member criteria
Example: $10 million loan in NC • NC CU took $1 million • Remaining 9 million shared between CUs in:
• VA • NY (2) • FL • TX
Measurement
1. We do not use it at all
2. We have used it, but have either stopped or use it infrequently.
3. We use it fairly regularly.
4. We constantly measure ROI and use if for pre- and post- planning reviews.
To what level do you currently utilize ROI or ROMI calculations in your marketing planning and/or review?
____%
____%
____%
____%
“In preparing for battle I have always found that plans are
useless, but planning is indispensable.”�
Dwight D. Eisenhower
Marketing Expenditures Allocation�Advertising is the most widely used promotional tool with public relations almost a quarter of the budget
Budget Analysis
Allocation of Ad Expenditures�Newspapers remain the most important mass medium with $3 out of every $10
Source: Forrester’s 2006 Joint Association of National Advertisers (ANA) Online Study
TV advertising isn’t getting any better…
Base: 133 television advertisers
Source: Forrester’s 2006 Joint Association of National Advertisers (ANA) Online Study
In the past two years, would you say television advertising has become...
…and interactive marketing will benefit
Base: 102 television advertisers Source: Forrester’s 2006 Joint Association of National Advertisers (ANA) Online Study
Now that 1 in 10 households own DVRs, which of the following forms of non-television advertising -- if any -- will you spend MORE on?
1. I take last year’s budget and add/subtract a percentage
2. I base it on the asset size of the credit union
How do you create your Marketing Budget for the Year?
____%
____%
Average Bank Marketing Budget Expenditures
Bank Assets in Millions 2000 2005
$(000) $(000) Less than 25 23 23 25 - 49.9 32 38 50 - 99.9 70 80 100 - 249.9 146 179 250 - 499.9 328 330 500 - 999.9 555 518 1,000 - 4,999 1,507 1,222 5,000 - 24,999 5,279 5370
Source: ABA Bank Marketing Survey Report
3. I come up with a number of programs that will hit the credit union’s business objectives and I justify the costs for each program
4. I take whatever Finance gives me
How do you create your Marketing Budget for the Year?
____%
____%
____%
____%
1. I take last year’s budget and �add/subtract a percentage
2. I base it on the asset size of the credit union
Factors That Affect Your Budget
Strategic Direction of the Credit Union Community vs. SEG Market Segments
Market Share Growth Goals
Orientation towards Marketing and Branding
Media Costs in Your Market(s)
Number of Branches/Markets
Ability to Provide ROI
{And YOU can impact it…}
Unique, Relevant, Sustainable…
Importance of Measuring ROI
Creates the ability to understand and communicate the return on your
marketing/BD dollars. Helps to better evaluate which programs are
the most effective and which need to be modified or eliminated
Assists in getting the resources you need Allows you to have an intelligent conversation
regarding your marketing/BD budget Prevents you from becoming a Dilbert cartoon
1. Market Assessment
2. Competitive Analysis
3. New Product and Offer Creation
12. Media Mix Selection
11.Operational & Systems Planning
17. PR and Internal Comm. 16. Product
Pricing and Offer
15. Sales Support 14. Promotions/ Merchandising
13. Marketing Message & Creative
8. Client Understanding & Segmentation
7. Internal
Brand Mgmt.
6. Brand management
5. Brand Development
4. Financial Analysis with ROI
20. Measuring Performance & Quality Control
19. Staff and Partner Management
18. Marketing Role Definition
10. Retention and Process Improvement
9. Experience and Service Management
Effectively Managing the Twenty Activities of
Marketing
Developing Marketing Strategy/Planning Defining Brand Strategy/Managing the Brand
Un
de
rstan
din
g an
d M
an
agin
g Clie
nts
Executing the Marketing Plan
Man
agi
ng
the
Mark
eti
ng
Fu
nct
ion
“We spent $25,000 to sponsor the Hispanic Festival. Did we get our money’s worth from that event?”
“I think giving away a free DVD player for a free checking account is a stupid idea and will never pay for itself.”
“I do not think that home equity direct mail did us any good, should we save the money next quarter and
just drop it?”
“We are projected to sell 46,000 new small business checking accounts this year. How much could we
sell next year?”
“I liked our TV commercials, but did they really do anything for us?”
“We spent $25,000 to sponsor the Hispanic Festival. Did we get our money’s worth from
that event?”
How many checking accounts will I need to generate to pay for the Event Sponsorship ?
Generated 374 new checking accounts at a cost per acquisition of $67 per account
Estimated profit of $55,410 based upon a one year account profit model, or over a 220%
return on investment
Household profitability of the accounts after a 6 month basis averaged $278
Gained brand exposure to critical market segment of over 180,000 in a 5 day period
Do as much work after you launch the program as you did to prepare for it
Talk to clients, operations, front line sales personnel, ambassadors
and managers Speak to the 5 best performing
branches/SEGs and the 5 worst performing branches/SEGs
The numbers alone do not always tell the story
“We are projected to sell 46,000 new small business checking accounts this year. How much could we sell next year?”
“Doing the same things over and over again and expecting
different results.”
Projections estimate a 15% increase in 2005
A new offer to give away a $50 Office Max gift card for the first quarter
Our prospect direct mail budget increases from 1.5 million pieces to 2 million pieces
Our member direct mail budget increases from 300,000 to 500,000 pieces
We add 10 new sales people
“I think giving away a free
DVD player for a free checking account is a
stupid idea and will never pay
for itself.”
What is the lift required on Checking Account Sales to pay for a DVD Player?
“I do not think that home equity direct mailing did us any good. Should we save the money
next quarter and just drop it?”
Recover the cost of your marketing expenses, or achieve a 100% ROI
Recover your expenses and produce a 20% return on your investment, or a 120% ROI
Double the return on your marketing dollars, or produce a 200% ROI
Mailed 120,000 Home Equity Pieces and Tested $100 Home Depot Offer
“I liked our TV commercials, but did �they really do anything for us?”
Cross-Sales
Advocate
Unaware
Aware
Understand / Value
Consider
Positive Experience
Accept Information
Seek Information
Active Consideration
Purchase
Commitment
Retain
Recommend
Acquisition Communication & WOM Driven
“Rational” and “emotional”
elements
Retention/ Growth
Experience Driven
“Rational” and “emotional”
elements
Examine both sales and awareness level changes
“If marketing were easy, �
we would all be making
minimum wage.” �
A Perspective
CEO, Senior Management, and Board Leveraging capital
Expense vs. investment Support vs. lead
CEOs and CFOs typically grow up on the “numbers side” of banking
Speak their language Think like your CEO/CFO
Gain buy in Discuss assumptions
Survey of Fortune 500 Companies
What is the most important skill for a CEO to have for the future
growth of their organization?
Marketing Financial 52% 14%
time
Value Returned
Emerging
Optimizing
Strategic
1. I’m a member. I attend regularly
2. I’ve attended, but am not a member
3. I’ve never attended
With what frequency do you (or a member of your Marketing function)
attend the credit union’s regular �Asset/Liability Committee (ALCO) meetings?
____%
____%
____%
Know your “Champions” Use the analytics at your disposal
Find information Talk with the front-line
Dissect the competition Share what you learn
Use your MCIF to drive information and automate some processes Create ambassadors
Engage all staff
Be your best promoter And most vocal critic
Share the progress Weekly
Monthly Recaps Program End Post-mortem
Marketing’s total impact Margin earned
Non interest revenue Average balances
Cross selling Promotional expense
Quantity and quality measurements
Summary
Use facts and data to create intelligent conversations with your managers
Build a strong partnership with your Finance Group
Results for programs work best when both the field and Marketing have ownership
Pilot programs are a great tool for testing new ideas and creating realistic projections
Always keep your results close to you
ROI Wrap-Up: Key Take-Home Points
Wrap-Up: Key Take-Home Points
From the MarketMatch Team…
Thank You!
Thank You!
Feedback welcomed, please email me at: [email protected]