Download - Credit Union SEG Development

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.”


“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.”


“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.”


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


“Treat every customer as �if they sign your paycheck … �

because they do.”�

- Unknown �


  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


“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


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%


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!

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